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Exhibit 4.1 XENOPORT, INC.
WARRANT TO PURCHASE [____] SHARES OF COMMON STOCK Date of
Issuance: [______] [__], 200__ VOID AFTER [______] [__], 200__
This Certifies That , for
value received, [___], or permitted registered assigns (the "
Holder "), is entitled to subscribe for and purchase
at the Exercise Price (defined below) from XenoPort, Inc., a
Delaware corporation (the " Company "), up to [___]
shares of the common stock of the Company, par value $.001 per
share (the " Common Stock "). This warrant is one of
a series of warrants issued by the Company as of the date hereof
(individually a " Warrant "; collectively, "
Company Warrants ") pursuant to those certain
purchase agreements between the Company and each of the Investors,
each dated as of December 30, 2008 (each, a " Purchase
Agreement ").
1. Definitions . Capitalized terms used herein but not
otherwise defined herein shall have their respective meanings as
set forth in the Purchase Agreement. As used herein, the following
terms shall have the following respective meanings:
(A) " Eligible Market " means any of the
New York Stock Exchange, the American Stock Exchange, The NASDAQ
Global Market, The NASDAQ Global Select Market or The NASDAQ
Capital Market.
(B) " Exercise Period " shall mean the
period ending five years from the date hereof, unless sooner
terminated as provided below.
(C) " Exercise Price " shall mean $25.40
per share, subject to adjustment pursuant to Section 4
below.
(D) " Exercise Shares " shall mean the
shares of Common Stock issuable upon exercise of this Warrant.
(E) " Fundamental Transaction " means
that the Company shall, directly or indirectly, in one or more
related transactions, (i) consolidate or merge with or into
(whether or not the Company is the surviving corporation) another
Person, or (ii) sell, assign, transfer, convey or otherwise
dispose of all or substantially all of the properties or assets of
the Company to another Person, or (iii) enter into an agreement
with another Person pursuant to which such Person agrees to make a
purchase, tender or exchange offer that is accepted by the holders
of more than the 50% of 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), or
(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), (v) reorganize, recapitalize or reclassify its
Common Stock, or (vi) any "person" or "group" (as these terms
are used for purposes of Sections 13(d) and 14(d) of the Exchange
Act) is or shall become the "beneficial owner" (as defined in
Rule 13d-3 under the Exchange Act), directly or indirectly, of
50% of the aggregate ordinary voting power represented by issued
and outstanding Common Stock.
(F) " Parent Entity " of a Person means
an entity that, directly or indirectly, controls the applicable
Person and whose common stock or equivalent equity security is
quoted or listed on The New York Stock Exchange, Inc. or an
Eligible Market, or, if there is more than one such Person or
Parent Entity, the Person or Parent Entity with the largest public
market capitalization as of the date of consummation of the
Fundamental Transaction.
(G) " Person " means an individual, a
limited liability company, a partnership, a joint venture, a
corporation, a trust, an unincorporated organization, any other
entity and a government or any department or agency thereof.
(H) " Successor Entity " means the
Person (or, if so elected by the Holder, the Parent Entity) formed
by, resulting from or surviving any Fundamental Transaction or the
Person (or, if so elected by the Holder, the Parent Entity) with
which such Fundamental Transaction shall have been entered into.
(I) " Trading Day " shall mean
(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 Eligible Market,
then a day on which trading occurs on the OTC Bulletin Board (or
any successor thereto), or (c) if trading does not occur on
the OTC Bulletin Board (or any successor thereto), any Business
Day.
(J) " Trading Market " shall mean the
OTC Bulletin Board or any other Eligible Market, or any national
securities exchange, market or trading or quotation facility on
which the Common Stock is then listed or quoted.
2. Exercise of Warrant .
2.1
Exercise. The rights represented by this Warrant may be
exercised in whole or in part at any time during the Exercise
Period, by delivery of the following to the Company at its address
set forth on the signature page hereto (or at such other address as
it may designate by notice in writing to the Holder):
(A) An executed Notice of Exercise in the form
attached hereto;
(B) Payment of the Exercise Price either (i) in
cash or by check or (ii) pursuant to Section 2.2 below; and
(C) This Warrant.
Execution
and delivery of the Notice of Exercise 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
Exercise Shares, if any. Certificates
for shares purchased hereunder shall be transmitted by the transfer
agent of the Company to the Holder by crediting the account of the
Holder’s prime broker with the Depository Trust Company
through its Deposit Withdrawal Agent Commission system if the
Company is a participant in such system, and otherwise by physical
delivery to the address specified by the Holder in the Notice of
Exercise within three business days from the delivery to the
Company of the Notice of Exercise, surrender of this Warrant and
payment of the aggregate Exercise Price as set forth above. This
Warrant shall be deemed to have been exercised on the date the
Exercise Price is received by the Company.
The person in whose name any
certificate or certificates for Exercise Shares are to be issued
upon exercise of this Warrant shall be deemed to have become the
holder of record of such shares on the date on which this Warrant
was surrendered and payment of the Exercise Price was made,
irrespective of the date of delivery of such certificate or
certificates, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are
closed, such person shall be deemed to have become the holder of
such shares at the close of business on the next succeeding date on
which the stock transfer books are open.
Subject to the final sentence of this
paragraph and to the extent permitted by law, the Company’s
obligations to issue and deliver Exercise 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 entity 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 or entity of any obligation to the
Company or any violation or alleged violation of law by the Holder
or any other person or entity, and irrespective of any other
circumstance which might otherwise limit such obligation of the
Company to the Holder in connection with the issuance of Exercise
Shares. The Holder shall, subject to the following proviso, have
the right to pursue any 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 Exercise Shares upon
exercise of this Warrant as required pursuant to the terms hereof;
provided , however , that notwithstanding anything to
the contrary in this Warrant or in the Purchase Agreements, if the
Company is for any reason unable to deliver Exercise Shares upon
exercise of this Warrant as required pursuant to the terms hereof,
the Company shall have no obligation to pay to the Holder any cash
or other consideration or otherwise "net cash settle" this Warrant.
Except for cash in lieu of fractional
shares as provided in Section 5, this Warrant may not
be settled by the Company for cash to the Holder in lieu of Common
Stock.
2.2 Net Exercise . If during the Exercise Period the fair
market value of one share of the Common Stock is greater than the
Exercise Price (at the date of calculation as set forth below), in
lieu of exercising this Warrant by payment of cash or by check, the
Holder may, at its election, effect a "net exercise" of this
Warrant, in which event, if so effected, the Holder
shall receive Exercise Shares equal to the value (as determined
below) of this Warrant (or the portion thereof being canceled) by
surrender of this Warrant at the principal office of the Company,
together with the properly endorsed Notice of Exercise, in which
event the Company shall issue to the Holder a number of shares of
Common Stock computed using the following formula:
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