EXHIBIT 10.19
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COMMON STOCK
WARRANT AGREEMENT
BY AND BETWEEN
INTERNATIONAL LOGISTICS LIMITED
AND
XXXXXXX X. XXXXX, XX.
DATED AS OF , 1996
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THIS COMMON STOCK WARRANT AGREEMENT (the "AGREEMENT") is dated as of
, 1996 and entered into by and between International Logistics
Limited, a Delaware corporation (the "COMPANY"), and Xxxxxxx X. Xxxxx, Xx, as an
individual (the "WARRANT HOLDER").
RECITALS
A. The Company desires to sell to the Warrant Holder and the Warrant
Holder desires to purchase from the Company a Common Stock Purchase Warrant, as
hereinafter described (the "WARRANT"), to purchase up to an aggregate of
shares of Common Stock, $.001 par value (the "COMMON STOCK"), of the
Company (the Common Stock issuable on exercise of the Warrant being referred to
herein as the "WARRANT SHARES").
B. In order to induce the Company to sell the Warrant, the Warrant
Holder desires to have the Warrant subject to the restrictions and rights
created by this Agreement and by the terms of the Warrant.
C. The Company and various stockholders have entered into an [Amended
and Restated] Stockholders Agreement dated as of , 1996 (the
"STOCKHOLDERS AGREEMENT"). As provided below, any transfer of the Warrant
Shares will, upon issuance, become subject to the terms of the Stockholders
Agreement.
NOW, THEREFORE, in consideration of the premises and the mutual
agreements herein set forth, the parties hereto agree as follows:
SECTION 1. SALE AND PURCHASE OF WARRANT. The Company hereby agrees
to sell to the Warrant Holder, subject to the conditions and restrictions
contained in this Agreement, and the Warrant Holder hereby agrees to purchase
from the Company, the Warrant at an aggregate price of $ (the "PURCHASE
PRICE"). The Purchase Price shall be payable by check made payable to the
Company. The Company shall issue and deliver to the Warrant Holder the Warrant
concurrently with the Warrant Holder's execution of this Agreement.
SECTION 2. INVESTMENT REPRESENTATIONS. The Warrant Holder represents
and warrants to the Company as follows:
(a) The Warrant Holder is acquiring the Warrant for his own
account and not with a view to or for sale in connection with any distribution
of the Warrant or the Warrant Shares.
(b) The Warrant Holder (i) is familiar with the business of the
Company, (ii) has had an opportunity to discuss with representatives of the
Company the condition of and any prospects for the continued operation and
financing of the Company and such other matters as the Warrant Holder has deemed
appropriate in considering whether to invest in the Warrant, and (iii) has been
provided access to all available information about the Company requested by the
Warrant Holder.
(c) The Warrant Holder understands that the Warrant and the
Warrant Shares have not been registered under the Securities Act of 1933, as
amended (the "SECURITIES
ACT") or registered or qualified under the securities laws of any state and
that the Warrant Holder may not sell or otherwise transfer the Warrant or
Warrant Shares unless they are subsequently registered under the Securities
Act and registered or qualified under applicable state securities laws, or
unless an exemption is available which permits sale or other transfer without
such registration and qualification.
SECTION 3. WARRANT CERTIFICATE. The certificate evidencing the
Warrant (the "WARRANT CERTIFICATE") to be delivered pursuant to this Agreement
shall be in registered form only and shall be substantially in the form set
forth in ANNEX 1 attached hereto.
SECTION 4. REGISTRATION. The Company shall number and register the
Warrant Certificate in a register as it is issued.
SECTION 5. REGISTRATION OF TRANSFERS AND EXCHANGES. (a) Prior to
any Transfer (as defined below) or attempted Transfer of any Warrant, the holder
of such Warrant shall (i) give 20 days' prior written notice (a "TRANSFER
NOTICE") to the Company of such holder's intention to effect such transfer,
describing the manner and circumstances of the proposed transfer, and
(ii) obtain from counsel to such holder who shall be reasonably satisfactory to
the Company, an opinion that the proposed transfer of such Warrant may be
effected without registration under the Securities Act. After receipt of the
Transfer Notice and opinion by the Company, such holder shall thereupon be
entitled to transfer such Warrant, in accordance with the terms of the Transfer
Notice, to any person or entity permitted by the Stockholders Agreement. Each
Warrant issued upon such transfer shall bear the restrictive legends set forth
on the Warrant Certificate attached hereto as ANNEX 1, unless, with respect to
the first such legend, in the opinion of such counsel such legend is not
required in order to ensure compliance with the Securities Act. In addition,
any Transfer of the Warrant Shares issued upon exercise of the Warrant shall be
subject to the terms and conditions of the Stockholders Agreement. The Warrant
holder shall be added as a party to the Stockholders Agreement and shall be
bound by the terms of and entitled to the benefits of such agreement. As used
herein, "TRANSFER" means sell, assign, transfer, pledge, hypothecate, mortgage,
encumber, dispose by gift or bequest, or otherwise transfer or dispose.
(b) Subject to SECTION 5(a), the Company shall from time to time register
the transfer of the Warrant Certificate in a Warrant register to be maintained
by the Company upon surrender of such Warrant Certificate accompanied by a
written instrument or instruments of transfer in form satisfactory to the
Company, duly executed by the registered holder or holders thereof or by the
duly appointed legal representative thereof or by a duly authorized attorney.
Upon any such registration of transfer, a new Warrant Certificate shall be
issued to the transferee(s) and the surrendered Warrant Certificate shall be
cancelled and disposed of by the Company. The Warrant Certificate may be
exchanged at the option of the holder(s) thereof, when surrendered to the
Company at its office for another Warrant Certificate or other Warrant
Certificates of like tenor and representing in the aggregate a like number of
Warrant Shares. Warrant Certificates surrendered for exchange shall be
cancelled and disposed of by the Company.
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SECTION 6. WARRANT; EXERCISE OF WARRANT. (a) Subject to the terms of
this Agreement, the Warrant holder shall have the right, which may be exercised
commencing , 1996 and until the earlier of (i) 5:00 p.m., Los
Angeles time on or (ii) the occurrence of an Early
Termination Event (as defined below) (the "EXERCISE PERIOD"), to receive from
the Company the number of fully paid and nonassessable Warrant Shares which the
holder may at the time be entitled to receive on exercise of such Warrant and
payment to the Company of the Exercise Price (as defined below) then in effect
for such Warrant Shares. In the alternative, the Warrant holder may exercise
its right, during the Exercise Period, to receive Warrant Shares on a net basis,
such that, without the exchange of any funds, such holder receives that number
of Warrant Shares otherwise issuable (or payable) upon exercise of its Warrant
less that number of Warrant Shares having a Current Market Price (as defined in
SECTION 10(F)) at the time of exercise equal to the aggregate Exercise Price
that would otherwise have been paid by such holder of the Warrant Shares. If
not exercised within the Exercise Period, the Warrant shall become void and all
rights thereunder and all rights in respect thereof under this Agreement shall
cease as of such time. An "EARLY TERMINATION EVENT" shall mean any sale of all
or substantially all of the assets of the Company, any sale of the stock of the
Company or any reorganization, merger or consolidation of the Company, provided
that in each of the foregoing cases: (i) Warrant holder shall have received not
less than 20 days' nor more than 90 days' written notice of such event and (ii)
[neither of OCM Principal Opportunities Fund, L.P., TCW Special Credits
Fund V--the Principal Fund or] Xxxxxxx X. Xxxxx & Sons, L.L.C. (including its
successors and assigns) or its affiliates (collectively, "WSS") [no longer]
controls (within the meaning of Rule 405 of Regulation C under the Securities
Act) the Company or any purchaser or successor.
(b) The Warrant may be exercised upon surrender to the Company at its
office designated for such purpose (the address of which is set forth in SECTION
15 hereof) the certificate or certificates evidencing the Warrant to be
exercised with the form of election to purchase duly filled in and signed, and
upon payment to the Company of the exercise price per share of Common Stock (the
"EXERCISE PRICE") which is set forth in the form of Warrant Certificate attached
hereto as ANNEX 1, subject to adjustment pursuant to SECTION 10, for the number
of Warrant Shares in respect of which such Warrant are then exercised. Payment
of the aggregate Exercise Price shall be made (i) in cash or by certified or
official bank check payable to the order of the Company or (ii) in the manner
provided in SECTION 6(a). In the event of an Early Termination Event, absent
any notice to the Company to the contrary from the Warrant holder, the Warrant
shall be deemed to have been exercised pursuant to the cashless net issuance
provision of SECTION 6(a).
(c) Upon such surrender of the Warrant and payment of the Exercise
Price the Company shall issue and cause to be delivered within five business
days to or upon the written order of the holder and in such name or names as the
Warrant holder may designate, a certificate or certificates for the number of
full Warrant Shares issuable upon the exercise of such Warrant. Subject to
SECTION 5(a), such certificate or certificates shall be deemed to have been
issued and any person so designated to be named therein shall be deemed to have
become a holder of record of such Warrant Shares as of the date of the surrender
of such Warrant and payment of the Exercise Price.
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(d) The Warrant shall be exercisable, at the election of the holder
thereof, either in full or from time to time in part and, in the event that a
certificate evidencing a Warrant is exercised in respect of fewer than all of
the Warrant Shares issuable on such exercise at any time prior to the date of
expiration of the Warrant, a new certificate evidencing the remaining Warrant
Shares will be issued and delivered pursuant to the provisions of this Section.
(e) The Warrant shall also be conditionally exercisable, at the
election of the holder thereof, so that if the Warrant holder exercises the
Warrant in contemplation of the consummation of a transaction described in any
of clauses (a) - (h) of SECTION 14 and such transaction is not consummated, the
Warrant holder may elect to revoke such exercise, in which case such Warrant
shall be deemed not to have been so exercised.
(f) Any Warrant Certificate surrendered upon exercise of a Warrant
shall be cancelled and disposed of by the Company. The Company shall keep
copies of this Agreement and any notices given or received hereunder available
for inspection by the holders during normal business hours at its office.
SECTION 7. PAYMENT OF TAXES. The Company will pay all documentary
stamp taxes attributable to the initial issuance of Warrant Shares upon the
exercise of the Warrant; PROVIDED, HOWEVER, that the Company shall not be
required to pay any tax or taxes which may be payable in respect of any transfer
involved in the issue of any Warrant Certificate or any certificates for Warrant
Shares in a name other than that of the registered holder of the Warrant
Certificate surrendered upon the exercise of the Warrant, and the Company shall
not be required to issue or deliver such Warrant Certificate unless or until the
person or persons requesting the issuance thereof shall have paid to the Company
the amount of such tax or shall have established to the satisfaction of the
Company that such tax has been paid.
SECTION 8. MUTILATED OR MISSING WARRANT CERTIFICATE. In case the
Warrant Certificate shall be mutilated, lost, stolen or destroyed, the Company
may in its discretion issue, in exchange and substitution for and upon
cancellation of the mutilated Warrant Certificate, or in lieu of and
substitution for the Warrant Certificate lost, stolen or destroyed, a new
Warrant Certificate of like tenor and representing an equivalent number of
Warrant Shares, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction of such Warrant Certificate and
indemnity, if requested, also reasonably satisfactory to it.
SECTION 9. RESERVATION OF WARRANT SHARES. The Company will at all
times reserve and keep available, free from preemptive rights, out of the
aggregate of its authorized but unissued Common Stock or its authorized and
issued Common Stock held in its treasury, for the purpose of enabling it to
satisfy any obligation to issue Warrant Shares upon exercise of the Warrant, the
maximum number of shares of Common Stock which may then be deliverable upon the
exercise of the Warrant.
The Company or, if appointed, the transfer agent for the Common Stock
(the "TRANSFER AGENT") and every subsequent transfer agent for any shares of the
Company's capital stock issuable upon the exercise of any of the rights of
purchase aforesaid will be irrevocably
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authorized and directed at all times to reserve such number of authorized
shares as shall be required for such purpose. The Company will keep a copy of
this Agreement on file with the Transfer Agent and with every subsequent
transfer agent for any shares of the Company's capital stock issuable upon
the exercise of the rights of purchase represented by the Warrant. The
Company will furnish such Transfer Agent a copy of all notices of adjustments
and certificates related thereto, transmitted to each holder pursuant to
SECTION 14 hereof.
Before taking any action which would cause an adjustment pursuant to
SECTION 10 hereof to reduce the Exercise Price below the then par value (if any)
of the Warrant Shares, the Company will take any corporate action which may, in
the opinion of its counsel, be necessary in order that the Company may validly
and legally issue fully paid and nonassessable Warrant Shares at the Exercise
Price as so adjusted.
The Company covenants that all Warrant Shares which may be issued upon
exercise of the Warrant will, upon issue, be fully paid, nonassessable, free of
preemptive rights and free from all taxes, liens, charges and security interests
with respect to the issue thereof.
SECTION 10. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES
ISSUABLE. The Exercise Price and the number of Warrant Shares issuable upon the
exercise of the Warrant are subject to adjustment from time to time upon the
occurrence of the events enumerated in this SECTION 10. For purposes of this
SECTION 10, "COMMON STOCK" means shares now or hereafter authorized of any class
of common stock of the Company and any other stock of the Company, however
designated, that has the right to participate in any distribution of the assets
or earnings of the Company, excluding preferred stock.
(a) ADJUSTMENT FOR CHANGE IN CAPITAL STOCK.
If the Company:
(1) pays a dividend or makes a distribution on its Common Stock in
shares of its Common Stock;
(2) subdivides its outstanding shares of Common Stock into a greater
number of shares; or
(3) combines its outstanding shares of Common Stock into a smaller
number of shares;
then the Exercise Price shall be adjusted in accordance with the formula:
0
E' = E x -
A
5
Where:
E' = the adjusted Exercise Price
E = the current Exercise Price
O = the number of shares of all classes of Common Stock outstanding prior
to such action
A = the number of shares of all classes of Common Stock outstanding
immediately after such action
In the case of a dividend or distribution the adjustment shall become
effective immediately after the record date for determination of holders of
shares of Common Stock entitled to receive such dividend or distribution, and in
the case of a subdivision, combination or reclassification, the adjustment shall
become effective immediately after the effective date of such corporate action.
If after an adjustment the holder of the Warrant upon exercise of it
may receive shares of two or more classes of capital stock of the Company, the
Company shall determine the allocation of the adjusted Exercise Price between
the classes of capital stock. After such allocation, the exercise privilege,
the number of shares issuable upon such exercise and the Exercise Price of each
class of capital stock shall thereafter be subject to adjustment on terms
comparable to those applicable to Common Stock in this Section 10.
Such adjustment shall be made successively whenever any event listed
above shall occur.
(b) ADJUSTMENT FOR RIGHTS ISSUE.
If the Company distributes any rights, options or warrants to any
holders of any class of its Common Stock entitling such holder at any time after
the record date mentioned below to purchase shares of Common Stock at a price
per share less than the Current Market Price per share on that record date, the
Exercise Price shall be adjusted in accordance with the formula:
N x P
0+-----
M
E'=E x ------
0 + N
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where:
E' = the adjusted Exercise Price.
E = the current Exercise Price.
O = the number of shares of all classes of Common Stock outstanding on the
record date.
N = the number of additional shares of all classes of Common Stock
issuable upon exercise of the rights, options or warrants offered.
P = the exercise price per share of the additional shares issuable upon
exercise of the rights, options or warrants.
M = the Current Market Price per share of Common Stock on the record date.
The adjustment shall be made successively whenever any such rights,
options or warrants are issued and shall become effective immediately after the
record date for the determination of stockholders entitled to receive the
rights, options or warrants. If at the end of the period during which such
rights, options or warrants are exercisable, (i) not all rights, options or
warrants shall have been exercised or (ii) the exercise price per share for
which shares of Common Stock are issuable pursuant to such rights, options or
warrants shall be increased or decreased solely by virtue of provisions therein
contained for an automatic increase or decrease in such exercise price per share
upon the occurrence of a specified date or event, then the Exercise Price shall
be immediately readjusted to what it would have been if, in the case of clause
(i) above, "N" in the above formula had been the number of shares actually
issued or, in the case of clause (ii) above, "P" in the above formula had been
the exercise price per share, as so increased or decreased, as the case may be.
(c) ADJUSTMENT FOR DISTRIBUTIONS.
If the Company distributes (including by way of share repurchases to
the extent in excess of the Current Market Price per share) to any holders of
any class of its Common Stock any of its assets (including, but not limited to,
cash), debt securities, preferred stock, or any rights or warrants to purchase
debt securities, preferred stock, assets or other securities of the Company, the
Exercise Price shall be adjusted in accordance with the formula:
M - F
E' = E x -----
M
where:
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E' = the adjusted Exercise Price.
E = the current Exercise Price.
M = the Current Market Price per share of Common Stock on the record date
mentioned below.
F = the Fair Market Value (as defined in SECTION 10(f)) on the record date
of the assets, securities, rights or warrants applicable to one share
of Common Stock.
The adjustment shall be made successively whenever any such
distribution is made and shall become effective immediately after the record
date for the determination of stockholders entitled to receive the distribution.
This subsection does not apply to rights, options or warrants referred
to in subsection (b) of this Section 10.
This subsection does not apply to distributions by the Company of
ordinary quarterly cash dividends to all holders of its Common Stock, provided
that timely notice of such distributions are given by the Company to the Warrant
holders pursuant to Section 14.
(d) ADJUSTMENT FOR BELOW MARKET ISSUANCES OF COMMON STOCK.
If the Company issues shares of any class of its Common Stock for a
consideration per share less than the Current Market Price per share on the date
the Company fixes the offering price of such additional shares, the Exercise
Price shall be adjusted in accordance with the formula:
P
O + ---
M
E' = E x ------
A
where:
E' = the adjusted Exercise Price.
E = the then current Exercise Price.
O = the number of shares of all classes of Common Stock outstanding
immediately prior to the issuance of such additional shares.
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P = the aggregate consideration received for the issuance of such
additional shares.
M = the Current Market Price per share on the date of issuance of such
additional shares.
A = the number of shares of all classes of Common Stock outstanding
immediately after the issuance of such additional shares.
The adjustment shall be made successively whenever any such issuance
is made, and shall become effective immediately after such issuance.
This subsection (d) does not apply to:
(1) any of the transactions described in subsections (a), (b) or (c)
of this SECTION 10;
(2) the exercise of the Warrant, or the conversion or exchange of
other securities outstanding on the date of this Agreement that are
convertible or exchangeable for Common Stock and were included in the
calculation described in SECTION 12(b);
(3) Common Stock issued upon the exercise of rights or warrants
issued to the holders of Common Stock for which rights or warrants an
adjustment has been made pursuant to SECTION 10(b);
(4) Common Stock issued to shareholders of any person which merges
with the Company or an affiliate thereof in proportion to their stock
holdings of such person immediately prior to such merger, upon such merger;
(5) Common Stock issued in a bona fide public offering pursuant to a
firm commitment underwriting; or
(6) Common Stock issued to financial institutions or investors other
than WSS concurrently with the making of a bona fide loan to the Company as
an additional inducement to the making of such loan, if such Common Stock
would otherwise be covered by this subsection (d).
(e) ADJUSTMENT FOR CONVERTIBLE SECURITIES ISSUE.
If the Company issues any securities convertible into or exchangeable
for Common Stock (other than securities issued in transactions described in
subsections (b) and (c) of this SECTION 10) for a consideration per share of
Common Stock initially deliverable upon conversion or exchange of such
securities less than the Current Market Price per share on the date of issuance
of such securities, the Exercise Price shall be adjusted in accordance with this
formula:
9
P
O + --
M
E' = E x -------
O + D
where:
E' = the adjusted Exercise Price.
E = the then current Exercise Price.
O = the number of shares of all classes of Common Stock outstanding
immediately prior to the issuance of such securities.
P = the aggregate consideration received for the issuance of such
securities.
M = the Current Market Price per share on the date of issuance of such
securities.
D = the maximum number of shares of all classes of Common Stock
deliverable upon conversion or in exchange for such securities at the
initial conversion or exchange rate.
The adjustment shall be made successively whenever any such issuance
is made, and shall become effective immediately after such issuance.
If (i) all of the Common Stock deliverable upon conversion or exchange
of such securities have not been issued when such securities are no longer
outstanding, or (ii) the exercise price per share for which shares of Common
Stock are issuable pursuant to such securities shall be increased or decreased
solely by virtue of provisions therein contained for an automatic increase or
decrease in such exercise price per share upon the occurrence of a specified
date or event, then the Exercise Price shall promptly be readjusted to the
Exercise Price which would then be in effect had the adjustment upon the
issuance of such securities been made on the basis of, in the case of clause (i)
above, the actual number of shares of Common Stock issued upon conversion or
exchange of such securities or, in the case of clause (ii) above, the exercise
price per share, as so increased or decreased, as the case may be.
This subsection (e) does not apply to:
(1) any of the transactions described in subsections (b) or (c) of
this SECTION 10;
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(2) convertible securities issued to shareholders of any person which
merges into the Company, or with a subsidiary of the Company, in proportion
to their stock holdings of such person immediately prior to such merger,
upon such merger;
(3) convertible securities issued in a bona fide public offering
pursuant to a firm commitment underwriting; or
(4) convertible securities issued to financial institutions or
investors other than WSS substantially concurrently with the making of a
bona fide loan to the Company as an additional inducement to the making of
such loan, if such convertible securities would otherwise be covered by
this subsection (e).
(f) CERTAIN DEFINITIONS.
(1) CURRENT MARKET PRICE. The Current Market Price per share of
Common Stock on any date is:
(i) if the Common Stock is not registered under the Securities
Exchange Act of 1934, as amended (the "EXCHANGE ACT"), then the Fair
Market Value of the Common Stock based upon the Fair Market Value of
100% of the Company if sold as a going concern and without regard to
any discount for the lack of liquidity or on the basis that the
relevant shares of the Common Stock do not constitute a majority or
controlling interest in the Company and assuming, if applicable, the
exercise or conversion of all in-the-money warrants, convertible
securities, options or other rights to subscribe for or purchase any
additional shares of capital stock of the Company or securities
convertible or exchangeable into such capital stock; or
(ii) if the Common Stock is registered under the Exchange Act,
the average of the Quoted Prices of the Common Stock for 30
consecutive trading days commencing 45 trading days before the date in
question. The "QUOTED PRICE" of the Common Stock is the last reported
sales price of the Common Stock as reported by Nasdaq National Market,
or if the Common Stock is listed on a national securities exchange,
the last reported sales price of the Common Stock on such exchange
(which shall be for consolidated trading if applicable to such
exchange), or if neither so reported or listed, the last reported bid
price of the Common Stock. In the absence of one or more such
quotations, the Current Market Price of the Common Stock shall be
determined as if the Common Stock was not registered under the
Exchange Act.
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(2) FAIR MARKET VALUE. Fair Market Value means the value obtainable
upon a sale in an arm's length transaction to a third party under usual and
normal circumstances, with neither the buyer nor the seller under any
compulsion to act, with equity to both, as determined by the Board of
Directors of the Company (the "BOARD") in good faith; PROVIDED, HOWEVER,
that if the Warrant holder shall dispute the Fair Market Value as
determined by the Board, the Warrant holder may undertake to have it and
the Company retain an Independent Expert. The determination of Fair Market
Value by the Independent Expert shall be final, binding and conclusive on
the Company and the Warrant holder. All costs and expenses of the
Independent Expert shall be borne by the Warrant holder unless the
determination of Fair Market Value by the Independent Expert is more than
5% more favorable to the Company than the Fair Market Value determined by
the Board, in which event the cost of the Independent Expert shall be
shared equally by the Warrant holder and the Company, or more than 10% more
favorable to the Company than the Fair Market Value determined by the
Board, in which event the cost of the Independent Expert shall be borne
solely by the Company.
(3) INDEPENDENT EXPERT. Independent Expert means an investment
banking firm reasonably agreeable to the Company and the Warrant holder who
does not (and whose affiliates do not) have a financial interest in the
Company or any of its affiliates.
(g) CONSIDERATION RECEIVED.
For purposes of any computation respecting consideration received
pursuant to subsections (d) and (e) of this SECTION 10, the following shall
apply:
(1) in the case of the issuance of shares of Common Stock for cash,
the consideration shall be the amount of such cash, provided that in no
case shall any deduction be made for any commissions, discounts or other
expenses incurred by the Company for any underwriting of the issue or
otherwise in connection therewith;
(2) in the case of the issuance of shares of Common Stock for a
consideration in whole or in part other than cash, the consideration other
than cash shall be deemed to be the Fair Market Value thereof;
(3) in the case of the issuance of securities convertible into or
exchangeable for shares, the aggregate consideration received therefor
shall be deemed to be the consideration received by the Company for the
issuance of such securities plus the additional minimum consideration, if
any, to be received by the Company upon the conversion or exchange thereof
(the consideration in each case to be determined in the same manner as
provided in clauses (1) and (2) of this subsection).
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(h) WHEN ADJUSTMENT NOT REQUIRED.
If the Company shall take a record of the holders of its Common Stock
for the purpose of entitling them to receive a dividend or distribution or
subscription or purchase rights and shall, thereafter and before the
distribution to stockholders thereof, legally abandon its plan to pay or deliver
such dividend, distribution, subscription or purchase rights, then thereafter no
adjustment shall be required by reason of the taking of such record and any such
adjustment previously made in respect thereof shall be rescinded and annulled.
(i) NOTICE OF ADJUSTMENT.
Whenever the Exercise Price is adjusted, the Company shall provide the
notices required by SECTION 14 hereof.
(j) VOLUNTARY REDUCTION.
The Company from time to time may reduce the Exercise Price by any
amount for any period of time if the period is at least 20 days and if the
reduction is irrevocable during the period; PROVIDED, HOWEVER, that in no event
may the Exercise Price be less than the par value of a share of Common Stock.
Whenever the Exercise Price is reduced, the Company shall mail to the
registered holder of the Warrant Certificate a notice of the reduction. The
Company shall mail the notice at least 15 days before the date the reduced
Exercise Price takes effect. The notice shall state the reduced Exercise Price
and the period it will be in effect.
A reduction of the Exercise Price does not change or adjust the
Exercise Price otherwise in effect for purposes of subsections (a), (b), (c),
(d) and (e) of this SECTION 10.
(k) REORGANIZATION OF COMPANY.
If any capital reorganization or reclassification of the capital stock
of the Company, any consolidation or merger of the Company with another entity,
or the sale or lease of all or substantially all of the Company's assets to
another entity shall be effected in such a way that holders of Common Stock of
the Company shall be entitled to receive stock, securities or assets with
respect to or in exchange for such Common Stock, then, as a condition precedent
to such reorganization, reclassification, consolidation, merger, sale or lease,
lawful and adequate provisions shall be made whereby the holder shall thereafter
have the right to purchase and receive upon the basis and the terms and
conditions specified in this Agreement and in lieu of the shares of Common Stock
immediately theretofore purchasable and receivable upon the exercise of the
rights represented hereby, such shares of stock, securities or assets as may be
issued or payable in such reorganization, reclassification, consolidation,
merger, sale or lease with respect to or in exchange for the number of shares of
Common Stock purchasable and receivable upon the exercise of the rights
represented hereby had such rights been exercised immediately prior thereto, and
in any such case appropriate provision shall be made with respect
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to the rights and interests of the holder of the Warrant to the end that the
provisions hereof (including without limitation provisions for adjustments of
the Exercise Price and of the number of shares of Common Stock purchasable
and receivable upon the exercise of the Warrant) shall thereafter be
applicable, as nearly as may be, in relation to any shares of stock,
securities or assets thereafter deliverable upon the exercise hereof. The
Company will not effect any such consolidation, merger, sale or lease, unless
prior to the consummation thereof the successor corporation (if other than
the Company) resulting from such consolidation or merger or the corporation
purchasing or leasing such assets shall assume by written instrument,
executed and mailed or delivered to the holder at the last address thereof
appearing on the books of the Company, the obligation to deliver to such
holder such shares of stock, securities or assets as, in accordance with the
foregoing provisions, such holder may be entitled to purchase.
(l) ADJUSTMENT IN NUMBER OF SHARES.
Upon each adjustment of the Exercise Price pursuant to this SECTION
10, the Warrant shall thereafter evidence the right to receive upon payment of
the adjusted Exercise Price that number of shares of Common Stock (calculated to
the nearest hundredth) obtained from the following formula:
E
N' = N x ---
E'
where:
N' = the adjusted number of Warrant Shares issuable upon exercise of the
Warrant by payment of the adjusted Exercise Price.
N = the number of Warrant Shares previously issuable upon exercise of the
Warrant by payment of the Exercise Price prior to adjustment.
E' = the adjusted Exercise Price.
E = the Exercise Price prior to adjustment.
(m) FORM OF WARRANT.
Irrespective of any adjustments in the Exercise Price or the number or
kind of shares purchasable upon the exercise of the Warrant, any Warrant
theretofore or thereafter issued may continue to express the same price and
number and kind of shares as are stated in the Warrant initially issuable
pursuant to this Agreement.
14
SECTION 11. PREEMPTIVE RIGHTS. In the event of the issuance, sale,
grant or distribution by the Company of any Common Stock or any other capital
stock of the Company, or any other voting or other security of the Company whose
participation varies with the income or value of the Company, or any security
convertible into or exchangeable for any of the foregoing (collectively, an
"EQUITY SECURITY"), the holder of the Warrant shall be entitled to participate
in such issuance, sale, grant or distribution on a pro rata basis, and on the
same terms and conditions (to the extent applicable to such holder), so that
following such issuance, sale, grant or distribution such holder will, if he has
elected to purchase or otherwise receive the new securities to be issued, sold,
granted or distributed (and after giving effect to any adjustments pursuant to
SECTION 10), have the same percentage of the equity ownership of the Company (on
a fully diluted basis) as such holder had (on a fully diluted basis) prior to
such issuance, sale, grant or distribution. This SECTION 11 shall not apply to
registered public offerings or issuances of stock to management of the Company.
SECTION 12. CAPITALIZATION; ADJUSTMENT TO THE NUMBER OF WARRANT
SHARES. The Company hereby represents and warrants to the Warrant holders as
follows:
(a) The authorized capital stock of the Company consists of
shares of Common Stock. As of the date of this Agreement (i)
shares of Common Stock are validly issued and outstanding, fully paid and
nonassessable and (ii) shares of Common Stock are issuable upon
exercise of outstanding options, warrants (including the Warrant), rights or
other securities, consisting of (a) a warrant held by Logistical Simon, LLC,
consisting of the right to purchase 125,000 shares of Common Stock, (b) a
warrant held by Xxxxx X. Xxxxxx, consisting of the right to purchase
shares of Common Stock, (c) a warrant held by Banque Paribas, consisting of the
right to purchase shares of Common Stock (which may be increased up
to an aggregate of 6,649 shares of Common Stock [upon additional exercises of
warrants issued to other parties on May 2, 1996),] (d) a warrant held by
Internationale Nederlanden (U.S.) Capital Company, consisting of the right to
purchase shares of Common Stock [(which may be increased up to an
aggregate of 6,649 shares of Common Stock upon additional exercises of warrants
issued to other parties on May 2, 1996),] (e) a warrant held by Xxxx Xxxx,
consisting of the right to purchase 6,516 shares of Common Stock, (f) a warrant
held by Xxxxxxx Xxxx, consisting of the right to purchase 6,516 shares of Common
Stock, (g) warrants held by Xxxxx X.X. Xxxxxx, consisting of the right to
purchase shares of Common Stock, respectively, (h) a warrant held by
Xxxxxx Xxxxxxx, consisting of the right to purchase 266 shares of Common Stock,
(i) warrants held by Xxxxx X. Xxxxxxxxx, consisting of the right to purchase
shares of Common Stock, respectively, and [(j) warrants held by Xxxxxxx X.
Xxxxx, Xx., consisting of the right to purchase shares of Common
Stock, respectively] (the "DERIVATIVE SECURITIES"). Except as contemplated by
clauses (i) and (ii) above or Section 11, there are no other shares of capital
stock, or other equity securities of the Company outstanding, and no other
outstanding options, warrants, rights to subscribe to (including any preemptive
rights other than those set forth in the Articles or in the Stockholders
Agreement), calls or commitments of any character whatsoever to which the
Company or any of its subsidiaries is a party or may be bound, requiring the
issuance or sale of shares of any capital stock or other equity securities of
the Company or securities or rights convertible into or exchangeable for such
shares or other equity securities, and there are no
15
contracts, commitments, understandings or arrangements by which the Company
is or may become bound to issue additional shares of its capital stock or
other equity securities or options, warrants or rights to purchase or acquire
any additional shares of its capital stock or other equity securities or
securities convertible into or exchangeable for such shares or other equity
securities.
(b) shares of Common Stock were issued to
in connection with [the acquisition of the outstanding capital stock of certain
subsidiaries of as of
, 1996 (the "Transaction"),] and invested a total of $
in the Company in connection with such Transaction.
[(c) 263,298 shares of Common Stock issuable upon exercise of the
Derivative Securities were included in calculating the number of Warrant Shares
issuable upon the exercise of the Warrant. In the event that prior to the
issuance of all of the Warrant Shares issuable upon exercise of the Warrant, the
number of shares of Common Stock issuable upon exercise of the Derivative
Securities described in clauses (a) through (d) inclusive of Section 12(a)
decreases due to the expiration, cancellation or other termination of such
Derivative Securities, then the number of shares to be acquired upon exercise of
the Warrant shall be equitably adjusted downward.]
SECTION 13. FINANCIAL STATEMENTS. The Company shall provide to the
Warrant holder a copy of all monthly, quarterly and annual financial statements
and variance reports of the Company provided to the directors of the Company;
provided, however, that the Company shall not be obligated to provide to the
Warrant holder (in such capacity) any documents provided solely for review by
the directors of the Company at board meetings. The Company shall also provide
to the Warrant holder at no cost to such holder a copy of any material
agreements relating to the Company's (or any subsidiary's) equity
capitalization, including options, warrants or convertible securities, that may
be reasonably requested by such holder. If requested by the Company, the
Warrant holder shall execute such confidentiality agreements as the Company may
reasonably require.
SECTION 14. NOTICES TO WARRANT HOLDERS. Upon any adjustment of the
Exercise Price pursuant to SECTION 10, the Company shall promptly thereafter (i)
cause to be filed with the Company a certificate of a firm of independent public
accountants of recognized standing selected by the Board (who may be the regular
auditors of the Company) setting forth the Exercise Price after such adjustment
and setting forth in reasonable detail the method of calculation and the facts
upon which such calculations are based and setting forth the number of Warrant
Shares (or portion thereof) issuable after such adjustment in the Exercise
Price, upon exercise of the Warrant and payment of the adjusted Exercise Price,
which certificate shall be presumptive evidence of the correctness of the
matters set forth therein, and (ii) cause to be given to the registered holder
of the Warrant Certificate written notice of such adjustments. Where
appropriate, such notice may be given in advance and included as a part of the
notice required to be mailed under the other provisions of this SECTION 14.
16
In case:
(a) the Company shall authorize the issuance to any holders of shares
of Common Stock of rights, options or warrants to subscribe for or purchase
shares of Common Stock or of any other subscription rights or warrants;
(b) the Company shall authorize the distribution to any holders of
shares of Common Stock of evidences of its indebtedness or assets
(including without limitation ordinary quarterly cash dividends);
(c) of any consolidation or merger to which the Company is a party
and for which approval of any shareholders of the Company is required, or
of the conveyance or transfer of the properties and assets of the Company
substantially as an entirety, or of any reclassification or change of
Common Stock issuable upon exercise of the Warrant (other than a change in
par value, or from par value to no par value, or from no par value to par
value, or as a result of a subdivision or combination), or a tender offer
or exchange offer made by the Company for shares of Common Stock;
(d) of the voluntary or involuntary dissolution, liquidation or
winding up of the Company;
(e) the Company proposes to take any action (other than actions of
the character described in SECTION 10(a)) which would require an adjustment
of the Exercise Price pursuant to SECTION 10;
(f) the Company takes any action that would require a supplemental
Warrant Agreement pursuant to subsection (k) of this SECTION 10;
(g) the Company proposes to issue, sell, grant or distribute any
Equity Security; or
(h) of any proposed transaction that would constitute an Early
Termination Event;
then the Company shall cause to be given to the registered holder of the Warrant
Certificate, at least 20 days (or 10 days in any case specified in clauses (a)
or (b) above) prior to the applicable record date hereinafter specified, or
promptly in the case of events for which there is no record date, a written
notice stating (i) the date as of which the holders of record of shares of
Common Stock to be entitled to receive any such rights, options, warrants or
distribution are to be determined, (ii) the initial expiration date set forth in
any tender offer or exchange offer made by the Company for shares of Common
Stock, (iii) the date on which any such consolidation, merger, conveyance,
transfer, dissolution, liquidation, winding up is expected to become effective
or consummated, and the date as of which it is expected that holders of record
of shares of Common Stock shall be entitled to exchange such shares for
securities or other property, if any, deliverable upon such reclassification,
consolidation, merger, conveyance,
17
transfer, dissolution, liquidation or winding up, or (iv) the date on which
any such issuance, sale, grant or distribution is expected to become
effective or consummated.
Nothing contained in this Agreement or in the Warrant Certificate
shall be construed as conferring upon the holder thereof the right to vote or to
consent or to receive notice as shareholders in respect of the meetings of
shareholders or the election of Directors of the Company or any other matter, or
any rights whatsoever as shareholders of the Company.
SECTION 15. NOTICES TO COMPANY AND THE WARRANT HOLDER. Any notice or
demand authorized by this Agreement to be given or made by the Warrant Holder to
or on the Company shall be sufficiently given or made when and if delivered by a
recognized overnight delivery service, or deposited in the mail, first class or
registered, postage prepaid, addressed to the office of the Company expressly
designated by the Company for purposes of this Agreement (until the Warrant
Holder is otherwise notified in accordance with this Section by the Company), as
follows:
-----------------------
International Logistics Limited
000 Xxxxx Xxxxxxx Xxxx
Xxxxxxxx, XX 00000
with a copy to:
Xxxx X. Xxxxxx
Milbank, Tweed, Xxxxxx & XxXxxx
601 South Xxxxxxxx Street, Thirtieth Floor
Los Angeles, CA 90017
Any notice pursuant to this Agreement to be given by the Company to
the registered holder of the Warrant Certificate shall be sufficiently given
when and if delivered by a recognized overnight delivery service, or deposited
in the mail, first-class or registered, postage prepaid, addressed (until the
Company is otherwise notified in accordance with this Section by such holder) to
such holder at the following address:
W.E. Xxxxx & Company
0 Xxxxx Xxxx Xxxxxx, Xxxxx 000
Xxxxxxxx, Xxxxxxxxxx 00000,
ATTN: Xxxxxxx X. Xxxxx, Xx.
Telecopy No.: (000) 000-0000
18
with a copy to:
----------------
Xxxxxx & Xxxxxxx
000 Xxxx Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxxxxx, Xxxxxxxxxx 00000
Telecopy No.: (000) 000-0000
SECTION 16. CONSENTS AND BEST EFFORTS. The Company shall as soon as
practicable after the date hereof, commence to take all action required to
obtain all consents, approvals and agreements of, and to give all notices and
make all other filings with, any individual, firm, corporation, partnership,
trust, unincorporated organization or other entity or a government or agency or
political subdivision thereof necessary to authorize, approve or permit the
consummation of the transactions contemplated by this Agreement, and Warrant
holder shall cooperate with the Company with respect thereto. In addition,
subject to the terms and conditions provided herein, the Company covenants and
agrees to use its best efforts to take, or cause to be taken, all action or do,
or cause to be done, all things necessary, proper or advisable under applicable
laws and regulations to consummate and make effective the transactions
contemplated hereby and to cause the fulfillment of the Company's obligations
hereunder.
SECTION 17. SUCCESSORS. All the covenants and provisions of this
Agreement shall bind and inure to the benefit of the parties' respective
successors and assigns hereunder.
SECTION 18. GOVERNING LAW. This Agreement and the Warrant
Certificate issued hereunder shall be deemed to be a contract made under the
laws of the State of Delaware and for all purposes shall be construed in
accordance with the internal laws of said State.
SECTION 19. BENEFITS OF THIS AGREEMENT. Nothing in this Agreement
shall be construed to give to any person or corporation other than the Company
and the Warrant holder any legal or equitable right, remedy or claim under this
Agreement; but this Agreement shall be for the sole and exclusive benefit of the
Company and the Warrant holder.
SECTION 20. 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.
[SIGNATURE PAGE TO FOLLOW]
19
IN WITNESS WHEREOF, the Company and Warrant holder have caused this
Agreement to be executed and delivered by their respective officers thereunto
duly authorized, all as of the day and year first above written.
INTERNATIONAL LOGISTICS LIMITED
-------------------------------
By:
---------------
Title: President & Chief Executive Officer
XXXXXXX X. XXXXX, Xx.
-------------------------------------------
ANNEX 1
TO WARRANT AGREEMENT
Form of Warrant Certificate
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933 OR THE SECURITIES LAWS OF ANY STATE AND MAY NOT BE
SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION
STATEMENT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR AN APPLICABLE
EXEMPTION TO THE REGISTRATION REQUIREMENT OF SUCH ACT OR SUCH LAWS.
ALL WARRANT SHARES RECEIVED BY THE WARRANT HOLDER UPON EXERCISE OF THE WARRANTS
WILL BE SUBJECT TO THE TERMS AND CONDITIONS OF AN [AMENDED AND RESTATED]
STOCKHOLDERS AGREEMENT, [AN AMENDED AND RESTATED] REGISTRATION RIGHTS AGREEMENT
AND SUBSCRIPTION AGREEMENT, EACH DATED AS OF , 1996 AMONG THE
COMPANY AND THE VARIOUS STOCKHOLDERS OF THE COMPANY, AND EACH WARRANT HOLDER
AGREES TO BE BOUND BY THE TERMS AND CONDITIONS OF SUCH AGREEMENTS.
No. Shares
Warrant Certificate
INTERNATIONAL LOGISTICS LIMITED
This Warrant Certificate certifies that Xxxxxxx X. Xxxxx, Xx., or
registered assigns, is the registered holder of one Warrant expiring at 5:00
p.m., Los Angeles time on (the "WARRANT") to purchase Common
Stock, $.001 par value (the "COMMON STOCK"), of International Logistics Limited,
a Delaware corporation (the "COMPANY"). The Warrant entitles the holder upon
exercise to receive from the Company prior to 5:00 p.m., Los Angeles time on
, shares of fully paid and nonassessable shares of
Common Stock (the "WARRANT SHARES") at the initial exercise price (the "EXERCISE
PRICE") of $ per share payable in lawful money of the United States of
America upon surrender of this Warrant Certificate and payment of the Exercise
Price at the office of the Company designated for such purpose, but only subject
to the conditions set forth herein and in the Warrant Agreement referred to
below. Notwithstanding the foregoing, the Warrant may be exercised without the
exchange of funds pursuant to the net exercise provisions of SECTION 6(a) of
the Warrant Agreement. [The Exercise Price shall increase daily by a factor of
0.000261158 multiplied by the Exercise Price as of the preceding day.] The
Exercise Price and number of Warrant Shares issuable upon exercise of the
Warrant are subject to adjustment upon the occurrence of certain events set
forth in the Warrant Agreement.
A-1
The Warrant may not be exercised after 5:00 p.m., Los Angeles time on
, and to the extent not exercised by such time such
Warrant shall become void.
The Warrant evidenced by this Warrant Certificate is part of a duly
authorized issue of Warrants expiring at 5:00 p.m., Los Angeles time on
entitling the holder on exercise to receive shares of Common Stock,
$0.001 par value, of the Company (the "COMMON STOCK"), and is issued or is to be
issued pursuant to a Warrant Agreement dated as of , 1996 (the "WARRANT
AGREEMENT"), duly executed and delivered by the Company, which Warrant Agreement
is hereby incorporated by reference in and made a part of this instrument and is
hereby referred to for a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Company and the holder (the
word "holder" meaning the registered holder) of the Warrant. A copy of the
Warrant Agreement may be obtained by the holder hereof upon written request to
the Company.
The Warrant may be exercised at any time prior to (i) 5:00 p.m., Los
Angeles time on or (ii) the occurrence of an Early Termination
Event (as defined in the Warrant Agreement). The holder of the Warrant
evidenced by this Warrant Certificate may exercise it by surrendering this
Warrant Certificate, with the form of election to purchase set forth hereon
properly completed and executed, together with payment of the Exercise Price in
cash at the office of the Company designated for such purpose. In the event
that upon any exercise of the Warrant evidenced hereby the number of Warrant
Shares issuable upon such exercise shall be less than the total number of
Warrant Shares evidenced hereby, there shall be issued to the holder hereof or
his assignee a new Warrant Certificate evidencing the number of Warrant Shares
not exercised.
The Warrant Agreement provides that upon the occurrence of certain
events the Exercise Price set forth on the face hereof may, subject to certain
conditions, be adjusted. If the Exercise Price is adjusted, the Warrant
Agreement provides that the number of shares of Common Stock issuable upon the
exercise of the Warrant shall be adjusted. No fractions of a share of Common
Stock will be issued upon the exercise of the Warrant, but the Company will pay
the cash value thereof determined as provided in the Warrant Agreement.
The Warrant Certificate, when surrendered at the office of the Company
by the registered holder thereof in person or by legal representative or
attorney duly authorized in writing, may be exchanged, in the manner and subject
to the limitations provided in the Warrant Agreement, but without payment of any
service charge, for another Warrant Certificate or Warrant Certificates of like
tenor evidencing in the aggregate a like number of Warrant Shares.
Upon due presentation for registration of transfer of this Warrant
Certificate at the office of the Company a new Warrant Certificate or Warrant
Certificates of like tenor and evidencing in the aggregate a like number of
Warrant Shares shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided in the Warrant Agreement,
without charge except for any tax or other governmental charge imposed in
connection therewith.
A-2
Neither the Warrant nor this Warrant Certificate entitles any holder
hereof to any rights of a stockholder of the Company.
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate
to be signed by a duly authorized officer.
Dated: , 1996
INTERNATIONAL LOGISTICS LIMITED
By:
----------------------------------------
By:
-------------------
Its: President & Chief Executive Officer
A-3
Form of Election to Purchase
(To Be Executed Upon Exercise Of The Warrant)
The undersigned hereby irrevocably (subject to SECTION 6(e)) of the
Warrant Agreement) elects to exercise the right, represented by this Warrant
Certificate, to receive __________ shares of Common Stock and herewith tenders
payment for such shares to the order of International Logistics Limited in the
amount of $_________ in accordance with the terms hereof, unless the holder is
exercising the Warrant pursuant to the net exercise provisions of SECTION 6(a)
of the Warrant Agreement. The undersigned requests that a certificate for such
shares be registered in the name of ________________, whose address is
_______________________________ and that such shares be delivered to
________________ whose address is ___________ ______________________. If said
number of shares is less than all of the shares of Common Stock purchasable
hereunder, the undersigned requests that a new Warrant Certificate representing
the remaining balance of such shares be registered in the name of
______________, whose address is _________________________, and that such
Warrant Certificate be delivered to _________________, whose address is
__________________.
Signature:
--------------------------------
Date:
----------------------
A-4
TABLE OF CONTENTS
PAGE
SECTION 1. Sale and Purchase of Warrant . . . . . . . . . . . . . . . . . . 1
SECTION 2. Investment Representations . . . . . . . . . . . . . . . . . . . 1
SECTION 3. Warrant Certificate. . . . . . . . . . . . . . . . . . . . . . . 2
SECTION 4. Registration . . . . . . . . . . . . . . . . . . . . . . . . . . 2
SECTION 5. Registration of Transfers and Exchanges. . . . . . . . . . . . . 2
SECTION 6. Warrant; Exercise of Warrant . . . . . . . . . . . . . . . . . . 3
SECTION 7. Payment of Taxes . . . . . . . . . . . . . . . . . . . . . . . . 4
SECTION 8. Mutilated or Missing Warrant Certificate . . . . . . . . . . . . 4
SECTION 9. Reservation of Warrant Shares. . . . . . . . . . . . . . . . . . 4
SECTION 10. Adjustment of Exercise Price and Number of Warrant Shares
Issuable. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5
SECTION 11. Preemptive Rights. . . . . . . . . . . . . . . . . . . . . . . . 15
SECTION 12. Capitalization; Adjustment to the Number of Warrant
Shares. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15
SECTION 13. Financial Statements. . . . . . . . . . . . . . . . . . . . . . 16
SECTION 14. Notices to Warrant holders . . . . . . . . . . . . . . . . . . . 16
SECTION 15. Notices to Company and the Warrant Holder. . . . . . . . . . . . 18
SECTION 16. Consents and Best Efforts. . . . . . . . . . . . . . . . . . . 19
SECTION 17. Successors . . . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 18. Governing Law. . . . . . . . . . . . . . . . . . . . . . . . . . 19
SECTION 19. Benefits of This Agreement . . . . . . . . . . . . . . . . . . . 19
SECTION 20. Counterparts . . . . . . . . . . . . . . . . . . . . . . . . . . 19
ANNEX 1. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . A-1
i
