EXHIBIT 4.4 WARRANT TO PURCHASE 12,500 SHARES OF COMMON STOCK
WARRANT AGREEMENT
THIS WARRANT AGREEMENT dated as of the 9th day of December, 1998 between 21ST
CENTURY HOLDING COMPANY, a Florida corporation (the "Company"), and XXXXXXX X.
XXXXX (hereinafter referred to as "Xxxxx").
WITNESSETH:
WHEREAS, the Company proposes to issue to Xxxxx Warrants ("Warrants") to
purchase up to 12,500 shares (the "Shares") of common stock of the Company, par
value $.01 per share (the "Common Stock"); and
WHEREAS, Xxxxx has entered into an employment agreement (the "Employment
Agreement") dated December 9, 1998 between Xxxxx and the Company; and
WHEREAS, the Warrants issued pursuant to this Agreement are being issued by the
Company to Xxxxx in consideration for and as part of Xxxxx'x compensation in
connection with the Employment Agreement.
NOW THEREFORE, in consideration of the premises, the agreements herein set forth
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties agree as follows:
1. Grant:
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Xxxxx is hereby granted the right to purchase, at any time from
December 9, 1998 until 5:00 P.M., New York time, on December 30, 2004
(the "Warrant Exercise Term"), up to 12,500 fully-paid and
non-assessable Shares at an initial exercise price (subject to
adjustment as provided in Article 8 hereof) of $9.00 per share.
2. Warrant Certificates:
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The warrant certificates (the "Warrant Certificates") delivered and to
be delivered pursuant to this Agreement shall be in the form set forth
in Exhibit A attached hereto and made a part hereof, with such
appropriate insertions, omissions, substitutions and other variations
as required or permitted by this Agreement.
3. Exercise of Warrant:
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The Warrants initially are exercisable at a price of $9.00 per share of
Common Stock purchased, payable in cash or by check to the order of the
Company, or any combination of cash or check, subject to adjustment as
provided in Article 8 hereof. Upon surrender of the Warrant Certificate
with the annexed Form of Election to Purchase duly executed, together
with payment of the Exercise Price (as hereinafter defined) for the
Shares purchased, at the Company's principal offices in Florida
(currently located at 0000 X.X. 0xx Xxxxxx, Xxxxxxxxxx, Xxxxxxx 33317)
the registered holder of a Warrant Certificate ("Holder") shall be
entitled
EXHIBIT 4.4 (CONTINUED)
to receive a certificate or certificates for the Shares so purchased.
The purchase rights represented by each Warrant Certificate are
exercisable at the option of the Holder hereof, in whole or in part
(but not as to fractional Shares). In case of the purchase of less than
all the Shares purchasable under any Warrant Certificate, the Company
shall cancel said Warrant Certificate upon the surrender thereof and
shall execute and deliver a new Warrant Certificate of like tenor for
the balance of the Shares purchasable thereunder.
4. Issuance of Certificates:
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Upon the exercise of the Warrants, the issuance of certificates for the
Shares shall be made forthwith (and in any event within three business
days thereafter) without charge to the Holder thereof including,
without limitation, any transfer tax which may be payable in respect of
the issuance thereof, and such certificates shall (subject to the
provisions of Article 5 hereof) be issued in the name of, or in such
names as may be directed by the Holder thereof; provided, however, that
the Company shall not be required to pay any tax which may be payable
in respect of any transfer involved in the issuance and delivery of any
such certificates in a name other than that of the Holder and the
Company shall not be required to issue or deliver such certificates
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. The Warrant Certificates and the certificates representing the
Shares shall be executed on behalf of the Company by the manual or
facsimile signature of the present or any future Chairman or Vice
Chairman of the Board of Directors or President or Vice President of
the Company under its corporate seal reproduced thereon, attested to by
the manual or facsimile signature of the present or any future
Secretary or Assistant Secretary of the Company. Warrant Certificates
shall be dated the date of execution by the Company upon initial
issuance, division, exchange, substitution or transfer.
Upon exercise, in part or in whole, of the Warrants, certificates
representing the Shares (the "Warrant Securities"), shall bear a legend
substantially similar to the following:
"The securities represented by this certificate have not been
registered under the Securities Act of 1933, as amended (the
"Act"), nor any state securities laws and may not be offered
or sold except (i) pursuant to an effective registration
statement under the Act and applicable state securities laws,
(ii) to the extent applicable, pursuant to Rule 144 under the
Act (or any similar rule under such Act relating to the
disposition of securities), or (iii) counsel, reasonable
satisfactory to counsel to the issuer, stating that an
exemption from registration under such Act or applicable state
securities laws is available."
5. Restriction on Transfer of Warrants:
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The Holder of a Warrant Certificate, by its acceptance thereof,
covenants and agrees that the Warrants are being acquired as an
investment and not with a
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EXHIBIT 4.4 (CONTINUED)
view to the distribution thereof, and that the Warrants may not be
sold, transferred, assigned, hypothecated or otherwise disposed of, in
whole or in part.
6. Price:
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6.1 Initial and Adjusted Exercise Prices. The initial exercise price of
each Warrant shall be $9.00 per share. The adjusted price shall be the
price which shall result from time to time from any and all adjustments
of the initial exercise price in accordance with the provisions of
Article 8 hereof.
6.2 Exercise Price: The term "Exercise Price" herein shall mean the
initial exercise price or the adjusted exercise price, depending upon
the context.
7. Registration Rights:
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7.1 Registration Under the Securities Act of 1933: Neither the Warrants
nor the Shares have been registered for purposes of public distribution
under the Securities Act of 1933, as amended (the "Securities Act").
7.2 Registrable Securities: As used herein the term "Registrable
Security" means the Shares and any shares of Common Stock issued upon
any stock split or stock dividend in respect of such Shares; provided,
however, that with respect to any particular Registrable Security, such
security shall cease to be a Registrable Security when, as of the date
of determination, (i) it has been effectively registered under the
Securities Act and disposed of pursuant thereto, (ii) registration
under the Securities Act is no longer required for subsequent public
distribution of such security pursuant to Rule 144 under the Securities
Act (or any successor provision), or (iii) it has ceased to be
outstanding. The term "Registrable Securities" means any and/or all of
the securities falling within the foregoing definition of a
"Registrable Security." In the event of any merger, reorganization,
consolidation, recapitalization or other change in corporate structure
affecting the Common Stock, such adjustment shall be made in the
definition of "Registrable Security" as is appropriate in order to
prevent any dilution or enlargement of the rights granted pursuant to
this Article 7.
7.3 Piggyback Registration: If, at any time following the date of the
Employment Agreement, the Company proposes to prepare and file any new
registration statement covering equity or debt securities of the
Company, or any such securities of the Company held by its shareholders
(in any such case, other than pursuant to Form S-4 or Form S-8
successor form) (for purposes of this Article 7, collectively, the
"Registration Statement"), it will give written notice of its intention
to do so by registered mail ("Notice"), at least twenty (20) days prior
to the filing of each such Registration Statement, to all Holders of
the Warrants and the Registrable Securities. Upon the written request
of such a Holder (a "Requesting Holder"), made within twenty (20) days
after receipt of the Notice, that the Company include any of the
Requesting Holder's Registrable Securities in the proposed Registration
Statement, the Company shall, as to each such Requesting Holder, effect
the registration under the Securities Act of the Registrable Securities
which it has been so requested to register ("Piggyback Registration"),
at the Company's sole cost and expense and at no cost or
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EXHIBIT 4.4 (CONTINUED)
expense to the Requesting Holders other than underwriting discounts and
commissions, and fees and expenses of the Holder's counsel; provided,
however, that if , in the written opinion of the Company's managing
underwriter, if any, for such offering, the inclusion of all or a
portion of the Registrable Securities requested to be registered, when
added to the securities being registered by the Company or the selling
shareholder(s), will exceed the maximum amount of the Company's
securities which can be marketed (i) at a price reasonably related to
their then current market value, or (ii) without otherwise materially
adversely affecting the entire offering, then the Company may exclude
from such offering all or a portion of the Registrable Securities which
it has been requested to register.
If securities are proposed to be offered for sale pursuant to such
Registration Statement by other security holders of the Company and the
total number of securities to be offered by the Requesting Holders and
such other selling security holders is required to be reduced pursuant
to a request from the managing underwriter (which request shall be made
only for the reasons and in the manner set forth above) the aggregate
number of Registrable Securities to be offered by Requesting Holders
pursuant to such Registration Statement shall equal the number which
bears the same ratio to the maximum number of securities that the
underwriter believes may be included for all the selling security
holders (including the Requesting Holders) as the original number of
Registrable Securities proposed to be sold by the Requesting Holders
bears to the total original number of securities proposed to be offered
by the Requesting Holders and the other selling security holders.
8. Adjustments of Exercise Price and Number of Securities:
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The following adjustments apply to the Exercise Price of the Warrants
with respect to the Shares and the number of Shares purchasable upon
exercise of the Warrants.
8.1 Subdivision and Combination: In case the Company shall at any time
subdivide or combine the outstanding shares of Common Stock, the
Exercise Price shall forthwith the proportionately decreased in the
case of subdivision or increased in the case of combination.
8.2 Adjustment in Number of Securities: Upon each adjustment of the
Exercise Price pursuant to the provisions to this Article 8, the number
of securities issuable upon the exercise of each Warrant shall be
adjusted to the nearest full number by multiplying the Exercise Price
in effect immediately prior to such adjustment by the number of
securities issuable upon exercise of the Warrants immediately prior to
such adjustment and dividing the product so obtained by the adjusted
Exercise Price.
8.3 Reclassification, Consolidation, Merger, etc: In case of any
reclassification or change of the outstanding shares of Common Stock
(other than a change in par value to no par value, or from no par value
to par value, or
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EXHIBIT 4.4 (CONTINUED)
as a result of a subdivision or combination), or in the case of any
consolidation of the Company with, or merger of the Company into,
another corporation (other than a consolidation or merger in which the
Company is the surviving corporation and which does not result in any
reclassification or change of the outstanding shares of Common Stock,
except a change as a result of a subdivision or combination of such
shares or a change in par value, as aforesaid), or in the case of a
sale or conveyance to another corporation of the property of the
Company as an entirety, the Holders shall thereafter have the right to
purchase the kind and number of shares of stock and other securities
and property receivable upon such reclassification, change,
consolidation, merger, sale or conveyance as if the Holders were the
owners of the Shares underlying the Warrants immediately prior to any
such events, at price equal to the product of (x) the number of shares
of Common Stock issuable upon exercise of the Warrants and (y) the
Exercise Price in effect immediately prior to the record date for such
reclassification, change, consolidation, merger, sale or conveyance as
if such Holder had exercised the Warrants.
8.4 No Adjustment of Exercise Price in Certain Cases: Notwithstanding
anything herein to the contrary, no adjustment of the Exercise Price
shall be made if the amount of said adjustment shall be less than one
cent (1(cent)) per security, provided, however, that in such case any
adjustment that would otherwise be required then to be made shall be
carried forward and shall be made at the time of and together with the
next subsequent adjustment which, together with any adjustment so
carried forward, shall amount to at least one cent (1(cent)) per
security.
9. Exchange and Replacement of Warrant Certificates:
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Each Warrant Certificate is exchangeable without expense, upon the
surrender hereof by the registered Holder at the principal executive
office of the Company, for a new Warrant Certificate of like tenor and
date representing in the aggregate the right to purchase the same
number of securities in such denominations as shall be designated by
the Holder thereof at the time of such surrender.
Upon receipt by the Company of evidence reasonably satisfactory to it
of the loss, theft, destruction or mutilation of any Warrant
Certificate, and, in case of loss, theft or destruction, of indemnity
or security reasonably satisfactory to it, and reimbursement to the
Company of all reasonable expenses incidental thereto, and upon
surrender and cancellation of the Warrants if mutilated, the Company
will make and deliver a new Warrant Certificate of like tenor, in lieu
thereof.
10. Elimination of Fractional Interests:
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The Company shall not be required to issue certificates representing
fractions of Shares upon the exercise of the Warrants, nor shall it be
required to issue scrip or pay cash in lieu of fractional interests, it
being the intent of the parties that all fractional interests shall be
eliminated by rounding any fraction up to the nearest whole number of
Shares.
5
EXHIBIT 4.4 (CONTINUED)
11. Reservation and Listing Securities:
-----------------------------------
The Company shall at all times reserve and keep available out of its
authorized shares of Common Stock, solely for the purpose of issuance
upon the exercise of the Warrants, such number of shares of Common
Stock as shall be issuable upon the exercise thereof. The Company
covenants and agrees that, upon exercise of the Warrants and payment of
the Exercise Price therefor, all Shares issuable upon such exercise
shall be duly and validly issued, fully paid, non-assessable and not
subject to the preemptive rights of any shareholder. As long as the
Warrants shall be outstanding, the Company shall use its best efforts
to cause all shares of Common Stock issuable upon the exercise of the
Warrants to be listed on the NASDAQ National Market.
12. Notice to Warrant Holders:
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Nothing contained in this Agreement shall be construed as conferring
upon the Holder or Holders the right to vote or to consent or to
receive notice as a shareholder in respect of any meetings of
shareholders for the election of directors or any other matter, or as
having any rights whatsoever as a shareholder of the Company.
13. Notices:
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All notices, requests, consents and other communications hereunder
shall be in writing and shall be deemed to have been duly made when
delivered, or mailed by registered or certified mail, return receipt
requested:
(a) If to a registered Holder of the Warrants, to the address of
such Holder as shown on the books of the Company; or
(b) If to the Company, to the address set forth in Section 3 of
this Agreement or to such other address as the Company may
designate by notice to the Holders.
14. Supplements and Amendments:
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The Company and Xxxxx may from time to time supplement or amend this
Agreement in order to cure any ambiguity, to correct or supplement any
provision contained herein which may be defective or inconsistent with
any provisions herein, or to make any other provisions in regard to
matters or questions arising hereunder which the Company and Xxxxx may
deem necessary or desirable.
15. Successors:
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All the covenants and provisions of this Agreement by or for the
benefit of the Company and the Holders inure to the benefit of their
respective successors and assigns hereunder.
16. Governing Law:
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This Agreement and each Warrant Certificate issued hereunder shall be
deemed to be a contract made under the laws of the State of Florida and
for all purposes shall construed in accordance with the laws of said
State.
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EXHIBIT 4.4 (CONTINUED)
17. Benefits of This Agreement:
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Nothing in this Agreement shall be construed to give to any person or
corporation other than the Company and Xxxxx and any other registered
Holder or Holders of the Warrant Certificates or Warrant Securities any
legal or equitable right, remedy or claim under this Agreement; and
this Agreement shall be for the sole and exclusive benefit of the
Company and Xxxxx and any other Holder or Holders of the Warrant
Certificates or Warrant Securities.
18. Counterparts:
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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 such counterparts shall together constitute but one and
the same instrument.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed, as of the date first above written.
21ST CENTURY HOLDING COMPANY XXXXXXX X. XXXXX
By: /s/ Xxxxxx X. Xxxxxx By: /s/ Xxxxxxx X. Xxxxx
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Name: Xxxxxx X. Xxxxxx
Title: President
Attest:
/s/ Xxxxxxx X. Xxxxxxxx
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EXHIBIT 4.4 (CONTINUED)
EXHIBIT A
THE WARRANTS REPRESENTED BY THIS CERTIFICATE AND THE OTHER SECURITIES ISSUABLE
UPON EXERCISE THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933,
AS AMENDED (THE "ACT") NOR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR
SOLD EXCEPT (I) PURSUANT TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT
AND ANY APPLICABLE STATE SECURITIES LAWS, (II) TO THE EXTENT APPLICABLE,
PURSUANT TO RULE 144 UNDER SUCH ACT (OR ANY SECURITIES), OR (III) UPON THE
DELIVERY BY THE HOLDER TO THE COMPANY OF AN OPINION OF COUNSEL, REASONABLY
SATISFACTORY TO COUNSEL FOR THE ISSUER, STATING THAT AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT OR APPLICABLE STATE SECURITIES LAWS IS AVAILABLE.
THE TRANSFER OR EXCHANGE OF THE WARRANTS REPRESENTED BY THIS CERTIFICATE IS
RESTRICTED IN ACCORDANCE WITH THE WARRANT AGREEMENT REFERRED TO HEREIN.
EXERCISABLE COMMENCING DECEMBER 9, 1998, THROUGH
5:00 P.M., FLORIDA TIME, DECEMBER 30, 2004
NO. W-2 12,500 WARRANTS
WARRANT CERTIFICATE
This Warrant Certificate certifies that Xxxxxxx X. Xxxxx or his
registered assigns, is the registered holder of Warrants to purchase, at any
time from December 9, 1998 until 5:00 P.M. Florida time on December 30, 2004
("Expiration Date"), up to 12,500 fully paid and non-assessable shares of common
stock, $.01 par value ("Common Stock"), of 21st Century Holding Company, a
Florida corporation (the "Company"), at the initial exercise price, subject to
adjustment in certain events (the "Exercise Price"), of $9.00 per share of
Common Stock upon surrender of this Warrant Certificate and payment of the
Exercise Price at an office or agency of the Company, but subject to the
conditions set forth herein and in the Warrant Agreement dated as of December 9,
1998 between the Company and Xxxxxxx X. Xxxxx (the "Warrant Agreement"). Payment
of the Exercise Price may be made in cash, or by certified or official bank
check payable to the order of the Company, or any combination of cash or check.
No Warrant may be exercised after 5:00 P.M., Florida time, on the
Expiration Date, at which time all Warrants evidenced hereby, unless exercised
prior thereto, shall thereafter be void.
The Warrants evidenced by this Warrant Certificate are part of a duly
authorized issue of Warrants issued pursuant to the Warrant Agreement, which
Warrant Agreement is hereby incorporated by reference in and made a part of this
instrument
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EXHIBIT 4.4 (CONTINUED)
and is hereby referred to in a description of the rights, limitation of rights,
obligations, duties and immunities thereunder of the Company and the holders
(the words "holders" or "holder" meaning the registered holders of registered
holder) of the Warrants.
The Warrant Agreement provides that upon the occurrence of certain
events, the Exercise Price and the type and/or number of the Company's
securities issuable thereupon may, subject to certain conditions, be adjusted.
In such event, the Company will, at the request of the holder, issue a new
Warrant Certificate evidencing the adjustment in the Exercise Price and the
number and/or type of securities issuable upon the exercise of the Warrants;
provided, however, that the failure of the Company to issue such new Warrant
Certificates shall not in any way change, alter, or otherwise impair, the rights
of the holder as set forth in the Warrant Agreement.
Upon due presentment for registration of transfer of this Warrant
Certificate at an office or agency of the Company, a new Warrant Certificate or
Warrant Certificates of like tenor and evidencing in the aggregate a like number
of warrants shall be issued to the transferee(s) in exchange for this Warrant
Certificate, subject to the limitations provided herein and in the Warrant
Agreement, without any charge except for any tax, or other governmental charge
imposed in connection therewith.
Upon the exercise of less than all of the Warrants evidenced by this
Certificate, the Company shall forthwith issue to the holder hereof a new
Warrant Certificate representing such number of unexercised Warrants.
The Company may deem and treat the registered holder(s) hereof as the
absolute owner(s) of this Warrant Certificate (notwithstanding any notation of
ownership or other writing hereon made by anyone), for the purpose of any
exercise hereof, and of any distribution to the holder(s) hereof, and for all
other purposes, and the Company shall not be affected by any notice to the
contrary.
All terms used in this Warrant Certificate which are defined in the
Warrant Agreement shall have the meanings assigned to them in the Warrant
Agreement.
IN WITNESS WHEREOF, the Company has caused this Warrant Certificate to
be duly executed under its corporate seal.
Dated: December 9, 1998 21ST CENTURY HOLDING COMPANY
By: /s/ Xxxxxx X. Xxxxxx
--------------------------
Name: Xxxxxx X. Xxxxxx
Title: President
Attest:
/s/ Xxxxxxx X. Xxxxxxxx
9
EXHIBIT 4.4 (CONTINUED)
FORM OF ELECTION TO PURCHASE
The undersigned hereby irrevocably elects to exercise the right,
represented by this Warrant Certificate, to purchase _____________shares of
Common Stock and herewith tenders in payment for such securities cash or a
certified or official bank check payable to the order of 21st Century Holding
Company in the amount of $_______________ , all in accordance with the terms
hereof. The undersigned requests that a certificate for such securities be
registered in the name of _______________________, whose address is
_________________, and that such Certificate be delivered to
_______________________, whose address is ____________________________.
Dated: Signature:
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(Signature must conform in all respect to
name of holder as specified on the face of
the Warrant Certificate.)
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(Insert Social Security or Other
Identifying Number of Holder)
