EXHIBIT 4.4
WARRANT AGREEMENT
THIS WARRANT AGREEMENT is made as of [________] [__], 2006 between Xxxxxxxx
XxXxxxx Acquisition Corporation, a Delaware corporation, with offices at 000
Xxxxx Xxxxx Xxxx, Xxxxxxxx, XX 00000 (the "COMPANY"), and Continental Stock
Transfer & Trust Company, a New York corporation, with offices at 00 Xxxxxxx
Xxxxx, Xxx Xxxx, Xxx Xxxx 00000 (the "WARRANT AGENT").
WHEREAS, the Company is engaged in a public offering ("PUBLIC OFFERING") of
up to 17,968,750 Units ("PUBLIC UNITS"), consisting of one share of the
Company's common stock, par value $0.0001 per share ("COMMON STOCK") and one
warrant ("PUBLIC WARRANTS"), each of such Public Warrants evidencing the right
of the holder thereof to purchase one share of Common Stock for $6.00, subject
to adjustment as described herein;
WHEREAS, in connection with the Public Offering, the Company has determined
to sell, issue and deliver to Deutsche Bank Securities Inc. (the "UNDERWRITER")
an option (the "PURCHASE OPTION") to purchase up to 781,250 Units (the
"UNDERWRITER'S UNITS"), each Unit consisting of one share of Common Stock and
one warrant (collectively, the "UNDERWRITER'S WARRANTS"), each of the
Underwriter's Warrants evidencing the right of the holder thereof to purchase
one share of Common Stock for $7.50, subject to adjustment as described herein;
WHEREAS, immediately prior to the completion of the Public Offering, the
Company shall sell and issue (i) 187,500 Units (the "PRIVATE UNITS" and,
together with the Public Units and the Underwriter's Units, the "UNITS"), each
such Unit consisting of one share of Common Stock and one Warrant to purchase
one share of Common Stock for $6.00, subject to adjustments described herein
(the "PRIVATE UNIT WARRANTS") (ii) 1,500,000 Warrants (together with the Private
Unit Warrants, the "PRIVATE WARRANTS"), each of such Private Warrants evidencing
the right of the holder thereof to purchase one share of Common Stock for $6.00,
subject to adjustment as described herein (the Underwriter's Warrants, the
Public Warrants and the Private Warrants are together referred herein as
"WARRANTS");
WHEREAS, the Company has filed with the Securities and Exchange Commission
(the "COMMISSION") a Registration Statement, No.333-136048, on Form S-1
("REGISTRATION STATEMENT") for the registration under the Securities Act of
1933, as amended ("ACT"), of, among other securities, the Public Units, Public
Warrants and the Common Stock issuable upon exercise of the Public Warrants;
WHEREAS, the Company desires the Warrant Agent to act on behalf of the
Company, and the Warrant Agent is willing to so act, in connection with the
issuance, registration, transfer, exchange, redemption, exercise and
cancellation of the Warrants; and
WHEREAS, the Company desires to provide for the form and provisions of the
Warrants, the terms upon which they shall be issued and exercised, and the
respective rights, limitation of rights, and immunities of the Company, the
Warrant Agent, and the holders of the Warrants; and
WHEREAS, all acts and things have been done and performed which are
necessary to make the Warrants, when executed on behalf of the Company and
countersigned by or on behalf of the Warrant Agent, as provided herein, the
valid, binding and legal obligations of the Company, and to authorize the
execution and delivery of this Agreement.
NOW, THEREFORE, in consideration of the mutual agreements herein contained,
the parties hereto agree as follows:
1. APPOINTMENT OF WARRANT AGENT. The Company hereby appoints the Warrant Agent
to act as agent for the Company with respect to the Warrants, and the Warrant
Agent hereby accepts such appointment and agrees to perform the same in
accordance with the terms and conditions set forth in this Agreement.
2. WARRANTS.
2.1 FORM OF WARRANT. Each Warrant shall be issued in registered form
only, shall be in substantially the form of EXHIBIT A hereto, the provisions
of which are incorporated herein and shall be signed by, or bear the
facsimile signature of, the Chairman of the Board, Chief Executive Officer,
President, Chief Financial Officer, Vice President or Secretary of the
Company. In the event the person whose facsimile signature has been placed
upon any Warrant shall have ceased to serve in the capacity in which such
person signed the Warrant before such Warrant is issued, it may be issued
with the same effect as if he or she had not ceased to be such at the date of
issuance.
2.2 EFFECT OF COUNTERSIGNATURE. Unless and until countersigned by the
Warrant Agent in accordance with this Agreement, a Warrant shall be invalid and
of no effect and may not be exercised by the holder thereof.
2.3 DETACHABILITY OF WARRANTS. The securities comprising the Units will not
be separately transferable until five business days after the earlier to occur
of (i) the expiration or termination of the Underwriter's over allotment option
or (ii) the exercise in full by the Underwriter of such option (the "DETACHMENT
DATE"), but in no event will separate trading of the securities comprising the
Units commence until the Company (i) files a Current Report on Form 8-K with the
Commission which includes an audited balance sheet reflecting the receipt by the
Company of the gross proceeds of the Public Offering including the proceeds
received by the Company from the exercise of the Underwriter's over allotment
option, if the over allotment option is exercised prior to the filing of the
Form 8-K, and (ii) issues a press release announcing when such separate trading
will begin.
2.4 REGISTRATION.
2.4.1 WARRANT REGISTER. The Warrant Agent shall maintain books
("WARRANT REGISTER") for registration of original issuance and the registration
of transfer of the Warrants. Upon the initial issuance of the Warrants, the
Warrant Agent shall issue and register the Warrants in the names of the
respective holders thereof in such denominations and otherwise in accordance
with instructions delivered to the Warrant Agent by the Company.
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2.4.2 BENEFICIAL OWNER; REGISTERED HOLDER. Prior to due presentment
for registration of transfer of any Warrant, the Company and the Warrant Agent
may deem and treat the person in whose name such Warrant shall be registered
upon the Warrant Register (a "REGISTERED HOLDER") as the absolute owner of such
Warrant and of each Warrant represented thereby (notwithstanding any notation of
ownership or other writing on the Warrant Certificate made by anyone other than
the Company or the Warrant Agent) for the purpose of any exercise thereof, and
for all other purposes, and neither the Company nor the Warrant Agent shall be
affected by any notice to the contrary.
3. TERMS AND EXERCISE OF WARRANTS
3.1 WARRANT PRICE. Each Public Warrant, Private Unit Warrant and Private
Warrant shall, when countersigned by the Warrant Agent, entitle the registered
holder thereof, subject to the provisions of (a) such Public Warrant, Private
Unit Warrant or Private Warrant, as the case may be, and (b) this Warrant
Agreement, to purchase from the Company the number of shares of Common Stock
stated therein, at the price of $6.00 per whole share, subject to the
adjustments provided in Section 4 hereof and in the last sentence of this
Section 3.1. Each Underwriter Warrant, when countersigned by the Warrant Agent,
entitles the registered holder thereof, subject to the provisions of (a) such
Underwriter Warrant and (b) this Warrant Agreement, to purchase from the Company
the number of shares of Common Stock stated therein, at the price of $7.50 per
whole share, subject to the adjustments provided in Section 4 hereof and in the
last sentence of this Section 3.1. The term "WARRANT PRICE" as used in this
Warrant Agreement refers to the price per whole share at which Common Stock may
be purchased at the time a Warrant is exercised. The Company in its sole
discretion may lower the Warrant Price at any time prior to the Expiration Date;
provided, however, that any change in the Warrant Price must apply equally to
all of the Warrants except that (i) the Warrant Price for the Underwriter's
Warrants shall always remain equal to 125% of the Warrant Price for the other
Warrants and (ii) any amendment to the terms of the Underwriter's Warrants shall
be subject to any limitations and conditions that may be imposed by NASD
Corporate Financing Rule 2710, and provided further that any reduction in
Warrant Price must remain in effect for at least (20) business days.
3.2 DURATION OF WARRANTS. A Warrant may be exercised only during the period
("EXERCISE PERIOD") commencing on the later of (i) the completion of an
acquisition by the Company of one or more assets or operating businesses in the
telecommunications and media industries, through a merger, capital stock
exchange, asset or stock acquisition or other similar business combination
having collectively, a fair market value (as calculated in accordance with the
requirements set forth in the Company's Certificate of Incorporation) of at
least 80% of the Company's net assets (excluding the Underwriter's deferred
discount) at the time of such acquisition (a "BUSINESS COMBINATION"), or (ii)
___________ 2007 [ONE YEAR FROM THE EFFECTIVE DATE OF THE REGISTRATION
STATEMENT], and terminating at 5:00 p.m., New York City time on the earlier to
occur of (a) ____________, 2010 [FOUR YEARS FROM THE EFFECTIVE DATE OF THE
REGISTRATION STATEMENT], or (b) the date fixed for redemption of the Warrants as
provided in Section 6 of this Agreement ("EXPIRATION DATE"). Except with respect
to the right to receive the Redemption Price (as set forth in Section 6
hereunder), each Warrant not exercised on or before the Expiration Date shall
become void, and all rights thereunder and all rights in respect thereof under
this Agreement shall cease at the close of business on the Expiration Date. The
Company in its sole discretion may extend the duration of the Warrants by
delaying the Expiration Date;
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provided, however, that any extension of the duration of the Warrants must apply
equally to all of the Warrants, except that any amendment to the terms of the
Underwriter's Warrants shall be subject to any limitations and conditions that
may be imposed by NASD Corporate Financing Rule 2710. Should the Company wish to
extend the Expiration Date of the Warrants, the Company shall provide advance
notice to the American Stock Exchange as required by the American Stock
Exchange.
3.3 TERMS AND EXERCISE OF WARRANTS.
3.3.1. PAYMENT. Subject to the provisions of the Warrant (including,
but not limited to, the cashless exercise provisions applicable to the Private
Warrants) and this Warrant Agreement, a Warrant, when countersigned by the
Warrant Agent, may be exercised by the registered holder thereof by surrendering
it, at the office of the Warrant Agent, or at the office of its successor as
Warrant Agent, in the Borough of Manhattan, City and State of New York, with the
subscription form, as set forth in the Warrant, duly executed, and by paying in
full, in lawful money of the United States, in cash, good certified check or
good bank draft payable to the order of the Company (or as otherwise agreed to
by the Company), the Warrant Price for each whole share of Common Stock as to
which the Warrant is exercised and any and all applicable taxes due in
connection with the exercise of the Warrant, the exchange of the Warrant for the
Common Stock, and the issuance of the Common Stock.
3.3.2. ISSUANCE OF CERTIFICATES. As soon as practicable after the
exercise of any Warrant and the clearance of the funds in payment of the Warrant
Price, the Company shall issue to the registered holder of such Warrant a
certificate or certificates for the number of full shares of Common Stock to
which he is entitled, registered in such name or names as may be directed by
him, her or it, and if such Warrant shall not have been exercised in full, a new
countersigned Warrant for the number of shares as to which such Warrant shall
not have been exercised. Notwithstanding the foregoing, the Company shall not be
obligated to deliver any securities pursuant to the exercise of a Warrant unless
a registration statement under the Act with respect to the Common Stock is
effective.
3.3.3. LIMITATIONS. Notwithstanding the foregoing, the Company shall
not be obligated to deliver any Shares pursuant to the exercise of a Warrant and
shall have no obligation to settle the Warrant exercise unless a registration
statement under the Securities Act of 1933, as amended (the "Securities Act"),
with respect to the Shares is effective and a current Prospectus is on file with
the Commission. In the event that a registration statement with respect to the
Shares underlying a Warrant is not effective under the Securities Act or a
current Prospectus is not on file with the Commission, the holder of such
Warrant shall not be entitled to exercise such Warrant. Notwithstanding anything
to the contrary in this Warrant Agreement, under no circumstances will the
Company be required to net cash settle the Warrant exercise. Warrants may not be
exercised by, or Shares issued to, any registered holder in any state in which
such exercise or issuance would be unlawful. For the avoidance of doubt, as a
result of this Section 3.3.3, any or all of the Warrants may expire unexercised.
In no event shall the registered Holder of a Warrant be entitled to receive any
monetary damages if the Common Stock underlying the Warrants have not been
registered by the Company pursuant to an effective registration statement or if
a current prospectus is available for delivery by the Warrant Agent, provided
the
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Company has fulfilled its obligation to use its best efforts to effect such
registration and ensure a current prospectus is available for delivery by the
Warrant Agent.
3.4 VALID ISSUANCE. All shares of Common Stock issued upon the proper
exercise of a Warrant in conformity with this Agreement shall be validly issued,
fully paid and nonassessable.
3.5 DATE OF ISSUANCE. Each person in whose name any such certificate for
shares of Common Stock is issued shall for all purposes be deemed to have become
the holder of record of such shares on the date on which the Warrant was
surrendered and payment of the Warrant Price was made, irrespective of the date
of delivery of such certificate, except that, if the date of such surrender and
payment is a date when the stock transfer books of the Company are closed, such
person shall be deemed to have become the holder of such shares at the close of
business on the next succeeding date on which the stock transfer books are open.
4. ADJUSTMENTS.
4.1 STOCK DIVIDENDS - SPLIT-UPS. If after the date hereof, and subject to
the provisions of Section 4.7 below, the number of outstanding shares of Common
Stock is increased by a stock dividend payable in shares of Common Stock, or by
a split-up of shares of Common Stock, or other similar event, then, on the
effective date of such stock dividend, split-up or similar event, the number of
shares of Common Stock issuable on exercise of each Warrant shall be increased
in proportion to such increase in outstanding shares of Common Stock.
4.2 EXTRAORDINARY DIVIDEND. If the Company, at any time while the
Warrants or Purchase Option are outstanding and unexpired, shall pay a
dividend or make a distribution in cash, securities or other assets to the
holders of Common Stock (or other shares of the Company's capital stock into
which the Warrants are convertible), other than (i) as described in Sections
4.1, 4.3 or 4.5, (ii) regular quarterly or other periodic dividends, (iii) in
connection with the conversion rights of the holders of Common Stock upon
consummation of the Company's initial Business Combination or (iv) in
connection with the Company's liquidation and the distribution of its assets
upon its failure to consummate a Business Combination (any such non-excluded
event being referred to herein as an "Extraordinary Dividend"), then the
Warrant Price shall be decreased, effective immediately after the effective
date of such Extraordinary Dividend, by the amount of cash and/or the fair
market value (as determined by the Company's Board of Directors, in good
faith) of any securities or other assets paid on each share of Common Stock
in respect of such Extraordinary Dividend.
4.3 AGGREGATION OF SHARES. If after the date hereof, and subject to the
provisions of Section 4.7, the number of outstanding shares of Common Stock is
decreased by a consolidation, combination, reverse stock split or
reclassification of shares of Common Stock or other similar event, then, on the
effective date of such consolidation, combination, reverse stock split,
reclassification or similar event, the number of shares of Common Stock issuable
on exercise of each Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.
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4.4 ADJUSTMENTS IN WARRANT PRICE. Whenever the number of shares of Common
Stock purchasable upon the exercise of the Warrants is adjusted, as provided in
Section 4.1 and 4.3 above, the Warrant Price shall be adjusted (to the nearest
cent) by multiplying such Warrant Price immediately prior to such adjustment by
a fraction (x) the numerator of which shall be the number of shares of Common
Stock purchasable upon the exercise of the Warrants immediately prior to such
adjustment, and (y) the denominator of which shall be the number of shares of
Common Stock so purchasable immediately thereafter.
4.5 REPLACEMENT OF SECURITIES UPON REORGANIZATION, ETC. In case of any
reclassification or reorganization of the outstanding shares of Common Stock
(other than a change covered by Section 4.1 or 4.3 hereof or that solely affects
the par value of such shares of Common Stock), or in the case of any merger or
consolidation of the Company with or into another corporation (other than a
consolidation or merger in which the Company is the continuing corporation and
that does not result in any reclassification or reorganization of the
outstanding shares of Common Stock), or in the case of any sale or conveyance to
another corporation or entity of the assets or other property of the Company as
an entirety or substantially as an entirety in connection with which the Company
is dissolved, the Warrant holders shall thereafter have the right to purchase
and receive, upon the basis and upon the terms and conditions specified in the
Warrants and in lieu of the shares of Common Stock of the Company immediately
theretofore purchasable and receivable upon the exercise of the rights
represented thereby, the kind and amount of shares of stock or other securities
or property (including cash) receivable upon such reclassification,
reorganization, merger or consolidation, or upon a dissolution following any
such sale or transfer, that the Warrant holder would have received if such
Warrant holder had exercised his, her or its Warrant(s) immediately prior to
such event; and if any reclassification also results in a change in shares of
Common Stock covered by Section 4.1 or 4.3, then such adjustment shall be made
pursuant to Sections 4.1, 4.3, 4.4 and this Section 4.5. The provisions of this
Section 4.5 shall similarly apply to successive reclassifications,
reorganizations, mergers or consolidations, sales or other transfers.
4.6 NOTICES OF CHANGES IN WARRANT. Upon every adjustment of the Warrant
Price or the number of shares issuable upon exercise of a Warrant, the Company
shall give written notice thereof to the Warrant Agent, which notice shall state
the Warrant Price resulting from such adjustment and the increase or decrease,
if any, in the number of shares purchasable at such price upon the exercise of a
Warrant, setting forth in reasonable detail the method of calculation and the
facts upon which such calculation is based. Upon the occurrence of any event
specified in Sections 4.1, 4.2, 4.3, 4.4 or 4.5, then, in any such event, the
Company shall give written notice to the Warrant holder, at the last address set
forth for such holder in the warrant register, of the record date or the
effective date of the event. Failure to give such notice, or any defect therein,
shall not affect the legality or validity of such event.
4.7 NO FRACTIONAL SHARES. Notwithstanding any provision contained in this
Warrant Agreement to the contrary, the Company shall not issue fractional shares
upon exercise of Warrants. If, by reason of any adjustment made pursuant to this
Section 4, the holder of any Warrant would be entitled, upon the exercise of
such Warrant, to receive a fractional interest in a share, the Company shall,
upon such exercise, round up to the nearest whole number the number of the
shares of Common Stock to be issued to the Warrant holder.
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4.8 FORM OF WARRANT. The form of Warrant need not be changed because of any
adjustment pursuant to this Section 4, and Warrants issued after such adjustment
may state the same Warrant Price and the same number of shares as is stated in
the Warrants initially issued pursuant to this Agreement. However, the Company
may at any time in its sole discretion make any change in the form of Warrant
that the Company may deem appropriate and that does not affect the substance
thereof, and 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.
5. TRANSFER AND EXCHANGE OF WARRANTS.
5.1 TRANSFER OF WARRANTS. Prior to the Detachment Date, the Public Warrants
and the Private Unit Warrants may be transferred or exchanged only together with
the Unit in which such Warrant is included, and only for the purpose of
effecting, or in conjunction with, a transfer or exchange of such Unit.
Furthermore, each transfer of a Public Unit or a Private Unit on the register
relating to such Units shall operate also to transfer the Warrants included in
such Unit. From and after the Detachment Date this Section 5.1 will have no
further force and effect.
5.2 REGISTRATION OF TRANSFER. The Warrant Agent shall register the
transfer, from time to time, of any outstanding Warrant upon the Warrant
Register, upon surrender of such Warrant for transfer, properly endorsed with
signatures properly guaranteed and accompanied by appropriate instructions for
transfer.
5.3 PROCEDURE FOR SURRENDER OF WARRANTS. Warrants may be surrendered to the
Warrant Agent, together with a written request for exchange or transfer, and
thereupon the Warrant Agent shall issue in exchange therefor one or more new
Warrants as requested by the registered holder of the Warrants so surrendered,
representing an equal aggregate number of Warrants; provided, however, that in
the event that a Warrant surrendered for transfer bears a restrictive legend,
the Warrant Agent shall not cancel such Warrant and issue new Warrants in
exchange therefor until the Warrant Agent has received an opinion of counsel for
the Company stating that such transfer may be made and indicating whether the
new Warrants must also bear a restrictive legend. Upon any such registration of
transfer, the Company shall execute, and the Warrant Agent shall countersign and
deliver, in the name of the designated transferee a new Warrant Certificate or
Warrant Certificates of any authorized denomination evidencing in the aggregate
a like number of unexercised Warrants.
5.4 FRACTIONAL WARRANTS. The Warrant Agent shall not be required to effect
any registration of transfer or exchange which will result in the issuance of a
Warrant Certificate for a fraction of a Warrant.
5.5 SERVICE CHARGES. No service charge shall be made for any exchange or
registration of transfer of Warrants.
5.6 WARRANT EXECUTION AND COUNTERSIGNATURE. The Warrant Agent is hereby
authorized to countersign and to deliver, in accordance with the terms of this
Agreement, the Warrants required to be issued pursuant to the provisions of this
Section 5, and the Company,
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whenever required by the Warrant Agent, will supply the Warrant Agent with
Warrants duly executed on behalf of the Company for such purpose.
6. REDEMPTION.
6.1 REDEMPTION. Subject to Section 6.4 hereof, not less than all of the
outstanding Warrants may be redeemed, at the option of the Company, at any time
after they become exercisable and prior to their expiration (subject to the
requirements of Section 6.2), at the office of the Warrant Agent, upon the
notice referred to in Section 6.2, at the price of $0.01 per Warrant
("REDEMPTION PRICE"), PROVIDED that the last sales price of the Common Stock has
been at least $11.50 per share (subject to proportionate adjustment to reflect
adjustment to the Warrant Price as provided in Section 4.4) for any twenty (20)
trading days within a thirty (30) trading day period ending on the third
business day prior to the date on which notice of redemption is given.
6.2 DATE FIXED FOR, AND NOTICE OF, REDEMPTION. In the event the Company
shall elect to redeem all of the Warrants, the Company shall fix a date for the
redemption, which date shall be prior to the expiration of the Warrants (the
"REDEMPTION DATE"). Notice of redemption shall be mailed by first class mail,
postage prepaid, by the Company not less than 30 days prior to the date fixed
for redemption to the Registered Holders of the Warrants to be redeemed at their
last addresses as they shall appear on the Warrant Register (the "REDEMPTION
NOTICE"). Any notice mailed in the manner herein provided shall be conclusively
presumed to have been duly given on the date sent whether or not the Registered
Holder received such notice.
6.3 EXERCISE AFTER NOTICE OF REDEMPTION. The Warrants may be exercised in
accordance with Section 3 of this Agreement at any time after the Redemption
Notice shall have been given by the Company pursuant to Section 6.2 hereof and
prior to the time and date fixed for redemption. On and after the Redemption
Date, the record holder of the Warrants shall have no further rights except to
receive, upon surrender of the Warrants, the Redemption Price.
6.4 OUTSTANDING WARRANTS ONLY. The Company understands that the redemption
rights provided for by this Section 6 apply only to outstanding Warrants. To the
extent a person holds rights to purchase Warrants, such purchase rights shall
not be extinguished by redemption. However, once such purchase rights are
exercised, the Company may redeem the Warrants issued upon such exercise
provided that the criteria for redemption are met.
7. OTHER PROVISIONS RELATING TO RIGHTS OF HOLDERS OF WARRANTS.
7.1 NO RIGHTS AS STOCKHOLDER. A Warrant does not entitle the Registered
Holder thereof to any of the rights of a stockholder of the Company, including,
without limitation, the right to receive dividends, or other distributions,
exercise any preemptive rights to vote or to consent or to receive notice as
stockholders in respect of the meetings of stockholders or the election of
directors of the Company or any other matter.
7.2 LOST, STOLEN, MUTILATED, OR DESTROYED WARRANTS. If any Warrant is lost,
stolen, mutilated, or destroyed, the Company and the Warrant Agent may on such
terms as to indemnity or otherwise as they may in their discretion impose (which
shall, in the case of a mutilated Warrant, include the surrender thereof), issue
a new Warrant of like denomination, tenor, and date as the Warrant so lost,
stolen, mutilated, or destroyed. Any such new Warrant shall
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constitute a substitute contractual obligation of the Company, whether or not
the allegedly lost, stolen, mutilated, or destroyed Warrant shall be at any time
enforceable by anyone.
7.3 RESERVATION OF COMMON STOCK. The Company shall at all times reserve and
keep available a number of its authorized but unissued shares of Common Stock
that will be sufficient to permit the exercise in full of all outstanding
Warrants issued pursuant to this Agreement.
7.4 REGISTRATION OF COMMON STOCK. Prior to the commencement of the Exercise
Period, the Company shall use its best efforts to prepare and file with the
Securities and Exchange Commission (the "Commission") a post-effective amendment
to the Registration Statement, or a new registration statement, for the
registration under the Securities Act of, and it shall use its best efforts to
take such action as is necessary to qualify for sale, in those states in which
the Warrants were initially offered by the Company, the Shares issuable upon
exercise of the Warrants. The Company shall use its best efforts to cause the
same to become effective on or prior to the commencement of the Exercise Period
and shall use its best efforts to maintain the effectiveness of such
registration statement and ensure that a current prospectus is on file with the
Commission until the expiration of the Warrants in accordance with the
provisions of this Agreement; PROVIDED, HOWEVER, that the Company shall not be
obligated to deliver Shares, and shall not have penalties nor be liable to the
Warrant holder for failure to deliver Shares pursuant to Section 3, if a
registration statement is not effective or a current Prospectus is not on file
with the Commission at the time of exercise of the Warrant by the holder. For
the avoidance of doubt, the Company may be liable to a Warrant holder for
failure to fulfill its obligations to use best efforts pursuant to this Section
7.4.
7.5 DELIVERY OF PROSPECTUS OR NOTICE. Upon the exercise of any Warrant, if
the Company requests, the Warrant Agent shall deliver to the Holder of such
Warrant, prior to or concurrently with the delivery of the Shares issued upon
such exercise, in accordance with the Company's request, either (i) a prospectus
relating to the Shares deliverable upon exercise of Warrants and complying in
all material respects with the Securities Act (the "Prospectus") or (ii) the
notice referred to in Rule 173 under the Securities Act.
8. CONCERNING THE WARRANT AGENT AND OTHER MATTERS.
8.1 PAYMENT OF TAXES. The Company will from time to time promptly pay all
taxes and charges that may be imposed upon the Company or the Warrant Agent in
respect of the issuance or delivery of shares of Common Stock upon the exercise
of Warrants, but the Company shall not be obligated to pay any transfer taxes in
respect of the Warrants or such shares.
8.2 RESIGNATION, CONSOLIDATION, OR MERGER OF WARRANT AGENT.
8.2.1 APPOINTMENT OF SUCCESSOR WARRANT AGENT. The Warrant Agent, or
any successor to it hereafter appointed, may resign its duties and be discharged
from all further duties and liabilities hereunder after giving sixty (60) days'
prior written notice to the Company. If the office of the Warrant Agent becomes
vacant by resignation or incapacity to act or otherwise, the Company shall
appoint in writing a successor warrant agent in place of the Warrant Agent. If
the Company shall fail to make such appointment within a period of 30 days after
it has been
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notified in writing of such resignation or incapacity by the Warrant Agent or by
the holder of the Warrant (who shall, with such notice, submit his Warrant for
inspection by the Company), then the holder of any Warrant may apply to the
Supreme Court of the State of New York for the County of New York for the
appointment of a successor Warrant Agent at the Company's cost. Any successor
warrant agent, whether appointed by the Company or by such court, shall be a
corporation organized and existing under the laws of the State of New York, in
good standing and having its principal office in the Borough of Manhattan, City
and State of New York, and authorized under such laws to exercise corporate
trust powers and subject to supervision or examination by federal or state
authority. After appointment, any successor warrant agent shall be vested with
all the authority, powers, rights, immunities, duties, and obligations of its
predecessor warrant agent with like effect as if originally named as warrant
agent hereunder, without any further act or deed; but if for any reason it
becomes necessary or appropriate, the predecessor warrant agent shall execute
and deliver, at the expense of the Company, an instrument transferring to such
successor warrant agent all the authority, powers, and rights of such
predecessor warrant agent hereunder; and upon request of any successor warrant
agent the Company shall make, execute, acknowledge, and deliver any and all
instruments in writing for more fully and effectually vesting in and confirming
to such successor warrant agent all such authority, powers, rights, immunities,
duties, and obligations.
8.2.1 NOTICE OF SUCCESSOR WARRANT AGENT. In the event a successor
warrant agent shall be appointed, the Company shall give notice thereof to the
predecessor warrant agent and the transfer agent for the Common Stock not later
than the effective date of any such appointment.
8.2.1 MERGER OR CONSOLIDATION OF WARRANT AGENT. Any corporation into
which the Warrant Agent may be merged or with which it may be consolidated or
any corporation resulting from any merger or consolidation to which the Warrant
Agent shall be a party shall be the successor warrant agent under this Agreement
without any further act.
8.3 FEES AND EXPENSES OF WARRANT AGENT.
8.3.1 REMUNERATION. The Company agrees to pay the Warrant Agent
[______] for its services as Warrant Agent hereunder and will reimburse the
Warrant Agent upon demand for all expenditures that the Warrant Agent may
reasonably incur in the execution of its duties hereunder.
8.3.1 FURTHER ASSURANCES. The Company agrees to perform, execute,
acknowledge, and deliver or cause to be performed, executed, acknowledged, and
delivered all such further acts, instruments, and assurances as may reasonably
be required by the Warrant Agent for the carrying out or performing of the
provisions of this Agreement.
8.4 LIABILITY OF WARRANT AGENT.
8.4.1 RELIANCE ON COMPANY STATEMENT. Whenever in the performance of
its duties under this Warrant Agreement, the Warrant Agent shall deem it
necessary or desirable that any fact or matter be proved or established by the
Company prior to taking or suffering any action hereunder, such fact or matter
(unless other evidence in respect thereof be herein
10
specifically prescribed) may be deemed to be conclusively proved and established
by a statement signed by the Chief Executive Officer, President or Chairman of
the Board of the Company and delivered to the Warrant Agent. The Warrant Agent
may rely upon such statement for any action taken or suffered in good faith by
it pursuant to the provisions of this Agreement.
8.4.1 INDEMNITY. The Warrant Agent shall be liable hereunder only for
its own negligence, willful misconduct or bad faith. The Company agrees to
indemnify the Warrant Agent and save it harmless against any and all
liabilities, including judgments, costs and reasonable counsel fees, for
anything done or omitted by the Warrant Agent in the execution of this Agreement
except as a result of the Warrant Agent's negligence, willful misconduct, or bad
faith.
8.4.1 EXCLUSIONS. The Warrant Agent shall have no responsibility with
respect to the validity of this Agreement or with respect to the validity or
execution of any Warrant (except its countersignature thereof); nor shall it be
responsible for any breach by the Company of any covenant or condition contained
in this Agreement or in any Warrant; nor shall it be responsible to make any
adjustments required under the provisions of Section 4 hereof or responsible for
the manner, method, or amount of any such adjustment or the ascertaining of the
existence of facts that would require any such adjustment; nor shall it by any
act hereunder be deemed to make any representation or warranty as to the
authorization or reservation of any shares of Common Stock to be issued pursuant
to this Agreement or any Warrant or as to whether any shares of Common Stock
will when issued be valid and fully paid and nonassessable.
8.5 ACCEPTANCE OF AGENCY. The Warrant Agent hereby accepts the agency
established by this Agreement and agrees to perform the same upon the terms and
conditions herein set forth and among other things, shall account promptly to
the Company with respect to Warrants exercised and concurrently account for, and
pay to the Company, all moneys received by the Warrant Agent for the purchase of
shares of the Company's Common Stock through the exercise of Warrants.
8.6 WAIVER. The Warrant Agent hereby waives any and all right, title,
interest or claim of any kind ("CLAIM") in or to any distribution of the Trust
Account (as defined in that certain Investment Management Trust Agreement, dated
as of the date hereof, by and between the Company and the Warrant Agent as
trustee thereunder), and hereby agrees not to seek recourse, reimbursement,
payment or satisfaction for any Claim against the Trust Fund for any reason
whatsoever.
9. MISCELLANEOUS PROVISIONS.
9.1 SUCCESSORS. All the covenants and provisions of this Agreement by or
for the benefit of the Company or the Warrant Agent shall bind and inure to the
benefit of their respective successors and assigns.
9.2 NOTICES. Any notice, statement or demand authorized by this Warrant
Agreement to be given or made by the Warrant Agent or by the holder of any
Warrant to or on the Company shall be sufficiently given when so delivered if by
hand or overnight delivery or if sent by
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certified mail or private courier service within five days after deposit of such
notice, postage prepaid, addressed (until another address is filed in writing by
the Company with the Warrant Agent), as follows:
Xxxxxxxx XxXxxxx Acquisition Corporation
000 Xxxxx Xxxxx Xxxx
Xxxxxxxx, XX 00000
Attn: Xxxxx Xxx-Xxxxx, Chief Financial Officer
with a copy in each case to:
Xxxxxxx XxXxxxxxx LLP
000 Xxxx Xxxxxx
Xxx Xxxx, XX 00000
Attn: Xxxxx X. Xxxxxxx, Esq.
Any notice, statement or demand authorized by this Agreement to be given or made
by the holder of any Warrant or by the Company to or on the Warrant Agent shall
be sufficiently given when so delivered if by hand or overnight delivery or if
sent by certified mail or private courier service within five days after deposit
of such notice, postage prepaid, addressed (until another address is filed in
writing by the Warrant Agent with the Company), as follows:
Continental Stock Transfer & Trust Company
00 Xxxxxxx Xxxxx
Xxx Xxxx, Xxx Xxxx 00000
Attn: Compliance Department
9.3 APPLICABLE LAW. The validity, interpretation, and performance of this
Agreement and of the Warrants shall be governed in all respects by the laws of
the State of New York applicable to contracts formed and to be performed
entirely within the State of New York, without giving effect to conflict of law
provisions thereof to the extent such principles or rules would require or
permit the application of the laws of another jurisdiction. The Company hereby
agrees that any action, proceeding or claim against it arising out of or
relating in any way to this Agreement shall be brought and enforced in the
courts of the State of New York or the United States District Court for the
Southern District of New York, and irrevocably submits to such jurisdiction,
which jurisdiction shall be exclusive. The Company hereby waives any objection
to such exclusive jurisdiction and that such courts represent an inconvenience
forum. Any such process or summons to be served upon the Company may be served
by transmitting a copy thereof by registered or certified mail, return receipt
requested, postage prepaid, addressed to it at the address set forth in Section
9.2 hereof. Such mailing shall be deemed personal service and shall be legal and
binding upon the Company in any action, proceeding or claim.
9.4 AMENDMENT. This Agreement and the warrant certificate issued hereunder
may be amended by the parties hereto without the consent of any registered
holder for the purpose of curing any ambiguity, or curing, correcting or
supplementing any defective provision contained herein or adding or changing any
other provisions with respect to matters or questions arising under this
Agreement as the parties may deem necessary or desirable and that the parties
deem shall not adversely affect the interest of the registered holders. All
other modifications or
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amendments, including any amendment to increase the Warrant Price or shorten the
Exercise Period, shall require the written consent of each of the Underwriter
and the registered holders of a majority of the then outstanding Warrants and no
modification or amendment shall affect the Underwriter's Warrants, the Public
Warrants and the Private Warrants differently from one another. Notwithstanding
the foregoing, the Company may lower the Warrant Price or extend the duration of
the Exercise Period in accordance with Sections 3.1 and 3.2 hereof, without such
consent.
9.5 PERSONS HAVING RIGHTS UNDER THIS AGREEMENT. Nothing in this Agreement
expressed and nothing that may be implied from any of the provisions hereof is
intended, or shall be construed, to confer upon, or give to, any person or
corporation other than the parties hereto and the Registered Holders and, for
the purposes of Sections 6.4 and 7.4 hereof, the Underwriter, any right, remedy,
or claim under or by reason of this Warrant Agreement or of any covenant,
condition, stipulation, promise, or agreement hereof. The Underwriter shall be
deemed to be a third-party beneficiary of this Agreement with respect to
Sections 6.4 and 7.4 hereof. All covenants, conditions, stipulations, promises,
and agreements contained in this Warrant Agreement shall be for the sole and
exclusive benefit of the parties hereto (and the Underwriter with respect to
Sections 6.4 and 7.4 hereof) and their successors and assigns and of the
registered holders of the Warrants.
9.6 EXAMINATION OF THE WARRANT AGREEMENT. A copy of this Agreement shall be
available at all reasonable times at the office of the Warrant Agent in the
Borough of Manhattan, City and State of New York, for inspection by the
registered holder of any Warrant. The Warrant Agent may require any such holder
to submit his Warrant for inspection by it.
9.7 COUNTERPARTS. This Agreement may be executed in any number of
counterparts and each of such counterparts shall for all purposes be deemed to
be an original, and all such counterparts shall together constitute but one and
the same instrument.
9.8 EFFECT OF HEADINGS. The Section headings herein are for convenience
only and are not part of this Warrant Agreement and shall not affect the
interpretation thereof.
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IN WITNESS WHEREOF, this Agreement has been duly executed by the
parties hereto as of the day and year first above written.
Attest: XXXXXXXX XXXXXXX ACQUISITION CORPORATION
_________________________ By: _______________________________________
Name: Xxxxx X. XxXxxxx
Title: President and Chief Executive
Officer
Attest: CONTINENTAL STOCK TRANSFER & TRUST COMPANY
_________________________ By: _______________________________________
Name: Xxxxxx Xxxxxx
Title: Chairman
EXHIBIT A
FORM OF WARRANT
