EXHIBIT 4.5
THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED ("ACT"), OR APPLICABLE STATE SECURITIES
LAWS. THIS WARRANT AND THE WARRANT SHARES ISSUABLE UPON EXERCISE OF THIS WARRANT
MAY NOT BE SOLD, PLEDGED OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH
REGISTRATION OR PURSUANT TO AN EXEMPTION THEREFROM UNDER THE ACT AND SUCH LAWS,
SUPPORTED BY AN OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY AND
ITS COUNSEL, THAT SUCH REGISTRATION IS NOT REQUIRED. THIS WARRANT AND THE
COMPANY'S SUBSCRIPTION AGREEMENT WITH THE HOLDER SET FORTH THE COMPANY'S
OBLIGATIONS TO REGISTER FOR RESALE THE WARRANT SHARES. A COPY OF SUCH
SUBSCRIPTION AGREEMENT IS AVAILABLE FOR INSPECTION AT THE COMPANY'S OFFICE.
THIS WARRANT MAY NOT, IN ANY EVENT, BE TRANSFERRED TO ANY PERSON OR ENTITY THAT
IS NOT AN ACCREDITED INVESTOR WITHIN THE MEANING OF RULE 501, PROMULGATED UNDER
THE ACT.
No.______ For the Purchase of
______Shares
▇▇▇▇▇▇ HOLDING CORP.
CLASS B
REDEEMABLE COMMON STOCK
PURCHASE WARRANT
▇▇▇▇▇▇ Holding Corp., a Delaware corporation ("Company"), hereby
certifies that, for value received, NAME ("Registered Holder"), or Registered
Holder's registered assigns, is entitled, subject to the terms set forth below,
to purchase from the Company, at any time or from time to time during the period
commencing on May 1, 2002 ("Commencement Date") and ending on April 30, 2006,
_____________ ("Initial Number") shares of common stock, $0.0001 par value, of
the Company ("Common Stock"), at an initial exercise price of $2.50. This
Warrant is one of a series of Warrants of even date herewith. The number of
shares of Common Stock purchasable upon exercise of this Warrant, and the
exercise price per share, each as adjusted from time to time pursuant to the
provisions of this Warrant, are hereinafter referred to as the "Warrant Shares"
and the "Exercise Price," respectively.
1. Exercise.
(a) This Warrant may be exercised by the Registered Holder, in whole
or in part, by the surrender of this Warrant (with the Notice of Exercise Form
attached hereto duly executed by such Registered Holder) at the principal office
of the Company, or at such other office or agency as the Company may designate,
accompanied by payment in full, in lawful money of the United States, of an
amount equal to the then applicable Exercise Price multiplied by the number of
Warrant Shares then being purchased upon such exercise.
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(b) Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the day on which this
Warrant shall have been surrendered to the Company as provided in subsection
1(a) above. At such time, the person or persons in whose name or names any
certificates for Warrant Shares shall be issuable upon such exercise as provided
in subsection 1(c) below shall be deemed to have become the holder or holders of
record of the Warrant Shares represented by such certificates.
(c) Within three business days after the exercise of the purchase
right represented by this Warrant, the Company at its expense will use its best
efforts to cause to be issued in the name of, and delivered to, the Registered
Holder, or, subject to the terms and conditions hereof, to such other individual
or entity as such Holder (upon payment by such Holder of any applicable transfer
taxes) may direct:
(i) a certificate or certificates for the number of full
shares of Warrant Shares to which such Registered Holder shall be entitled upon
such exercise plus, in lieu of any fractional share to which such Registered
Holder would otherwise be entitled, cash in an amount determined pursuant to
Section 3 hereof, and
(ii) in case such exercise is in part only, a new Warrant
or Warrants (dated the date hereof) of like tenor, stating on the face or faces
thereof the number of shares currently stated on the face of this Warrant minus
the number of such shares purchased by the Registered Holder upon such exercise
as provided in subsection 1(a) above (prior to any adjustments made thereto
pursuant to the provisions of this Warrant).
(d) The Company shall not be required upon the exercise of this
Warrant to issue any fractional shares, but shall make an adjustment thereof in
cash on the basis of the last sale price (as defined in Section 3) of the
Company's Common Stock on the trading day immediately prior to the date of
exercise, applicable.
2. Adjustments. Until this Warrant is exercised or redeemed or expires by
its terms, the following adjustments shall be made:
(a) Split, Subdivision or Combination of Shares. If the outstanding
shares of the Company's Common Stock shall be subdivided or split into a greater
number of shares or a dividend in Common Stock shall be paid in respect of
Common Stock, the Exercise Price in effect immediately prior to such subdivision
or at the record date of such dividend shall, simultaneously with the
effectiveness of such subdivision or split or immediately after the record date
of such dividend (as the case may be), be proportionately decreased. If the
outstanding shares of Common Stock shall be combined or reverse split into a
smaller number of shares, the Exercise Price in effect immediately prior to such
combination or reverse split shall, simultaneously with the effectiveness of
such combination or reverse split, be proportionately increased. When any
adjustment is required to be made in the Exercise Price, the number of Warrant
Shares purchasable upon the exercise of this Warrant shall be changed to the
number determined by dividing (i) an amount equal to the number of shares
issuable upon the exercise of this Warrant immediately prior to such adjustment,
multiplied by the Exercise Price in effect immediately prior to such adjustment,
by (ii) the Exercise Price in effect immediately after such adjustment.
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(b) Reclassification, Reorganization, Consolidation or Merger. If
there is any reclassification of the Common Stock (other than a change in par
value or a subdivision or combination as provided for in subsection 2(a) above),
or any reorganization, consolidation or merger of the Company with or into
another entity (other than a merger or reorganization with respect to which the
Company is the continuing corporation and that does not result in any
reclassification of the Common Stock), or a transfer of all or substantially all
of the assets of the Company, or the payment of a liquidating distribution,
then, as part of any such reorganization, reclassification, consolidation,
merger, sale or liquidating distribution, lawful provision shall be made so that
the Registered Holder of this Warrant shall have the right thereafter to receive
upon the exercise hereof (to the extent, if any, still exercisable) the kind and
amount of shares of stock or other securities or property that such Registered
Holder would have been entitled to receive if, immediately prior to any such
reorganization, reclassification, consolidation, merger, sale or liquidating
distribution, as the case may be, such Registered Holder had held the number of
shares of Common Stock that were then purchasable upon the exercise of this
Warrant, provided, that, in the case of any such liquidating distribution, the
value of such property (as reasonably determined by the Company's Board of
Directors) exceeds the Exercise Price. In any such case, appropriate adjustment
(as reasonably determined by the Board of Directors of the Company) shall be
made in the application of the provisions set forth herein with respect to the
rights and interests thereafter of the Registered Holder of this Warrant such
that the provisions set forth in this Section 2 (including provisions with
respect to the Exercise Price) shall thereafter be applicable, as nearly as is
reasonably practicable, in relation to any shares of stock or other securities
or property thereafter deliverable upon the exercise of this Warrant.
(c) Price Adjustment. No adjustment in the per share Exercise Price
shall be required unless such adjustment would require an increase or decrease
in the Exercise Price by at least $0.01; provided, however, that any adjustments
that by reason of this subsection are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. All calculations
under this Section 2 shall be made to the nearest cent or to the nearest 1/100th
of a share, as the case may be.
(d) Price Reduction. Notwithstanding any other provision set forth
in this Warrant, at any time and from time to time during the period that this
Warrant is exercisable, the Company in it sole discretion may reduce the
Exercise Price or extend the period during which this Warrant is exercisable.
(e) No Impairment. The Company will not, by amendment of its
Certificate of Incorporation or through any reorganization, 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 2 and in the taking of all such actions as may be necessary or
appropriate in order to protect against impairment of the rights of the
Registered Holder of this Warrant to adjustments in the Exercise Price.
(f) Notice of Adjustment. Upon the happening of any event requiring
an adjustment of the Exercise Price hereunder, the Company shall give written
notice thereof to the Registered Holder of this Warrant stating the adjusted
Exercise Price and the adjusted number of Warrant Shares resulting from such
event and setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based.
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3. Redemption. This Warrant may be redeemed by the Company, upon not less
than 30 days' prior written notice to the Registered Holder, at the redemption
price of $0.01 per share for every share of Common Stock purchasable upon
exercise hereof at the time of such redemption ("Redemption Price"), if the last
sale price of a share of Common Stock has been equal to or greater than 150% of
the then Exercise Price on each of the 10 consecutive trading days ending on the
third day prior to the day on which notice of redemption is given to the
Registered Holder; provided, however, that this Warrant may be redeemed only if,
on the date on which notice is given and at all times up to the subsequent date
fixed for redemption, (i) this Warrant is exercisable into shares of Common
Stock registered for resale under the Securities Act pursuant to an effective
and current registration statement, and (ii) the Common Stock subject to this
Warrant is then listed on a national securities exchange, the Nasdaq National
Market or the Nasdaq SmallCap Market or quoted on the NASD OTC Bulletin Board or
similar electronic trading facility. For purposes of this Section 3, "last sale
price" shall mean (i) if the Common Stock is listed on a national securities
exchange or quoted on the Nasdaq National Market or Nasdaq SmallCap Market, the
last sale price of the Common Stock in the principal trading market for the
Common Stock as reported by the exchange or Nasdaq, as the case may be; (ii) if
the Common Stock is not listed on a national securities exchange or quoted on
the Nasdaq National Market or Nasdaq SmallCap Market or the NASD OTC Bulletin
Board, but is traded in the residual over-the-counter market, the closing bid
price for the Common Stock on the last trading day preceding the date in
question for which such quotations are reported by the National Quotation
Bureau, Incorporated or similar publisher of such quotations; and (iii) if the
fair market value of the Common Stock cannot be determined pursuant to clause
(i) or (ii) above, such price as the Board of Directors of the Company shall
determine, in good faith. This Warrant may not be redeemed unless each and every
condition set forth in this Section 3 is satisfied. On and after the date of
redemption the holder shall have only the right to receive $0.01 per share of
Common Stock purchasable upon exercise hereof at the time of such redemption.
4. Limitation on Sales. Each holder of this Warrant acknowledges that this
Warrant and the Warrant Shares have not been registered under the Securities Act
of 1933, as amended ("Act"), as of the date of issuance hereof and agrees not to
sell, pledge, distribute, offer for sale, transfer or otherwise dispose of this
Warrant, or any Warrant Shares issued upon its exercise, in the absence of (i)
an effective registration statement under the Act as to this Warrant or such
Warrant Shares, as the case may be, and registration or qualification of this
Warrant or such Warrant Shares, as the case may be, under any applicable Blue
Sky or state securities law then in effect or (ii) an opinion of counsel,
satisfactory to the Company, that such registration and qualification are not
required. In addition, this Warrant may only be transferred to a transferee who
certifies in writing to the Registered Holder and to the Company that such
transferee is an "accredited investor" within the meaning of Rule 501(a)
promulgated by the Securities and Exchange Commission under the Act.
The Company shall be under no obligation to issue the shares covered by
such exercise unless and until the Registered Holder shall have executed an
investment letter in form and substance satisfactory to the Company, including a
warranty at the time of such exercise that it is then an "accredited investor"
within the meaning of Rule 501(c) promulgated by the Securities and Exchange
Commission under the Act, is acquiring such shares for its own account, and will
not transfer the Warrant Shares unless pursuant to an effective and current
registration statement under the Act or an exemption from the registration
requirements of the Act and any other applicable restrictions, in which event
the Registered Holder shall be bound by the provisions of a legend or legends to
such effect that shall be endorsed upon the certificate(s) representing the
Warrant Shares issued pursuant to such exercise. In such event, the Warrant
Shares issued upon exercise hereof shall be imprinted with a legend in
substantially the following form:
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This security has been acquired for investment and has not
been registered under the Securities Act of 1933, as amended,
or applicable state securities laws. This security may not be
sold, pledged or otherwise transferred in the absence of such
registration or pursuant to an exemption therefrom under said
Act and such laws, supported by an opinion of counsel,
reasonably satisfactory to the Company and its counsel, that
such registration is not required.
5. Registration Rights of Warrant Holder. The Company has agreed to
register this Warrant and the Warrant Shares for resale in accordance with the
Subscription Agreement entered into between the Company and the Registered
Holder.
6. Notices of Record Date. In case:
(a) the Company shall take a record of the holders of its Common
Stock (or other stock or securities at the time deliverable upon the exercise of
this Warrant) for the purpose of entitling or enabling them to receive any
dividend or other distribution, or to receive any right to subscribe for or
purchase any shares of any class or any other securities, or to receive any
other right, or
(b) of any capital reorganization of the Company, any
reclassification of the capital stock of the Company, any consolidation or
merger of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the surviving entity), or any
transfer of all or substantially all of the assets of the Company, or
(c) of the voluntary or involuntary dissolution, liquidation or
winding-up of the Company, then, and in each such case, the Company will mail or
cause to be mailed to the Registered Holder of this Warrant a notice specifying,
as the case may be, (i) the date on which a record is to be taken for the
purpose of such dividend, distribution or right, and stating the amount and
character of such dividend, distribution or right, or (ii) the effective date on
which such reorganization, reclassification, consolidation, merger, transfer,
dissolution, liquidation or winding-up is to take place, and the time, if any is
to be fixed, as of which the holders of record of Common Stock (or such other
stock or securities at the time deliverable upon the exercise of this Warrant)
shall be entitled to exchange their shares of Common Stock (or such other stock
or securities) for securities or other property deliverable upon such
reorganization, reclassification, consolidation, merger, transfer, dissolution,
liquidation or winding-up. Such notice shall be mailed at least fifteen (15)
days prior to the record date or effective date for the event specified in such
notice, provided that the failure to mail such notice shall not affect the
legality or validity of any such action.
7. Reservation of Stock. The Company will at all times reserve and keep
available, solely for issuance and delivery upon the exercise of this Warrant,
such Warrant Shares and other stock, securities and property, as from time to
time shall be issuable upon the exercise of this Warrant.
8. Replacement of Warrants. Upon receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and (in the case of loss, theft or destruction) upon delivery of an
indemnity agreement (with surety if reasonably required) in an amount reasonably
satisfactory to the Company, or (in the case of mutilation) upon surrender and
cancellation of this Warrant, the Company will issue, in lieu thereof, a new
Warrant of like tenor.
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9. Transfers, etc.
(a) The Company (or an agent of the Company) will maintain a register
containing the names and addresses of the Registered Holders of this Warrant.
Any Registered Holder may change its, his or her address as shown on the warrant
register by written notice to the Company requesting such change.
(b) Until any transfer of this Warrant is made in the warrant
register, the Company may treat the Registered Holder of this Warrant as the
absolute owner hereof for all purposes; provided, however, that if and when this
Warrant is properly assigned in blank, the Company may (but shall not be
obligated to) treat the bearer hereof as the absolute owner hereof for all
purposes, notwithstanding any notice to the contrary.
10. No Rights as Stockholder. Until the exercise of this Warrant, the
Registered Holder of this Warrant shall not have or exercise any rights by
virtue hereof as a stockholder of the Company.
11. Successors. The rights and obligations of the parties to this Warrant
will inure to the benefit of and be binding upon the parties hereto and their
respective heirs, successors, assigns, pledgees, transferees and purchasers.
Without limiting the foregoing, the registration rights referred to in Section 5
of this Warrant shall inure to the benefit of the Registered Holder and all the
Registered Holder's successors, heirs, pledgees, assignees, transferees and
purchasers of this Warrant and the Warrant Shares.
12. Change or Waiver. Any term of this Warrant may be changed or waived
only by an instrument in writing signed by the party against whom enforcement of
the change or waiver is sought.
13. Headings. The headings in this Warrant are for purposes of reference
only and shall not limit or otherwise affect the meaning of any provision of
this Warrant.
14. Governing Law. This Warrant shall be governed by and construed in
accordance with the laws of the State of New York as such laws are applied to
contracts made and to be fully performed entirely within that state between
residents of that state except to the extent the laws of the State of Delaware
mandatorily apply because the Company is incorporated in the State of Delaware.
15. Jurisdiction and Venue. The Company (i) agrees that any legal suit,
action or proceeding arising out of or relating to this Warrant shall be
instituted exclusively in New York State Supreme Court, County of New York or in
the United States District Court for the Southern District of New York, (ii)
waives any objection to the venue of any such suit, action or proceeding and the
right to assert that such forum is not a convenient forum, and (iii) irrevocably
consents to the jurisdiction of the New York State Supreme Court, County of New
York, and the United States District Court for the Southern District of New York
in any such suit, action or proceeding, and the Company further agrees to accept
and acknowledge service or any and all process that may be served in any such
suit, action or proceeding in New York State Supreme Court, County of New York
or in the United States District Court for the Southern District of New York in
person or by certified mail addressed as provided in the following Section.
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16. Mailing of Notices, etc. All notices and other communications under
this Warrant (except payment) shall be in writing and shall be sufficiently
given if delivered to the addressees in person, by Federal Express or similar
overnight courier service, or if mailed, postage prepaid, by certified mail,
return receipt requested, as follows:
Registered Holder: To his or her last known address as
indicated on the Company's books and
records.
The Company: ▇▇▇▇▇▇ Holding Corp.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attention: President
In either case, with a copy to: ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Attn: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇, Esq.
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
or to such other address as any of them, by notice to the others, may designate
from time to time. Notice shall be deemed given (a) when personally delivered,
(b) the scheduled delivery date if sent by Federal Express or other overnight
courier service or (c) the fifth day after sent by certified mail.
Executed this 30th day of October, 2001.
▇▇▇▇▇▇ Holding Corp.
By: ___________________________________
Name:
Title:
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Notice of Exercise
To Be Executed by the Registered Holder
In Order to Exercise Warrants
The undersigned Registered Holder hereby irrevocably elects to exercise
______ Warrants represented by this Warrant, and to purchase the shares of
Common Stock issuable upon the exercise of such Warrants, and requests that
certificates for such shares of Common Stock shall be issued in the name of
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
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(please print or type name and address)
and be delivered to
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(please print or type name and address)
and if such number of Warrants shall not be all the Warrants evidenced by this
Warrant Certificate, that a new Warrant Certificate for the balance of such
Warrants be registered in the name of, and delivered to, the Registered Holder
at the address stated below.
Dated: ____________________ _____________________________________________
(Signature of Registered Holder)
______________________________________________
______________________________________________
(Address)
______________________________________________
(Taxpayer Identification Number)
______________________________________________
Signature Guaranteed
THE SIGNATURE ON THE EXERCISE FORM OR THE ASSIGNMENT FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE
GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE
AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE.
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ASSIGNMENT FORM
To be executed by the Registered Holder
In order to Assign Warrants
FOR VALUE RECEIVED,____________________________________ hereby sell, assigns
and transfer unto
PLEASE INSERT SOCIAL SECURITY OR OTHER IDENTIFYING NUMBER
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(please print or type name and address)
______________________ of the Warrants represented by this Warrant, and hereby
irrevocably constitutes and appoints ________________________ Attorney to
transfer this Warrant on the books of the Company, with full power of
substitution in the premises.
Dated: ____________________ ____________________________________________
(Signature of Registered Holder)
_____________________________________________
(Signature Guaranteed)
THE SIGNATURE ON THE EXERCISE FORM OR THE ASSIGNMENT FORM MUST CORRESPOND TO THE
NAME AS WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY PARTICULAR,
WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER, AND MUST BE
GUARANTEED BY A COMMERCIAL BANK OR TRUST COMPANY OR A MEMBER FIRM OF THE
AMERICAN STOCK EXCHANGE, NEW YORK STOCK EXCHANGE, PACIFIC STOCK EXCHANGE OR
MIDWEST STOCK EXCHANGE.
CERTIFICATION OF STATUS OF TRANSFEREE
TO BE EXECUTED BY THE TRANSFEREE OF THIS WARRANT
The undersigned transferee hereby certifies to the registered Holder
and to ▇▇▇▇▇▇ Holding Corp.. that the transferee is an "accredited investor"
within the meaning of Rule 501 of Regulation D promulgated under the Securities
Act of 1933, as amended.
Dated: ____________________ ____________________________________________
(Signature of Registered Holder)
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