EXHIBIT 9.4
Published on July 2, 2007
Exhibit 9.4
STOCK PURCHASE WARRANT
THIS WARRANT AND ANY SHARES ISSUED UPON ITS EXERCISE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE ACT), AND HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH VIEW TO, OR
IN CONNECTION WITH, THE SALE OR DISTRIBUTION THEREOF. NO SUCH SALE OR DISPOSITION OF ANY SHARES
ISSUED UPON EXERCISE HEREOF MAY BE AFFECTED WITHOUT AN EFFECTIVE REGISTRATION STATEMENT RELATED
THERETO OR AN OPINION OF COUNSEL SATISFACTORY IN FORM AND SUBSTANCE TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED UNDER THE ACT THE TRANSFER OF THIS WARRANT IS RESTRICTED AS SET FORTH
HEREIN.
No. | June , 2007 |
SAVE THE WORLD AIR, INC.
WARRANT TO PURCHASE COMMON STOCK
VOID AFTER 5:00 P.M. P.S.T. ON June , 2009
WARRANT TO PURCHASE COMMON STOCK
VOID AFTER 5:00 P.M. P.S.T. ON June , 2009
THIS CERTIFIES that, for the value received, the holder identified on the last page of this
Warrant (the Holder) is entitled, upon the terms and subject to the conditions hereinafter set
forth, at any time on or after the date of this Warrant and on or prior to 5:00 p.m. P.S.T. on the
second anniversary of the date of this Warrant (the Expiration Time), but not thereafter, to
subscribe for and purchase, from SAVE THE WORLD AIR, INC., a Nevada corporation (the Company), up
to ___shares of the Companys Common Stock (the Shares) at a purchase price per share
equal to $0.50 (the Exercise Price).
1. Exercise of Warrant.
(a) The purchase rights represented by this Warrant are exercisable by the Holder, in whole or
in part, at any time after the date of this Warrant and before the Expiration Time by the
surrender of this Warrant and the Notice of Exercise annexed hereto duly executed at the office of
the Company, in North Hollywood, California (or such other office or agency of the Company as it
may designate by notice in writing to the Holder at the address of the Holder appearing on the
books of the Company), and upon payment of an amount equal to the aggregate Exercise Price for the
number of Shares thereby purchased (by cash or by check or certified bank check payable to the
order of the Company in an amount equal to the purchase price of the shares thereby purchased);
whereupon the Holder shall be entitled to receive a stock certificate representing the number of
Shares so purchased. The Company agrees that if at the time of the surrender of this Warrant and
purchase of the Shares, the Holder shall be entitled to exercise this Warrant, the Shares so
purchased shall be and be deemed to be issued to
1
such holder as the record owner of such Shares as of the close of business on the date on
which this Warrant shall have been exercised as aforesaid.
Upon partial exercise of this Warrant, the Holder shall be entitled to receive from the
Company a new Warrant in substantially identical form for the purchase of that number of Shares as
to which this Warrant shall not have been exercised. Certificates for Shares purchased hereunder
shall be delivered to the Holder within a reasonable time after the date on which this Warrant
shall have been exercised as aforesaid.
2. No Fractional Shares or Scrip. No fractional shares or scrip representing
fractional shares shall be issued upon the exercise of this Warrant. With respect to any fraction
of a share called for upon the exercise of this Warrant, an amount equal to such fraction
multiplied by the then current fair market value at which each Share may be purchased hereunder
shall be paid in cash to the Holder.
(a) For purposes of this Section 2, the fair market value of the Shares shall mean the average
closing price of a share of the Companys Common Stock on a national stock exchange on which the
Common Stock is listed at the time of exercise on the last business day prior to the date of
exercise of this Warrant pursuant to Section l or, if the Companys Common Stock is not so listed,
the fair market value of the Common Stock (without regard to the restrictions on transfer or number
of Shares) as determined in good faith by the Companys Board of Directors.
3. Charges, Taxes and Expenses. The Holder shall pay all issue and transfer taxes and
other incidental expenses in respect of the issuance of certificates for Shares upon the exercise
of this Warrant, and such certificates shall be issued in the name of the Holder of this Warrant.
4. No Rights as a Stockholder. This Warrant does not entitle the Holder to any voting
rights or other rights as a stockholder of the Company prior to the exercise hereof.
5. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by the Company of
evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this
Warrant, and in case of loss, theft or destruction of this Warrant, upon delivery of an indemnity
agreement or security reasonably satisfactory in form and amount to the Company or, in the case of
any such mutilation, upon surrender and cancellation of such Warrant, and upon reimbursement to the
Company of all reasonable expenses incidental thereto, the Company will make and deliver to the
Holder, in lieu thereof, a new Warrant in substantially identical form and dated as of such
cancellation.
6. Saturdays, Sundays, Holidays, etc. If the last or appointed day for the taking of
any action or the expiration of any right required or granted herein shall be a Saturday or a
Sunday or shall be a legal holiday in the United States or the State of California, then such
action may be taken or such right may be exercised on the next succeeding business.
2
7. Merger, Reclassification, etc.
(a) Merger, etc. If at any time the Company proposes (A) the acquisition of the
Company by another entity by means of any transaction or series of related transactions (including,
without limitation, any reorganization, merger, consolidation or stock issuance) that results in
the transfer of fifty percent (50%) or more of the then outstanding voting power of the Company; or
(B) a sale of all or substantially all of the assets of the Company, then the Company shall give
the Holder ten (10) days notice of the proposed effective date of the transaction. If, in the case
of such acquisition of the Company, and the Warrant has not been exercised by the effective date of
the transaction, this Warrant shall be exercisable into the kind and number of shares of stock or
other securities or property of the Company or of the entity resulting from such merger or
acquisition to which such Holder would have been entitled if immediately prior to such acquisition
or merger, it had exercised this Warrant. The provisions of this Section 7(a) shall similarly apply
to successive consolidations, mergers, sales or conveyances.
(b) Reclassification, etc. If the Company at any time shall, by subdivision,
combination or reclassification of securities or otherwise, change any of the securities to which
purchase rights under this Warrant exist into the same or a different number of securities of any
class or classes, this Warrant shall thereafter be to acquire such number and kind of securities as
would have been issuable as the result of such change with respect to the securities which were
subject to the purchase rights under this Warrant immediately prior to such subdivision,
combination, reclassification or other change. If the Shares are subdivided or combined into a
greater or smaller number of Shares, the Exercise Price under this Warrant shall be proportionately
reduced in case of subdivision of shares or proportionately increased in the case of combination of
shares, in both cases by the ratio which the total number of Shares to be outstanding immediately
after such event bears to the total number of Shares outstanding immediately prior to such event.
(c) Cash Distributions. No adjustment on account of cash dividends or interest on the
Shares or other securities purchasable hereunder will be made to the Exercise Price under this
Warrant.
8. Restrictions on Transfer.
(a) Restrictions on Transfer of Shares. In no event will the Holder make a disposition
of this Warrant or the Shares unless and until, if requested by the Company, it shall have
furnished the Company with an opinion of counsel satisfactory to the Company and its counsel to the
effect that appropriate action necessary for compliance with the Securities Act of 1933, as amended
(the Act) relating to sale of an unregistered security has been taken. Notwithstanding the
foregoing, the restrictions imposed upon the transferability of the Shares shall terminate as to
any particular Share when (i) such security shall have been sold without registration in compliance
with Rule 144 under the Act, or (ii) a letter shall have been issued to the Holder at its request
by the staff of the Securities and Exchange Commission or a ruling shall have been issued to the
Holder at its request by such Commission stating that no action shall be recommended by such staff
3
or taken by such Commission, as the case may be, if such security is transferred without
registration under the Act in accordance with the conditions set forth in such letter or ruling and
such letter or ruling specifies that no subsequent restrictions on transfer are required, or (iii)
such security shall have been registered under the Act and sold by the Holder thereof in accordance
with such registration.
(b) Subject to the provisions of Section 8(a) hereof, this Warrant and all rights hereunder
are transferable, in whole or in part, upon surrender of the Warrant with a properly executed
assignment at the principal office of the Company.
(c) Restrictive Legends. The stock certificates representing the Shares and any
securities of the Company issued with respect thereto shall be imprinted with legends restricting
transfer except in compliance with the terms hereof and with applicable federal and state
securities laws.
9. Miscellaneous.
(a) Governing Law. This Warrant shall be governed by and construed in accordance with
the laws of the State of California applicable to contracts made and to be performed wholly within
such state.
(b) Restrictions. The Holder acknowledges that the Shares acquired upon the exercise
of this Warrant may have restrictions upon its resale imposed by state and federal securities laws.
(c) Waivers Strictly Construed. With regard to any power, remedy or right provided
herein or otherwise available to any party hereunder (i) no waiver or extension of time shall be
effective unless expressly contained in a writing signed by the waiving party; and (ii) no
alteration, modification or impairment shall be implied by reason of any previous waiver, extension
of time, delay or omission in exercise, or other indulgence.
(d) Complete Agreement and Modifications. This Warrant constitutes the Companys and
Holders entire agreement with respect to the subject matter hereof and supersedes all agreements,
representations, warranties, statements, promises and understandings, whether oral or written, with
respect to the subject matter hereof. This Warrant may not be amended, altered or modified except
by a writing signed by the Company and the Holder of this Warrant.
IN WITNESS WHEREOF, SAVE THE WORLD AIR, INC. has caused this Warrant to be executed by its
duly authorized representative dated as of the date first set forth above.
SAVE THE WORLD AIR, INC. 5125 Lankershim Boulevard North Hollywood, CA 91601 |
||||
By: | ||||
Name: | Bruce McKinnon | |||
Title: | Chief Executive Officer |
4
NOTICE OF EXERCISE
TO: SAVE THE WORLD AIR, INC., a Nevada corporation
(1) The undersigned hereby elects to purchase ___shares of Common Stock (the
Shares) of Save the World Air, Inc. pursuant to the terms of the attached Warrant, and tenders
herewith payment of the purchase price in full, together with all applicable transfer taxes, if
any.
(2) Please issue a certificate or certificates representing the Shares in the name of the
undersigned or in such other name as is specified below:
(Print Name)
Address:
(3) The undersigned confirms that he is an accredited investor as defined by Rule 501(a)
under the Securities Act of 1933, as amended, at the time of execution of this Notice.
(4) The undersigned confirms that the Shares are being acquired for the account of the
undersigned for investment only and not with a view to, or for resale in connection with, the
distribution thereof and that the undersigned has no present intention of distributing or selling
the Shares.
(5) The undersigned accepts such Shares subject to the restrictions on transfer set forth in
the attached Warrant.
Date:
|
||||||
(Signature) | ||||||
(Print Name) |
5