Exhibit 4.1
THE WARRANTS REPRESENTED BY
THIS CERTIFICATE AND THE SECURITIES THAT MAY BE ISSUED UPON
EXERCISE OF THE WARRANTS HAVE NOT BEEN REGISTERED WITH THE
SECURITIES AND EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF
ANY STATE AND HAVE BEEN ISSUED IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“SECURITIES ACT”), AND, ACCORDINGLY, MAY NOT BE OFFERED
OR SOLD EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT
UNDER THE SECURITIES ACT OR PURSUANT TO AN AVAILABLE EXEMPTION
FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH
APPLICABLE STATE SECURITIES LAWS.
Beacon Enterprise Solutions Group,
Inc.
STOCK PURCHASE WARRANT
Beacon Enterprise
Solutions Group, Inc., a Nevada corporation (the “
Company ”), hereby certifies that, for value received,
[INVESTOR NAME] or his registered assigns (the “
Holder ”), is entitled to purchase from the Company up
to a total of [NO. SHARES] shares of common stock, $0.001 par value
per share (the “ Common Stock ”), of the Company
(each such share, a “ Warrant Share ” and all
such shares issuable under the warrants, the “ Warrant
Shares ”) at an exercise price equal to $1.00 per share
(as adjusted from time to time as provided in Section 9, the
“ Exercise Price ”), at any time and from the
date hereof and through and including the date that is five (5)
years from the date of issuance hereof (the “ Expiration
Date ”), and subject to the following terms and
conditions. All such warrants are referred to herein, collectively,
as the “ Warrants ” and the holders thereof
along with the Holder named herein, the “ Holders
.”
1.
Definitions . In addition to the terms defined elsewhere in
this Warrant, capitalized terms that are not otherwise defined
herein have the meanings given to such terms in the Purchase
Agreement.
2.
Registration of Warrant . The Company shall register this
Warrant, upon records to be maintained by the Company for that
purpose (the “ Warrant Register ”), in the name
of the record Holder hereof from time to time. The Company may deem
and treat the registered Holder of this Warrant as the absolute
owner hereof for the purpose of any exercise hereof or any
distribution to the Holder, and for all other purposes, absent
actual notice to the contrary.
3.
Registration of Transfers . The Company shall register the
transfer of any portion of this Warrant in the Warrant Register,
upon surrender of this Warrant, with the Form of Assignment
attached hereto duly completed and signed, to the Company’s
transfer agent or to the Company at its address specified herein.
Upon any such registration or transfer, a new
warrant to purchase Common Stock,
in substantially the form of this Warrant (any such new warrant, a
“ New Warrant ”), evidencing the portion of this
Warrant so transferred shall be issued to the transferee and a New
Warrant evidencing the remaining portion of this Warrant not so
transferred, if any, shall be issued to the transferring Holder.
The acceptance of the New Warrant by the transferee thereof shall
be deemed the acceptance by such transferee of all of the rights
and obligations of a holder of a Warrant.
4.
Exercise and Duration of Warrants .
(a)
This Warrant shall be exercisable by the registered Holder at any
time and from time to time on or after the date hereof to and
including the Expiration Date. At 6:30 P.M., New York City time on
the Expiration Date, the portion of this Warrant not exercised
prior thereto shall be and become void and of no value.
(b)
A Holder may exercise this Warrant by delivering to the Company (i)
an exercise notice, in the form attached hereto (the “
Exercise Notice ”), appropriately completed and duly
signed, and (ii) payment of the Exercise Price for the number of
Warrant Shares as to which this Warrant is being exercised
(which may take the form of a “cashless exercise” if
so indicated in the Exercise Notice only if a “cashless
exercise” may occur at such time pursuant to Section 10
below), and the date such items are delivered to the Company
(as determined in accordance with the notice provisions hereof) is
an “ Exercise Date .” The Holder shall not be
required to deliver the original Warrant in order to effect an
exercise hereunder. Execution and delivery of the Exercise Notice
shall have the same effect as cancellation of the original Warrant
and issuance of a New Warrant evidencing the right to purchase the
remaining number of Warrant Shares.
(c)
Exercise Disputes . In the case of any dispute with respect
to the number of shares to be issued upon exercise of this Warrant,
the Company shall promptly issue such number of shares of Common
Stock that is not disputed and shall submit the disputed
determinations or arithmetic calculations to the Holder via fax
(or, it the Holder has not provided the Company with a fax number,
by overnight courier) within two (2) Business Days of receipt of
the Holder’s election to purchase Warrant Shares. If the
Holder and the Company are unable to agree as to the determination
of the Purchase Price within two (2) Business Days of such disputed
determination or arithmetic calculation being submitted to the
Holder, then the Company shall in accordance with this Section,
submit via facsimile the disputed determination to an independent
reputable accounting firm of national standing, selected jointly by
the Company and the Holder. The Company shall cause such accounting
firm to perform the determinations or calculations and notify the
Company and the Holder of the results as promptly as possible from
the time it receives the disputed determinations of calculations.
Such accounting firm’s determination shall be binding upon
all parties absent manifest error. The Company shall then on the
next Business Day issue certificate(s) representing the appropriate
number of Warrant Shares of Common Stock in accordance with such
accounting firm’s determination and this Section. The
prevailing party shall be entitled to reimbursement of all fees and
expenses of such determination and calculation.
5. Delivery of Warrant
Shares .
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(a)
Upon exercise of this Warrant, the Company shall promptly (but in
no event later than five Trading Days after the Exercise Date)
issue or cause to be issued and cause to be delivered to or upon
the written order of the Holder and in such name or names as the
Holder may designate, a certificate for the Warrant Shares to which
the Holder is entitled upon such exercise, free of restrictive
legends unless a registration statement covering the resale of the
Warrant Shares and naming the Holder as a selling stockholder
thereunder is not then effective and the Warrant Shares are not
freely transferable pursuant to Rule 144 under the Securities Act
of 1933, as amended. The Company shall, upon request of the Holder,
use its best efforts to deliver Warrant Shares hereunder
electronically through the Depository Trust Corporation or another
established clearing corporation performing similar functions. For
the purposes hereof, the term “Trading Day” means (a)
any day on which the Common Stock is listed or quoted and traded on
its primary trading market, (b) if the Common Stock is not then
listed or quoted and traded on any trading market, then a day on
which trading occurs on the Nasdaq Global Market (or any successor
thereto), or (c) if trading ceases to occur on the Nasdaq Global
Market (or any successor thereto), any Business Day.
(b)
This Warrant is exercisable, either in its entirety or, from time
to time, for a portion of the number of Warrant Shares. Upon
surrender of this Warrant following one or more partial exercises,
the Company shall issue or cause to be issued, at its expense, a
New Warrant evidencing the right to purchase the remaining number
of Warrant Shares.
(c)
Intentionally Omitted.
(d)
The Company’s obligations to issue and deliver Warrant Shares
in accordance with the terms hereof are absolute and unconditional,
irrespective of any action or inaction by the Holder to enforce the
same, any waiver or consent with respect to any provision hereof,
the recovery of any judgment against any Person or any action to
enforce the same, or any setoff, counterclaim, recoupment,
limitation or termination, or any breach or alleged breach by the
Holder or any other Person of any obligation to the Company or any
violation or alleged violation of law by the Holder or any other
Person, and irrespective of any other circumstance which might
otherwise limit such obligation of the Company to the Holder in
connection with the issuance of Warrant Shares. 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 Company’s failure to timely
deliver certificates representing shares of Common Stock upon
exercise of the Warrant as required pursuant to the terms
hereof.
6.
Charges, Taxes and Expenses . Issuance and delivery of
certificates for shares of Common Stock upon exercise of this
Warrant shall be made without charge to the Holder for any issue or
transfer tax, withholding tax, transfer agent fee or other
incidental tax or expense in respect of the issuance of such
certificates, all of which taxes and expenses shall be paid by the
Company; provided, however, that the Company shall not be required
to pay any tax which may be payable in respect of any transfer
involved in the registration of any certificates for Warrant Shares
or Warrants in a name other than that of the Holder. The Holder
shall be responsible for all other tax liability that may arise as
a result of holding or transferring this Warrant or receiving
Warrant Shares upon exercise hereof.
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7.
Replacement of Warrant . If this Warrant is mutilated, lost,
stolen or destroyed, the Company shall issue or cause to be issued
in exchange and substitution for and upon cancellation hereof, or
in lieu of and substitution for this Warrant, a New Warrant, but
only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and customary and
reasonable bond or indemnity, if requested. Applicants for a New
Warrant under such circumstances shall also comply with such other
reasonable regulations and procedures and pay such other reasonable
third-party costs as the Company may prescribe.
8.
Reservation of Warrant Shares . The Company covenants that
it will at all times reserve and keep available out of the
aggregate of its authorized but unissued and otherwise unreserved
Common Stock, solely for the purpose of enabling it to issue
Warrant Shares upon exercise of this Warrant as herein provided,
100% of the number of Warrant Shares which are then issuable and
deliverable upon the exercise of this entire Warrant, free from
preemptive rights or any other contingent purchase rights of
persons other than the Holder (after giving effect to the
adjustments and restrictions of Section 9 , if any). The
Company covenants that all Warrant Shares so issuable and
deliverable shall, upon issuance and the payment of the applicable
Exercise Price in accordance with the terms hereof, be duly and
validly authorized, issued and fully paid and nonassessable. The
Company will take all such action as may be necessary to assure
that such shares of Common Stock may be issued as provided herein
without violation of any applicable law or regulation, or of any
requirements of any securities exchange or automated quotation
system upon which the Common Stock may be listed.
9.
Certain Adjustments . The Exercise Price and number of
Warrant Shares issuable upon exercise of this Warrant are subject
to adjustment from time to time as set forth in this Section
9 .
(a)
Stock Dividends and Splits . If the Company, at any time
while this Warrant is outstanding, (i) pays a stock dividend on its
Common Stock or otherwise makes a distribution on any class of
capital stock that is payable in shares of Common Stock, (ii)
subdivides outstanding shares of Common Stock into a larger number
of shares, or (iii) combines outstanding shares of Common Stock
into a smaller number of shares, then in each such case the
Exercise Price shall be multiplied by a fraction of which the
numerator shall be the number of shares of Common Stock outstanding
immediately before such event and of which the denominator shall be
the number of shares of Common Stock outstanding immediately after
such event. Any adjustment made pursuant to clause (i) of this
paragraph shall become effective immediately after the record date
for the determination of stockholders entitled to receive such
dividend or distribution, and any adjustment pursuant to clause
(ii) or (iii) of this paragraph shall become effective immediately
after the effective date of such subdivision or
combination.
(b)
Distributions Made Prior to Exercise . If the Company, at
any time while this Warrant is outstanding, distributes to all of
the holders of Common Stock (i) evidences of its indebtedness, (ii)
any security (other than a distribution of Common Stock covered by
Section 9(a)), (iii) rights or warrants to subscribe for or
purchase any security, or (iv) any other asset (in each case, a
“ Distribution ”), then in each such case any
Exercise Price in effect immediately prior to the close of business
on the record date fixed for the determination of holders of Common
Stock entitled to receive the Distribution shall be reduced,
effective as of the close of business on such record date, to a
price determined by multiplying such Exercise Price by a
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fraction of which (i) the
numerator shall be the Weighted Average Price 1 of the
Common Stock on the Trading Day immediately preceding such record
date minus the value of the Distribution (as determined in good
faith by the Company’s Board of Directors) applicable to one
share of Common Stock, and (ii) the denominator shall be the
Weighted Average Price of the Common Stock on the Trading Day
immediately preceding such record date.
(c)
Notwithstanding the provisions set forth in Section 9(b)
above, if the Company, at any time while this Warrant is
outstanding, makes a Distribution to the holders of Common Stock,
then in each such case the Holder shall have the option to receive
such Distribution which would have been made to the Holder had such
Holder been the holder of such Warrant Shares on the record date
for the determination of stockholders entitled to such
Distribution; provided, however, if the Holder elects to receive
such Distribution, it will not be entitled to receive the
adjustment to the Exercise Price specified in clause (b)
above.
(d)
Fundamental Transactions . If, at any time during the term
of this Warrant, (i) the Company effects any merger or
consolidation of the Company with or into (whether or not the
Company is the surviving corporation) another Person, (ii) the
Company effects any sale, assignment, transfer, conveyance or other
disposition of all or substantially all of its assets in one or a
series of related transactions; provided, however, that for
avoidance of doubt, the granting of a lien on all or substantially
all of the Company’s assets as collateral shall not be deemed
a Fundamental Transaction hereunder, (iii) allow another Person to
make a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of either the outstanding shares of
Common Stock (not including any shares of Common Stock held by the
Person or Persons making or party to, or associated or affiliated
with the Persons making or party to, such purchase, tender or
exchange offer), (iv) consummate a stock purchase agreement or
other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of
arrangement) with another Person whereby such other Person acquires
more than the 50% of the outstanding shares of Common Stock (not
including any shares of Common Stock held by the other Person or
other Persons making or party to, or associated or affiliated with
the other Persons making or party to, such stock purchase agreement
or other business combination), or (v) the Company effects any
reclassification of the Common Stock or any compulsory share
exchange pursuant to which the Common Stock is effectively
converted into or exchanged for other securities, cash or property
(other than as a result of a subdivision or combination of shares
of Common Stock covered by Section 9(a) above) (in any such
case, a “ Fundamental Transaction ”), then the
Holder shall have the right thereafter to receive, upon
1 “Weighted Average Price” means, for
any security as of any date, the dollar volume-weighted average
price for such security on NASDAQ during the period beginning at
9:30:01 a.m., New York Time (or such other time as NASDAQ publicly
announces is the official open of trading), and ending at 4:00:00
p.m., New York Time (or such other time as NASDAQ publicly
announces is the official close of trading) as reported by
Bloomberg (means Bloomberg Financial Markets) through its
“Volume at Price” functions, or, if the foregoing does
not apply, the dollar volume-weighted average price of such
security in the over-the-counter market on the electronic bulletin
board for such security during the period beginning at 9:30:01
a.m., New York Time (or such other time as such Principal Market
publicly announces is the official open of trading), and ending at
4:00:00 p.m., New York Time (or such other time as such market
publicly announces