Attached files
file | filename |
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8-K - FORM 8-K - XPO Logistics, Inc. | k50709e8vk.htm |
EX-4.1 - EX-4.1 - XPO Logistics, Inc. | k50709exv4w1.htm |
EX-3.1 - EX-3.1 - XPO Logistics, Inc. | k50709exv3w1.htm |
EX-4.3 - EX-4.3 - XPO Logistics, Inc. | k50709exv4w3.htm |
EX-99.2 - EX-99.2 - XPO Logistics, Inc. | k50709exv99w2.htm |
EX-99.1 - EX-99.1 - XPO Logistics, Inc. | k50709exv99w1.htm |
Exhibit 4.2
THE SECURITIES REPRESENTED BY THIS INSTRUMENT AND THE SECURITIES ISSUABLE UPON EXERCISE
THEREOF HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS
OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A
REGISTRATION STATEMENT RELATING THERETO IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES
LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR SUCH LAWS.
WARRANTS TO PURCHASE COMMON STOCK OF
XPO LOGISTICS, INC.
XPO LOGISTICS, INC.
No. []
|
Certificate for [INSERT HOLDER ALLOCATION] Warrants |
This Warrant Certificate (Warrant Certificate) certifies that [INSERT NAME OF
HOLDER], or registered assigns, is the registered holder of the number of Warrants set forth above.
Each warrant represented hereby (a Warrant) entitles the holder thereof (the
Holder), subject to the provisions contained herein, to purchase from XPO Logistics,
Inc., a Delaware corporation (the Company), one share of the Companys common stock, par
value $0.001 per share (Company Common Stock), subject to adjustment upon the occurrence
of certain events specified herein, at the exercise price of $7.00 per share (the Exercise
Price), subject to adjustment upon the occurrence of certain events specified herein.
This Warrant Certificate is issued under and in accordance with the Investment Agreement,
dated as of June 13, 2011 (the Investment Agreement), by and among Jacobs Private Equity,
LLC, the other Investors party thereto and the Company, and is subject to the terms and provisions
contained in the Investment Agreement. Capitalized terms used but not otherwise defined herein
shall have the meanings ascribed to such terms in the Investment Agreement.
ARTICLE I
Exercise Price; Exercise of Warrants and Expiration of Warrants
SECTION 1.01. Exercise Price. This Warrant Certificate shall entitle the Holder
hereof, subject to the provisions of this Warrant Certificate, to purchase one share of Company
Common Stock for each Warrant represented hereby, at the Exercise Price, in each case subject to
all adjustments made on or prior to the date of exercise thereof as herein provided.
SECTION 1.02. Exercise of Warrants. (a) The Warrants shall be exercisable in whole
or in part from time to time on any Business Day beginning on the Issuance Date and ending on the
Expiration Date in the manner provided for herein.
SECTION 1.03. Expiration of Warrants. Any unexercised Warrants shall expire and the
rights of the Holder of such Warrants to purchase Company Common Stock shall terminate at the close
of business on the Expiration Date.
SECTION 1.04. Method of Exercise; Payment of Exercise Price. (a) In order to
exercise a Warrant, the Holder hereof must (i) surrender this Warrant Certificate to the Company,
with the Exercise Subscription Form attached hereto as Annex I duly completed and executed, at any
time during usual business hours at its principal place of business or the offices of the Transfer
Agent, and (ii) pay in full the Exercise Price then in effect for the shares of Company Common
Stock as to which this Warrant Certificate is submitted for exercise in the manner provided in
paragraph (b) of this Section 1.04.
(b) Simultaneously with the exercise of each Warrant, payment in full of the Exercise Price
shall be delivered to the Company. Such payment shall be made in cash, by bank wire transfer in
immediately available funds to an account designated by the Company.
(c) If fewer than all the Warrants represented by this Warrant Certificate are surrendered,
this Warrant Certificate shall be surrendered and a new Warrant Certificate of the same tenor and
for the number of Warrants that were not surrendered shall promptly be executed and delivered to
the Person or Persons as may be directed in writing by the Holder (subject to the terms hereof),
and the Company shall register the new Warrant Certificate in the name of such Person or Persons.
Any new Warrant Certificate shall be executed on behalf of the Company by its President, Chief
Executive Officer, Chief Financial Officer or Secretary, either manually or by facsimile signature
printed thereon. In case any Officer of the Company whose signature shall have been placed upon
any Warrant Certificate shall cease to be such Officer of the Company before issue and delivery
thereof, such Warrant Certificate may, nevertheless, be issued and delivered with the same force
and effect as though such person had not ceased to be such Officer of the Company.
(d) Upon surrender of this Warrant Certificate in accordance with the foregoing provisions,
the Company shall instruct the Transfer Agent to transfer to the
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Holder appropriate evidence of ownership of any shares of Company Common Stock or other
securities or property (including cash) to which the Holder is entitled, registered or otherwise
placed in, or payable to the order of, such name or names as may be directed in writing by the
Holder (subject to the terms hereof), and shall deliver such evidence of ownership and any other
securities or property (including cash) to the Person or Persons entitled to receive the same,
together with an amount in cash in lieu of any fraction of a share as provided in Section 2.03.
Upon payment of the Exercise Price therefor, the Holder (or its designee) shall be deemed to own
and have all of the rights associated with any Company Common Stock or other securities or property
(including cash) to which it is entitled pursuant to this Warrant Certificate upon the surrender of
this Warrant Certificate in accordance with the terms of this Warrant Certificate.
SECTION 1.05. Compliance with the Securities Act. (a) No Warrants or shares of
Company Common Stock issued upon exercise thereof may be sold, transferred or otherwise disposed of
(any such sale, transfer or other disposition, a Sale), except in compliance with the
registration requirements of the Securities Act and any other applicable securities laws or
pursuant to an exemption from registration under the Securities Act and any other applicable
securities laws, or in a transaction not subject to such laws. The Warrants and the shares of
Company Common Stock issuable upon exercise of the Warrants will have the benefit of certain
registration rights under the Securities Act pursuant to a Registration Rights Agreement entered
into by the Company on the Issuance Date.
(b) Shares of Company Common Stock issued upon exercise of Warrants under a Warrant
Certificate while such Warrant Certificate bears the legend set forth on the first page of this
Warrant Certificate as of the Issuance Date, shall, subject to Section 6.04, be in global form and
bear the following legend:
THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT BE TRANSFERRED, SOLD
OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO A REGISTRATION STATEMENT RELATING THERETO IN
EFFECT UNDER SUCH ACT AND APPLICABLE STATE SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM
REGISTRATION UNDER SUCH ACT OR SUCH LAWS.
ARTICLE II
Adjustments; Changes upon Certain Other Transactions
SECTION 2.01. Anti-dilution Adjustments. (a) The number of shares issuable upon
exercise of the Warrants and the Exercise Price shall be subject to the following adjustments from
time to time:
(i) Stock Dividends. In case the Company shall pay or make a dividend
or other distribution on the Company Common Stock in
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Company Common Stock, the number of shares of Company Common Stock issuable
upon exercise of each Warrant, as in effect at the opening of business on the day
following the date fixed for the determination of stockholders of the Company
entitled to receive such dividend or distribution, shall be adjusted so that the
Holder shall thereafter be entitled to receive the number of shares of Company
Common Stock that the Holder would have owned or have been entitled to receive
after the happening of the dividend or other distribution, had such Warrant been
exercised immediately prior to the date fixed for such determination; and, in the
event of any such adjustment, the Exercise Price, as in effect at the opening of
business on the day following the date fixed for the determination of stockholders
of the Company entitled to receive such dividend or other distribution, shall be
adjusted by multiplying such Exercise Price by a fraction of which the numerator
shall be the number of shares of Company Common Stock outstanding at the close of
business on the date fixed for such determination and the denominator shall be the
sum of such number of shares and the total number of shares constituting such
dividend or other distribution. Such adjustments shall become effective
immediately after the opening of business on the day following the date fixed for
such determination.
(ii) Stock Purchase Rights. In case the Company shall issue to all
holders of Company Common Stock options, warrants or other rights entitling them to
subscribe for or purchase shares of Company Common Stock for a period expiring
within 60 days from the date of issuance of such options, warrants or other rights
at a price per share of Company Common Stock less than the Market Value on the date
fixed for the determination of stockholders of the Company entitled to receive such
options, warrants or other rights (other than pursuant to a dividend reinvestment,
share purchase or similar plan), the number of shares of Company Common Stock
issuable upon the exercise of each Warrant shall be adjusted by multiplying the
number of shares of Company Common Stock issuable upon exercise of each Warrant, as
in effect at the opening of business on the day following the date fixed for such
determination, by a fraction, the numerator of which shall be the number of shares
of Company Common Stock outstanding at the close of business on the date fixed for
such determination plus the number of shares of Company Common Stock so offered for
subscription or purchase, either directly or indirectly, and the denominator of
which shall be the number of shares of Company Common Stock outstanding at the
close of business on the date fixed for such determination plus the number of
shares of Company Common Stock which the aggregate consideration expected to be
received by the Company upon the exercise, conversion or exchange of such options,
warrants or other rights (as determined in good faith by the Board, whose
determination shall be conclusive and described in a Board Resolution) would
purchase at such Market Value; and, in the event of any such adjustment, the
Exercise Price in effect at the opening of business on
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the day following the date fixed for such determination shall be adjusted by
multiplying such Exercise Price by a fraction, the numerator of which shall be the
number of shares of Company Common Stock outstanding at the close of business on
the date fixed for such determination plus the number of shares of Company Common
Stock which the aggregate consideration expected to be received by the Company upon
the exercise, conversion or exchange of such options, warrants or other rights (as
determined in good faith by the Board, whose determination shall be conclusive and
described in a Board Resolution) would purchase at such Market Value and the
denominator of which shall be the number of shares of Company Common Stock
outstanding at the close of business on the date fixed for such determination plus
the number of shares of Company Common Stock so offered for subscription or
purchase, either directly or indirectly. Such adjustments shall become effective
immediately after the opening of business on the day following the date fixed for
such determination; provided, however, that no such adjustments
shall be made if the Holder would be entitled to receive such options, warrants or
other rights upon exercise at any time of the Warrants; provided,
further, however, that if any of the foregoing options, warrants or
other rights are only exercisable upon the occurrence of a Triggering Event, then
no such adjustments shall be made until such Triggering Event occurs.
(iii) Stock Splits, Reverse Splits and Combinations. In case
outstanding shares of Company Common Stock shall be subdivided, split or
reclassified into a greater number of shares of Company Common Stock, then the
number of shares of Company Common Stock issuable upon exercise of each Warrant in
effect at the opening of business on the day following the date upon which such
subdivision, split or reclassification becomes effective shall be adjusted so that
the Holder shall thereafter be entitled to receive the number of shares of Company
Common Stock that the Holder would have owned or would have been entitled to
receive had such Warrant been exercised immediately prior to such subdivision,
split or reclassification becoming effective; and, in the event of any such
adjustment, the Exercise Price in effect at the opening of business on the day
following the date upon which such subdivision, split or reclassification becomes
effective shall be proportionately reduced. Conversely, in case outstanding shares
of Company Common Stock shall be combined or reclassified into a smaller number of
shares of Company Common Stock, then the number of shares of Company Common Stock
issuable upon exercise of each Warrant in effect at the opening of business on the
day following the date upon which such combination or reclassification becomes
effective shall be adjusted so that the Holder shall thereafter be entitled to
receive the number of shares of Company Common Stock that the Holder would have
owned or would have been entitled to receive had such Warrant been exercised
immediately prior to such combination or reclassification becoming effective; and,
in the event of any such adjustment, the Exercise Price in effect at the opening of
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business on the day following the date upon which such combination or
reclassification becomes effective shall be proportionately increased. Such
adjustments shall become effective immediately after the opening of business on the
day following the date upon which such subdivision, split, reclassification or
combination becomes effective.
(iv) Debt, Asset or Security Distributions. (A) In case the Company
shall, by dividend or otherwise, distribute to all holders of Company Common Stock
evidences of its indebtedness, assets or securities (but excluding any dividend or
distribution of options, warrants or other rights referred to in paragraph (ii) of
this Section 2.01(a), any dividend or distribution paid exclusively in cash, any
dividend or distribution of shares of Capital Stock of any class or series, or
similar equity interests, of or relating to a Subsidiary or other business unit in
the case of a Spin-off referred to in the next subparagraph, or any dividend or
distribution referred to in paragraph (i) of this Section 2.01(a)), then the number
of shares of Company Common Stock issuable upon the exercise of each Warrant
immediately prior to the close of business on the date fixed for the determination
of stockholders of the Company entitled to receive such distribution shall be
increased to a number determined by multiplying the number of shares of Company
Common Stock issuable upon the exercise of such Warrant immediately prior to the
date fixed for such determination by a fraction, the numerator of which shall be
the Market Value on the date fixed for such determination plus the fair market
value (as determined in good faith by the Board, whose determination shall be
conclusive and described in a Board Resolution) of the portion of the assets or
evidences of indebtedness so distributed applicable to one share of Company Common
Stock and the denominator of which shall be the Market Value on the date fixed for
such determination; and, in the event of any such adjustment, the Exercise Price
shall be reduced by multiplying the Exercise Price in effect immediately prior to
the close of business on the date fixed for the determination of stockholders of
the Company entitled to receive such distribution by a fraction, the numerator of
which shall be the Market Value on the date fixed for such determination and the
denominator of which shall be such Market Value plus the fair market value (as
determined in good faith by the Board, whose determination shall be conclusive and
described in a Board Resolution) of the portion of the assets or evidences of
indebtedness so distributed applicable to one share of Company Common Stock. Such
adjustments shall become effective immediately prior to the opening of business on
the day following the date fixed for the determination of stockholders of the
Company entitled to receive such distribution. In any case in which this
subparagraph (iv)(A) is applicable, subparagraph (iv)(B) of this Section
2.01(a)(iv) shall not be applicable.
(B) In the case of a Spin-off, the number of shares of Company Common
Stock issuable upon the exercise of each Warrant
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immediately prior to the close of business on the date fixed for
determination of stockholders of the Company entitled to receive such
distribution shall be increased to a number determined by multiplying the
number of shares of Company Common Stock issuable upon the exercise of such
Warrant immediately before the close of business on such date by a fraction,
the numerator of which shall be the Market Value plus the fair market value (as
determined in good faith by the Board, whose determination shall be conclusive
and described in a Board Resolution) of the portion of those shares of Capital
Stock or similar equity interests so distributed applicable to one share of
Company Common Stock, and the denominator of which shall be the Market Value;
and, in the event of any such adjustment, the Exercise Price in effect
immediately prior to the close of business on the date fixed for determination
of stockholders of the Company entitled to receive such distribution shall be
reduced by multiplying the Exercise Price by a fraction, the numerator of which
shall be the Market Value and the denominator of which shall be the Market
Value plus the fair market value (as determined in good faith by the Board,
whose determination shall be conclusive and described in a Board Resolution) of
the portion of those shares of Capital Stock or similar equity interests so
distributed applicable to one share of Company Common Stock. Any adjustments
under this subparagraph (iv)(B) will occur on the date that is the earlier of
(1) the tenth Trading Day from, and including, the effective date of the
Spin-off and (2) the date of the Initial Public Offering of the securities
being distributed in the Spin-off, if that Initial Public Offering is effected
simultaneously with the Spin-off.
(v) Tender Offers. In the case that a tender or exchange offer made
by the Company or any Subsidiary of the Company for all or any portion of the
Company Common Stock shall expire and such tender or exchange offer (as amended
through the expiration thereof) shall require the payment to stockholders of the
Company (based on the acceptance (up to any maximum specified in the terms of the
tender or exchange offer) of Purchased Shares) of aggregate consideration having a
fair market value (as determined in good faith by the Board, whose determination
shall be conclusive and described in a Board Resolution) per share of Company
Common Stock that exceeds the Closing Sale Price of the Company Common Stock on the
Trading Day next succeeding the last date on which tenders or exchanges may be made
pursuant to such tender or exchange offer, then, immediately prior to the opening
of business on the day after the date of the last time (the Expiration
Time) tenders or exchanges could have been made pursuant to such tender or
exchange offer (as amended through the expiration thereof), the number of shares of
Company Common Stock issuable upon the exercise of each Warrant immediately prior
to the close of business on the date of the Expiration Time shall be increased to a
number determined by multiplying the
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number of shares of Company Common Stock issuable upon exercise of each
Warrant immediately prior to the close of business on the date of the Expiration
Time by a fraction (A) the numerator of which shall be equal to (x) the product of
(I) the Market Value on the date of the Expiration Time and (II) the number of
shares of Company Common Stock outstanding (including any tendered or exchanged
shares) on the date of the Expiration Time less the number of all shares validly
tendered or exchanged, not withdrawn and accepted for payment on the date of the
Expiration Time (such validly tendered or exchanged shares, up to any such maximum,
being referred to as the Purchased Shares) plus (y) the amount of cash
plus the fair market value (determined as aforesaid) of the aggregate consideration
payable to stockholders of the Company pursuant to the tender or exchange offer
(assuming the acceptance, up to any maximum specified in the terms of the tender or
exchange offer, of Purchased Shares), and (B) the denominator of which shall be
equal to the product of (x) the Market Value on the date of the Expiration Time and
(y) the number of shares of Company Common Stock outstanding (including any
tendered or exchanged shares) on the date of the Expiration Time; and, in the event
of any such adjustment, the Exercise Price shall be reduced by multiplying the
Exercise Price immediately prior to the close of business on the date of the
Expiration Time by a fraction (A) the numerator of which shall be equal to the
product of (x) the Market Value on the date of the Expiration Time and (y) the
number of shares of Company Common Stock outstanding (including any tendered or
exchanged shares) on the date of the Expiration Time, and (B) the denominator of
which shall be equal to (x) the product of (I) the Market Value on the date of the
Expiration Time and (II) the number of shares of Company Common Stock outstanding
(including any tendered or exchanged shares) on the date of the Expiration Time
less the number of Purchased Shares plus (y) the amount of cash plus the fair
market value (determined as aforesaid) of the aggregate consideration payable to
stockholders of the Company pursuant to the tender or exchange offer (assuming the
acceptance, up to any maximum specified in the terms of the tender or exchange
offer, of Purchased Shares).
(b) De Minimis Adjustments. Notwithstanding anything herein to the contrary, no
adjustment under this Section 2.01 need be made to the number of shares issuable upon exercise of a
Warrant or the Exercise Price unless such adjustment would require an increase or decrease of at
least 1.0% of the number of shares issuable upon exercise of the Warrants or the Exercise Price
immediately prior to the making of such adjustment. Any lesser adjustment shall be carried forward
and shall be made at the time of and together with the next subsequent adjustment, if any, which,
together with any adjustment or adjustments so carried forward, shall result in an increase or
decrease of at least 1.0% of the number of shares issuable upon exercise of a Warrant or the
Exercise Price immediately prior to the making of such adjustment. No adjustment to the Exercise
Price under this Section 2.01 shall be made if such adjustment will result in an Exercise Price
that is less than the par value of the Company Common Stock. All adjustments to
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the number of shares issuable upon exercise of the Warrants or the Exercise Price shall be
calculated to the nearest 1/10,000th of a share of Company Common Stock (or if there is not a
nearest 1/10,000th of a share to the next lower 1/10,000th of a share) or the nearest $0.0001 (or
if there is not a nearest $0.0001 to the next lower $0.0001), as the case may be.
(c) Tax-Related Adjustments. The Company may make such increases in the number of
shares issuable upon exercise of the Warrants or reductions in the Exercise Price, in addition to
those required by this Section 2.01, as the Board considers advisable in order to avoid or diminish
any income tax to any holders of shares of Company Common Stock resulting from any dividend or
distribution of stock or issuance of rights or warrants to purchase or subscribe for stock or from
any event treated as such for income tax purposes. In the event the Company elects to make such an
increase in the number of shares issuable upon exercise of the Warrants or such a reduction in the
Exercise Price, the Company will comply with the requirements of Rule 14e-1 under the Exchange Act
and any other securities laws and regulations thereunder, if and to the extent that such laws and
regulations are applicable in connection with the increase in the number of shares issuable upon
exercise of the Warrants or the reduction in the Exercise Price.
(d) Stockholder Rights Plans. Upon exercise of the Warrants, to the extent that the
Holder receives Company Common Stock, the Holder shall receive, in addition to the shares of
Company Common Stock and any cash for fractional shares in accordance with Section 2.03, if any,
the rights issued under any future stockholder rights plan the Company may establish whether or not
such rights are separated from the Company Common Stock prior to exercise. A distribution of
rights pursuant to any stockholder rights plan will not result in an adjustment to the number of
shares issuable upon exercise of the Warrants or the Exercise Price pursuant to Section 2.01(a)(ii)
or 2.01(a)(iv), provided that the Company has provided for the Holder to receive such
rights upon exercise.
(e) Reversal of Adjustment. If the Company shall take a record of the holders of
Company Common Stock for the purpose of entitling them to receive a dividend or other distribution,
and shall thereafter (and before the dividend or distribution has been paid or delivered to
stockholders) legally abandon its plan to pay or deliver such dividend or distribution, then
thereafter no adjustment in the number of shares issuable upon exercise of the Warrants or the
Exercise Price then in effect shall be required by reason of the taking of such record.
(f) Exceptions to Adjustment. The applicable number of shares issuable upon exercise
of the Warrants and Exercise Price shall not be adjusted:
(i) upon the issuance of any shares of Company Common Stock pursuant to any
present or future plan providing for the reinvestment of dividends or interest
payable on the Companys securities and the investment of additional optional
amounts in shares of Company Common Stock under any such plan;
9
(ii) upon the issuance of any shares of Company Common Stock or options or
rights to purchase those shares pursuant to any present or future employee,
director or consultant benefit plan or program of or assumed by the Company or any
of its Subsidiaries;
(iii) upon the issuance of any shares of Company Common Stock pursuant to any
option, warrant, right or exercisable, exchangeable or convertible security
outstanding as of the Issue Date;
(iv) for a change in the par value of the Company Common Stock;
(v) for accrued and unpaid dividends on the Companys Series A Convertible
Perpetual Preferred Stock, par value $0.001 per share; or
(vi) for the 4-for-1 reverse stock split consummated on the Issuance Date
pursuant to the Investment Agreement.
SECTION 2.02. Recapitalizations, Reclassifications and Changes in the Companys Stock.
In the event of any reclassification of outstanding shares of Company Common Stock (other than a
change in par value, or from par value to no par value, or from no par value to par value), or any
consolidation or merger of the Company with or into another Person (other than with a Subsidiary of
the Company) or any merger of another Person with or into the Company (other than a consolidation
or merger in which the Company is the resulting or surviving Person and that does not result in any
reclassification or change of outstanding Company Common Stock), or any sale or other disposition
to another Person of all or substantially all of the assets of the Company (computed on a
consolidated basis) (any of the foregoing, a Transaction), upon exercise of the Warrants,
the Holder will be entitled to receive the kind and amount of securities (of the Company or another
issuer), cash and other property receivable upon such Transaction by a holder of the number of
shares of Company Common Stock issuable upon exercise of the Warrants immediately prior to such
Transaction, after giving effect to any adjustment event or, in the event holders of Company Common
Stock have the opportunity to elect the form of consideration to be received in any Transaction,
the weighted average of the forms and amounts of consideration received by the holders of Company
Common Stock. In the event that at any time, as a result of an adjustment made pursuant to this
Warrant Certificate, the Holder shall become entitled upon exercise to any securities other than,
or in addition to, shares of Company Common Stock, thereafter the number or amount of such other
securities so receivable upon exercise and the Exercise Price therefor shall be subject to
adjustment from time to time in a manner and on terms as nearly equivalent as practicable to the
provisions with respect to the Company Common Stock set forth in this Warrant Certificate.
SECTION 2.03. Fractional Shares. No fractional shares of Company Common Stock shall
be issued to the Holder upon exercise of any Warrant. In lieu of any fraction of a share of
Company Common Stock that would otherwise be issuable upon exercise of the aggregate number of
Warrants exercised by the Holder, the Holder shall have the right to receive an amount in cash
(computed to the nearest cent) equal to
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the same fraction of the Closing Sale Price on the Trading Day next preceding the date of
exercise.
SECTION 2.04. Notice of Adjustment. Whenever the number of shares of Company Common
Stock or other stock or property issuable upon the exercise of each Warrant or the Exercise Price
is adjusted, as herein provided, the Company shall (i) compute such adjustment in accordance with
this Article II and prepare and transmit to the Transfer Agent an Officers Certificate setting
forth the adjustment, the method of calculation thereof in reasonable detail and the facts
requiring such adjustment and upon which such adjustment is based and (ii) as soon as practicable
following the occurrence of an event that requires an adjustment pursuant to this Article II (or if
the Company is not aware of such occurrence, as soon as practicable after becoming so aware), the
Company or, at the request and expense of the Company, the Transfer Agent shall provide a written
notice to the holders of Warrants (including the Holder) of the occurrence of such event and a
statement setting forth in reasonable detail the method by which the adjustment was determined and
setting forth the adjusted amount.
ARTICLE III
Warrant Transfer Books
SECTION 3.01. Warrant Transfer Books. (a) The Company shall keep at its principal
place of business a register in which the Company shall provide for the registration of Warrant
Certificates and of any exchanges of Warrant Certificates as herein provided.
(b) At the option of the Holder, Warrant Certificates may be exchanged at such office and upon
payment of the charges hereinafter provided. Whenever any Warrant Certificates are so surrendered
for exchange, the Company shall execute and deliver the Warrant Certificates that the Holder is
entitled to receive.
(c) All Warrant Certificates issued upon any registration of transfer or exchange of Warrant
Certificates shall be the valid obligations of the Company, evidencing the same obligations, and
entitled to the same benefits, as the Warrant Certificates surrendered for such registration of
transfer or exchange.
(d) Every Warrant Certificate surrendered for registration of exchange shall (if so required
by the Company) be duly endorsed, or be accompanied by a written instrument of transfer in form
reasonably satisfactory to the Company, duly executed by the Holder or his attorney duly authorized
in writing.
(e) No service charge shall be payable by the Holder for any registration of transfer or
exchange of this Warrant Certificate, and the Company shall pay any taxes or other governmental
charges that may be imposed in connection with any registration of exchange of Warrant
Certificates.
(f) This Warrant Certificate when duly endorsed in blank shall be deemed negotiable and when
this Warrant Certificate shall have been so endorsed, the Holder
11
hereof may be treated by the Company and all other Persons dealing therewith as the absolute
owner hereof for any purpose and as the Person entitled to exercise the rights represented hereby.
ARTICLE IV
Voting
SECTION 4.01. No Voting Rights. Prior to the exercise of the Warrants, the Holder, in
its capacity as such, shall not be entitled to any rights of a stockholder of the Company,
including the right to vote or to consent with respect to any matter.
ARTICLE V
Covenants
SECTION 5.01. Reservation of Company Common Stock for Issuance on Exercise of
Warrants. The Company covenants that it will at all times reserve and keep available, free
from preemptive rights and solely for the purpose of issue upon exercise of the Warrants as herein
provided, out of its authorized but unissued Company Common Stock, such number of shares of Company
Common Stock as shall then be issuable upon the exercise of all Warrants issuable hereunder and all
other Warrant Certificates. The Company covenants that all shares of Company Common Stock issuable
upon exercise of the Warrants shall, upon such issue, be duly and validly issued and fully paid and
non-assessable, free from preemptive rights and free from all taxes, liens, charges and security
interests with respect to the issuance thereof.
SECTION 5.02. Notice of Dividends. At any time when the Company declares any dividend
or other distribution on the Company Common Stock, it shall give notice to the holders of all the
then outstanding Warrants (including the Holder) of any such declaration not less than 15 days
prior to the related record date for payment of the dividend or distribution so declared.
SECTION 5.03. HSR Act Compliance. If the Holder determines that a notification under
the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended, and the rules and regulations
promulgated thereunder (the HSR Act), is required in connection with the exercise of the
Warrants represented by this Warrant Certificate, the Company shall reasonably cooperate with the
Holder by (i) promptly effecting all necessary notifications and other filings under the HSR Act
that are required to be made by the Company and (ii) responding as promptly as reasonably
practicable to all inquiries or requests received from the United States Federal Trade Commission
(the FTC), the Department of Justice (the DOJ) or any other governmental
authority in connection with such notifications and other filings. For the avoidance of doubt,
nothing in this Section 5.03 shall require that the Company or any of its Subsidiaries commit to
any divestiture, license or hold separate or similar arrangement with respect to the business,
assets or properties of the Company or any of its Subsidiaries. Any such notifications and
responses by the Company will be in full compliance with the
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requirements of the HSR Act. The Company shall, to the extent legally permissible, keep the
Holder reasonably apprised of the status of any communications with, and any inquiries or requests
for additional information from, the FTC, the DOJ or such other governmental authority. The
Company shall pay the filing fees in connection with the above filings, and shall otherwise each
bear its costs and expenses in connection with the preparation of such filings and responses to
inquires or requests.
SECTION 5.04. Certain Other Events. If any event occurs as to which the provisions of
Article II are not strictly applicable or, if strictly applicable, would not fairly protect the
rights of the holders of the Warrants in accordance with the essential intent and principles of
such provisions, then the Board shall make such adjustments in the application of such provisions,
in accordance with such essential intent and principles, as shall be reasonably necessary, in the
good faith judgment of the Board, to protect such purchase rights as aforesaid.
ARTICLE VI
Miscellaneous
SECTION 6.01. Tax Matters. (a) The Company shall pay all transfer, stamp and other
similar taxes due with respect to the issuance or delivery of shares of Company Common Stock or
other securities or property upon exercise of the Warrants; provided, however, that
the Company shall not be required to pay any tax that may be payable with respect to any transfer
involved in the issuance or delivery of shares of Company Common Stock or other securities or
property in a name other than that of the Holder, and the Holder shall be responsible for any such
tax.
SECTION 6.02. Surrender of Warrant Certificate. This Warrant Certificate, if
surrendered for exercise or purchase, shall be promptly canceled by the Company and shall not be
reissued by the Company. The Company shall destroy such canceled Warrant Certificate.
SECTION 6.03. Mutilated, Destroyed, Lost or Stolen Warrant Certificate. (a) If (i)
this Warrant Certificate is mutilated and surrendered to the Company or (ii) the Company receives
evidence to its satisfaction of the destruction, loss or theft of this Warrant Certificate, and
there is delivered to the Company such appropriate affidavit of loss, applicable processing fee and
indemnity as may be reasonably required by the Company to save it harmless, then, in the absence of
notice to the Company that this Warrant Certificate has been acquired by a bona fide purchaser, the
Company shall execute and deliver, in exchange for this Warrant Certificate if mutilated or in lieu
of this Warrant Certificate if destroyed, lost or stolen, a new Warrant Certificate of like tenor
and for a like aggregate number of Warrants.
(b) Upon the issuance of any new Warrant Certificate under this Section 6.03, the Company
shall pay any taxes or other governmental charges that may be imposed in relation thereto and other
expenses in connection therewith.
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(c) Every new Warrant Certificate executed and delivered pursuant to this Section 6.03 in lieu
of any destroyed, lost or stolen Warrant Certificate shall constitute an original contractual
obligation of the Company, whether or not the destroyed, lost or stolen Warrant Certificate shall
be at any time enforceable by anyone.
(d) The provisions of this Section 6.03 are exclusive and shall preclude (to the extent
lawful) all other rights or remedies with respect to the replacement of a mutilated, destroyed,
lost or stolen Warrant Certificate.
SECTION 6.04. Removal of Legends.
(a) In the event (i) the transfer of the Warrants or the shares of Company Common Stock issued
upon exercise of the Warrants are registered under the Securities Act or (ii) there is delivered to
the Company such satisfactory evidence, which may include an Opinion of Counsel licensed to
practice law in the State of New York, as may be reasonably required by the Company, that such
Warrants or shares are not restricted securities within the meaning of Rule 144 under the
Securities Act, the Company shall, or shall direct the Transfer Agent to and the Transfer Agent
shall, upon surrender by the Holder of this Warrant Certificate or certificates evidencing such
shares of Company Common Stock, as applicable, to the Company or the Transfer Agent, exchange such
certificates for certificates without the legend set forth on the first page of this Warrant
Certificate as of the Issuance Date or referred to in Section 1.05(b), as applicable.
(b) In order to effect a Sale of Warrants or shares of Company Common Stock issued upon
exercise of the Warrants (other than pursuant to an effective registration statement under the
Securities Act), the Holder shall (i) give written notice to the Company of its intention to effect
such Sale, which notice shall describe the manner and circumstances of the proposed transaction in
reasonable detail and shall include a certification by the Holder to the effect that such proposed
Sale may be effected without registration under the Securities Act or under applicable state
securities laws, and (ii) provide such additional certifications of the Holder or its transferee or
Opinions of Counsel (which shall be reasonably satisfactory to the Company) as the Company may
reasonably request solely in order to confirm the availability of the applicable exemption from the
registration requirements of applicable securities laws. The Company will refuse to register any
Sale of Warrants or shares of Company Common Stock issued upon exercise of the Warrants that is not
made in accordance with the provisions of the legend set forth on the first page of this Warrant
Certificate as of the Issuance Date or referred to in Section 1.05(b), as applicable;
provided that the provisions of this Section 6.04(b) shall not be applicable to any such
security that does not bear any such legend.
SECTION 6.05. Notices. Any notice, demand or delivery to the Company authorized by
this Warrant Certificate shall be sufficiently given or made when mailed if sent by first-class
mail, postage prepaid, addressed to the Company as follows:
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XPO Logistics, Inc.
3399 South Lakeshore Drive, Suite 225
Saint Joseph, MI 49085
3399 South Lakeshore Drive, Suite 225
Saint Joseph, MI 49085
Facsimile: 269-695-7458
Attention: Secretary of the Board of Directors
SECTION 6.06. Applicable Law. This Warrant Certificate and each Warrant represented
hereby and all rights arising hereunder shall be construed in accordance with the laws of the State
of Delaware, regardless of the laws that might otherwise govern under applicable principles of
conflicts of laws thereof.
SECTION 6.07. Persons Benefiting. This Warrant Certificate shall be binding upon and
inure to the benefit of the Company and its successors, assigns, beneficiaries, executors and
administrators, and the Holder from time to time of the Warrants represented hereby. Except as
otherwise expressly provided herein, nothing in this Warrant Certificate is intended or shall be
construed to confer upon any Person, other than the Company and the Holder from time to time of the
Warrants represented hereby, any right, remedy or claim under or by reason of this Warrant
Certificate or any part hereof.
SECTION 6.08. Supplements or Amendments. This Warrant Certificate may not be
supplemented or amended without the written approval of both the Holder and the Company.
SECTION 6.09. Headings. The descriptive headings of the several Articles and Sections
of this Warrant Certificate are inserted for convenience and shall not control or affect the
meaning or construction of any of the provisions hereof.
SECTION 6.10. Copies of Agreements. Copies of the Investment Agreement and the
Registration Rights Agreement referred to in Section 1.05(a) are on file at the principal place of
business of the Company and may be obtained by writing to the Company at the address set forth in
Section 6.05.
ARTICLE VII
Definitions.
As used in this Warrant Certificate, the following terms shall have the following meanings:
Board means the board of directors of the Company.
Board Resolution means a copy of a resolution certified by the Secretary or an
Assistant Secretary of the Company to have been duly adopted by the Board and to
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be in full force and effect on the date of such certification, and delivered to the Transfer
Agent.
Business Day means any day other than a Saturday or Sunday or any other day on which
banks in the City of New York are authorized or required by law or executive order to close.
Capital Stock of any Person means any and all shares, interests, participations or
other equivalents however designated of corporate stock or other equity participations, including
partnership interests, whether general or limited, of such Person and any rights (other than debt
securities convertible or exchangeable into an equity interest), warrants or options to acquire an
equity interest in such Person.
The Closing Sale Price of the Company Common Stock on any date means the closing
sale price per share (or if no closing sale price is reported, the average of the closing bid and
ask prices or, if more than one in either case, the average of the average closing bid and the
average closing ask prices) on such date as reported on the over-the-counter Pink Sheets market
or, if the Company Common Stock is listed on a national securities exchange, the principal national
securities exchange on which the Company Common Stock is traded. In the absence of such a
quotation, the Closing Sale Price of the Company Common Stock will be an amount determined in good
faith by the Board to be the fair market value of such Company Common Stock, and such determination
shall be conclusive.
Company has the meaning set forth in the introduction to this Warrant Certificate,
and its successors and assigns.
Company Common Stock has the meaning set forth in the introduction to this Warrant
Certificate.
DOJ has the meaning set forth in Section 5.03.
Exchange Act means the Securities Exchange Act of 1934, as amended.
Exercise Price has the meaning set forth in the introduction to this Warrant
Certificate.
Expiration Date means the tenth anniversary of the Issuance Date.
Expiration Time has the meaning set forth in Section 2.01(a)(v).
FTC has the meaning set forth in Section 5.03.
Holder means the initial Holder of this Warrant Certificate and any permitted
assignee or transferee thereof.
HSR Act has the meaning set forth in Section 5.03.
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including means including, without limitation.
Initial Public Offering means, in the event of a Spin-off, the first time securities
of the same class or type as the securities being distributed in the Spin-off are bona fide offered
to the public for cash.
Investment Agreement has the meaning set forth in the introduction to this Warrant
Certificate.
Issuance Date means September 2, 2011.
Market Value means, with respect to any date of determination, the average Closing
Sale Price of the Company Common Stock for a five consecutive Trading Day period preceding the
earlier of (i) the day preceding the date of determination and (ii) the day before the ex date
with respect to the issuance or distribution requiring such computation. For purposes of this
definition, the term ex date, when used with respect to any issuance or distribution, means the
first date on which the Company Common Stock trades, regular way, on the over-the-counter Pink
Sheets market or, if the Company Common Stock is listed on a national securities exchange, the
principal national securities exchange on which the Company Common Stock is traded at that time,
without the right to receive the issuance or distribution.
Officer means the Chairman of the Board, President, Chief Executive Officer, any
Vice President, the Chief Financial Officer, the Chief Accounting Officer, the Treasurer, any
Assistant Treasurer, the Controller, any Assistant Controller, the Secretary or any Assistant
Secretary of the Company.
Officers Certificate means a certificate signed by two Officers.
Opinion of Counsel means a written opinion from legal counsel who is acceptable to
the Company or the Transfer Agent. The counsel may be an employee of or counsel to the Company or
the Transfer Agent.
Person means any natural person, corporation, limited liability company,
partnership, joint venture, trust, business association, governmental entity or other entity.
Purchased Shares has the meaning set forth in Section 2.01(a)(v).
Sale has the meaning set forth in Section 1.05(a).
Securities Act means the Securities Act of 1933, as amended.
Spin-off means a dividend or other distribution of shares of Capital Stock of any
class or series, or similar equity interests, of or relating to a Subsidiary or other business unit
of the Company.
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Subsidiary of any Person means any other Person (i) more than 50% of whose
outstanding shares or securities representing the right to vote for the election of directors or
other managing authority of such other Person are, now or hereafter, owned or controlled, directly
or indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only
so long as such ownership or control exists, or (ii) which does not have outstanding shares or
securities with such right to vote, as may be the case in a partnership, joint venture or
unincorporated association, but more than 50% of whose ownership interest representing the right to
make the decisions for such other Person is, now or hereafter, owned or controlled, directly or
indirectly, by such first Person, but such other Person shall be deemed to be a Subsidiary only so
long as such ownership or control exists.
Trading Day means a day during which trading in securities generally occurs on the
over-the-counter Pink Sheets market or, if the Company Common Stock is listed on a national
securities exchange, the principal national securities exchange on which the Company Common Stock
is traded.
Transaction has the meaning set forth in Section 2.02.
Transfer Agent means Computershare Trust Company, N.A. unless and until a successor
is selected by the Company, and then such successor.
Triggering Event means a specified event the occurrence of which entitles the
holders of rights, options or warrants to exercise such rights, options or warrants.
Warrants has the meaning set forth in the introduction to this Warrant Certificate.
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XPO LOGISTICS, INC., |
||||
by | ||||
Name: | ||||
Title: | ||||
19
ANNEX I
EXERCISE SUBSCRIPTION FORM
(To be executed only upon exercise of Warrant)
To: XPO Logistics, Inc. (the Company)
The undersigned irrevocably exercises of the Warrants represented by the
Warrant Certificate for the purchase of one share (subject to adjustment in accordance with the
Warrant Certificate) of Company Common Stock, par value $0.001 per share, for each such Warrant and
herewith makes payment of $ (such payment being by bank wire transfer in immediately available
funds), all at the Exercise Price and on the terms and conditions specified in the Warrant
Certificate, surrenders this Warrant Certificate and all right, title and interest therein to the
Company and directs that the shares of Company Common Stock deliverable upon the exercise of such
Warrants be registered in the name and delivered at the address specified below.
Date:
(Signature of Owner)* | ||||||
(Street Address) | ||||||
(City) | (State) | (Zip Code) |
Securities to be issued to:
Please insert social security or identifying number:
Name:
Street Address:
City, State and Zip Code:
* | The signature must correspond with the name as written upon the face of the Warrant Certificate in every particular, without alteration or any change whatsoever. |