EXHIBIT 4.9
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NEITHER THIS WARRANT NOR THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF
THIS WARRANT HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AND NEITHER
THIS WARRANT NOR SUCH SHARES MAY BE SOLD, ENCUMBERED OR OTHERWISE TRANSFERRED
EXCEPT PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER SUCH ACT OR AN
EXEMPTION FROM SUCH REGISTRATION REQUIREMENT, AND, IF AN EXEMPTION SHALL BE
APPLICABLE, THE HOLDER SHALL HAVE DELIVERED AN OPINION OF COUNSEL ACCEPTABLE TO
THE COMPANY THAT SUCH REGISTRATION IS NOT REQUIRED.
Void after 5:00 p.m. Eastern Standard Time, on June 14, 2005.
WARRANT TO PURCHASE COMMON STOCK
OF
ABLE LABORATORIES, INC.
FOR VALUE RECEIVED, ABLE LABORATORIES, INC., a Delaware corporation (the
"Company"), hereby certifies that ____________, or its permitted assigns, is
entitled to purchase from the Company, at any time or from time to time
commencing on June 14, 2002 and prior to 5:00 P.M., Eastern Standard Time, on
June 14, 2005, a total of _______________ (____) fully paid and nonassessable
shares of the common stock, par value $.01 per share, of the Company at a
purchase price of $5.10 per share. (Hereinafter, (i) said common stock, together
with any other equity securities which may be issued by the Company with respect
thereto or in substitution therefor, is referred to as the "Common Stock," (ii)
the shares of the Common Stock purchasable hereunder are referred to as the
"Warrant Shares," (iii) the aggregate purchase price payable hereunder for the
Warrant Shares is referred to as the "Aggregate Warrant Price," (iv) the price
payable hereunder for each of the Warrant Shares is referred to as the "Exercise
Price," (v) this Warrant, and all warrants hereafter issued in exchange or
substitution for this Warrant are referred to as the "Warrant" and (vi) the
holder of this Warrant is referred to as the "Holder.") The Exercise Price is
subject to adjustment as hereinafter provided.
1. Exercise of Warrant
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(a) EXERCISE. This Warrant may be exercised, in whole at any time or
in part from time to time, commencing on June 14, 2002 and prior to 5:00 P.M.,
Eastern Standard Time on June 14, 2005, by the Holder of this Warrant by the
surrender of this Warrant (with the subscription form at the end hereof duly
executed) at the address set forth in Subsection 7(a) hereof, together with
proper payment of the Aggregate Warrant Price, or the proportionate part thereof
if this Warrant is exercised in part. Payment for Warrant Shares shall be made
by certified or official bank check payable to the order of the Company or by
wire transfer of immediately available funds in a manner mutually acceptable to
the Company the Holder. If this Warrant is exercised in part, the Holder is
entitled to receive a new Warrant covering the number of Warrant Shares in
respect of which this Warrant has not been exercised and setting forth the
proportionate part of the Aggregate Warrant Price applicable to such Warrant
Shares. Upon such surrender of this Warrant, the Company will (a) issue a
certificate or certificates in the name of the Holder for the largest number of
whole shares of the Common Stock to which the Holder shall be entitled if this
Warrant is exercised in whole and (b) deliver the proportionate part thereof if
this Warrant is exercised in part, pursuant to the provisions of the Warrant. In
lieu of any fractional share of the Common Stock which would otherwise be
issuable in respect to the exercise of the Warrant, the Company at its option
(a) may pay in cash an amount equal to the product of (i) the average Closing
Price of a share of Common Stock on the ten consecutive trading days before the
Conversion Date and (ii) such fraction of a share or (b) may issue an additional
share of Common Stock.
Upon exercise of the Warrant, the Company shall issue and deliver to
the Holder certificates for the Common Stock issuable upon such exercise within
ten business days after such exercise and the person exercising shall be deemed
to be the holder of record of the Common Stock issuable upon such exercise.
No warrant granted herein shall be exercisable after 5:00 p.m. Eastern
Standard Time on the third anniversary of the date of issuance.
(b) NET ISSUANCE. Notwithstanding anything to the contrary contained
in Subsection 1(a) hereof, in the case of any exercise on or prior to June 14,
2005 the Holder may elect to exercise this Warrant in whole or in part by
receiving shares of Common Stock equal to the net issuance value (as determined
below) of this Warrant, or any part hereof, upon surrender of this Warrant at
the principal office of the Company together with notice of such election (with
the form at the end hereof duly executed), in which event the Company shall
issue to the Holder a number of shares of Common Stock computed using the
following formula:
X = Y (A-B)
-------
A
Where: X = the number of shares of Common Stock to be issued to the
Holder
Y = the number of shares of Common Stock as to which this
Warrant is to be exercised
A = the current fair market value of one share of Common Stock
calculated as of the last trading day immediately
preceding the exercise of this warrant
B = the Exercise Price
(c) CERTAIN ADJUSTMENTS
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The Exercise Price and the number of Warrant Shares shall be adjusted
from time to time to account for stock splits, stock dividends, combinations,
recapitalizations, reclassifications and similar events.
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As used herein, current fair market value of the Common Stock as of a
specified date shall mean with respect to each share of Common Stock the average
of the closing bid prices of the Common Stock on the principal securities market
on which the Common Stock may at the time be traded over a period of five
business days consisting of the day as of which the current fair market value of
a share of Common Stock is being determined (or if such day is not a business
day, the business day next preceding such day) and the four consecutive business
days prior to such day. If on the date for which current fair market value is to
be determined the Common Stock is not eligible for trading on any securities
market, the current fair market value of Common Stock shall be the highest price
per share which the Company could then obtain from a willing buyer (not a
current employee or director) for shares of Common Stock sold by the Company,
from authorized but unissued shares, as determined in good faith by the Board of
Directors of the Company, which determination shall be conclusive, unless prior
to such date the Company has become subject to a merger, acquisition or other
consolidation pursuant to which the Company is not the surviving party, in which
case the current fair market value of the Common Stock shall be deemed to be the
value received by the holders of the Company's Common Stock for each share
thereof pursuant to the Company's acquisition.
2. RESERVATION OF WARRANT SHARES. The Company agrees that, prior to the
expiration of this Warrant, the Company will at all times have authorized and
reserved, and will keep available, solely for issuance or delivery upon the
exercise of this Warrant, the number of shares of the Common Stock as from time
to time shall be receivable upon the exercise of this Warrant.
3. FULLY PAID STOCK; TAXES. The Company agrees that the shares of the
Common Stock represented by each and every certificate for Warrant Shares
delivered on the exercise of this Warrant shall, at the time of such delivery,
be validly issued and outstanding, fully paid and nonassessable, and not subject
to preemptive rights, and the Company will take all such actions as may be
necessary to assure that the par value or stated value, if any, per share of the
Common Stock is at all times equal to or less than the then Exercise Price. The
Company further covenants and agrees that it will pay, when due and payable, any
and all Federal and state stamp, original issue or similar taxes that may be
payable in respect of the issue of any Warrant Share or certificate therefor.
4. TRANSFER
(a) SECURITIES LAWS. Neither this Warrant nor the Warrant Shares
issuable upon the exercise hereof have been registered under the Securities Act
of 1933, as amended (the "Securities Act"), or under any state securities laws
and unless so registered may not be transferred, sold, pledged, hypothecated or
otherwise disposed of unless an exemption from such registration is available.
In the event Holder desires to transfer this Warrant or any of the Warrant
Shares issued, the Holder must give the Company prior written notice of such
proposed transfer including the name and address of the proposed transferee.
Such transfer may be made only either (i) upon publication by the Securities and
Exchange Commission (the "Commission") of a ruling, interpretation, opinion or
"no action letter" based upon facts presented to said Commission, or (ii) upon
receipt by the Company of an opinion of counsel to the Company in either case to
the effect that the proposed transfer will not violate the provisions of the
Securities Act, the Securities Exchange Act of 1934, as amended (the "Exchange
Act"), or the rules and regulations promulgated under either such act, or in the
case of clause (ii) above, to the effect
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that the Warrant or Warrant Shares to be sold or transferred has been registered
under the Securities Act and that there is in effect a registration statement in
which is included a prospectus meeting the requirements of Subsection 10 (a) of
the Securities Act, which is being or will be delivered to the purchaser or
transferee at or prior to the time of delivery of the certificates evidencing
the Warrant or Warrant Shares to be sold or transferred.
(b) REGISTRATION ON FORM S-3. The Company will use its best efforts,
but in no event later than 180 days following the date hereof, prepare and file
with the Commission a Registration Statement on Form S-3 to permit a public
offering and resale of the Warrant Shares under the Securities Act on a
continuous basis under Rule 415. Subject to receipt of necessary information
from the Holders, the Company will use commercially reasonable efforts to cause
the Registration Statement to be declared effective by the Commission and remain
effective until the second anniversary of the date of issuance of the Warrant.
To the extent not unlawful, the Company will pay all expenses incident to the
Company's compliance with this Section 4(b).
(c) CONDITIONS TO TRANSFER. Prior to any such proposed transfer, and
as a condition thereto, if such transfer is not made pursuant to an effective
registration statement under the Securities Act, the Holder will, if requested
by the Company, deliver to the Company (i) an investment covenant signed by the
proposed transferee, (ii) an agreement by such transferee to the impression of
the restrictive investment legend set forth herein on the certificate or
certificates representing the securities acquired by such transferee, (iii) an
agreement by such transferee that the Company may place a "stop transfer order"
with its transfer agent or registrar, and (iv) an agreement by the transferee to
indemnify the Company to the same extent as set forth in the next succeeding
paragraph.
(d) INDEMNITY. The Holder acknowledges that the Holder understands the
meaning and legal consequences of this Section 4, and the Holder hereby agrees
to indemnify and hold harmless the Company, its representatives and each officer
and director thereof from and against any and all loss, damage or liability
(including all attorneys' fees and costs incurred in enforcing this indemnity
provision) due to or arising out of (a) the material inaccuracy of any
representation or the material breach of any warranty of the Holder contained
in, or any other material breach of, this warrant, (b) any transfer of the
Warrant or any of the Warrant Shares in violation of the Securities Act, the
Exchange Act or the rules and regulations promulgated under either of such acts,
(c) any transfer of the Warrant or any of the Warrant Shares not in accordance
with this Warrant or (d) any materially untrue statement or omission to state
any material fact in connection with the investment representations or with
respect to the facts and representations supplied by the Holder to counsel to
the Company upon which its opinion as to a proposed transfer shall have been
based.
(e) TRANSFER. Except as restricted hereby, this Warrant and the
Warrant Shares issued may be transferred by the Holder in whole or in part at
any time or from time to time. Upon surrender of this Warrant to the Company,
with assignment documentation duly executed and funds sufficient to pay any
transfer tax, and upon compliance with the foregoing provisions, the Company
shall, without charge, execute and deliver a new Warrant in the name of the
assignee named in such instrument of assignment, and this Warrant shall promptly
be canceled. Any assignment, transfer, pledge, hypothecation or other
disposition of this Warrant
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attempted contrary to the provisions of this Warrant, or any levy of execution,
attachment or other process attempted upon the Warrant, shall be null and void
and without effect.
(f) LEGEND AND STOP TRANSFER ORDERS. Unless the Warrant Shares have
been registered under the Securities Act, upon exercise of any part of the
Warrant and the issuance of any of the Warrant Shares, the Company shall
instruct its transfer agent to enter stop transfer orders with respect to such
shares, and all certificates representing Warrant Shares shall bear on the face
thereof substantially the following legend, insofar as is consistent with
Massachusetts law:
"The shares of common stock represented by this certificate have not
been registered under the Securities Act of 1933, as amended, and may
not be sold, offered for sale, assigned, transferred or otherwise
disposed of unless registered pursuant to the provisions of that Act
or an opinion of counsel to the Company is obtained stating that such
disposition is in compliance with an available exemption from such
registration."
5. LOSS, ETC. OF WARRANT. Upon receipt of evidence satisfactory to the
Company of the loss, theft, destruction or mutilation of this Warrant, and of an
unsecured indemnity from the Holder reasonably satisfactory to the Company, if
lost, stolen or destroyed, and upon surrender and cancellation of the Warrant,
if mutilated, the Company shall execute and deliver to the Holder a new Warrant
of like date, tenor and denomination.
6. WARRANT HOLDER NOT SHAREHOLDER. Except as otherwise provided herein,
this Warrant does not confer upon the Holder any right to vote or to consent to
or receive notice as a shareholder of the Company, as such, in respect of any
matters whatsoever, or any other rights or liabilities as a shareholder, prior
to the exercise hereof.
7. COMMUNICATION. No notice or other communication under this Warrant shall
be effective unless the same is in writing and is mailed by certified mail,
return receipt requested, addressed to:
(a) the Company at 000 Xxxxxxxx Xxxxxx, Xxxxxxx, Xxxxxxxxxxxxx 00000,
or such other address as the Company has designated in writing to the Holder,
with a copy to Xxxxxx X. X'Xxxxxx, Esq., Xxxxx Xxxx LLP, 000 Xxxxxxx Xxxxxxxxx,
Xxxxxx, Xxxxxxxxxxxxx 00000, or
(b) the Holder at the address set forth in that certain Subscription
Agreement, dated as of June 5, 2002, or such other address as the Holder has
designated in writing to the Company.
Any notice given hereunder shall be effective upon the earlier of (i)
receipt, or (ii) a date three days from the date of posting.
8. HEADINGS. The headings of this Warrant have been inserted as a matter of
convenience and shall not affect the construction hereof.
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9. REORGANIZATION, ETC. If the Company is a party to a reorganization or
merger with one or more other corporations, whether or not the Company is the
surviving corporation, or if the Company consolidates with or into one or more
other corporations, or if the Company is liquidated or sells or otherwise
disposes of substantially all of its assets to another corporation (each
hereinafter referred to as a "Transaction"), in any such event while this
Warrant remains outstanding, then after the effective date of such Transaction,
the unexercised portion of this Warrant shall remain outstanding, and lawful and
adequate provision shall be made whereby the Holder shall thereafter have the
right to purchase and receive, upon the basis and upon the terms and conditions
herein specified and in lieu of the shares of Common Stock of the Company
immediately theretofore purchasable and receivable upon exercise of this
Warrant, such shares of stock, securities or assets as may be issued or payable
with respect to or in exchange for a number of outstanding shares of such Common
Stock equal to the number of shares of Common Stock immediately theretofore
purchasable and receivable upon the exercise of this Warrant had such
Transaction not taken place, and in any such case appropriate provision shall be
made with respect to the rights and interests of the Holder to the end that the
provisions hereof (including, without limitation, provisions for adjustments to
the Warrant Purchase Price and of the number of shares purchasable upon the
exercise of this Warrant) shall thereafter be applicable, as nearly as may be
practicable, in relation to any shares of stock, securities or assets thereafter
deliverable upon the exercise hereof.
10. APPLICABLE LAW. This Warrant shall be governed by and construed in
accordance with the law of The Commonwealth of Massachusetts without giving
effect to the principles of conflicts of laws thereof.
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IN WITNESS WHEREOF, ABLE LABORATORIES, INC. has caused this Warrant to be
signed by its President and its corporate seal to be hereunto affixed and
attested by its Secretary this ___ day of June, 2002.
ATTEST: ABLE LABORATORIES, INC.
_______________________ By: _____________________________
Xxxxxxxxx X. Xxxxxxx
President
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SUBSCRIPTION
The undersigned, _______________________________________, pursuant to the
provisions of the foregoing Warrant, hereby agrees to subscribe for the purchase
of ________ shares of the Common Stock of ABLE LABORATORIES, INC. covered by
said Warrant, and makes payment therefor in full at the price per share provided
by said Warrant.
Dated:____________________________ Signature:_____________________________
Address:__________________________
__________________________________
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ASSIGNMENT
FOR VALUE RECEIVED ___________________________ hereby sells, assigns and
transfers unto ______________________________ the foregoing Warrant and all
rights evidenced thereby, and does irrevocably constitute and appoint
_____________________, attorney, to transfer said Warrant on the books of ABLE
LABORATORIES, INC..
Dated:____________________________ Signature:_____________________________
Address:__________________________
__________________________________
PARTIAL ASSIGNMENT
FOR VALUE RECEIVED _________________________ hereby sells, assigns and transfers
unto ___________________________ the right to purchase _________ shares of the
Common Stock of ABLE LABORATORIES, INC. by the foregoing Warrant, and a
proportionate part of said Warrant and the rights evidenced hereby, and does
irrevocably constitute and appoint ___________________________________,
attorney, to transfer that part of said Warrant on the books of ABLE
LABORATORIES, INC.
Dated:____________________________ Signature:_____________________________
Address:__________________________
__________________________________
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NET ISSUANCE ELECTION
The undersigned, _______________________________, pursuant to the
provisions of the foregoing Warrant, hereby tenders the right to purchase _____
shares of the Common Stock of ABLE LABORATORIES, INC., and a proportionate part
of said Warrant and the rights evidenced thereby, in exchange for a number of
shares of said Common Stock to be computed in accordance with the provisions of
Section 1(b) of said Warrant.
Dated:____________________________ Signature:_____________________________
Address:__________________________
__________________________________
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