Exhibit 99.5
FORM OF COMMON STOCK PURCHASE WARRANT
THIS WARRANT AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED
PURSUANT TO THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND SUCH
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION
THEREFROM UNDER THE ACT AND THE RULES AND REGULATIONS THEREUNDER.
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT
ARE SUBJECT TO THE TERMS AND CONDITIONS OF A SUBORDINATED NOTE AND
SERIES A CONVERTIBLE PREFERRED STOCK PURCHASE AGREEMENT. A COPY OF
SUCH AGREEMENT WILL BE FURNISHED TO THE RECORD HOLDER OF THIS WARRANT
WITHOUT CHARGE UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL
PLACE OF BUSINESS.
THE SECURITIES REPRESENTED HEREBY MAY BE SUBJECT TO THE TERMS AND
CONDITIONS OF A VOTING AGREEMENT WHICH MAY PLACE CERTAIN RESTRICTIONS
ON THE VOTING OF SUCH SECURITIES (INCLUDING THE GRANT OF AN
IRREVOCABLE PROXY RELATIVE TO VOTING MATTERS). A COPY OF SUCH
AGREEMENT WILL BE FURNISHED TO THE RECORD HOlDER OF THIS SECURITY
WITHOUT CHARGE UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL
PLACE OF BUSINESS.
No. W- Void After Expiration Date
-- (as defined below)
WARRANT
TO PURCHASE COMMON STOCK OF
ANALEX CORPORATION
Dated , 2003
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THIS WARRANT CERTIFIES THAT, for value received, or its
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permitted transferees (the "Holder") is entitled to purchase from ANALEX
CORPORATION, a Delaware corporation (the "Company"), up to the number of fully
paid and nonassessable shares (the "Shares") of Common Stock, $.02 par value per
share, of the Company, as further described and defined below.
Section 1. Number of Shares. The maximum number of shares of Common Stock which
may be purchased upon the exercise of this Warrant is one (1) share of Common
Stock for every five (5) shares of Common Stock issued or issuable upon the
conversion of the [secured subordinated convertible promissory notes of the
Company dated , 2003 (the "Secured Notes") (in the case of DCS
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Warrants)/Series A convertible preferred stock, $.02 par value per share, of the
Company (the "Series A Preferred Stock") (in the case of PCS Warrants)] issued
to the Holder by the Company pursuant to that certain Subordinated Note and
Series A Convertible Preferred Stock Purchase Agreement, dated July 18, 2003, by
and among the Company, the Holder and the purchasers named therein (the
"Purchase Agreement"), which maximum number of shares of Common Stock shall
initially be . Capitalized terms used in this Warrant but not
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otherwise defined in this Warrant will have the meanings assigned to such terms
in the Purchase Agreement.
Section 2. Exercise Price. The price per share at which the Holder may purchase
the Common Stock shall be $3.28 per share (the "Exercise Price"), as adjusted
from time to time in accordance with Section 6 hereof.
Section 3. Expiration Date. This Warrant shall expire at 5:00 p.m. New York Time
on the tenth anniversary of the Closing Date (the "Expiration Date"). Upon the
Expiration Date, all rights of the Holder to purchase Common Stock pursuant to
this Warrant shall immediately terminate.
Section 4. Exercise and Payment.
Section 4.1 Exercise. The purchase rights represented by this Warrant may
be exercised by the Holder, in whole or in part at any time and from time to
time, by the surrender of this Warrant (together with a duly executed notice of
exercise in the form attached hereto as Exhibit A-1) at the principal office of
the Company, and by the
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payment to the Company, by wire transfer of immediately available funds, of an
amount equal to the aggregate Exercise Price of the Shares being purchased.
Section 4.2 Net Issue Election. The Holder may elect to receive, without
the payment by the Holder of any additional consideration, shares equal to the
value of this Warrant or any portion hereof by the surrender of this Warrant or
such portion (together with a duly executed exercise notice in the form attached
hereto as Exhibit A-2) at the principal office of the Company. Thereupon, the
Company shall issue to the Holder such number of shares of Common Stock as is
computed using the following formula:
X = Y (A-B)
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A
where
X = the number of shares of Common Stock to be issued to the Holder
pursuant to this Section 4.2.
Y = the number of shares of Common Stock covered by this Warrant in
respect of which the net issue election is made pursuant to this
Section 4.2.
A = the Fair Market Value of one share of Common Stock, as determined
in accordance with Section 7 herein, as at the time the net issue
election is made pursuant to this Section 4.2.
B = the Exercise Price in effect under this Warrant at the time the
net issue election is made pursuant to this Section 4.2.
Section 4.3 Stock Certificates. In the event of the exercise of all or any
portion of this Warrant, certificates for the shares of Common Stock so
purchased shall be delivered to the Holder by the Company at the Company's own
expense (including the payment by the Company of any applicable issue taxes or
governmental charges imposed in connection with the issuance or delivery of the
Common Stock) within a reasonable time, which shall in no event be later than
ten (10) days thereafter and, unless this Warrant has been fully exercised or
has expired, a new Warrant representing the Shares with respect to which this
Warrant shall not have been exercised shall also be issued to the Holder within
such time.
If this Warrant shall be surrendered for exercise within any period
during which the transfer books for shares of the Common Stock or other
securities purchasable upon the exercise of this Warrant are closed for any
purpose, the Company shall not be required to make delivery of certificates for
the securities purchasable upon such exercise until the date of the reopening of
said transfer books.
Section 5. Stock Fully Paid; Reservation of Shares. All of the Shares issuable
upon the exercise of this Warrant will, upon issuance and receipt of the
Exercise Price therefor, be
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duly authorized, validly issued, fully paid and nonassessable with no personal
liability attaching to the ownership thereof, and free and clear of all taxes,
liens, encumbrances and charges with respect to the issue thereof. During the
period within which this Warrant may be exercised, the Company shall at all
times have authorized and reserved for issuance sufficient shares of its Common
Stock to provide for the exercise of this Warrant.
Section 6. Adjustment of Exercise Price and Number of Shares. The number and
kind of securities purchasable upon the exercise of this Warrant and the
Exercise Price therefor shall be subject to adjustment from time to time upon
the occurrence of certain events, as follows:
Section 6.1 Adjustments for Subdivisions of Common Stock. If the number of
shares of Common Stock outstanding at any time is increased by a stock dividend
payable in shares of Common Stock or by a subdivision or split up of stock, then
the Exercise Price then in effect shall, concurrently with the effectiveness of
such dividend, subdivision or split up, be proportionately decreased and the
number of shares of Common Stock issuable upon exercise of this Warrant shall be
increased in proportion to such increase of outstanding shares of Common Stock.
Section 6.2 Adjustments for Combinations Common Stock. If the number of
shares of Common Stock outstanding at any time is decreased by a combination of
the outstanding shares of Common Stock, then the Exercise Price then in effect
shall, concurrently with the effectiveness of such combination, be
proportionately increased and the number of shares of Common Stock issuable upon
exercise of this Warrant shall be decreased in proportion to such decrease in
outstanding shares of Common Stock.
Section 6.3 Adjustments for Stock Dividends and Other Distributions. If the
Company at any time or from time to time makes or fixes a record date for the
determination of holders of Common Stock entitled to receive any distribution
(excluding any repurchases of securities by the Company not made on a pro rata
basis from all holders of any class of the Company securities) payable in
property or in securities of the Company other than shares of Common Stock, then
and in each such event the Holder of this Warrant shall receive at the time of
exercise, the amount of property or the number of securities of the Company that
the Holder would have received had it exercised this Warrant immediately prior
to such event.
Section 6.4 Adjustments for Reclassification, Exchange and Substitution.
Upon a Notice Event (as defined below), if the Common Stock issuable upon
exercise of this Warrant shall be changed into the same or a different number of
shares of any other class or classes of stock, whether by capital
reorganization, merger, reclassification or otherwise (other than a subdivision
or combination of shares provided for above) this Warrant shall thereafter be
exercisable into, in lieu of the number of shares of Common Stock which the
Holder would otherwise have been entitled to receive, a number of shares of such
other class or classes of stock equivalent to the number of shares of
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Common Stock that would have been subject to receipt by the Holder upon exercise
of this Warrant immediately before that change.
Section 6.5 Notice of Certain Events. In the event (each, a "Notice
Event"): (a) the Company authorizes the issuance to all holders of Common Stock
rights or warrants to subscribe for or purchase shares of its capital stock, or
any other subscription rights or warrants; (b) the Company authorizes the
distribution to all holders of Common Stock evidences of indebtedness or assets
or other securities; (c) of any capital reorganization or reclassification of
Common Stock, other than a subdivision or combination of the outstanding Common
Stock and other than a change in par value of the Common Stock; (d) of any
liquidation or merger to which the Company is a party and for which approval of
any of the Company's holders of Common Stock is required, other than a
consolidation or merger in which the Company is the continuing corporation and
that does not result in any reclassification or change of the shares of Common
Stock issuable upon the exercise of this Warrant; (e) of the conveyance or
transfer of the Company's properties and assets, substantially as an entirety;
or (f) of the Company's voluntary or involuntary dissolution, liquidation or
winding-up; then, in each case, the Company shall cause to be mailed by
certified mail to the Holder, at least 10 days prior to the applicable record or
effective date hereinafter specified, a notice stating the material terms
relating to the exercise of the Warrants, the name, title and telephone number
of a Company representative who shall be available to answer any questions
relating to such exercise and the dates as of which (i) the holders of Common
Stock of record will be entitled to receive any such rights, warrants or
distributions are to be determined, (ii) such Notice Event is expected to become
effective and (iii) that Holders of record of Warrants shall be entitled to
exchange or sell their shares of Common Stock issuable upon the exercise of this
Warrant for securities or other property, if any, deliverable upon such Notice
Event. In addition, if the Company receives written notice that a purchase,
tender or exchange offer has been made to the holders of more than 50% of the
outstanding Common Stock, the Company shall give the Holder reasonable notice
(but will not be required to give not more than 10 days notice) thereof.
Section 7. Fractional Shares. No fractional shares of Common Stock will be
issued in connection with any exercise hereunder. In lieu of such fractional
shares the Company shall make a cash payment therefor based upon the fair market
value of the Common Stock on such date as determined by the Company's Board of
Directors.
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Section 8. Restrictions on Transfer.
Section 8.1 Transfer. The Holder may transfer this Warrant and the shares
of Common Stock issuable upon exercise of this Warrant, and the rights and
obligations attached thereto, so long as (a) any such transfer(s) comply with
applicable securities laws and (b) unless such securities have been registered
in accordance with applicable securities laws and transferred pursuant to a
non-private, open market transaction on the securities exchange on which the
Company's Common Stock is listed, if such transferee is not a United States
citizen or an entity formed under the laws of a U.S. jurisdiction, the Holder
obtains the Company's consent for such transfer (which shall not be unreasonably
withheld).
Section 8.2 Restrictive Legend. Unless a registration statement is in
effect with respect thereto, each certificate representing (i) the Shares and
(ii) any other securities issued in respect of the Shares upon any stock split,
stock dividend or recapitalization (collectively, the "Restricted Securities"),
shall be endorsed as follows:
THIS WARRANT AND THE SHARES OF COMMON STOCK WHICH MAY BE PURCHASED
PURSUANT TO THE EXERCISE OF THIS WARRANT HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND SUCH
SECURITIES MAY NOT BE OFFERED, SOLD, TRANSFERRED, PLEDGED OR DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
THE ACT AND THE RULES AND REGULATIONS THEREUNDER.
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS WARRANT
ARE SUBJECT TO THE TERMS AND CONDITIONS OF A SUBORDINATED NOTE AND
SERIES A PREFERRED STOCK PURCHASE AGREEMENT. A COPY OF SUCH AGREEMENT
WILL BE FURNISHED TO THE RECORD HOLDER OF THIS WARRANT WITHOUT CHARGE
UPON WRITTEN REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF
BUSINESS.
THE SECURITIES REPRESENTED HEREBY MAY BE SUBJECT TO THE TERMS AND
CONDITIONS OF A VOTING AGREEMENT WHICH MAY PLACE CERTAIN RESTRICTIONS
ON THE VOTING OF SUCH SECURITIES (INCLUDING THE GRANT OF AN
IRREVOCABLE PROXY RELATIVE TO VOTING MATTERS). A COPY OF SUCH
AGREEMENT WILL BE FURNISHED TO THE RECORD HOLDER OF THIS SECURITY
WITHOUT CHARGE UPON WRITTEN
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REQUEST TO THE COMPANY AT ITS PRINCIPAL PLACE OF BUSINESS.
Section 9. No Rights of Stockholders. This Warrant does not entitle the Holder
to any voting rights as a stockholder of the Company prior to the exercise of
the Warrant. Nothing in this Warrant shall obligate the Holder to exercise this
Warrant, it being understood that the decision as to whether to exercise the
Warrant shall be made exclusively by the Holder.
Section 10. No Impairment. The Company will not, by amendment of its Certificate
of Incorporation, as amended, including any certificates of designation with
respect thereto, 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 it will at
all times in good faith assist in the carrying out of all of the provisions of
this Warrant and in the taking of all such action as may be necessary or
appropriate in order to protect the rights of the holder of this Warrant against
impairment.
Section 11. Loss, Theft, Destruction or Mutilation of Warrant. Upon receipt by
the Company of evidence reasonably satisfactory to it of the loss, theft,
destruction or mutilation of this Warrant, and in case of loss, theft or
destruction, of indemnity or security reasonably satisfactory to it, and upon
surrender and cancellation of this Warrant, if mutilated, the Company will make
and deliver a new Warrant of like tenor and dated as of such cancellation, in
lieu of this Warrant.
Section 12. Saturdays, Sundays, Holidays, etc. If the last or appointed day for
the taking of any action or the expiration of any right required or granted
herein shall be a Saturday or a Sunday or shall be a legal holiday, then such
action may be taken or such right may be exercised on the next succeeding day
not a Saturday or a Sunday or a legal holiday.
Section 13. Miscellaneous.
Section 13.1 Governing Law. This Warrant shall be governed by and construed
in all respects in accordance with the laws of the State of Delaware, without
giving effect to the conflicts of laws provisions thereof.
Section 13.2 Entire Agreement; Amendment. Each party hereby acknowledges
that no other party or any other person or entity has made any promises,
warranties, understandings or representations whatsoever, express or implied,
not contained in the Transaction Documents and acknowledges that it has not
executed this Warrant in reliance upon any such promises, representations,
understandings or warranties not contained herein or therein and that the
Transaction Documents supersede all prior agreements and understandings between
the parties with respect thereto. There are no promises, covenants or
undertakings other than those expressly set forth or provided for in the
Transaction Documents. Neither this Warrant nor any term hereof may be
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amended, waived, discharged, or terminated other than by a written instrument
signed by the Majority Purchasers and the Company. Any amendment, waiver,
discharge or termination so made or effected shall be binding upon all of the
Holders.
Section 13.3 Successors and Assigns. Except as otherwise provided herein,
the provisions hereof shall inure to the benefit of, and be binding upon, the
permitted successors and assigns, heirs, executors, and administrators of the
Company and the Holder.
Section 13.4 Severability. Whenever possible, each provision of this
Warrant will be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Warrant is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability will not affect
any other provision or any other jurisdiction, but this Warrant will be
reformed, construed and enforced in such jurisdiction to the greatest extent
possible to carry out the intentions of the parties hereto.
Section 13.5 Notices, etc. All notices and other communications required or
permitted hereunder shall be in writing and shall be mailed by registered or
certified mail, postage prepaid, by overnight courier, or otherwise delivered by
hand or by messenger or sent by facsimile and confirmed by mail, addressed:
(i) if to the Company, at Analex Corporation, 0000 Xxxxxxxx Xxxxxxx,
Xxxxx 000, Xxxxxxxxxx, Xxxxxxxx 00000, Attention: Chief Executive Officer; and
(ii) if to the Holder, at the address of such Holder set forth on the
signature page of this Warrant.
All notices shall be effective upon receipt.
Section 13.6 Counterparts. This Agreement may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one and the same instrument.
Section 13.7 Titles and Subtitles. The titles and subtitles used in this
Agreement are used for convenience only and are not to be considered in
construing or interpreting this Agreement.
Signatures on the following page.
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Exhibit 99.5
This Warrant to purchase Common Stock is issued this day of ,
---- ---------
2003.
ANALEX CORPORATION
By:
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Name: Xxxxxxxx X. Xxxxxxxx, Xx.
Title: Chief Executive Officer
WARRANT HOLDER:
[__________________________]
By: Pequot Capital Management, Inc.,
its Investment Manager
By:
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Name: Xxxxxxx Xxxxxx
Title: Principal
c/o Pequot Capital Management, Inc.
000 Xxxxx Xxxx Xxxx
Xxxxxxxx, XX 00000
Attention: Xxxxx Xxxxxx
with a copy to:
Xxxxx Xxxxx
c/o Pequot Capital Management, Inc.
000 Xxxx 00xx Xxxxxx
Xxxxxxxx Xxxxxx, 00xx Xxx.
New York, NY 10022
Tel: (000) 000-0000
Fax: (000) 000-0000
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THE EXERCISE OF THIS WARRANT IS SUBJECT TO THE APPLICABLE
PROVISIONS OF THE XXXX-XXXXX-XXXXXX ANTITRUST
IMPROVEMENTS ACT OF 1976, AS AMENDED
EXHIBIT A-1
NOTICE OF EXERCISE
TO: Analex Corporation,
0000 Xxxxxxxx Xxxxxxx,
Xxxxx 000, Xxxxxxxxxx, Xxxxxxxx 00000,
Attention: Chief Executive Officer
1. The undersigned hereby elects to purchase shares of Common
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Stock, par value $.02 per share, of ANALEX CORPORATION pursuant to the terms of
this Warrant, and tenders herewith payment of the purchase price of such shares
in full.
2. Please issue a certificate or certificates representing said shares of
Common Stock in the name of the undersigned or in such other name as is
specified below:
------------------------------
(Name)
------------------------------
------------------------------
(Address)
-------------------------------
(Signature)
Title:
-------------------------
------------------------
(Date)
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THE EXERCISE OF THIS WARRANT IS SUBJECT TO THE APPLICABLE
PROVISIONS OF THE XXXX-XXXXX-XXXXXX ANTITRUST
IMPROVEMENTS ACT OF 1976, AS AMENDED
EXHIBIT A-2
NET ISSUE NOTICE OF EXERCISE
TO: Analex Corporation,
0000 Xxxxxxxx Xxxxxxx,
Xxxxx 000, Xxxxxxxxxx, Xxxxxxxx 00000,
Attention: Chief Executive Officer
1. The undersigned hereby elects to purchase shares of Common
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Stock, par value $.02 per share, of ANALEX CORPORATION pursuant to the terms of
this Warrant, and hereby elects under Section 4.2 of this Warrant to surrender
the right to purchase shares of Common Stock pursuant to this Warrant
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for a net issue exercise with respect to shares of Common Stock.
--------
2. Please issue a certificate or certificates representing said shares of
Common Stock in the name of the undersigned or in such other name as is
specified below:
------------------------------
(Name)
------------------------------
------------------------------
(Address)
-------------------------------
(Signature)
Title:
-------------------------
-----------------------
(Date)
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EXHIBIT B
ASSIGNMENT FORM
(To be signed only upon transfer of Warrant)
FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers
unto , whose address is , the
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right represented by the attached Warrant to purchase shares of Common
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Stock of ANALEX CORPORATION, to which the attached Warrant relates.
Dated:
-------------------
-------------------------------
(Signature must conform in all
respects to name of Holder as
specified on the face of the
Warrant)
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(Address)
Signed in the presence of:
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