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EXHIBIT 4.20
WARRANT
SOLUTIONS AMERICA, INC.
THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE FEDERAL SECURITIES ACT OF 1933,
AS AMENDED, NOR REGISTERED OR QUALIFIED UNDER THE SECURITIES LAW OF ANY STATE;
THIS WARRANT MAY NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED IN CONTRAVENTION
OF APPLICABLE FEDERAL OR STATE LAWS.
62,500 SHARES OF COMMON STOCK (0.73% OF THE ISSUED AND OUTSTANDING SHARES OF
COMMON STOCK)
JUNE 21, 2000
THIS CERTIFIES THAT, for value received, Feshbach Partners Offshore ("WARRANT
HOLDER"), or registered assigns, has the right to purchase from Solutions
America, Inc. ("COMPANY"), prior to July 1, 2005, up to the number of shares of
the Common Stock of the Company set forth above ("SHARES") at a price per share
("WARRANT PRICE") equal to lesser of (i) 50% of the average bid price as
reported in the Wall Street Journal over the thirty (30) day period prior to the
exercise of the Warrant or (ii) $1.00 per share.
The rights represented by this Warrant may be exercised at any time by
delivering to the President of the Company at the Company's principal executive
office: (1) an Election to Purchase in the form appended hereto as Exhibit "A";
(2) this Warrant; and (3) payment for the Shares. Warrant Holder may exercise
the Warrant in part or in whole from time to time. Notwithstanding the
foregoing, the Company shall not be required to issue any Shares unless the
Company has received satisfactory evidence that the representations of the
Warrant Holder set forth in the Election to Purchase are true and correct at the
time of such exercise, and has determined that the issuance of Shares does not
violate any applicable securities or other law or regulation.
This Warrant shall not entitle the Warrant Holder to any voting rights,
registration rights, pre-emptive rights or rights as a stockholder of the
Company. Any amendment to this Warrant shall be in writing executed by the
Company and the Warrant Holder. In the event of any stock split, stock dividend,
recapitalization by the Company, or issuance of any shares of Company stock to
other persons, this Warrant shall apply with respect to the same number of
shares of Common Stock of the Company into which the number of Shares covered by
this Warrant would be converted or otherwise entitled if such shares were
outstanding prior to such event, so that Warrant Holder shall be entitled to
purchase the same percentage of the Common Stock of the Company, and the
exercise price per Share outstanding after such event shall be such that the
aggregate purchase price for all of the shares then covered by this Warrant
shall be the same as prior to such event.
If the Company merges with another company and the Company is not the surviving
entity, then the Company agrees to cause (as a precondition of the completion of
the merger) the surviving entity (the "Survivor") to issue Warrant Holder a new
warrant for the number of shares of common stock of the Survivor equivalent to
the number of shares of the Survivor for which the Shares would have been
exchanged at the closing of the merger, with the price set forth above adjusted
to equal One ($1.00) Dollar per share multiplied by the fraction equal to the
number of Shares represented by this Warrant divided by the number of shares of
common stock of the Survivor which would have been exchanged for the Shares at
the closing of the merger.
In the event the Company undertakes a registration of any share in the Company,
the Company shall include in such registration the Shares, subject to customary
cutbacks and other customary underwriters' requirements.
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This Warrant shall be governed by and construed in accordance with a the laws of
the State of California. Any controversy or claim arising under, out of or in
connection with this Warrant, including without limitation claims arising under
Federal and State securities laws and applicable common law, shall be settled by
arbitration conducted in Los Angeles, California, in accordance with the
commercial rules of the American Arbitration Association then in effect.
IN WITNESS WHEREOF, Solutions America, Inc. has caused this Warrant to be signed
by its duly authorized officer as of the date above.
Solutions America, Inc.
By: /s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
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Its: PRESIDENT
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EXHIBIT "A" to WARRANT
ELECTION TO PURCHASE
SOLUTIONS AMERICA, INC.
The undersigned ("Warrant Holder") hereby elects to purchase ___________ shares
("Shares") of Common Stock of Solutions America, Inc., a California corporation
(the "Company") pursuant to the Warrant Holder's right to purchase set forth in
that certain Warrant dated June 21, 2000.
Warrant Holder makes the following representations and covenants:
1. Warrant Holder has had an opportunity to make inquiries to the Company
about investment in the Shares, and Warrant Holder has no unanswered
questions.
2. Warrant Holder is aware of the Company's business, prospects and
financial condition, and has acquired sufficient information about the
Company to reach an informed decision to acquire the Shares.
3. Warrant Holder is able to evaluate the merits and risks of the
investment.
4. Warrant Holder recognized hat investment in the Shares involves special
and substantial risks of loss, and may result in the loss of all of
Warrant Holder's investment.
5. WARRANT HOLDER IS AN ACCREDITED INVESTOR AS THAT TERM IS USED IN RULE
501 OF THE SECURITIES AND EXCHANGE COMMISSION BY REASON OF THE FACT
THAT, AS SET FORTH IN RULE 501: (1) WARRANT HOLDER'S INDIVIDUAL INCOME
IN EACH OF THE TOW MOST RECENT YEARS, AND WARRANT HOLDER'S REASONABLY
EXPECTED INCOME FOR THE CURRENT YEAR, EXCEEDS $200,000; OR (2) WARRANT
HOLDER'S JOINT INCOME WITH THAT OF WARRANT HOLDER'S SPOUSE IN EACH OF
THE TWO MOST RECENT YEARS, AND WARRANT HOLDER'S REASONABLY EXPECTED
JOINT INCOME WITH THAT OF WARRANT HOLDER'S SPOUSE FOR THE CURRENT YEAR,
EXCEEDS $300,000; OR (3) WARRANT HOLDER'S INDIVIDUAL NET WORTH OR JOINT
NET WORTH WITH THAT OF WARRANT HOLDER'S SPOUSE CURRENTLY EXCEEDS
$1,000,000; OR (4) WARRANT HOLDER OTHERWISE MEETS THE DEFINITION OF
ACCREDITED INVESTOR AS SET FORTH IN RULE 501.
6. Warrant Holder has the basic means to provide for Warrant Holder's
current needs and personal contingencies, separate from the amount
invested in the Shares; and has the ability to bear the economic risks
of this investment, including the complete loss of the investment.
7. Warrant Holder has no need for liquidity in this investment.
8. Warrant Holder is acquiring the Shares for investment for Warrant
Holder's own account and not with a view to, or for resale in connection
with, any distribution, and not otherwise with any present intention of
selling, transferring or otherwise distributing the Shares.
9. Warrant Holder understands that the Shares have not been registered
under the Securities Act of 1933 ("1933 Act") by reason of their
issuance in a transaction exempt from the registration and prospectus
delivery requirements of the 1933 Act pursuant to Section 4(2) of the
1933 Act. Warrant Holder
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understands that Rule 144 promulgated under the 1933 Act is not
presently available and may not in the future be available with respect
to the Shares.
(a) Warrant Holder understands that the Shares have not been
qualified or registered under any state securities law ("State
Securities Law") by reason of applicable exemptions thereunder.
(b) Warrant Holder understands that the applicability of the
exemptions under the 1933 Act and State Securities Laws depends
upon, among other things, the bona fide nature of Warrant
Holder's intent to acquire the Shares for investment and not
with a view to their resale or distribution.
(c) Warrant Holder understands that Warrant Holder must hold the
Shares indefinitely, that Warrant Holder may not dispose of the
Shares unless registered under the 1933 Act and registered or
qualified under applicable State Securities Laws, or there are
exemptions from registration and qualification.
(d) Warrant Holder further understands that Warrant Holder cannot be
assured that any exemption from the registration or
qualification requirements will be available if Warrant Holder
should desire to sell or transfer the Shares, and therefore that
Warrant Holder may not be able to sell or otherwise transfer the
Shares under the circumstances, in the amount, or at the time
that Warrant Holder may desire.
10. Warrant Holder understands that certificates evidencing the Shares will
be imprinted with such legend or legends as in the opinion of legal
counsel for the Company are required by state and federal law, including
a legend which prohibits the transfer of the Shares unless the Shares
are registered or such registration is not required, substantially as
follows:
THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED OR HYPOTHECATED UNLESS (1) THERE IS AN EFFECTIVE
REGISTRATION STATEMENT UNDER SUCH ACT COVERING SUCH SECURITIES, OR (2)
THE TRANSFER IS MADE IN COMPLIANCE WITH SECURITIES AND EXCHANGE
COMMISSION RULE 144, OR (3) THE COMPANY RECEIVES AN OPINION OF COUNSEL
FOR THE HOLDER OF THE SECURITIES REASONABLY SATISFACTORY TO THE COMPANY.
11. Warrant Holder acknowledges and agrees that the Company has not granted
to Warrant Holder any registration rights in respect to the Shares
(except as expressly provided in the Warrant), nor any preemptive or
other rights to subscribe to additional shares of any class of the
Company's stock.
12. Warrant Holder acknowledges that Warrant Holder has been advised to
consult with Warrant Holder's own legal counsel regarding the execution
and delivery of this Election to Purchase, that Warrant Holder has
received no advice or explanation concerning the meaning or effect of
this Election to Purchase from the Company, its agents or its legal
counsel, and that Warrant Holder has consulted with Warrant Holder's own
legal counsel to the extent that Warrant Holder has deemed necessary.
13. This Election to Purchase shall be governed by and construed in
accordance with a the laws of the State of California. Any controversy
or claim arising under, out of or in connection with this Election to
Purchase, including, without limitation, claims arising under the
Federal and State securities laws and applicable common law, shall be
settled by arbitration conducted in San Francisco, California, in
accordance with the commercial rules of the American Arbitration
Association then in effect.
[SIGNATURE PAGE TO FOLLOW]
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Dated:
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Signature of Warrant Holder
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Tax Identification Number Printed Name
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Street City State ZIP
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(Print exact name in which the Shares should be issued.)
