THE
SECURITIES REPRESENTED BY THIS WARRANT CERTIFICATE AND THE SHARES
OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
“ACT”), OR APPLICABLE STATE SECURITIES LAWS AND NO
INTEREST THEREIN MAY BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF
UNLESS (1) A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES
SHALL BE EFFECTIVE UNDER THE ACT AND ANY APPLICABLE STATE
SECURITIES LAWS OR (2) SUCH SECURITIES ARE TRANSFERRED PURSUANT TO
RULE 144 PROMULGATED UNDER THE ACT (OR ANY SUCCESSOR RULE) OR (3)
COMPREHENSIVE HEALTHCARE SOLUTIONS, INC. SHALL HAVE RECEIVED AN
OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT NO VIOLATION
OF THE ACT WILL BE INVOLVED IN SUCH TRANSFER.
COMPREHENSIVE HEALTHCARE
SOLUTIONS, INC.
EXERCISABLE AT OR
BEFORE
5:00 P.M., EASTERN TIME,
AUGUST 3, 2010
No. 4
Warrant to Purchase
1,000,000 Shares
WARRANT TO PURCHASE
SHARES
OF COMMON
STOCK
THIS CERTIFIES
THAT , for value
received, COMPREHENSIVE ASSOCIATES LLC , a New
York limited liability company (together with its successors and
assigns, the “Holder”), with offices at 64 Shelter
Lane, Roslyn, New York 11577, is entitled to subscribe for and
purchase up to ONE MILLION (1,000,000) shares, as
adjusted pursuant to Section 4 (the “Shares”), of the
fully paid and nonassessable common stock, par value $.10 per share
(the “Common Stock”) of COMPREHENSIVE
HEALTHCARE SOLUTIONS, INC. , a Delaware corporation (the
“Company”), at the price of SIXTY
CENTS ($0.60) per share (such
price, and such other prices that shall result from time to time,
from the adjustments specified in Section 4, the
“Warrant Price”), subject to the provisions and upon
the terms and conditions hereinafter set forth.
1. Term. The purchase right represented by this
Warrant is exercisable, in whole or in part, at any time, and from
time to time, from and after the date hereof and until
5:00 p.m., Eastern Time, August 3, 2010.
2. Method of Exercise; Payment; Issuance of New
Warrant.
(a) The purchase right represented by this Warrant
may be exercised by the Holder, in whole or in part and from time
to time, by the surrender of this Warrant (with the notice of
exercise form attached hereto as Annex I duly executed) at the
principal office of the Company and by the payment to the Company
of the Warrant Price in cash.
(b) The persons or entities in whose name(s) any
certificate(s) representing Shares shall be issuable upon exercise
of this Warrant shall be deemed to have become the holder(s) of
record of, and shall be treated for all purposes as the record
holder(s) of, the Shares represented thereby (and such Shares shall
be deemed to have been issued) immediately prior to the close of
business on the date or dates upon which this Warrant is properly
exercised and full payment for the Shares acquired pursuant to such
exercise is made. Upon any exercise of the rights represented by
this Warrant, certificates for the Shares purchased shall be
delivered to the Holder hereof within one (1) day of receipt of
such notice and payment, and unless this Warrant has been fully
exercised or expired, a new Warrant representing the portion of
Shares, if any, with respect to which this Warrant shall not then
have been exercised shall also be issued to the holder hereof as
soon as possible but in any event within five (5) days.
3. Stock Fully Paid, Reservation of Shares. All
Shares that may be issued upon the exercise of this Warrant will,
upon issuance, be duly and validly authorized and issued, fully
paid and nonassessable, and will be free from all transfer taxes,
liens and charges with respect to the issue thereof and assuming
payment of the applicable consideration for all Shares so
purchased, legally and validly owned by the Holder. During the
period within which this Warrant may be exercised, the Company will
at all times have authorized, and reserved for the sole purpose of
the issue upon the exercise of the purchase rights evidenced by
this Warrant, a sufficient number of shares of its Common Stock to
provide for the exercise of the rights represented by this Warrant;
and if at any time the number of authorized shares of Common Stock
shall not be sufficient to effect the exercise of this Warrant, the
Company will take such corporate action as may be necessary to
increase its authorized shares of Common Stock to such number of
shares as shall be sufficient for such purpose; the Company shall
have analogous obligations with respect to any other securities or
property issuable upon exercise of this Warrant. As long as this
Warrant shall be outstanding, the Company shall use its best
efforts to cause all shares of Common Stock issuable upon exercise
of this Warrant to be listed and/or quoted on all securities
exchanges and/or Nasdaq or other medium on which such shares may
then be listed.
4. Adjustment of Warrant Price and Number of
Shares. The number and kind of securities purchasable upon the
exercise of this Warrant and the Warrant Price shall be subject to
the adjustment from time to time upon the occurrence of certain
events, as follows:
(a) No Impairment. The Company shall not, by
amendment of its Certificate of Incorporation or By-laws or through
any reorganization, recapitalization, transfer of assets,
consolidation, merger, dissolution, issue or sale of securities or
any other voluntary action, avoid or seek to avoid the observance
or performance of any of the terms to be observed or performed
hereunder by the Company, but will at all times in good faith
assist in the carrying out of all the provisions of this Section 4
and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the Holder against
impairment.
(b) Below Exercise Price Issuance; Stock Dividends;
Etc.
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(i)
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Sale of Shares
Below Threshold Price.
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(A) If at any time or from time to time after the
date hereof the Company issues or sells shares of Common Stock or
Common Stock Equivalents (as hereinafter defined) (other than as a
dividend or other distribution on any class of stock as provided in
Section 4(b)(ii) below, or a subdivision or combination of
shares as provided in Section 4(b)(iii) below) for an
Effective Price (as hereinafter defined) that is less
than fifty cents ($.50) per share (the “Threshold
Price”) (as such Threshold Price is adjusted for the events
set forth in subparagraphs (ii), (iii) and (iv) of this paragraph
(b)), then, and in each such case, the then existing Warrant Price
shall be reduced, as of the opening of business on the date of such
issue or sale, to the Effective Price. For purposes
hereof,
(I) a “Common Stock Equivalent” shall
mean each share of Common Stock into which securities or property
or rights are convertible, exchangeable or exercisable for or into
shares of Common Stock, or otherwise entitle the holder thereof to
receive directly or indirectly, any of the foregoing (provided that
the Warrant Price shall be adjusted to reflect any termination of
such instruments prior to the exercise of this Warrant);
and
(II) the “Effective Price” of
(x) a Common Stock Equivalent shall mean the sum of
(x) the fair market value of the consideration paid for such
security plus (y) the fair market value of the minimum
consideration, if any, to be paid for the conversion, exercise or
exchange of such security for or into each share of Common Stock,
in each case on a per share of Common Stock basis (provided that
the Warrant Price shall be adjusted to reflect adjustments to the
Effective Price based upon any change in such minimum consideration
to be paid prior to the exercise of this Warrant) and
(y) a share of Common Stock issued by the Company
(other than upon the conversion, exercise or exchange of Common
Stock Equivalents) shall be the fair market value of the
consideration paid for such share of Common Stock.
(B)
Consideration Received for Securities. For the
purpose of making any adjustment required under this
Section 4(b)(i), the consideration received by the Company for
any issue or sale of securities shall (x) to the extent it
consists of cash, be computed at the gross amount of cash received
by the Company prior to deduction of any underwriting or similar
commissions, compensation or concessions paid or allowed by the
Company in connection with such issue or sale and without deduction
of any expenses payable by the Company, and (y) to the extent
it consists of property other than cash, be computed at the fair
market value of that property as determined, in good faith, by the
Board of Directors, and if additional shares of Common Stock and/or
Common Stock Equivalents are issued or sold together with other
stock or securities or other assets of the Company for a
consideration which covers both, be computed as the portion of the
consideration so received that may be reasonably determined, in
good faith, by the Board of Directors to be allocable to such
additional shares of Common Stock
and/or Common Stock Equivalents, which
determination shall be subject to the approval of the Holder;
provided that, in the event the Holder does not agree with the
Company's determination of the value of such consideration, the
parties shall mutually agree upon and appoint an appraiser which
shall be commissioned to investigate the value of the property to
be distributed and shall submit a notice of an appraisal of that
value to the Company and to the Holder within thirty (30) days of
such commission. The appraiser shall be instructed to determine
such value without regard to income tax consequences to the
recipient as a result of receiving consideration other than cash.
The value determined by the appraiser shall be
conclusive.
(ii)
Adjustment for Common Stock Dividends and
Distributions. If, at any time after the date hereof, the Company
makes, or fixes a record date for the determination of holders of
Common Stock entitled to receive, a dividend or other distribution
payable in additional shares of Common Stock or Common Stock
Equivalents, in each such event the Warrant Price that is then in
effect shall be decreased as of the time of such issuance or, in
the event such record date is fixed, as of the close of business on
such record date, by multiplying the Warrant Price then in effect
by a fraction (A) the numerator of which is the total number
of shares of Common Stock and Common Stock Equivalents issued and
outstanding immediately prior to the time of such issuance
o
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