EXHIBIT 4.11
WARRANT SIDE AGREEMENT
THIS WARRANT SIDE AGREEMENT (the "Agreement") is entered into as of
March 14, 2000, by and among XXXXXXXXXX.XXX, INC., a corporation duly organized
and existing under the laws of the State of Nevada (the "Company") and Xxxxxx
Private Equity, LLC (hereinafter referred to as "Xxxxxx").
RECITALS:
WHEREAS, pursuant to the Company's offering ("Equity Line") of up to
Thirty Million Dollars ($30,000,000), excluding any funds paid upon exercise of
the Warrants, of Common Stock of the Company pursuant to that certain Investment
Agreement (the "Investment Agreement") between the Company and Xxxxxx dated on
or about March 14, 2000, the Company has agreed to sell and Xxxxxx has agreed to
purchase, from time to time as provided in the Investment Agreement, shares of
the Company's Common Stock for a maximum aggregate offering amount of Thirty
Million Dollars ($30,000,000); and
WHEREAS, pursuant to the terms of the Investment Agreement, the Company
has agreed, among other things, to issue to the Subscriber Commitment Warrants,
as defined in the Investment Agreement, to purchase a number of shares of Common
Stock, exercisable for five (5) years from their respective dates of issuance.
TERMS:
NOW, THEREFORE, in consideration of the mutual promises,
representations, warranties, covenants and conditions set forth in Agreement and
for other good and valuable consideration, the receipt and sufficiency of which
is hereby acknowledged, the parties hereto agree as follows:
1. Issuance of Commitment Warrants. As compensation for entering into the Equity
Line, Xxxxxx received a warrant convertible into 570,000shares of the Company's
Common Stock, in the form attached hereto as Exhibit A (the "Commitment
Warrants").
2. Issuance of Additional Warrants. If the Company shall at any time effect a
recapitalization, reclassification or other similar transaction of such
character that the shares of Common Stock shall be changed into or become
exchangeable for a smaller number of shares (a "Reverse Stock Split"), then on
the date of such Reverse Stock Split, and on each one year anniversary (each, an
"Anniversary Date") of the Reverse Stock Split thereafter throughout the term of
the Commitment Warrants, the Company shall issue to Xxxxxx additional warrants
(the "Additional Warrants"), in the form of Exhibit A, to purchase a number of
shares of Common Stock, if necessary, such that the sum of the number of
Warrants and the number of Additional Warrants issued to Xxxxxx shall equal 3.0%
of the number of shares of Common Stock of the Company that are outstanding
immediately following the Reverse Stock Split or Anniversary Date, as
applicable. The Additional Warrants shall be exerciseable at the same price as
the Commitment Warrants,
shall have the same reset provisions as the Commitment Warrants, shall have
piggyback registration rights and shall have a 5 year term.
3. Opinion of Counsel. Concurrently with the issuance and delivery of the
Commitment Opinion (as defined in the Investment Agreement) to the Investor, or
on the date that is six (6) months after the date of this Agreement, whichever
is sooner, the Company shall deliver to the Investor an Opinion of Counsel
(signed by the Company's independent counsel) covering the issuance of the
Commitment Warrants and the Additional Warrants, and the issuance and resale of
the Common Stock issuable upon exercise of the Warrants and the Additional
Warrants.
4. Governing Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Georgia applicable to agreements made
in and wholly to be performed in that jurisdiction, except for matters arising
under the Act or the Securities Exchange Act of 1934, which matters shall be
construed and interpreted in accordance with such laws.
IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
this 14th day of March, 2000.
------------------------------------------------------------------------------
XXXXXXXXXX.XXX, INC., SUBSCRIBER:
XXXXXX PRIVATE EQUITY, LLC.
By: /S/ By: /S/
------------------------------------ ---------------------------------
Xxxx X. Xxxxx, President & CEO Xxxx X. Xxxxxx, Manager
0000 Xxxx 00xx Xxxxxx, Xxxxx 000 0000 Xxxxxxx Xxxxxx Xxxx
Xxxxxxxxxxxx, Xxxxxxx 00000 Xxxx. 000, Xxxxx 000
Telephone: 000-000-0000 Xxxxxxx, XX 00000
Facsimile: 000-000-0000 Telephone: (000) 000-0000
Facsimile: (000) 000-0000
------------------------------------------------------------------------------
