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. 2
Warrant to Purchase
500,000 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 FIVE HUNDRED THOUSAND (500,000)
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 FORTY CENTS
($0.40) 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 Warrant 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 the
Warrant Price then in effect, 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
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