Exhibit 4.9
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THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE HEREOF
HAVE NOT BEEN REGISTERED OR QUALIFIED FOR SALE UNDER THE SECURITIES ACT OF 1933,
AS AMENDED, OR ANY STATE SECURITIES LAWS AND MAY NOT BE OFFERED FOR SALE, SOLD
OR OTHERWISE TRANSFERRED UNLESS SUCH OFFER, SALE OR TRANSFER IS REGISTERED OR
QUALIFIED PURSUANT TO THE REGISTRATION REQUIREMENTS OF SUCH ACT AND ANY
APPLICABLE STATE SECURITIES LAWS, OR IS PRECEDED BY AN OPINION OF COUNSEL
ADDRESSED TO HORIZON PHARMACIES, INC. THAT SUCH SALE OR OTHER TRANSFER IS EXEMPT
FROM ALL SUCH REGISTRATION REQUIREMENTS.
No. WR-_____
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
HORIZON PHARMACIES, INC.
March 14, 2000
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TABLE OF CONTENTS
SECTION 1. EXERCISE OF WARRANT....................................................1
SECTION 2. RESERVATION............................................................2
SECTION 3. PROTECTION AGAINST DILUTION............................................2
Section 3.1 Stock Dividends, Subdivisions, and Combinations..................2
Section 3.2 Issuance of Additional Shares of Common Stock....................3
Section 3.3 Issuance of Warrants or Other Rights, Convertible Securities.....3
Section 3.4 Other Provisions Applicable to Adjustments.......................4
Section 3.5 Extraordinary Dividends..........................................5
Section 3.6 Adjustment of Number of Shares Purchasable.......................6
Section 3.7 Minimum Adjustment...............................................6
Section 3.8 Notice of Adjustments............................................6
SECTION 4. MERGERS, CONSOLIDATIONS, SALES.........................................7
SECTION 5. DISSOLUTION OR LIQUIDATION.............................................7
SECTION 6. NOTICE OF DIVIDENDS....................................................8
SECTION 7. FRACTIONAL SHARES......................................................8
SECTION 8. FULLY PAID STOCK; TAXES................................................8
SECTION 9. CLOSING OF TRANSFER BOOKS..............................................8
SECTION 10. PARTIAL EXERCISE AND PARTIAL ASSIGNMENT................................8
Section 10.1 Partial Exercise.................................................8
Section 10.2 Assignment.......................................................9
SECTION 11. DEFINITIONS............................................................9
SECTION 12. WARRANT HOLDER NOT SHAREHOLDER........................................11
SECTION 13. SEVERABILITY..........................................................12
SECTION 14. GOVERNING LAW.........................................................12
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Warrant
No. WR-___
WARRANT TO PURCHASE
SHARES OF COMMON STOCK
OF
HORIZON PHARMACIES, INC.
THIS IS TO CERTIFY that, for value received and subject to the provisions
hereinafter set forth,
XXXXXXXX.XXX, INC.
or its permitted assigns,
is entitled to purchase from HORIZON Pharmacies, Inc., a Delaware corporation
("COMPANY"), at any time and from time to time during the Exercise Period, up to
300,000 shares of Common Stock, par value $0.01 per share, of Company, subject
to the terms, provisions and conditions hereinafter set forth at a price per
share equal to $5.00. The price per share is subject to adjustment as
hereinafter provided (such price, or such price as last adjusted, as the case
may be, being herein referred to as the "PER SHARE WARRANT PRICE"). The said
number of shares purchasable hereunder is likewise subject to adjustment as
hereinafter provided.
The aggregate price of the Common Stock purchasable hereunder shall at all
times be equal to the price per share set forth in the preceding paragraph
multiplied by the number of shares initially purchasable hereunder. The
aggregate price is herein sometimes referred to as the "AGGREGATE WARRANT PRICE"
and is not subject to adjustment.
The terms which are capitalized herein shall have the meanings specified in
Section 11 unless the context shall otherwise require.
SECTION 1. EXERCISE OF WARRANT.
Subject to the conditions hereinafter set forth, this Warrant may be
exercised in whole or in part at any time and from time to time during the
Exercise Period by the surrender of this Warrant (with the subscription from at
the end hereof duly executed) at the principal office of Company in Denison,
Texas, and upon payment to Company of a sum equal to the per share Warrant Price
multiplied by the number of shares purchased in such exercise, which payment
shall be made by wire transfer or other delivery to Company of one or more types
of Permitted Consideration.
In the event that Warrants shall be delivered to Company as payment of all
or any portion of the purchase price payable hereunder, the amount of such
purchase price deemed to be paid by means of such delivery shall equal (a) the
aggregate number of shares of Underlying Shares related
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to any Warrants so delivered, multiplied by (b) the result, not less than zero,
equal to (i) the Current Market Price then in effect (with the date of the
exercise of the Warrant being deemed to be the "Issuance Date" for purposes of
making determinations under the definition of "Current Market Price") MINUS (ii)
the per share Warrant Price then in effect.
If this Warrant is exercised in respect of less than all of the shares of
Common Stock at the time purchasable hereunder, following such exercise this
Warrant shall be returned to the holder hereof and shall remain exercisable in
respect of such number of shares of Common Stock as may thereafter be determined
hereunder.
This Warrant and all rights and options hereunder shall expire to the
extent that it has not been exercised on or before the Expiration Date.
In the event that Xxxxxxxx.xxx, Inc. completes an initial public offering
of its common stock, par value $___ per share, within two (2) years from the
date hereof, this Warrant shall be exercised in whole no later than twelve (12)
months from the date of completion of such initial public offering.
Company shall pay all reasonable expenses, stamp, documentary and transfer
taxes and other charges payable in connection with the preparation, execution
and delivery of stock certificates pursuant to this Section, regardless of the
name or names in which such stock certificates shall be registered.
SECTION 2. RESERVATION.
Company will at all times reserve and keep available such number of
authorized shares of its Common Stock, solely for the purpose of issue upon the
exercise of the rights represented by this Warrant as herein provided for, as
may at any time be issuable (based upon the number of shares of Common Stock
outstanding at any such time) upon the exercise of this Warrant.
SECTION 3. PROTECTION AGAINST DILUTION.
The per share Warrant Price and the number of shares deliverable hereunder
shall be adjusted from time to time as hereinafter set forth:
SECTION 3.1 STOCK DIVIDENDS, SUBDIVISIONS, AND COMBINATIONS. In case after
the date hereof Company shall:
(a) take a record of the holders of its Common Stock for the purpose
of entitling them to receive a dividend and declared to be payable in, or
other declared distribution of, Common Stock, or
(b) subdivide its outstanding shares of Common Stock into a larger
number of shares of Common Stock, or
(c) combine its outstanding shares of Common Stock into a smaller
number of shares of Common Stock,
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then the per share Warrant Price shall be adjusted to that price determined by
multiplying the per share Warrant Price in effect immediately prior to such
event by a fraction (i) the numerator of which shall be the total number of
outstanding shares of Common Stock immediately prior to such event, and (ii) the
denominator of which shall be the total number of outstanding shares of Common
Stock immediately after such event.
SECTION 3.2 ISSUANCE OF ADDITIONAL SHARES OF COMMON STOCK. In case after
the date hereof Company shall (except as hereinafter provided) issue any
Additional Shares of Common Stock for a consideration less than the Current
Market Price per share (other than pursuant to options or other rights to
purchase Additional Shares of Common Stock awarded to employees, officers, or
directors pursuant to compensatory or other arrangements approved by the Board
of Directors), then the per share Warrant Price on each such issuance shall be
adjusted to that price determined by multiplying the per share Warrant Price in
effect immediately prior to such event by a fraction:
(a) the numerator of which shall be the number of shares of Common
Stock outstanding immediately prior to the issuance of such Additional
Shares of Common Stock plus the number of full shares of Common Stock which
the aggregate consideration for the total number of such Additional Shares
of Common Stock so issued would purchase at the Current Market Price per
share, and
(b) the denominator of which shall be the number of shares of Common
Stock outstanding immediately prior to the issuance of such Additional
Shares of Common Stock plus the number of such Additional Shares of Common
Stock so issued.
The provisions of this Section 3.2 shall not apply to any Additional Shares
of Common Stock which are distributed to holders of Common Stock as a stock
dividend or subdivision, for which an adjustment is provided for under Section
3.1. No adjustment of the share per Warrant Price shall be made under this
Section 3.2 upon the issuance of any Additional Shares of Common Stock which are
issued pursuant to the exercise of any warrants or other subscription or
purchase rights or pursuant to the exercise of any conversion or exchange rights
in any Convertible Securities, if any such adjustment shall previously have been
made upon the issuance of such warrants or other rights or upon the issuance of
such Convertible Securities (or upon the issuance of any warrants or other
rights therefor) pursuant to Section 3.3.
SECTION 3.3 ISSUANCE OF WARRANTS OR OTHER RIGHTS, CONVERTIBLE SECURITIES.
In case Company shall issue any warrants or other rights to subscribe for or
purchase any Additional Shares of Common Stock or issue Convertible Securities
and the consideration per share for which Additional Shares of Common Stock may
at any time thereafter be issuable pursuant to such warrants or other rights or
pursuant to the terms of such Convertible Securities shall be less than the
Current Market Price per share (other than pursuant to options or other rights
to purchase Additional Shares of Common Stock awarded to employees, officers, or
directors pursuant to compensatory or other arrangements approved by the Board
of Directors), then the per share Warrant Price shall be adjusted as provided in
Section 3.2 above on the basis that:
(a) the maximum number of Additional Shares of Common Stock issuable
pursuant to all such warrants or other rights or necessary to effect the
conversion or exchange of all such Convertible Securities shall be deemed
to have been issued as of the earlier of:
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(i) the date on which Company shall enter a firm contract or commitment for
the issuance of such warrants, other rights or Convertible Securities or
(ii) the date of actual issuance of such warrants, other rights or
Convertible Securities, and
(b) the aggregate consideration for such maximum number of Additional
Shares of Common Stock shall be deemed to be the minimum consideration
received and receivable by Company for the issuance of such Additional
Shares of Common Stock pursuant to such warrants or other rights or
pursuant to the terms of such Convertible Securities.
No adjustment of the per share Warrant Price shall be made under this
Section 3.3 upon the issuance of any Convertible Securities which are issued
pursuant to the exercise of any warrants or other subscription or purchase
rights therefor, to the extent such adjustment shall previously have been made
upon the issuance of such warrants or other rights pursuant to this Section 3.3.
SECTION 3.4 OTHER PROVISIONS APPLICABLE TO ADJUSTMENTS. The following
provisions shall be applicable to the making of adjustments in the per share
Warrant Price hereinbefore provided in this Section 3:
(a) COMPUTATION OF CONSIDERATION. To the extent that any Additional
Shares of Common Stock or any Convertible Securities or any warrants or
other rights to subscribe for or purchase any Additional Shares of Common
Stock or any Convertible Securities shall be issued for a cash
consideration, the consideration received by Company therefor shall be
deemed to be the amount of the cash received by Company therefor, or, if
such Additional Shares of Common Stock or Convertible Securities or
warrants or other rights are offered by Company for subscription, the
subscription price, or, if such Additional Shares of Common Stock or
Convertible Securities or warrants or other rights are sold to underwriters
or dealers for public offering without a subscription offering, the
offering price, in any such case excluding any amounts paid or receivable
for accrued interest or accrued dividends and without deduction of any
compensation, discounts or expenses paid or incurred by Company for and in
the underwriting thereof, or otherwise in connection with the issue
thereof. To the extent that such issuance shall be for a consideration
other than cash, then, except as herein otherwise expressly provided, the
amount of such consideration shall be deemed to be the fair value of such
consideration at the time of such issuance as determined in good faith by
the Board of Directors of Company. The consideration for any Additional
Shares of Common Stock issuable pursuant to any warrants or other rights to
subscribe for or purchase the same shall be the consideration received by
Company for issuing such warrants or other rights plus the additional
consideration payable to Company upon the exercise of such warrants or
other rights. The consideration for any Additional Shares of Common Stock
issuable pursuant to the terms of any Convertible Securities shall be the
consideration received by Company for issuing any warrants or other rights
to subscribe for or purchase such Convertible Securities plus the
consideration paid or payable to Company in respect of the subscription for
or purchase of such Convertible Securities plus the additional
consideration, if any, payable to Company upon the exercise of the right of
conversion or exchange of such Convertible Securities. In case of the
issuance at any time of any Additional Shares of Common Stock or
Convertible Securities in payment or satisfaction of any dividend upon any
class of equity securities other than Common Stock, Company shall
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be deemed to have received for such Additional Shares of Common Stock or
Convertible Securities a consideration equal to the amount of such dividend
so paid or satisfied.
(b) READJUSTMENT OF PER SHARE WARRANT PRICE. Upon expiration of the
right of exercise, conversion or exchange of any Convertible Securities, or
upon the expiration of any rights, options or warrants, or upon the
termination of any firm contract or commitment for the issuance of such
rights, options, warrants or Convertible Securities, or upon any increase
in the minimum consideration receivable by Company for the issuance of
Additional Shares of Common Stock pursuant to such Convertible Securities,
rights, options or warrants, if any such Convertible Securities shall not
have been exercised, converted or exchanged, or if any such rights, options
or warrant shall not have been exercised, the number of shares of Common
Stock deemed to be issued and outstanding by any reason of the fact that
they were issuable upon exercise, conversion or exchange of any such
Convertible Securities or upon exercise of any such rights, options or
warrants shall no longer be computed as set forth above, and the per share
Warrant Price shall forthwith be readjusted and thereafter be the price
which it would have been (but reflecting any other adjustments in the per
share Warrant Price made pursuant to the provisions of this Section 3 after
the issuance of such Convertible Securities, rights, options or warrants)
had the adjustment of the per share Warrant Price made upon the issuance or
sale of such Convertible Securities or the issuance of such rights, options
or warrants been made on the basis of the issuance only of the number of
Additional Shares of Common Stock actually issued upon exercise, conversion
or exchange of such Convertible Securities or upon the exercise of such
rights, options or warrants, or upon the basis of such increased minimum
consideration, as the case may be, and thereupon only the number of
Additional Shares of Common Stock actually so issued plus the number
thereof then issuable upon the basis of such increased minimum
consideration shall be deemed to have been issued and only the
consideration actually received plus shall increased minimum consideration
receivable by Company (computed in accordance with Section 3.4(a)) shall be
deemed to have been received by Company.
(c) ROUNDING OF PER SHARE WARRANT PRICE. Any determination of per
share Warrant Price hereunder shall be expressed in United States Dollars,
cents and portions of cents and shall be rounded to the nearest 1/1000 of
one cent or, if there is no nearest 1/1000 of one cent, to the next highest
1/1000 of one cent.
SECTION 3.5 EXTRAORDINARY DIVIDENDS. In case Company shall declare a
dividend upon its Common Stock (except a dividend payable in shares of Common
Stock referred to in Section 3.1(a) or a dividend payable in warrants, rights or
Convertible Securities referred to in Section 3.3) payable otherwise than out of
earnings or surplus (other than revaluation surplus or paid-in surplus), the per
share Warrant Price in effect immediately prior to the declaration of such
dividend shall be reduced by an amount equal, in the case of a dividend in cash,
to 10% of the amount thereof payable per share of Common Stock or, in the case
of any other dividend, to the fair value thereof per share of Common Stock as
determined in good faith by the Board of Directors of Company. For the purposes
of the foregoing, a dividend payable other than in cash shall be considered
payable out of earnings or surplus (other than revaluation surplus or paid-in
surplus) only to the extent that such earnings or surplus are charged an amount
equal to the fair value of such dividend as determined by the Board of Directors
of Company. If such dividend is paid or Company declares and becomes legally
liable to pay such dividend, such reduction shall take effect as of the date on
which a record is taken for
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the purpose of such dividend or, if a record is not taken, the date as of which
the holders of the Common Stock of record entitled to such dividend are to be
determined. Appropriate readjustment of the per share Warrant Price shall be
made in the event that any dividend referred to in this Section 3.5 shall be
lawfully abandoned.
SECTION 3.6 ADJUSTMENT OF NUMBER OF SHARES PURCHASABLE. Upon each
adjustment of the per share Warrant Price, the number of shares of Common Stock
purchasable hereunder shall be adjusted by multiplying the number of shares of
Common Stock purchasable hereunder immediately prior to such adjustment of the
per share Warrant Price by a fraction, the numerator of which shall be the per
share Warrant Price in effect immediately prior to such adjustment and the
denominator of which shall be the per share Warrant Price in effect immediately
following such adjustment.
SECTION 3.7 MINIMUM ADJUSTMENT. Except as hereinafter provided, no
adjustment of the per share Warrant Price hereunder shall be made if such
adjustment results in a change of the per share Warrant Price then in effect of
less than 1%. Any adjustment of less than 1% shall be carried forward and shall
be made at the time of and together with any subsequent adjustment which,
together with the adjustment or adjustments so carried forward, amounts to 1% or
more of the per share Warrant Price then in effect. However, upon the exercise
of this Warrant, Company shall make all necessary adjustments not theretofore
made to the per share Warrant Price up to and including the date upon which this
Warrant is exercised.
SECTION 3.8 NOTICE OF ADJUSTMENTS.
(a) Whenever the per share Warrant Price or number of shares
deliverable upon exercise of this Warrant shall be adjusted pursuant to
this Section 3, Company shall promptly prepare a certificate signed by the
President or a Vice President and by the Treasurer of Company setting
forth, in reasonable detail, the event requiring the adjustment, the amount
of the adjustment, the method by which such adjustment was calculated
(including a description of the basis on which the Board of Directors of
Company made any determination hereunder), and shall promptly cause copies
of such certificate to be mailed in the manner provided in Section 12.1 of
the Warrant Agreement to the holder of this Warrant.
(b) The adjustment set forth in the certificate furnished pursuant to
Section 3.8(a) shall be final and binding unless, within 90 days after
receipt thereof, the Majority Holders deliver to Company a written
statement of objection to such adjustment.
(i) In the event of any such statement of objection by said
Majority Holders, Company's accountants and a firm of independent
public accountants selected by said Majority Holders shall attempt to
prepare a computation in which both accountants concur. Any such joint
computation shall be set forth in a joint certificate to each holder
of the Warrants and Company and shall be final and binding.
(ii) If Company's accountants and said Majority Holders'
accountants are unable to resolve their differences within 30 days
after the receipt by Company of said Majority Holders' statement of
objection, they shall submit the matter to a third firm of independent
certified public accountants of nationally recognized standing
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agreed upon by said Majority Holders and Company or, if said Majority
Holders and Company are unable to agree within 10 days after the
expiration of said 30-day period, to such firm designated by the then
president of the state society of certified public accountants for the
state in which Company maintains its principal place of business. Such
third firm of accountants shall thereupon compute the amount of the
adjustment and, upon completion of such computation, shall transmit
its certificate to each holder of the Warrants and Company setting
forth such computations, which shall be final and binding.
(iii) The fees and expenses of all accountants referred to in
this Section 3.8(b) shall be borne by Company.
SECTION 4. MERGERS, CONSOLIDATIONS, SALES.
In the case of any consolidation or merger of Company without another
entity, or the sale of all or substantially all of its assets to another entity,
or any reorganization, recapitalization or reclassification of the Common Stock
or other equity securities of Company, then, as a condition of such
consolidation, merger, sale, reorganization, recapitalization or
reclassification, lawful and adequate provision shall be made whereby the holder
of this Warrant shall thereafter have the right to receive upon the basis and
upon the terms and conditions specified herein and in lieu of the shares of
Common Stock immediately therefore purchasable hereunder, such shares of stock,
securities or assets as may (by virtue of such consolidation, merger, sale,
reorganization or reclassification) be issued or payable with respect to or in
exchange for a number of outstanding shares of Common Stock equal to the number
of shares of Common Stock immediately theretofore so purchasable hereunder had
such consolidation, merger, sale, reorganization, recapitalization or
reclassification not taken place. In any such case, appropriate provisions shall
be made with respect to the rights and interest of the holder of this Warrant to
the end that the provisions hereof shall thereafter be applicable, as nearly as
may be, in relation to any shares of stock, securities or assets thereafter
deliverable upon exercise of this Warrant. Company shall not effect any such
consolidation, merger or sale, unless prior to or simultaneously with the
consummation thereof, the successor entity (if other than Company) resulting
from such consolidation or merger or the entity purchasing such assets shall
assume by written instrument executed and mailed or delivered to the holder of
this Warrant, the obligation to deliver to such holder such shares of stock,
securities or assets as, in accordance with the foregoing provisions, such
holder may be entitled to receive.
SECTION 5. DISSOLUTION OR LIQUIDATION.
In the event of any proposed distribution of the assets of Company in
dissolution or liquidation except under circumstances when the foregoing Section
4 shall be payable, Company shall mail notice thereof to the holder of this
Warrant and shall make no distribution to shareholders until the expiration of
30 days from the date of mailing of the aforesaid notice and, in any such case,
the holder of this Warrant may exercise the purchase rights with respect to this
Warrant within 30 days from the date of mailing such notice and all rights
herein granted not so exercised within such 30-day period shall thereafter
become null and void.
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SECTION 6. NOTICE OF DIVIDENDS.
If the Board of Directors of Company proposes to declare any dividend or
other distribution on its Common Stock, except by way of a stock dividend
payable on its Common Stock, Company shall mail notice thereof to the holder of
this Warrant as soon as possible (such notice being referred to as the
"DISTRIBUTION NOTICE"). Company shall not fix a record date until the lapse of a
10-day period beginning on the date of delivery of the Distribution Notice. The
holder of this Warrant shall not participate in such dividend or other
distribution or be entitled to any rights on account or as a result thereof
unless and to the extent that this Warrant is exercised prior to such record
date. The provisions of this paragraph shall not apply to distributions made in
connection with transactions covered by Section 4.
SECTION 7. FRACTIONAL SHARES.
No fractional shares may be issued upon the exercise of this Warrant. In
the event that a Holder would otherwise be entitled to a fractional share except
for the operation of the previous sentence, in lieu of such fractional share
such Holder shall be paid a cash amount equal to (i) such fraction multiplied by
(ii) the Current Market Value of one full share of Common Stock on the date of
exercise.
SECTION 8. FULLY PAID STOCK; TAXES.
Company covenants and agrees that the shares of stock represented by each
and every certificate for its Common Stock to be delivered on the exercise of
the purchase rights and the payment of the applicable purchase price herein
provided for shall, at the time of such delivery, be validly issued and
outstanding and be fully paid and nonassessable. Company further covenants and
agrees that it will pay when due and payable any and all federal and state taxes
(other than income taxes) which may be payable in respect of this Warrant or any
Common Stock or certificates therefor upon the exercise of the rights herein and
in the Warrant Agreement provided for pursuant to the provisions hereof and
thereof. Company shall not, however, be required to pay any tax which may be
payable solely in respect of any transfer and delivery of stock certificates in
a name other than that of the holder exercising this Warrant, and any such tax
shall be paid by such holder at the time of presentation.
SECTION 9. CLOSING OF TRANSFER BOOKS.
The right to exercise this Warrant shall not be suspended during any period
that the stock transfer books of Company for its Common Stock may be closed.
Company shall not be required, however, to deliver certificates of its Common
Stock upon such exercise while such books are duly closed for any purpose, but
Company may postpone the delivery of the certificates for such Common Stock
until the opening of such books, and they shall, in such case, be delivered
forthwith upon the opening thereof, or as soon as practicable thereafter.
SECTION 10. PARTIAL EXERCISE AND PARTIAL ASSIGNMENT.
SECTION 10.1 PARTIAL EXERCISE. If this Warrant is exercised in part only,
the holder hereof shall surrender this Warrant upon such exercise for
endorsement thereon of the number of shares of
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Common Stock as to which it has been exercised. No partial exercise of this
Warrant shall be made in respect of shares of Common Stock of Company
representing less than 1% of Pro Forma Shares.
SECTION 10.2 ASSIGNMENT. (a) Subject to the conditions set forth in Section
10.2(b) hereof, this Warrant may be assigned either in whole or in part by
surrender of this Warrant at the principal office of Company in Denison, Texas
(with the assignment or, as the case may be, partial assignment form at the end
hereof duly executed). If this Warrant is being assigned in whole, the assignee
shall receive a new Warrant (registered in the name of such assignee or its
nominee) which new Warrant shall cover 100% of the number of shares of Common
Stock then purchasable hereunder and shall set forth the Aggregate Warrant
Price. If this Warrant is being assigned in part, the assignor and assignee
shall each receive a new Warrant (which, in the case of the assignee, shall be
registered in the name of the assignee or its nominee), which new Warrants shall
cover the number of shares of Common Stock then purchasable hereunder not so
assigned and so assigned, respectively, and shall set forth the proportionate
Aggregate Warrant Price applicable to such shares.
(b) Neither this Warrant nor any Warrant Shares may be sold, assigned or
otherwise transferred unless such sale, assignment or transfer is registered or
qualified pursuant to the registration requirements of the Securities Act of
1933, as amended, and all applicable state securities laws, or is preceded by an
opinion of counsel addressed to Company that such sale, assignment or other
transfer is exempt from all such registration requirements; PROVIDED, HOWEVER,
that no such opinion of counsel shall be required in connection with any such
sale, assignment or transfer to any affiliate of the holder of this Warrant or
any Warrant Shares issued in respect hereof. The fees and expenses of such
counsel incurred in respect of such sales, assignments or transfers shall be
paid by the holder of this Warrant or any Warrant Shares which are the subject
of such proposed sale, assignment or transfer. All certificates representing the
Warrant Shares shall be stamped or imprinted with an appropriate restrictive
legend, substantially as set forth on the cover page hereof.
SECTION 11. DEFINITIONS.
In addition to the terms defined elsewhere in this Warrant, the following
terms have the following respective meanings:
"ADDITIONAL SHARES OF COMMON STOCK" shall mean all shares of Common Stock
issued by Company after the Closing Date, except:
(a) Common Stock issued upon exercise of the Warrants;
(b) Common Stock issued upon exercise of warrants issued under the
Existing Warrant Agreements; and
(c) Common Stock issued to officers, directors or employees of, or
consultants to, Company pursuant to any existing or future stock option,
incentive, bonus or compensation plan or program approved by the Company's
shareholders (no later than 12 months following adoption of the plan or program
by the Company's Board of Directors).
"AGGREGATE WARRANT PRICE" has the meaning specified on the first page of
this Warrant.
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"BUSINESS DAY" shall mean each Monday, Tuesday, Wednesday, Thursday and
Friday which is not a day on which banking institutions in the United States are
generally authorized or obligated by law or executive order to close.
"COMMON STOCK" shall mean the shares of Common Stock, par value $0.01 per
share, of Company described in the Certificate of Incorporation.
"CONVERTIBLE SECURITIES" shall mean evidences of indebtedness, equity,
rights, options, warrants or other securities which are convertible into or
exchangeable for shares of Common Stock, either immediately or upon the arrival
of a specified date or the happening of a specified event, or otherwise.
"CURRENT MARKET PRICE" shall mean, at the date of determination
thereof, an amount equal to the market price on the Business Day occurring most
recently prior to the subject issuance of such shares of Common Stock (the
"ISSUANCE DATE"). The market price for such Business Day shall be the last sale
price on such day on the American Stock Exchange, or, if the Common Stock is not
then listed or admitted to trading on the American Stock Exchange, on such other
principal stock exchange on which such shares are then listed or admitted to
trading, or, if no sale takes place on such day on any such exchange, the
average of the closing bid and asked prices on such day as officially quoted on
any such exchange, or, if the Common Stock is not then listed or admitted to
trading on any stock exchange, the market price for each such Business Day shall
be the last reported sale price on such day on The Nasdaq Stock Market's
National Market, as furnished by Nasdaq, or, if no sale takes place on such day
on such system, the average of the closing bid and asked prices on such day as
officially quoted by Nasdaq, or, if such price at the time is not available from
such system, the market price for such Business Day shall be the average of the
reported closing bid and asked prices on such day in the over-the-counter
market, as furnished by Nasdaq, or, if such price at the time is not available
from such system, such price shall be determined in good faith by Company's
Board of Directors, which shall be evidenced by a notice setting forth such
determination in reasonable detail (including computations and assumptions used)
(THE "CMP COMPUTATION NOTICE") to each holder of the Warrants not later than 30
days after the issuance date of the Common Stock giving rise to such
determination (the "CMP COMPUTATION DATE") setting forth such determination and
setting forth in detail the rights and procedures the holders of the Warrants
may take in the event the Majority Holders do not agree with the valuation set
forth in the CMP Computation Notice, PROVIDED, that if the Majority Holders of
such Warrants shall object to the valuation contained in the CMP Computation
Notice in writing to Company within 15 days of the CMP Computation Date, an
Appraiser, the expenses of whom shall be paid by said Majority Holders, shall be
selected by Company and said Majority Holders (on behalf of all of the holders
of the Warrants as a class), or, if said Majority Holders and Company are unable
to agree upon the selection of an Appraiser within 10 days of the date of the
written notice from said Majority Holders to Company objecting to the CMP
Computation Notice, by the American Arbitration Association. Said Majority
Holders and Company shall be jointly responsible for engaging the Appraiser
finally selected. In the event that the Majority Holders do not object to the
CMP Computation Notice within 15 days after receiving the CMP Computation
Notice, then the value shall be that which was determined solely by Company's
Board of Directors. The Appraiser appointed pursuant to the foregoing procedure
shall be instructed to determine such value within 15 days after the selection
of such Appraiser, and any such determination made by the Appraiser shall be
final and binding upon the parties. Notwithstanding the foregoing, in the event
that, on the Issuance Date, shares of
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Common Stock shall be offered for sale to the public in connection with an
underwritten public offering, the Current Market Price in respect of said
Issuance Date shall be deemed to be the price at which said shares are initially
sold to the public.
"EXERCISE DATE" shall mean a date on which this Warrant is exercised.
"EXERCISE PERIOD" shall mean the period beginning on, and including, the
date hereof through the Expiration Date.
"EXPIRATION DATE" shall mean from and after 5:00 p.m. Denison, Texas time
on the third anniversary of issuance of Warrant.
"MAJORITY HOLDERS" shall mean, at the time of any determination, the
holders of a majority of the Warrants (determined by the number of shares of
Common Stock represented by each such Warrant as if exercised).
"PER SHARE WARRANT PRICE" is defined in the first paragraph of this
Warrant.
"PERMITTED CONSIDERATION" shall mean each of the following (or any
combination thereof):
(a) cash or other funds immediately available to Company; and
(b) Warrants.
"PRO FORMA SHARES" shall mean, as of the date of any determination thereof,
the sum of (i) the total number of outstanding shares of Common Stock, plus (ii)
the total number of shares of Common Stock issuable upon exercise of the
Warrants and any other warrants, options or other rights and upon the exercise
of any conversion or exchange rights with respect to Convertible Securities.
"UNDERLYING SHARES" shall mean the shares of Common Stock issuable upon
exercise of any of the Warrants and any references contained herein to a holder
or holders of any Underlying Shares shall be deemed to refer to the holder of
the Warrants relating thereto.
"WARRANT PRICE" - see the definition of "per share Warrant Price".
"WARRANT SHARES" shall mean shares of Common Stock issued upon exercise of
the warrants.
"WARRANTS" as used herein shall refer to, collectively, this Warrant and
all other warrants issued in exchange or substitution for this Warrant.
SECTION 12. WARRANT HOLDER NOT SHAREHOLDER.
This Warrant does not confer upon the holder hereof any right to vote or to
consent or to receive notice as a shareholder of Company, as such, in respect of
any matters whatsoever, or any other rights or liabilities as a shareholder,
prior to the exercise hereof as hereinbefore provided.
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SECTION 13. SEVERABILITY.
Should any part of this Warrant for any reason be declared invalid or
unenforceable, such decision shall not affect the validity or enforceability of
any remaining portion, which remaining portion shall remain in force and effect
as if this Warrant had been executed with the invalid or unenforceable portion
thereof eliminated, and it is hereby declared the intention of the parties
hereto that they would have executed and accepted the remaining portion of this
Warrant without including therein any such part, parts or portion which may, for
any reason, be hereafter declared invalid or unenforceable.
SECTION 14. GOVERNING LAW.
This Warrant shall be construed and enforced in accordance with, and the
rights of the parties shall be governed by, the law of the State of Texas
excluding choice-of-law principles of the law of such state that would require
the application of the laws of a jurisdiction other than such state.
[SIGNATURE PAGE TO FOLLOW]
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IN WITNESS WHEREOF, Company has caused this Warrant to be signed by a duly
authorized officer and to be dated this 14th day of March, 2000.
HORIZON PHARMACIES, INC.
By: /s/ Xxxxx X. XxXxxx
-----------------------------------------
Xxxxx X. XxXxxx
President
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