Exhibit 4.8.3
No. W-2003-____ _______ Shares
THIS WARRANT AND THE SHARES OF COMMON STOCK ISSUABLE UPON EXERCISE OF THIS
WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THIS WARRANT AND THE COMMON STOCK ISSUABLE UPON EXERCISE OF THIS WARRANT MAY NOT
BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT AS TO THIS WARRANT UNDER SAID ACT OR AN OPINION
OF COUNSEL REASONABLY SATISFACTORY TO EPIXTAR CORP. THAT SUCH REGISTRATION IS
NOT REQUIRED.
COMMON STOCK PURCHASE WARRANT
Issue Date: December 9, 2003
EPIXTAR CORP., a corporation organized under the laws of the State
of Florida (the "Company"), hereby certifies that, for value received,
____________________, with its principal address at_____________________________
___________________________________________ or assigns (the "Holder"), is
entitled, subject to the terms set forth below, to purchase from the Company
from and after the Issue Date of this Warrant and at any time or from time to
time before 5:00 p.m., New York time, through five (5) years after such date
(the "Expiration Date"), up to _______________ fully paid and nonassessable
shares of Common Stock (as hereinafter defined), $.001 par value, of the
Company, at the Exercise Price (as defined below). The number and character of
such shares of Common Stock and the Exercise Price are subject to adjustment as
provided herein.
As used herein the following terms, unless the context otherwise
requires, have the following respective meanings:
(a) The term "Company" shall include Epixtar Corp. and any
corporation which shall succeed or assume the obligations of Epixtar Corp.
hereunder.
(b) The term "Common Stock" includes (a) the Company's Common Stock,
par value $.001 per share, and (b) any other securities into which or for which
any of the securities described in (a) may be converted or exchanged pursuant to
a plan of recapitalization, reorganization, merger, sale of assets or otherwise.
(c) The term "Other Securities" refers to any stock (other than
Common Stock) and other securities of the Company or any other person (corporate
or otherwise) which the holder of the Warrant at any time shall be entitled to
receive, or shall have received, on the exercise of the Warrant, in lieu of or
in addition to Common Stock, or which at any time shall be issuable or shall
have been issued in exchange for or in replacement of Common Stock or Other
Securities pursuant to Section 4 or otherwise.
(d) The term "Exercise Price" shall be five dollars ($5.00) per
share of Common Stock subject to adjustment as provided herein and or provided
in the Registration Rights Agreement.
1. Exercise of Warrant.
1.1 Discretionary Exercise. From and after the date hereof through
and including the Expiration Date, the Holder shall be entitled to exercise this
Warrant to acquire shares of Common Stock of the Company at the Exercise Price.
1.2 Mandatory Exercise. Subject to the conditions set forth
hereafter,one (1) time per each consecutive 90-day period until the Expiration
Date, the Company may require the exercise, at the Exercise Price, of up to 20%
of the original number of Warrants granted hereunder in the event that the
Market Price of the Common Stock is $10.00 or greater for thirty (30)
consecutive trading days (the "Trading Period") ending on the day prior to the
date the Company gives notice that it is requiring exercise (the "Mandatory
Notice"). Within seven (7) business days after the Company provides such
Mandatory Notice, the Holder shall exercise the number of Warrants as required
by such notice. If the Holder fails to exercise the Warrants within the required
time period the number of shares subject to such Warrants shall be automatically
reduced by the number of shares Holder was required to acquire pursuant to such
notice. The period beginning on the first day of the Trading Period and ending
on the seventh business day after the Mandatory Notice shall be defined as the
"Required Period." The Mandatory Notice shall not be given and any request for
exercise pursuant to this section 1.2 shall be of no effect, unless, during the
entire Required Period, there is an effective registration statement covering
the resale of the shares subject to the Warrant with current prospectus
available.
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1.2.1 Market Price. For purposes hereof, the Market Price shall
mean: the 4:00 p.m. closing bid prices for the Common Stock on the OTC Pink
Sheets, NASD OTC Bulletin Board, NASDAQ Small Cap Market, NASDAQ National Market
System, American Stock Exchange, or New York Stock Exchange (whichever of the
foregoing is at the time the principal trading exchange or market for the Common
Stock, the "Principal Market"), or if the shares are not then trading on a
Principal Market, such other market or exchange where the Common Stock is listed
or traded.
2. Procedure for Exercise.
2.1 Method of Exercise. Upon surrender of a Warrant Certificate with
the annexed Form of Purchase Election duly executed, together with payment of
the Exercise Price (as hereinafter defined) for the shares of Common Stock
purchased at the Company's principal offices (presently located at 00000
Xxxxxxxx Xxxx., Xxxxx XX 00000) the registered holder of a Warrant Certificate
("Holder" or "Holders") shall be entitled to receive a certificate or
certificates for the shares of Common Stock. The purchase rights represented by
each Warrant Certificate are exercisable at the option of the Holder thereof, in
whole or in part (but not as to fractional shares of the Common Stock underlying
the Warrants). Warrants may be exercised to purchase all or part of the shares
of Common Stock. In the case of the purchase of less than all the shares of
Common Stock 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 of
Common Stock purchasable thereunder.
2.2 Delivery of Stock Certificates, etc. on Exercise. The Company
agrees that the shares of Common Stock purchased upon exercise of this Warrant
shall be deemed to be issued to the Holder as the record owner of such shares as
of the close of business on the date on which this Warrant shall have been
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surrendered and payment made for such shares as aforesaid. As soon as
practicable after the exercise of this Warrant in full or in part, and in any
event within 5 business days thereafter, the Company at its expense (including
the payment by it of any applicable issue taxes) will cause to be issued in the
name of and delivered to the Holder, or as such Holder (upon payment by such
holder of any applicable transfer taxes) may direct in compliance with
applicable securities laws, a certificate or certificates for the number of duly
and validly issued, fully paid and nonassessable shares of Common Stock (or
Other Securities) to which such Holder shall be entitled on such exercise, plus,
at the Company's election, in lieu of any fractional share to which such holder
would otherwise be entitled, cash equal to such fraction multiplied by the then
Market Value of one full share or an additional share, together with any other
stock or other securities and property (including cash, where applicable) to
which such Holder is entitled upon such exercise pursuant to Section 1 or
otherwise.
2.3. Payment.
(a) Payment may be made either (i) in cash or by certified or
official bank check payable to the order of the Company equal to the applicable
aggregate Exercise Price, (ii) by delivery of the Warrant, Common Stock and/or
Common Stock receivable upon exercise of the Warrant in accordance with Section
(b) below, or (iii) by a combination of any of the foregoing methods, for the
number of Common Shares specified in such form (as such exercise number shall be
adjusted to reflect any adjustment in the total number of shares of Common Stock
issuable to the holder per the terms of this Warrant) and the Holder shall
thereupon be entitled to receive the number of duly authorized, validly issued,
fully-paid and non-assessable shares of Common Stock (or Other Securities)
determined as provided herein.
(b) Notwithstanding any provisions herein to the contrary, if,
at the time of an exercise pursuant to either section 1.1 or 1.2, there is no
effective registration statement covering the resale of the Common Stock subject
to this Warrant, with current prospectus available and if the Market Value of
one share of Common Stock at such time is greater than the Exercise Price (at
the date of calculation as set forth below), in lieu of exercising this Warrant
for cash, the Holder may elect to receive shares equal to the value (as
determined below) of this Warrant (or the portion thereof being exercised) by
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surrender of this Warrant at the principal office of the Company together with
the properly endorsed Exercise Notice in which event the Company shall issue to
the Holder a number of shares of Common Stock computed using the following
formula:
X = Y (A-B)
-----
A
Where X = the number of shares of Common Stock to be issued to the
Holder
Y = the number of shares of Common Stock purchasable under
the Warrant or, if only a portion of the Warrant is being
exercised, the portion of the Warrant being exercised (at
the date of such calculation)
A = the Fair Market Value of one share of the Company's
Common Stock (at the date of such calculation)
B = Exercise Price (as adjusted to the date of such
calculation)
3. Effect of Reorganization and Other Events Affecting Common Stock;
Adjustment of Exercise Price.
3.1 Adjusted Exercise Price. Except as hereinafter provided, in case
the Company shall at any time after the date hereof issue or sell any shares of
Common Stock (other than the issuances or sales referred to in Section 3.1 (F)
hereof), including shares held in the Company's treasury, for a consideration
per share less than the Exercise Price in effect immediately prior to the
issuance or sale of such shares, or without consideration, then forthwith upon
such issuance or sale, the Exercise Price shall (until another issuance or sale)
be reduced to the price (calculated to the nearest full cent) equal to the
quotient derived by dividing (i) an amount equal to the sum of (a) the total
number of shares of Common Stock outstanding immediately prior to the issuance
or sale of such shares, multiplied by the Exercise Price in effect immediately
prior to such issuance or sale, and (b) the aggregate of the amount of all
consideration, if any, received by the Company upon such issuance or sale, by
(ii) the total number of shares of Common Stock outstanding immediately after
such issuance or sale; provided, however, that in no event shall the Exercise
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Price be adjusted pursuant to this computation to an amount in excess of the
Exercise Price in effect immediately prior to such computation, except in the
case of a combination of outstanding shares of Common Stock, as provided by
Section 3.1(E) hereof.
For the purposes of this Section 3.1, the term "Exercise Price"
shall mean the Exercise Price per share of Common Stock set forth in the
preamble to this Warrant, as adjusted from time to time pursuant to the
provisions of this Section 3.1.
In calculating the adjustment to the Exercise Price, the following
apply:
A. In case of the issuance or sale of shares of Common Stock
for a consideration, part or all of which shall be cash, the amount of the cash
consideration therefore shall be deemed to be the amount of cash received by the
Company for such shares (or, if shares of Common Stock are offered by the
Company for subscription, the subscription price, or if either of such
securities shall be sold to underwriters or dealers for public offering without
a subscription offering, the initial public offering price) before deducting
therefrom any compensation paid or discount allowed in the sale, underwriting or
purchase thereof by underwriters or dealers or others performing similar
services, or any expenses incurred in connection therewith.
B. In case of the issuance or sale (otherwise than as a
dividend or other distribution on any stock of the Company) of shares of Common
Stock for a consideration part or all of which shall be other than cash, the
amount of the consideration therefore other than cash shall be deemed to be the
value of such consideration as determined in good faith by the Board of
Directors of the Company.
C. The number of shares of Common Stock at any one time
outstanding shall exclude the aggregate number of shares issued or issuable
(subject to readjustment upon the actual issuance thereof) upon the exercise of
options, rights, warrants and upon the Exercise or exchange of convertible or
exchangeable securities.
D. Options, Rights, Warrants and Convertible and Exchangeable
Securities. In case the Company shall at any time after the date hereof issue
options, rights or warrants to subscribe for shares of Common Stock, or issue
any securities convertible into or exchangeable for shares of Common Stock, for
a consideration per share less than the Exercise Price in effect immediately
prior to the issuance of such options, rights or warrants, or such convertible
or exchangeable securities, or without consideration, the Exercise Price in
effect immediately prior to the issuance of such options, rights or warrants, or
such convertible or exchangeable securities, as the case may be, shall be
reduced to a price determined by making a computation in accordance with the
provisions of this Section 3.1, provided that:
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(1) The aggregate maximum number of shares of Common
Stock, as the case may be, issuable under such options, rights or warrants shall
be deemed to be issued and outstanding at the time such options, rights or
warrants were issued, and for a consideration equal to the minimum purchase
price per share provided for in such options, rights or warrants at the time of
issuance, plus the consideration (determined in the same manner as consideration
received on the issue or sale of shares in accordance with the terms of the Note
Purchase Agreement), if any, received by the Company for such options, rights or
warrants.
(2) The aggregate maximum number of shares of Common
Stock issuable upon Exercise or exchange of any convertible or exchangeable
securities shall be deemed to be issued and outstanding at the time of issuance
of such securities, and for a consideration equal to the consideration
(determined in the same manner as consideration received on the issue or sale of
shares of Common Stock in accordance with the terms of the Note Purchase
Agreement) received by the Company for such securities, plus the minimum
consideration, if any, receivable by the Company upon the Exercise or exchange
thereof.
(3) If any change shall occur in the price per share
provided for in any of the options, rights or warrants referred to in subsection
(1) of this Section 3.1(D), or in the price per share at which the securities
referred to in subsection (2) of this Section 3.1(D) are convertible or
exchangeable, such options, rights or warrants or Exercise or exchange rights,
as the case may be, shall be deemed to have expired or terminated on the date
when such price change became effective in respect of shares not theretofore
issued pursuant to the exercise or Exercise or exchange thereof, and the Company
shall be deemed to have issued upon such date new options, rights or warrants or
convertible or exchangeable securities at the new price in respect of the number
of shares issuable upon the exercise of such options, rights or warrants or the
Exercise or exchange of such convertible or exchangeable securities.
E. Subdivision; Combination, Etc.
(1) Stock Splits and Dividends. If outstanding shares of
the common stock shall be subdivided into a greater number of shares or a
dividend in common stock shall be paid in respect of common stock, the Exercise
Price in effect immediately prior to such subdivision or dividend shall
simultaneously with the effectiveness of such subdivision or dividend be
proportionately reduced. If outstanding shares of common stock shall be combined
into a smaller number of shares, the Exercise Price in effect immediately prior
to such combination shall, simultaneously with the effectiveness of such
combination, be proportionately increased.
(2) Reclassification, Etc. In case there occurs any
reclassification or change of the outstanding securities of which are at the
time receivable in conjunction with the Note Purchase Agreement or any similar
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corporate reorganization on or after the date hereof, then and in each such case
the Holder, upon the exercise hereof at any time after the consummation of such
reclassification, change or reorganization, shall be entitled to receive, in
lieu of common stock, the stock or other securities or property to which such
Holder would have been entitled upon such consummation if such Holder had
converted this Warrant immediately prior thereto, all subject to further
adjustment pursuant to the provisions of this Section 3.1.
F. Adjustment in Number of Securities. Upon each
adjustment of the Exercise Price pursuant to the provisions of this Section 3.1,
the number of Securities issuable in conjunction with the Warrant shall be
adjusted to the nearest full amount by multiplying a number equal to the
Exercise Price in effect immediately prior to such adjustment by the number of
Securities issuable in conjunction with the Warrant immediately prior to such
adjustment and dividing the product so obtained by the adjusted Exercise Price.
G. Exceptions to Adjustment Requirements. No adjustment
shall be required pursuant to this Section 3.1 upon:
(1) the exercise of any warrants, options or convertible
securities granted, issued and outstanding on the
date of issuance of this Warrant;
(2) upon the grant or exercise of any stock or options
which may hereafter be granted or exercised under
any employee stock option plan of the Company now
existing or to be implemented in the future, so long
as the issuance of such stock or options is approved
by a majority of the independent members of the
Board of Directors of the Company or a majority of
the members of a committee of the independent
directors established for such purpose;
(3) any Common Stock issued in connection with a merger
or acquisition;
(4) any security issued pursuant to this Note Purchase
Agreement or Note Purchase Agreement for unsecured
debt securities that have substantially similar
terms to the securities issued pursuant to the Note
Purchase Agreement;
(5) any Common Stock issued pursuant to a lease line or
line of credit; or
(6) any adjustment of thirteen cents ($.13) or less,
although such adjustment shall be carried forward
and made with the next adjustment (if any).
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3.2 Adjustment Resulting from Failure to Register Shares. The
Exercise Price is also subject to adjustment pursuant to Section 2(a) of the
Registration Rights Agreement.
4. Certificate as to Adjustments. In each case of any adjustment or
readjustment in the shares of Common Stock (or Other Securities) issuable on the
exercise of the Warrant, the Company at its expense will promptly cause its
Chief Financial Officer or other appropriate designee to compute such adjustment
or readjustment in accordance with the terms of the Warrant and prepare a
certificate setting forth such adjustment or readjustment and showing in detail
the facts upon which such adjustment or readjustment is based, including a
statement of (a) the consideration received or receivable by the Company for any
additional shares of Common Stock (or Other Securities) issued or sold or deemed
to have been issued or sold, (b) the number of shares of Common Stock (or Other
Securities) outstanding or deemed to be outstanding, and (c) the Exercise Price
and the number of shares of Common Stock to be received upon exercise of this
Warrant, in effect immediately prior to such adjustment or readjustment and as
adjusted or readjusted as provided in this Warrant. The Company will forthwith
mail a copy of each such certificate to the holder of the Warrant and any
Warrant agent of the Company (appointed pursuant to Section 9 hereof).
5. Reservation of Stock, etc. Issuable on Exercise of Warrant. The
Company will at all times reserve and keep available, solely for issuance and
delivery on the exercise of the Warrant, shares of Common Stock (or Other
Securities) from time to time issuable on the exercise of the Warrant.
6. Assignment; Exchange of Warrant. Subject to compliance with
applicable securities laws, this Warrant, and the rights evidenced hereby, may
be transferred by any registered holder hereof (a "Transferor") with respect to
any or all of the Shares. On the surrender for exchange of this Warrant, with
the Assignment Form attached hereto duly completed and executed and together
with evidence reasonably satisfactory to the Company demonstrating compliance
with applicable securities laws, which shall include, without limitation, a
legal opinion from the Transferor's counsel that such transfer is exempt from
the registration requirements of applicable securities laws, the Company at its
expense but with payment by the Transferor of any applicable transfer taxes)
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will issue and deliver to or on the order of the Transferor thereof a new
Warrant of like tenor, in the name of the Transferor and/or the transferee(s)
specified in such Assignment Form (each a "Transferee"), for an aggregate number
of shares of Common Stock equal to the number of shares subject to the Warrant
so surrendered by the Transferor.
7. Replacement of Warrant. On receipt of evidence reasonably
satisfactory to the Company of the loss, theft, destruction or mutilation of
this Warrant and, in the case of any such loss, theft or destruction of this
Warrant, on delivery of an indemnity agreement or security reasonably
satisfactory in form and amount to the Company or, in the case of any such
mutilation, on surrender and cancellation of this Warrant, the Company at its
expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.
8. Registration Rights. The Holder of this Warrant has been granted
certain registration rights by the Company. These registration rights are set
forth in a Registration Rights Agreement entered into by the Company and
Purchaser at or prior to the issue date of this Warrant.
9. Warrant Agent. The Company may, by written notice to the each
holder of the Warrant, appoint an agent for the purpose of issuing Common Stock
(or Other Securities) on the exercise of this Warrant pursuant to Sections 1 and
2, exchanging this Warrant pursuant to Section 6 and replacing this Warrant
pursuant to Section 7, or any of the foregoing, and thereafter any such
issuance, exchange or replacement, as the case may be, shall be made at such
office by such agent.
10. Transfer on the Company's Books. Until this Warrant is
transferred on the books of the Company, the Company may treat the registered
holder hereof as the absolute owner hereof for all purposes, notwithstanding any
notice to the contrary.
11. Notices, etc. Any notice required or permitted by this Warrant
shall be in writing and shall be deemed sufficient upon receipt, when delivered
personally or by courier, overnight delivery service or confirmed facsimile, or
five days after being deposited in the U.S. mail as certified or registered mail
with postage prepaid with receipt. Such notice shall be addressed to the Holder
at such party's address as set forth above and such notice if addressed to the
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Company shall be sent to the address above (with a copy to Xxxxxxx X.
XxXxxxxxxx, 000 Xxxxxxxx Xxxxxx, Xxxxx 000, Xxxxxxxxx, Xxx Xxxxxx, 00000) or as
subsequently modified by written notice.
12. Voluntary Adjustment by the Company. The Company may at any time
during the term of this Warrant reduce the then current Exercise Price to any
amount and for any period of time deemed appropriate by the Board of Directors
of the Company.
13. Miscellaneous. This Warrant and any term hereof may be changed,
waived, discharged or terminated only by an instrument in writing signed by the
party against which enforcement of such change, waiver, discharge or termination
is sought. This Warrant shall be governed by and construed in accordance with
the laws of State of Florida without regard to principles of conflicts of laws.
Any action brought concerning the transactions contemplated by this Warrant
shall be brought only in the state courts of Florida or in the federal courts
located in the state of Florida; provided, however, that the Holder may choose
to waive this provision and bring an action outside the state of Florida. The
individuals executing this Warrant on behalf of the Company agree to submit to
the jurisdiction of such courts and waive trial by jury. The prevailing party
shall be entitled to recover from the other party its reasonable attorney's fees
and costs. In the event that any provision of this Warrant is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any such
provision which may prove invalid or unenforceable under any law shall not
affect the validity or enforceability of any other provision of this Warrant.
The headings in this Warrant are for purposes of reference only, and shall not
limit or otherwise affect any of the terms hereof. The invalidity or
unenforceability of any provision hereof shall in no way affect the validity or
enforceability of any other provision. The Company acknowledges that legal
counsel participated in the preparation of this Warrant and, therefore,
stipulates that the rule of construction that ambiguities are to be resolved
against the drafting party shall not be applied in the interpretation of this
Warrant to favor any party against the other party.
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IN WITNESS WHEREOF, the Company has executed this Warrant
under seal as of the date first written above.
EPIXTAR CORP.
By:_______________________________________
Name:
-----
Title:
------
Witness:
____________________________
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PURCHASE ELECTION
(To be signed only on exercise of Warrant)
TO: Epixtar Corp.
The undersigned, pursuant to the provisions set forth in the attached Warrant
(No.W-2003-____), hereby irrevocably elects to purchase (check applicable box):
/_/ ________ shares of the Common Stock covered by such Warrant; or
/_/ the maximum number of shares of Common Stock covered by such Warrant
pursuant to the cashless exercise procedure set forth in Section 2.
The undersigned herewith makes payment of the full Exercise Price for such
shares at the price per share provided for in such Warrant, which is
$___________. Such payment takes the form of (check applicable box or boxes):
/_/ $__________ in lawful money of the United States; and/or
/_/ the cancellation of such portion of the attached Warrant as is exercisable
for a total of _______ shares of Common Stock (using a Fair Market Value of
$_______ per share for purposes of this calculation); and/or
/_/ the cancellation of such number of shares of Common Stock as is
necessary, in accordance with the formula set forth in Section 2, to exercise
this Warrant with respect to the maximum number of shares of Common Stock
purchaseable pursuant to the cashless exercise procedure set forth in Section 2.
The undersigned requests that the certificates for such shares be issued in the
name of, and delivered to __________________________ whose address is
_______________________________________________________________.
The undersigned represents and warrants that all offers and sales by the
undersigned of the securities issuable upon exercise of the within Warrant shall
be made pursuant to registration of the Common Stock under the Securities Act of
1933, as amended (the "Securities Act") or pursuant to an exemption from
registration under the Securities Act.
Dated:___________________ ____________________________________________
(Signature must conform to name of holder as
specified on the face of the Warrant)
____________________________________________
(Address)
ASSIGNMENT FORM
(To be signed only on transfer of Warrant)
For value received, the undersigned hereby sells, assigns, and
transfers unto the person(s) named below under the heading "Transferees" the
right represented by the within Warrant to purchase the percentage and number of
shares of Common Stock of Epixtar Corp. to which the within Warrant relates
specified under the headings "Percentage Transferred" and "Number Transferred,"
respectively, opposite the name(s) of such person(s) and appoints each such
person Attorney to transfer its respective right on the books of Epixtar Corp.
with full power of substitution in the premises.
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Transferees Percentage Transferred Number Transferrred
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Dated:______________________ _________________________________________
(Signature must conform to name of holder
as specified on the face of the Warrant)
Signed in the presence of:
____________________________ _________________________________________
(Name) (address)
ACCEPTED AND AGREED:
[TRANSFEREE] _________________________________________
(address)
____________________________
(Name)