PRIMO WATER CORPORATION AMENDED AND RESTATED COMMON STOCK PURCHASE WARRANT
Exhibit 10.43
| THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE HEREUNDER HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN APPLICABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT AND SUCH LAWS. |
Dated:
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Shares1 | |
Amended and Restated:
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Certificate No. W- |
THIS CERTIFIES THAT for value received, subject to the terms and conditions set forth herein,
, a
, or its/his/her permitted assigns (the
“Holder”), is entitled to purchase up to shares of Common Stock (the “Common Stock”) of
Primo Water Corporation, a Delaware corporation (the “Company”), at a purchase price of [One Dollar
and 25/100 ($1.25) per share]1 (as adjusted from time to time as herein provided, the
“Purchase Price”) upon presentation of this Warrant, payment of the Purchase Price for the shares
of Common Stock purchased at the principal office of the Company or at such other place as shall
have been designated by the Company, and subject to the vesting provisions set forth in Section
1.b. hereof. The number of shares of Common Stock which are purchasable hereunder, as adjusted
pursuant to the provisions below, is hereinafter referred to as the “Warrant Shares.”
This Warrant is subject to the following provisions:
1. Exercise of Warrant.
a. The vested portion of this Warrant may be exercised, in whole or in part, at the Holder’s
election, at any time prior to
[April 28, 2016]2 (the “Expiration Date”). The Holder may exercise the vested portion of this Warrant by delivery to the Company of a written notice of such exercise and the tender to the Company of the Purchase Price for the Warrant Shares purchasable pursuant to such exercise of the vested portion of this Warrant. In case of an exercise to purchase less than all Warrant Shares purchasable hereunder, the Company shall cancel this Warrant and shall execute and deliver a new warrant of like tenor for the balance of the shares which may be purchased hereunder.
[April 28, 2016]2 (the “Expiration Date”). The Holder may exercise the vested portion of this Warrant by delivery to the Company of a written notice of such exercise and the tender to the Company of the Purchase Price for the Warrant Shares purchasable pursuant to such exercise of the vested portion of this Warrant. In case of an exercise to purchase less than all Warrant Shares purchasable hereunder, the Company shall cancel this Warrant and shall execute and deliver a new warrant of like tenor for the balance of the shares which may be purchased hereunder.
b. Right to Exercise. Since the Holder’s Subscription Commitment (as defined and set
forth in that certain Subscription Agreement, dated as of the date hereof, by and between the
Company and the Holder (the “Subscription Agreement”)) may be paid in multiple tranches, and the
total amount of the Warrant Shares purchasable by exercise hereof is calculated based upon payment
of the Holder’s
| 1 | Will be adjusted for reverse stock split in connection with the Company’s initial public offering, which will occur prior to the effectiveness of the amendment and restatement of this Warrant. | |
| 2 | To be determined based on expiration date of originally issued Warrant, which expiration dates ranged from April 28, 2016 to January 10, 2017. |
total Subscription Commitment, this Warrant shall vest according to this Section 1.b. At any and
all times, this Warrant shall vest and become exercisable in cumulative amounts (expressed as a
percentage of the total Warrant) equal to that percentage of the total Subscription Commitment as
is paid by the Holder to the Company at any such time, with such applicable percentage of this
Warrant becoming vested and exercisable immediately upon each payment towards the total
Subscription Commitment. This Warrant shall become fully vested and exercisable upon Holder’s
payment to the Company of the entire Subscription Commitment. The foregoing vesting provision is
cumulative, such that the Warrant Shares as to which the Warrant has become exercisable, may be
purchased pursuant to the exercise of this Warrant at any subsequent date prior to the termination
or expiration of this Warrant.
c. Net Exercise. At any time prior to the Expiration Date, the Holder shall have the
right to pay all or a portion of the aggregate Purchase Price by making a “Net Exercise” pursuant
to this Section 1.c., in which case the portion of the Purchase Price to be so paid shall be paid
by reducing the number of shares of Common Stock otherwise issuable pursuant to the exercise of
this Warrant by an amount equal to (i) the aggregate Purchase Price to be so paid divided by (ii)
the fair market value per share of Common Stock as determined by the Company in good faith as of
the business day immediately preceding the date of exercise of such Warrant. The number of shares
of Common Stock to be issued to the Holder as a result of a Net Exercise will therefore be (x) the
number of shares of Common Stock to be purchased, minus (y) the number of shares of Common
Stock with respect to which the Purchase Price is being paid by Net Exercise pursuant to this
Section 1.c.
2. Compliance with Securities Laws. The Holder of this Warrant, by its/his/her
acceptance hereof, represents and acknowledges that this Warrant is acquired for the Holder’s own
account for investment purposes only and that this Warrant and the Warrant Shares issuable upon
exercise hereof, respectively, have not been registered under the Securities Act of 1933, as
amended. Accordingly, any transfer of this Warrant and such Warrant Shares shall be subject to
legal restrictions. The Holder agrees that it/he/she will not offer for sale or sell, assign or
pledge, or otherwise dispose of (except through exercise) this Warrant or any Warrant Shares issued
to the Holder pursuant to exercise hereof, except in accordance with applicable securities laws.
3. Shares of Common Stock in Reserve. The Company agrees at all times to reserve a
sufficient number of authorized but unissued shares of Common Stock for the purposes of the
exercise of this Warrant, and to take such action as may be necessary to ensure that all Warrant
Shares issued upon exercise of this Warrant will be duly and validly authorized and issued and
fully paid and nonassessable.
4. No Voting or Dividend Rights: This Warrant shall not entitle the Holder to any
voting rights or other rights as a stockholder of the Company, and no dividend or interest shall be
payable or accrued in respect of this Warrant or the interest represented hereby or the Warrant
Shares which may be purchased hereunder until and unless, and except to the extent that, this
Warrant shall be exercised.
5. Adjustment of Purchase Price and Number of Shares:
a. The Purchase Price hereof shall be subject to adjustment from time to time. In case
the Company shall (a) pay a dividend on its Common Stock in Common Stock, (b) subdivide its
outstanding shares of Common Stock, or (c) combine its outstanding shares of Common Stock
into a smaller number of shares, then, in such an event, the Purchase Price in effect
immediately prior thereto shall be adjusted proportionately so that the adjusted Purchase
Price will bear the same relation to the Purchase Price in effect immediately prior to any
such event as the total number of shares of Common Stock outstanding immediately prior to
any such event shall bear to
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the total number of shares of Common Stock outstanding immediately after such event.
An adjustment made pursuant to this Subsection 5.a. (a) shall become effective retroactively
immediately after the record date in the case of a dividend and (b) shall become effective
immediately after the effective date in the case of a subdivision or combination. The
Purchase Price, as so adjusted, shall be readjusted in the same manner upon the happening of
any successive event or events described herein. For the avoidance of doubt, no adjustment
to the Purchase Price shall be made with respect to the reverse stock split of the Common
Stock in connection with the Company’s initial public offering, which occurred prior to the
amendment and restatement of this Warrant and has been accounted for in the Purchase Price.
b. Upon each adjustment of the Purchase Price pursuant to subsection 5.a., the number
of shares of Common Stock purchasable upon exercise of this Warrant shall be adjusted to the
number of shares of Common Stock, rounded down to the nearest whole share, obtained by
multiplying (i) the number of shares of Common Stock purchasable immediately prior to such
adjustment upon the exercise of this Warrant, (ii) by the Purchase Price in effect prior to
such adjustment, and (iii) dividing the product so obtained by the new Purchase Price.
c. In case of any capital reorganization of the Company, or of any reclassification of
the Common Stock, this Warrant shall be exercisable after such capital reorganization or
reclassification upon the terms and conditions specified in this Warrant, for the number of shares of stock or other securities which the Common Stock issuable (at the time of such
capital reorganization or reclassification) upon exercise of this Warrant would have been
entitled to receive upon such capital reorganization or reclassification if such exercise
had taken place immediately prior to such action. The subdivision or combination of shares
of Common Stock at any time outstanding into a greater or lesser number of shares of Common
Stock shall not be deemed to be a reclassification of the Common Stock of the Company for
the purposes of this Subsection 5.c.
d. Whenever the Purchase Price is adjusted as herein provided, the Company shall
compute the adjusted Purchase Price in accordance with Subsection 5.a. and shall prepare a
certificate signed by its chief financial officer setting forth the adjusted Purchase Price
and showing in reasonable detail the method of such adjustment and the fact requiring the
adjustment and upon which such calculation is based, and such certificate shall forthwith be
forwarded to the Holder; provided, however, that no notice shall be required with respect to
the reverse stock split of the Common Stock in connection with the Company’s initial public
offering, which occurred prior to the amendment and restatement of this Warrant and has been
accounted for in the number of shares covered by this Warrant (as amended and restated) and
the Purchase Price.
e. The form of this Warrant need not be changed because of any change in the Purchase
Price pursuant to this Section 5, and any Warrant issued after such change may state the
same Purchase Price and the same number of shares of Common Stock as are stated in this
Warrant as initially issued. The Company, however, may at any time in its sole discretion
(which shall be conclusive) make any change in the form of this Warrant that it may deem
appropriate and that does not affect the substance thereof. Any Warrant thereafter issued
or countersigned, whether in exchange or substitution for an outstanding Warrant or
otherwise, may be in the form as so changed.
6. Replacement Warrant for Lost Certificate: 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
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loss, theft or destruction, of indemnity or security reasonably satisfactory to the Company,
and reimbursement to the Company of all reasonable expenses incidental thereto (and upon surrender
and cancellation of this Warrant if mutilated), the Company will execute and deliver a new warrant
of like tenor, in lieu of this Warrant.
7. Assignability and Binding Effect: This Warrant shall be binding upon and inure to
the benefit of any and all successors and assigns of the Holder and the Company; provided, however,
that no Assignment (as defined below) may be made by the Holder except for an Assignment to an
Approved Party (as defined below). Any Assignment made without first complying with the provisions
of this Section 7 shall be void and of no legal effect.
8. Amendment and Waiver. Except as otherwise provided herein, the provisions of this
Warrant may be amended and the Company may take any action herein prohibited, or omit to perform
any act herein required to be performed by it, only if the Company has obtained the prior written
consent of the Holder. Notwithstanding the foregoing, by accepting this Warrant (as amended and
restated), and surrendering to the Company the Holder’s original Warrant to which this Warrant (as
amended and restated) relates as required prior to the issuance to the Holder of this Warrant (as
amended and restated), the Holder acknowledges and agrees to be bound by the terms of this Warrant
(as amended and restated).
9. Entire Agreement. This Warrant (as amended and restated) and the Subscription
Agreement supersede any and all other understandings and agreements, either oral or in writing,
between the parties hereto with respect to the subject matter hereof, and constitute the only
agreement between the parties with respect to such subject matter.
10. Definitions. As used herein:
a. “Affiliates” means with respect to any Person, any Person directly or indirectly
controlling, controlled by, or under common control with such Person. For the purposes of
this definition, “control” (including correlative meanings, such as the terms “controlling” “controlled by” and “under common control with”), as applied to any Person, means the
possession, directly, indirectly or beneficially, of either: (i) fifty-one (51%) equity
ownership; or (ii) the power to direct or cause the direction of the management and policies
of that Person, whether through the ownership of voting securities or by contract or
otherwise.
b. “Approved Party” means: (i) Affiliates; (ii) parents (including step-parents and
adoptive parents) and children (including step-children, adopted children and children of
the half-blood); (iii) partners or retired partners of a partnership, or members or retired
members in a limited liability company; or (iv) Persons to whom an Assignment is made with
the prior written approval of the Company. The Company’s approval shall not be unreasonably
withheld, provided that, it may refuse such approval if the proposed assignee is reasonably
believed by the Company to be a competitor of the Company.
c. “Assignment” means any sale, assignment, gift, pledge, encumbrance or other transfer
or disposition of this Warrant;
d. “Person” means an individual, a partnership, a corporation, a limited liability
company, an association, a joint stock company, a trust, a joint venture, an unincorporated
organization and a governmental entity or any department, agency or political subdivision
thereof.
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12. Governing Law. THIS WARRANT SHALL BE GOVERNED BY, CONSTRUED IN ACCORDANCE WITH,
AND ENFORCED UNDER, THE LAWS OF THE STATE OF NORTH CAROLINA, WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAW OF SUCH STATE.
[THE NEXT PAGE IS THE SIGNATURE PAGE]
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IN WITNESS WHEREOF, the Company has executed this Warrant under seal effective as of the date
first above written.
| COMPANY: | ||||||
| PRIMO WATER CORPORATION | ||||||
| By: | ||||||
| Its: | ||||||