EXHIBIT A
EXHIBIT 10.2
EXHIBIT A
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE PLEDGED,
SOLD, OFFERED FOR SALE, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF REGISTRATION UNDER
OR EXEMPTION FROM SUCH ACT AND ALL APPLICABLE STATE SECURITIES LAWS.
THIS WARRANT AND THE SECURITIES ISSUABLE UPON EXERCISE HEREOF ARE SUBJECT TO THE TERMS AND
PROVISIONS OF THE FIRST AMENDED AND RESTATED AGREEMENT AND PLAN OF MERGER, DATED AS OF FEBRUARY 14,
2007, AMONG JK ACQUISITION CORP. (THE “COMPANY”), MULTI-SHOT, INC., MULTI-SHOT, LLC,
CATALYST HALL GROWTH CAPITAL MANAGEMENT CO., LLC, AS MEMBERS’ RESPRESENTATIVE, AND THE MEMBERS OF
MULTI-SHOT, LLC (AS SUCH AGREEMENT MAY BE SUPPLEMENTED, MODIFIED, AMENDED, OR RESTATED FROM TIME TO
TIME, THE “MERGER AGREEMENT”). A COPY OF THE AGREEMENT IS AVAILABLE AT THE EXECUTIVE
OFFICES OF THE COMPANY.
[___] Shares | Warrant No. [___] |
WARRANT TO ACQUIRE SHARES OF COMMON STOCK OF
JK ACQUISITION CORP.
JK ACQUISITION CORP.
This is to certify that, in consideration of valuable consideration, which is hereby
acknowledged as received, [ ], its successors and registered assigns, is entitled
at any time after the Closing Date (as defined in the Merger Agreement) to exercise this Warrant to
acquire as an Earnout Award pursuant to Section 2.06 of the Merger Agreement, [ ]
(___) shares of common stock, par value $0.0001 per share of JK ACQUISITION CORP., a Delaware
corporation (which shall be renamed MS Energy Services, Inc. at the Effective Time)(the
“Company”), and to exercise the other rights, powers, and privileges hereinafter provided,
all on the terms and subject to the conditions specified in this Warrant and in the Merger
Agreement. All capitalized terms used herein but not otherwise defined shall have the meaning set
forth in the Merger Agreement.
1. | Duration of Warrants. A Warrant may be exercised only during the period (“Exercise Period”) commencing on the Effective Time and terminating at 5:00 p.m., New York City local time on [___] [___], 2010 (“Expiration Date”). Each Warrant not exercised on or before the Expiration Date shall become void, and all rights thereunder and all rights in respect thereof under this Warrant shall cease at the close of business on the Expiration Date. The Company in its sole discretion may extend the duration of the Warrants by delaying the Expiration Date; provided, however, that any extension of the duration of the Warrants must apply equally to all of the Warrants. | ||
2. | Exercise of Warrants. |
(a) Payment. A Warrant may be exercised by the registered holder thereof by
surrendering it, at the office of the Company, for the number of shares of Common Stock
which the registered holder is entitled to receive as an Earnout Award pursuant to Section
2.06 of the Merger Agreement, as well as any and all applicable taxes due in connection with
the exercise of the Warrant, the exchange of the Warrant for shares of Common Stock, and the
issuance of the
Common Stock. The registered holder shall not be required to provide any additional
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consideration upon the exercise of the Warrant or the issuance of Common Stock upon exercise
of a Warrant.
(b) As soon as practicable after the exercise of any Warrant, the Company shall issue
to the registered holder of such Warrant a certificate or certificates for the number of
full shares of Common Stock to which he is entitled pursuant to the exercise of the Warrant,
registered in such name or names as may be directed by him, her or it, and additionally if
such Warrant shall not have been exercised in full, a new countersigned Warrant for the
number of shares as to which such Warrant shall not have been exercised. Notwithstanding
the foregoing, the Company shall not be obligated to deliver any securities pursuant to the
exercise of a Warrant unless a registration statement under the Act and all applicable state
securities laws with respect to the Common Stock is effective or an exemption under the Act
and all applicable state securities laws is available for the issuance.
(c) All shares of Common Stock issued upon the proper exercise of a Warrant in
conformity with this Warrant shall be validly issued, fully paid and nonassessable.
(d) Each person in whose name any such certificate for shares of Common Stock is issued
shall for all purposes be deemed to have become the holder of record of such shares on the
date on which the Warrant was surrendered, irrespective of the date of delivery of such
certificate, except that, if the date of such surrender and payment is a date when the stock
transfer books of the Company are closed, such person shall be deemed to have become the
holder of such shares at the close of business on the next succeeding date on which the
stock transfer books are re-opened, which shall be the earliest practical date available to
the Company.
3. | No Fractional Shares. Notwithstanding any other provision of this Warrant or the Merger Agreement, no fractional shares of Common Stock shall be issued pursuant to the terms of this Warrant, and no Member shall be entitled to receive a fractional share of Common Stock pursuant to the terms of this Warrant. | ||
4. | Transfer and Exchange of Warrants. |
(a) Registration of Transfer. The Company shall register the transfer, from
time to time, of any outstanding Warrant in the Warrant register, upon the surrender of such
Warrant for transfer, properly endorsed with signatures properly guaranteed and accompanied
by appropriate instructions for transfer. Upon any such transfer, a new Warrant
representing an equal aggregate number of Warrants shall be issued and the old Warrant shall
be cancelled by the Company.
(b) Procedure for Surrender of Warrants. Warrants may be surrendered to the
Company, together with a written request for exchange or transfer, and thereupon the Company
shall issue in exchange therefor one or more new Warrants as requested by the registered
holder of the Warrants so surrendered, representing an equal aggregate number of Warrants.
(c) Partial Exercise. If the Warrant shall have been exercised in part, the
Company shall, at the time of delivery of the certificate or certificates representing
shares of Parent Common Stock, deliver to holder a new Warrant evidencing the unexercised
rights of holder to acquire shares of Parent Common Stock called for by the Warrant, which
new Warrant shall in all other respects be identical with the original Warrant.
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(d) Service Charges. No service charge shall be made for any exchange of
Warrants.
5. | Other Provisions Relating to Rights of Holders of Warrants. |
(a) No Rights as Stockholder. A Warrant does not entitle the registered holder
thereof to any of the rights of a stockholder of the Company, including, without limitation,
the right to receive dividends, or other distributions, exercise any preemptive rights to
vote or to consent or to receive notice as stockholders in respect of the meetings of
stockholders or the election of directors of the Company or any other matter. The holder
shall be entitled to all rights of a stockholder of the Company with respect to shares of
Common Stock issuable upon exercise of this Warrant immediately upon such exercise
notwithstanding that a certificate representing such shares Common Stock has not been
issued.
(b) Lost, Stolen, Mutilated, or Destroyed Warrants. If any Warrant is lost,
stolen, mutilated, or destroyed, the Company may on such terms as to indemnity or otherwise
as they may in their discretion impose (which shall, in the case of a mutilated Warrant,
include the surrender thereof), issue a new Warrant of like denomination, tenor, and date as
the Warrant so lost, stolen, mutilated, or destroyed. Any such new Warrant shall constitute
a substitute contractual obligation of the Company, whether or not the allegedly lost,
stolen, mutilated, or destroyed Warrant shall be at any time enforceable by anyone.
(c) Reservation of Common Stock. The Company shall at all times that any
Warrant is outstanding reserve and keep available a number of its authorized but unissued
shares of Common Stock that will be sufficient to permit the exercise in full of all
outstanding Warrants.
(d) Registration of Common Stock. The registration of the Common Stock
issuable pursuant to the terms of this Warrant shall be subject to that certain Registration
Rights Agreement, dated [ ___], 2007 by and between the Company, the Members’
Representative and the members of Multi-Shot, LLC.
6. | Miscellaneous Provisions. |
(a) Successors. All the covenants and provisions of this Warrant by or for the
benefit of the Company shall bind and inure to the benefit of their respective successors
and assigns.
(b) Notices. All notices, requests, claims, demands and other communications
hereunder shall be in writing and shall be given (and shall be deemed to have been duly
given upon receipt) by delivery in person, by cable, telecopy, facsimile, telegram or telex
or by registered or certified mail (postage prepaid, return receipt requested) to the
respective parties at the following addresses (or at such other address for a party as shall
be specified in a notice given in accordance with this Section 6(b)):
if to the Company:
JK Acquisition Corp.
0000 Xxxx Xxx Xxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxx X. Xxxxxx
0000 Xxxx Xxx Xxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxx X. Xxxxxx
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with a copy to:
Xxxxxx Xxxxx LLP
0000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
0000 Xxxx Xxxxxx, Xxxxx 0000
Xxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxx X. Xxxxxxx, Esq.
if to Holder, to the address reflected on the register of Warrants kept by the
Company, with a copy to the Members’ Representative at:
Catalyst Hall Growth Capital Management Co., LLC
0 Xxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxx Xxxxx and Xxxx Xxxxxxx
0 Xxxxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxx Xxxxx and Xxxx Xxxxxxx
[Investor’s designee]
[address]
[address]
[address]
[address]
with a copy to:
Franklin, Xxxxxxxx & Xxxxx, P.C.
0000 XxXxxxxx, Xxxxx 0000
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxxxxx Xxxxx, Esq.
Xxxxxxx, Xxxxx 00000
Facsimile No.: (000) 000-0000
Attention: Xxxxxxxx Xxxxx, Esq.
(c) Applicable law. The validity, interpretation, and performance of the
Warrants shall be governed in all respects by the laws of the State of Delaware, applicable
to contracts executed in and to be performed in that state and without regard to any
applicable conflicts of law. In any action between the parties hereto arising out of or
relating to the Warrants: (i) each of the parties irrevocably and unconditionally consents
and submits to the exclusive jurisdiction and venue of either the state courts located in
Xxxxxx County, Texas or the United States District Court for the Southern District of Texas
and (ii) each of the parties irrevocably consents to service of process by first class
certified mail, return receipt requested, postage prepaid.
(d) Persons Having Rights under this Warrant. Nothing in this Warrant expressed
and nothing that may be implied from any of the provisions hereof is intended, or shall
be construed, to confer upon, or give to, any person or corporation other than the
parties hereto and the registered holders of the Warrants. All covenants, conditions,
stipulations, promises, and agreements contained herein shall be for the sole and exclusive
benefit of the parties hereto and their successors and assigns and of the registered holders
of the Warrants.
(e) 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.
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(f) Effect of Headings. The Section headings herein are for convenience only
and are not part of this Warrant Agreement and shall not affect the interpretation thereof.
(g) Other. This Warrant is issued under, and the rights represented hereby are
subject to the terms and provisions contained in the Merger Agreement, to all terms and
provisions of which the registered holder of this Warrant, by acceptance of this Warrant,
assents. Reference is hereby made to the Merger Agreement for a more complete statement of
the rights and limitations of rights of the registered holder of this Warrant and the rights
and duties of the Company under this Warrant. A copy of the Merger Agreement is on file at
the office of the Company.
[Remainder of this page intentionally left blank; signature page follows.]
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IN WITNESS WHEREOF, the Company has caused this Warrant to be duly executed on this [___] day
of [ ], 2007.
JK ACQUISITION CORP. | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||