Document:

exv4w7

 

EXHIBIT 4.7

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED BY THE HOLDER HEREOF FOR ITS OWN ACCOUNT FOR
INVESTMENT WITH NO INTENTION OF MAKING OR CAUSING TO BE MADE A PUBLIC DISTRIBUTION OF ALL OR ANY
PORTION THEREOF. SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT.

San Diego, California

                                        , 2005

ARTES MEDICAL USA, INC.

COMMON STOCK PURCHASE WARRANT

Void after                     , 2010

     Artes Medical USA, Inc., a Delaware corporation (the “Company”), hereby certifies that, for
value received,                                          (including any successors and assigns, “Holder”), is
entitled, immediately upon or after the date hereof, and subject to the terms set forth below, to
purchase from the Company at any time or from time to time before the earlier of (i) 5:00 PM
Pacific time, on [                    , 2010] or (ii) the closing of (a) the sale, lease, transfer or
conveyance of all or substantially all of the assets of the Company, (b) a consolidation of the
Company with, or merger of the Company with or into, any person (including any individual,
partnership, joint venture, corporation, trust or group thereof) other than a consolidation or
merger by the Company with a subsidiary of the Company in which the Company is the continuing
entity or (c) the initial underwritten public offering of the Company’s common stock (the earlier
to occur of (i) or (ii), the “Expiration Date”) fully paid and nonassessable shares of the
Company’s Common Stock (the “Warrant Shares”), with the number of the Warrant Shares and the
exercise price of the Warrant Shares to be determined as follows:

     (a) Number of Warrant Shares. This Warrant shall evidence the right of the Holder to
purchase up to                      (                    ) Warrant Shares.

     (b) Exercise Price. The exercise price per Warrant Share (the “Exercise Price”) shall
be an amount equal to Two Dollars (U.S. $2.00) per share.

     (c) Character of Warrant Shares. This Warrant shall evidence the right of the Holder
to purchase shares of Common Stock of the Company.

     As used herein the following terms, unless the context otherwise requires, have the following
respective meanings:

 

 

     (a) The term “Common Stock” shall mean the Common Stock of the Company.

     (b) The term “Company” includes any entity which shall succeed to or assume the obligations of
the Company hereunder.

     1. Exercise Date; Expiration. Subject to the provisions of Section 5.3, this Warrant
may be exercised by the Holder at any time or from time to time before the Expiration Date (the
“Exercise Period”).

     2. Exercise of Warrant; Partial Exercise. This Warrant may be exercised in full by
the Holder by surrender of this Warrant, together with the Holder’s duly executed form of
subscription attached hereto as Schedule 1, to the Company at its principal office,
accompanied by payment, in cash or by certified or official bank check payable to the order of the
Company, of the aggregate exercise price (as determined above) of the number of Warrant Shares to
be purchased hereunder. The exercise of this Warrant pursuant to this Section 2 shall be deemed to
have been effected immediately prior to the close of business on the business day on which this
Warrant is surrendered to the Company as provided in this Section 2, and at such time the person in
whose name any certificate for Warrant Shares shall be issuable upon such exercise shall be deemed
to be the record holder of such Warrant Shares for all purposes. As soon as practicable after the
exercise of this Warrant, the Company at its expense will cause to be issued in the name of and
delivered to the Holder, or as the Holder may direct, a certificate or certificates for the number
of fully paid and nonassessable full shares of Warrant Shares to which the Holder shall be entitled
on such exercise, together with cash, in lieu of any fraction of a share, equal to such fraction of
the current market value of one full Warrant Share as determined in good faith by the Board of
Directors, and, if applicable, a new warrant evidencing the balance of the shares remaining subject
to the Warrant.

     3. Net Issuance.

          3.1 Right to Convert. In addition to and without limiting the rights of the Holder
under the terms of this Warrant, the Holder shall have the right to convert this Warrant (the
“Conversion Right”) into Warrant Shares as provided in this Section 3 at any time or from time to
time during the Exercise Period. Upon exercise of the Conversion Right with respect to shares
subject to the Warrant (the “Converted Warrant Shares”), the Company shall deliver to the Holder
(without payment by the Holder of any exercise price or any cash or other consideration) that
number of fully paid and nonassessable Warrant Shares computed using the following formula:

	 	 	 	 	 	 	 
	 

	 	X =
	 	Y (A — B)	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	A	 	 

	 	 	 	 	 
	 

	 	Where X =
	 	the number of shares of Warrant Shares to be delivered to the holder
	 
	 	 	 	 
	 

	 	 	 	Y =      the number of Converted Warrant Shares
	 
	 	 	 	 
	 

	 	 	 	A =      the fair market value of one Warrant Share on the Conversion Date (as defined below)

2

 

	 	 	 	 	 
	 

	 	 	 	B =      the per share exercise price of the Warrant (as adjusted to the Conversion Date)

No fractional shares shall be issuable upon exercise of the Conversion Right, and if the number of
shares to be issued determined in accordance with the foregoing formula is other than a whole
number, the Company shall pay to the Holder an amount in cash equal to the fair market value of the
resulting fractional share on the Conversion Date (as defined below). Shares issued pursuant to
the Conversion Right shall be treated as if they were issued upon the exercise of the Warrant.

          3.2 Method of Exercise. The Conversion Right may be exercised by the Holder by the
surrender of the Warrant at the principal office of the Company together with a written statement
specifying that the Holder thereby intends to exercise the Conversion Right and indicating the
total number of shares under the Warrant that the Holder is exercising through the Conversion
Right. Such conversion shall be effective upon receipt by the Company of the Warrant together with
the aforesaid written statement, or on such later date as is specified therein (the “Conversion
Date”). Certificates for the shares issuable upon exercise of the Conversion Right shall be
delivered to the Holder promptly following the Conversion Date.

          3.3 Determination of Fair Market Value. For purposes of this Section 3, the fair
market value of a Warrant Share on the Conversion Date shall mean:

               (1) If traded on a stock exchange, the fair market value of the Common Stock shall be deemed
to be the average of the closing selling prices of the Common Stock on the stock exchange
determined by the Board to be the primary market for the Common Stock over the ten (10) trading day
period (or such shorter period immediately following the closing of an initial public offering)
ending on the date prior to the Conversion Date, as such prices are officially quoted in the
composite tape of transactions on such exchange;

               (2) If traded over-the-counter, the fair market value of the Common Stock shall be deemed to
be the average of the closing bid prices (or, if such information is available, the closing selling
prices) of the Common Stock over the ten (10) trading day period (or such shorter period
immediately following the closing of an initial public offering) ending on the date prior to the
Conversion Date, as such prices are reported by the National Association of Securities Dealers
through its NASDAQ system or any successor system; and

               (3) If there is no public market for the Common Stock, then the fair market value shall be
determined by the Board of Directors of the Company in good faith.

     4. Limit on Rights of the Holder upon Exercise. The Holder acknowledges and agrees
that upon the exercise of this Warrant in full or in part, the following provisions shall apply to
the rights of the Holder as a holder of shares of the Company’s capital stock:

          4.1 Market Stand-Off Agreement. During the period of duration specified by the
Company and an underwriter of Common Stock or other securities of the Company, following the
effective date of a registration statement of the Company filed under the Act, the

3

 

Holder or any future transferee will not, to the extent requested by the Company and such underwriter, directly
or indirectly sell, offer to sell, contract to sell (including, without limitation, any short
sale), grant any option to purchase or otherwise transfer or dispose of (other than to transferees
or donees who agree to be similarly bound) any securities of the Company held by it at any time
during such period except shares of capital stock included in such registration; provided,
however, that such agreement shall not exceed one hundred eighty (180) days and shall only
apply to the Company’s initial public offering.

               In order to enforce the foregoing covenant, the Company may impose stop-transfer instructions
with respect to the Common Stock of the Holder or any future transferee (and the shares or
securities of every other person subject to the foregoing restriction) until the end of such
period.

     5. Adjustments to Conversion Price. The number and kind of Warrant Shares (or any
shares of stock or other securities which may be) issuable upon the exercise of this Warrant and
the exercise price hereunder shall be subject to adjustment from time to time upon the happening of
certain events, as follows:

          5.1 Dividends, Distributions, Stock Splits or Combinations. If the Company shall at
any time or from time to time after the date hereof make or issue, or fix a record date for the
determination of holders of Warrant Shares entitled to receive, a dividend or other distribution
payable in additional shares of common or preferred stock (as the case may be), then and in each
such event the exercise price hereunder then in effect shall be decreased as of the time of such
issuance or, in the event such a record date shall have been fixed, as of the close of business on
such record date, by multiplying the exercise price hereunder then in effect by a fraction: (a)
the numerator of which shall be the total number of Warrant Shares (assuming the exercise or
conversion into Warrant Shares of all outstanding securities of the Company that are convertible
into Warrant Shares and the conversion of all such Warrant Shares into Common Stock) issued and
outstanding immediately prior to the time of issuance or the close of business on such record date;
and (b) the denominator of which shall be the total number of Warrant Shares (assuming the exercise
or conversion into Warrant Shares of all outstanding securities of the Company that are convertible
into Warrant Shares) issued and outstanding immediately after the time of issuance or the close of
business on such record date. If the Company shall at any time subdivide the outstanding Warrant
Shares, or if the Company shall at any time combine the outstanding Warrant Shares, then the
exercise price hereunder immediately shall be decreased proportionally (in the case of a
subdivision) or increased proportionally (in the case of a combination). Any such adjustment shall
become effective at the close of business on the date the subdivision or combination becomes
effective.

          5.2 Reclassification or Reorganization. If the Warrant Shares issuable upon the
exercise of this Warrant shall be changed into the same or different number of shares of any class
or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a
subdivision or combination of shares or stock dividend provided for in Section 5.1 above,
or a reorganization, merger, consolidation or sale of assets provided for in Section 5.3 below),
then and in each such event the Holder shall be entitled to receive upon the exercise of this
Warrant the kind and amount of shares of stock and other securities and property receivable upon

4

 

such reorganization, reclassification or other change, to which a holder of the number of Warrant
Shares issuable upon the exercise of this Warrant would have received if this Warrant had been
exercised immediately prior to such reorganization, reclassification or other change, all subject
to further adjustment as provided herein.

          5.3 Merger, Consolidation or Sale of Assets. If at any time or from time to time
there shall be a capital reorganization of the Warrant Shares or a merger, consolidation or sale of
all or substantially all of the assets of the Company (other than a subdivision, combination,
reclassification or exchange of shares provided for elsewhere in this Section 5) of the Company,
then as a part of such reorganization, provision shall be made so that the Holder shall thereafter
be entitled to receive upon the exercise of this Warrant, the number of shares of stock or other
securities or property of the Company, resulting from such reorganization, merger, consolidation or
sale, to which a holder of the number of Warrant Shares issuable upon the exercise of this Warrant
would have received if this Warrant had been exercised immediately prior to such reorganization,
merger, consolidation or sale.

          5.4 Notice of Record Dates; Adjustments. In the event of, at any time prior to the
Expiration Date, an initial public offering of securities of the Company registered under the
Securities Act of 1933, as amended, or the consolidation or merger of the Company with or into
another Company (other than a merger solely to effect a reincorporation of the Company into another
state), or the sale or other disposition of all or substantially all the properties and assets of
the Company in its entirety to any other person, the Company shall provide to the Holder twenty
(20) days advance written notice of such public offering, consolidation, merger or sale or other
disposition of the Company’s assets, and this Warrant shall terminate unless exercised prior to the
date such public offering is declared effective by the Securities and Exchange Commission or the
occurrence of such consolidation, merger or sale or other disposition of the Company’s assets. The
Company shall promptly notify the Holder in writing of each adjustment or readjustment of the
exercise price hereunder and the number of Warrant Shares issuable upon the exercise of this
Warrant. Such notice shall state the adjustment or readjustment and show in reasonable detail the
facts on which that adjustment or readjustment is based.

     6. Replacement of Warrants. On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute
and deliver to the Holder, in lieu thereof, a new Warrant of like tenor.

     7. No Rights or Liability as a Stockholder. This Warrant does not entitle the Holder
hereof to any voting rights or other rights as a stockholder of the Company. No provisions hereof,
in the absence of affirmative action by the Holder to purchase Warrant Shares, and no enumeration
herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder as
a stockholder of the Company.

5

 

     8. Miscellaneous.

          8.1 Transfer of Warrant. This Warrant shall not be transferable or assignable in any
manner and no interest shall be pledged or otherwise encumbered by Holder without the express
written consent of the Company, and any such attempted disposition of this Warrant or any portion
hereof shall be of no force or effect unless such disposition is in compliance with the Purchase
Agreement.

          8.2 Titles and Subtitles. The titles and subtitles used in this Warrant are for
convenience only and are not to be considered in construing or interpreting this Warrant.

          8.3 Notices. Any notice required or permitted under this Warrant shall be given in
writing.

          8.4 Attorneys’ Fees. If any action at law or in equity is necessary to enforce or
interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be
entitled.

          8.5 Amendments and Waivers. Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a particular instance
and either retroactively or prospectively), with the written consent of the Company and the Holder.
Any amendment or waiver effected in accordance with this Section 8.5 shall be binding upon the
Holder of this Warrant (and of any securities into which this Warrant is convertible), each future
holder of all such securities, and the Company.

          8.6 Severability. If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from this Warrant and the
balance of the Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

          8.7 Governing Law. This Warrant shall be governed by and construed and enforced in
accordance with the laws of the State of California, without giving effect to its conflicts of laws
principles.

          8.8 English Language. This Warrant is written in the English Language, which shall be
controlling for all purposes. No translation of this Warrant into any other language shall be of
any force or effect in the interpretation of this Warrant or in a determination of the intent of
the parties hereto.

6

 

          8.9 Counterparts; Facsimile. This Warrant may be executed in any number of
counterparts, each of which shall be deemed an original, but all of which together shall constitute
one and the same instrument. Signatures delivered by facsimile shall be as effective as original
signatures.

Date:                                         , 2005

	 	 	 	 	 	 	 
	 	 	 	 	ARTES MEDICAL USA, INC.,
	 	 	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Stefan Lemperle, M.D.
	 

	 	 	 	Title:
	 	Chief Executive Officer
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:

	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 

[SIGNATURE PAGE TO WARRANT]

7

 

SCHEDULE 1

FORM OF SUBSCRIPTION

(To be signed only on exercise of Warrant)

To: ARTES MEDICAL USA, INC.

     The undersigned, the holder of the Warrant attached hereto, hereby irrevocably elects to
exercise the purchase rights represented by such Warrant for, and to purchase thereunder,
                     * shares of Common Stock of Artes Medical USA, Inc., and herewith makes payment of
$                     therefor, and requests that the certificates for such shares be issued in the name
of, and delivered to                     , whose address is                                         
                                        .

	 	 	 
	 

	 	 
	 

	 	(Signature must conform in all respects to name of
the Holder as specified on the face of the Warrant)
	 
	 	 
	 

	 	 
	 

	 	(Print Name)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Address)

Dated:                                        

                                        

	*	 	Insert here the number of shares as to which the Warrant is being exercised.

8exv4w8

 

EXHIBIT 4.8

THE SECURITIES REPRESENTED HEREBY HAVE BEEN ACQUIRED BY THE HOLDER HEREOF FOR ITS OWN ACCOUNT FOR
INVESTMENT WITH NO INTENTION OF MAKING OR CAUSING TO BE MADE A PUBLIC DISTRIBUTION OF ALL OR ANY
PORTION THEREOF. SUCH SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933 OR ANY
STATE SECURITIES LAWS AND MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED, EXCEPT
PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT FILED UNDER SUCH ACT OR PURSUANT TO AN EXEMPTION
FROM REGISTRATION UNDER SUCH ACT.

			
	 	 	 
	No.                     
	 	                                                             , 2005
	 
	 	San Diego, California

ARTES MEDICAL USA, INC.

WARRANT TO PURCHASE SERIES D PREFERRED STOCK

Void after                                                              , 2010

     Artes Medical USA, Inc., a Delaware corporation (the “Company”), hereby certifies
that, for value received,                                          (including any successors and assigns,
“Holder”), is entitled, subject to the terms set forth below, to purchase from the Company at any
time or from time to time before the earlier of (i) 5:00 PM Pacific time, on                                                              , 2010 or
(ii) the closing of (a) a Corporate Transaction or (b) the initial underwritten public offering of
the Company’s common stock pursuant to a registration statement filed under the Securities Act of
1933, as amended (the “Initial Public Offering”) (the earlier to occur of (i) or (ii), the
“Expiration Date”), fully paid and nonassessable shares of the Company’s Series D Preferred Stock
(the “Warrant Shares”) under the terms set forth herein:

     (a) Number of Warrant Shares. This Warrant shall evidence the right of the Holder to
purchase up to a number of Warrant Shares equal to thirty percent (30%) of the Issue Price (as
defined in the Notes) of the Note issued to Holder, divided by the Exercise Price (as defined
below).

     (b) Exercise Price. The initial exercise price per Warrant Share (the “Exercise
Price”) shall be $2.00 per share, subject to adjustment as provided in Section 5 below.

     This Warrant is one of a series of warrants issued pursuant to a Convertible Promissory Note
and Warrant Purchase Agreement dated as of                                                              , 2005 (the “Purchase Agreement”) among the
Company, the Holder and the purchasers of the other warrants, which warrants together are
designated the “Warrants.” The “Notes” are those certain convertible promissory notes issued and
outstanding pursuant to the Purchase Agreement.

     As used herein the following terms, unless the context otherwise requires, have the following
respective meanings:

     (a) The term “Common Stock” shall mean the Common Stock of the Company.

 

 

     (b) The term “Company” includes any Company which shall succeed to or assume the obligations
of the Company hereunder.

     (c) The term “Corporate Transaction” shall have the meaning as defined in Section 1.4 of the
Notes.

     (d) The term “New Equity Shares” shall have the meaning as defined in Section 2.1 of the
Notes.

     (e) The term “Qualified Equity Financing” shall have the meaning as defined in Section 2.1 of
the Notes.

     1. Exercise Date; Expiration. Subject to the terms hereof, this Warrant may be
exercised by the Holder at any time or from time to time before the Expiration Date (the “Exercise
Period”).

     2. Exercise of Warrant; Partial Exercise. This Warrant may be exercised in full by
the Holder by surrender of this Warrant, together with the Holder’s duly executed form of
subscription attached hereto as Exhibit A, to the Company at its principal office,
accompanied by payment, in cash or by certified or official bank check payable to the order of the
Company, of the aggregate exercise price (as determined above) of the number of Warrant Shares to
be purchased hereunder. The exercise of this Warrant pursuant to this Section 2 shall be deemed to
have been effected immediately prior to the close of business on the business day on which this
Warrant is surrendered to the Company as provided in this Section 2, and at such time the person in
whose name any certificate for Warrant Shares shall be issuable upon such exercise shall be deemed
to be the record holder of such Warrant Shares for all purposes. As soon as practicable after the
exercise of this Warrant, the Company at its expense will cause to be issued in the name of and
delivered to the Holder, or as the Holder may direct, a certificate or certificates for the number
of fully paid and nonassessable full shares of Warrant Shares to which the Holder shall be entitled
on such exercise, together with cash, in lieu of any fraction of a share, equal to such fraction of
the current fair market value of one full Warrant Share as determined in good faith by the Board of
Directors, and, if applicable, a new warrant evidencing the balance of the shares remaining subject
to the Warrant.

     3. Net Issuance.

          3.1 Right to Convert. In addition to and without limiting the rights of the Holder
under the terms of this Warrant, the Holder shall have the right to convert this Warrant (the
“Conversion Right”) into Warrant Shares as provided in this Section 3 at any time or from time to
time during the Exercise Period. Upon exercise of the Conversion Right with respect to shares
subject to the Warrant (the “Converted Warrant Shares”), the Company shall deliver to the Holder
(without payment by the Holder of any exercise price or any cash or other consideration) that
number of fully paid and nonassessable Warrant Shares computed using the following formula:

	 	 	 	 	 	 	 
	 

	 	 X =
	 	Y (A — B)	 	 
	 

	 	 	 	 

	 	 
	 

	 	 	 	A	 	 

 

 

	 	 	 	 	 
	 

	 	Where:
	 	X =      the number of shares of Warrant Shares to be delivered to the Holder;
	 
	 	 	 	 
	 

	 	 	 	Y =      the number of Converted Warrant Shares;
	 
	 	 	 	 
	 

	 	 	 	A =      the fair market value of one Warrant Share on the Conversion Date (as defined below); and
	 
	 	 	 	 
	 

	 	 	 	B =      the Exercise Price (as adjusted to the Conversion Date).

No fractional shares shall be issuable upon exercise of the Conversion Right, and if the number of
shares to be issued determined in accordance with the foregoing formula is other than a whole
number, the Company shall pay to the Holder an amount in cash equal to the fair market value of the
resulting fractional share on the Conversion Date (as defined below). Shares issued pursuant to
the Conversion Right shall be treated as if they were issued upon the exercise of the Warrant.

          3.2 Method of Exercise. The Conversion Right may be exercised by the Holder by the
surrender of the Warrant at the principal office of the Company together with a written statement
specifying that the Holder thereby intends to exercise the Conversion Right and indicating the
total number of shares under the Warrant that the Holder is exercising through the Conversion
Right. Such conversion shall be effective upon receipt by the Company of the Warrant together with
the aforesaid written statement, or on such later date as is specified therein (the “Conversion
Date”). Certificates for the shares issuable upon exercise of the Conversion Right shall be
delivered to the Holder promptly following the Conversion Date.

          3.3 Determination of Fair Market Value. For purposes of this Section 3, fair market
value of a Warrant Share on the Conversion Date shall be determined as follows:

               (1) If this Warrant is to be exercised contingent upon and effective immediately prior to the
Initial Public Offering, the fair market value of a Warrant Share shall be deemed to be equal to
the product of (x) the number of shares of Common Stock into which such Warrant Share is then
convertible and (y) the price to the public of the shares of Common Stock sold in the Initial
Public Offering as set forth on the front cover of the final prospectus relating to the Initial
Public Offering;

               (2) If the Common Stock is traded on a stock exchange or the Nasdaq Stock Market (or a similar
national quotation system), the fair market value of a Warrant Share shall be deemed to be the
product of (x) the average of the closing selling prices of the Common Stock on the stock exchange
or system determined by the Board to be the primary market for the Common Stock over the ten (10)
trading day period ending on the date prior to the Conversion Date, as such prices are officially
quoted in the composite tape of transactions on such exchange or system and (y) the number of
shares of Common Stock into which such Warrant Share is convertible at the date of calculation;

               (3) If the Common Stock is traded over-the-counter, the fair market value of a Warrant Share
shall be deemed to be the product of (x) the average of the closing bid
prices (or, if such information is available, the closing selling prices) of the Common Stock
over the ten (10) trading day period ending on the date prior to the Conversion Date, as such
prices

 

 

are reported by the National Association of Securities Dealers through its NASDAQ system or
any successor system and (y) the number of shares of Common Stock into which such Warrant Share is
convertible at the date of calculation; and

               (3) If there is no public market for the Common Stock, then the fair market value of a Warrant
Share shall be determined by the Board of Directors of the Company in good faith.

     4. Market Stand-Off Agreement. The Holder and any future transferee acknowledge and
agree that the Holder and any future transferee shall be bound the market stand-off provision
contained in Section 6 of the Purchase Agreement.

     5. Adjustments to Conversion Price. The number and kind of Warrant Shares (or any
shares of stock or other securities which may be) issuable upon the exercise of this Warrant and
the exercise price hereunder shall be subject to adjustment from time to time upon the happening of
certain events, as follows:

          5.1 Splits and Subdivisions. In the event the Company should at any time or from time
to time fix a record date for the effectuation of a split or subdivision of the outstanding shares
of Series D Preferred Stock or the determination of the holders of Series D Preferred Stock
entitled to receive a dividend or other distribution payable in additional shares of Series D
Preferred Stock or other securities or rights convertible into, or entitling the holder thereof to
receive directly or indirectly, additional shares of Series D Preferred Stock (hereinafter referred
to as the “Series D Preferred Stock Equivalents”) without payment of any consideration by such
holder for the additional shares of Series D Preferred Stock or Series D Preferred Stock
Equivalents, then, as of such record date (or the date of such distribution, split or subdivision
if no record date is fixed), the Exercise Price shall be appropriately decreased and the number of
Warrant Shares for which this Warrant is exercisable shall be appropriately increased in proportion
to such increase of outstanding shares.

          5.2 Combination of Shares. If the number of shares of Series D Preferred Stock
outstanding at any time after the date hereof is decreased by a combination of the outstanding
shares of Series D Preferred Stock, the Exercise Price shall be appropriately increased and the
number of Warrant Shares for which this Warrant is exercisable shall be appropriately decreased in
proportion to such decrease in outstanding shares.

          5.3 Reclassification or Reorganization. If the Warrant Shares issuable upon the
exercise of this Warrant shall be changed into the same or different number of shares of any class
or classes of stock, whether by capital reorganization, reclassification or otherwise (other than a
split, subdivision or stock dividend provided for in Section 5.1 above or a combination of shares
provided for in Section 5.2 above, or a reorganization, merger or consolidation provided for in
Section 5.4 below), then and in each such event the Holder shall be entitled to receive upon the
exercise of this Warrant the kind and amount of shares of stock and other securities and property
receivable upon such reorganization, reclassification or other change, to which a holder of the
number of Warrant Shares issuable upon the exercise of this Warrant would have received
if this Warrant had been exercised immediately prior to such reorganization, reclassification
or other change, all subject to further adjustment as provided herein.

 

 

          5.4 Merger or Consolidation. If at any time or from time to time there shall be a
capital reorganization of the Warrant Shares or a merger or consolidation of the Company (other
than a Corporate Transaction or a subdivision, combination, reclassification or exchange of shares
provided for elsewhere in this Section 5) of the Company, then as a part of such reorganization,
provision shall be made so that the Holder shall thereafter be entitled to receive upon the
exercise of this Warrant, the number of shares of stock or other securities or property of the
Company, resulting from such reorganization, merger or consolidation, to which a holder of the
number of Warrant Shares issuable upon the exercise of this Warrant would have received if this
Warrant had been exercised immediately prior to such reorganization, merger or consolidation.

          5.5 Notice of Record Dates; Adjustments. In the event of an Initial Public Offering
or a Corporate Transaction, the Company shall provide to the Holder twenty (20) days advance
written notice of such Initial Public Offering or Corporate Transaction, and this Warrant shall
terminate unless exercised prior to the date of closing of such Initial Public Offering or
Corporate Transaction. The Company shall promptly notify the Holder in writing of each adjustment
or readjustment of the Exercise Price hereunder and the number of Warrant Shares issuable upon the
exercise of this Warrant. Such notice shall state the adjustment or readjustment and show in
reasonable detail the facts on which that adjustment or readjustment is based.

     6. Replacement of Warrants. On receipt by the Company of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of this Warrant and, in
the case of any such loss, theft or destruction of this Warrant, on delivery of an indemnity
agreement reasonably satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of such Warrant, the Company at its expense will execute
and deliver to the Holder, in lieu thereof, a new Warrant of like tenor.

     7. No Rights or Liability as a Stockholder. This Warrant does not entitle the Holder
hereof to any voting rights or other rights as a stockholder of the Company. No provisions hereof,
in the absence of affirmative action by the Holder to purchase Warrant Shares, and no enumeration
herein of the rights or privileges of the Holder, shall give rise to any liability of the Holder as
a stockholder of the Company.

     8. Miscellaneous.

          8.1 Transfer of Warrant. The Holder agrees not to make any disposition of this
Warrant, the Warrant Shares or any rights hereunder, except in accordance with the terms and
conditions of Section 4 of the Purchase Agreement. Subject to the foregoing, the provisions of
this Warrant shall inure to the benefit of and be binding on any successor to the Company and shall
extend to any holder hereof. Any such permitted transfer must be made by the Holder in person or
by duly authorized attorney, upon delivery of this Warrant and the form of assignment attached
hereto as Exhibit B to any such permitted transferee. As a condition precedent to such
transfer, the transferee shall sign an investment letter in form and substance satisfactory to the
Company. Subject to the foregoing, the provisions of this Warrant shall inure to the benefit
of and be binding upon any successor to the Company and shall extend to any holder hereof.

 

 

          8.2 Titles and Subtitles. The titles and subtitles used in this Warrant are for
convenience only and are not to be considered in construing or interpreting this Warrant.

          8.3 Notices. Any notice required or permitted under this Warrant shall be given in
writing and in accordance with Section 8.4 of the Purchase Agreement (for purposes of which, the
term “Investor” shall mean Holder hereunder), except as otherwise expressly provided in this
Warrant.

          8.4 Attorneys’ Fees. If any action at law or in equity is necessary to enforce or
interpret the terms of this Warrant, the prevailing party shall be entitled to reasonable
attorneys’ fees, costs and disbursements in addition to any other relief to which such party may be
entitled.

          8.5 Amendments and Waivers. Any term of this Warrant may be amended and the
observance of any term of this Warrant may be waived (either generally or in a particular instance
and either retroactively or prospectively) as set forth in Section 8.7 of the Purchase Agreement.
Any amendment or waiver effected in accordance with this Section 8.5 shall be binding upon the
Holder of this Warrant (and of any securities into which this Warrant is convertible), each future
holder of all such securities, and the Company.

          8.6 Severability. If one or more provisions of this Warrant are held to be
unenforceable under applicable law, such provision shall be excluded from this Warrant and the
balance of the Warrant shall be interpreted as if such provision were so excluded and shall be
enforceable in accordance with its terms.

          8.7 Governing Law. This Warrant shall be governed by and construed and enforced in
accordance with the laws of the State of California, without giving effect to its conflicts of laws
principles.

          8.8 English Language. This Warrant is written in the English Language, which shall be
controlling for all purposes. No translation of this Warrant into any other language shall be of
any force or effect in the interpretation of this Warrant or in a determination of the intent of
the parties hereto.

          8.9 Counterparts. This Warrant may be executed in any number of counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument.

[REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK]

 

 

     In Witness Whereof, the Company has caused this Warrant to be executed by its duly
authorized officer as of the date first written above.

	 	 	 	 	 	 	 
	 	 	 	 	ARTES MEDICAL USA, INC.,
	 	 	 	 	a Delaware corporation
	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Peter C. Wulff
	 

	 	 	 	Title:
	 	Chief Financial Officer
	 
	 	 	 	 	 	 
	ACKNOWLEDGED AND AGREED:	 	 	 	 
	 
	 	 	 	 	 	 
	[Holder]	 	 	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Name:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Its:
	 	 	 	 	 	 
	 

	 	 	 	 	 	 

 

 

EXHIBIT A

FORM OF SUBSCRIPTION

(To be signed only on exercise of Warrant)

     To: ARTES MEDICAL USA, INC.

     The undersigned, the holder of the Warrant attached hereto, hereby irrevocably elects to
exercise the purchase rights represented by such Warrant for, and to purchase thereunder,
                     * shares of Series D Preferred Stock of Artes Medical USA, Inc., and herewith makes
payment of $                     therefor, and requests that the certificates for such shares be issued
in the name of, and delivered to                                         , whose address is                                         
                                        .

	 	 	 
	 
	 

	 	 
	 

	 	(Signature must conform in all respects to name of
the Holder as specified on the face of the Warrant)
	 
	 	 
	 

	 	 
	 

	 	(Print Name)
	 
	 	 
	 

	 	 
	 
	 	 
	 

	 	 
	 

	 	(Address)

Dated:                                        

                                        

	*	 	Insert here the number of shares as to which the Warrant is being exercised.

 

 

EXHIBIT B

FORM OF ASSIGNMENT

(To assign the foregoing Warrant, execute this form

and supply required information. Do not use this

form to purchase shares.)

     For Value Received, the foregoing Warrant and all rights evidenced thereby are hereby
assigned to:

	 	 	 
	Name:
	 	 
	 

	 	 
	 

	 	(Please Print)
	Address:
	 	 
	 

	 	 
	 

	 	(Please Print)

Dated:                                         , 200                    

	 	 	 	 	 
	Holder’s
	 	 	 	 
	Signature:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Holder’s
	 	 	 	 
	Address:
	 	 	 	 
	 

	 	 	 	 

NOTE: The signature to this Form of Assignment must correspond with the name as it appears on the
face of the Warrant, without alteration or enlargement or any change whatever. Officers of
corporations and those acting in a fiduciary or other representative capacity should file proper
evidence of authority to assign the foregoing Warrant.

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