Exhibit 4.4
This warrant and any shares represented by this
warrant have not been registered under the securities act of 1933,
as amended, and may not be transferred, sold or otherwise disposed
of except pursuant to an effective registration under said act or
pursuant to an exemption from such registration. The Warrant
represented by this certificated and the shares issuable hereunder
may be sold or otherwise transferred in compliance with, and are
subject to the provisions of, the Stockholders Agreement dated as
of December 16, 1999 among the issuer hereof and the other parties
thereto. Complete and correct copies of such Agreement are
available for inspection at the principal office of the issuer
hereof and will be furnished without charge to the holder of this
Warrant or such shares upon written request.
KENEXA CORPORATION
Form of Amended and Restated
Class B Common Stock Purchase Warrant
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No. [ ]
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Wayne,
Pennsylvania
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December 16,
1999
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KENEXA CORPORATION, a Pennsylvania
corporation (the “Company”), for value received, hereby
certifies that
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(the “Purchaser”), or assigns, is entitled to purchase
from the Company
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duly authorized, validly issued, fully paid and nonassessable
shares of Class A Common Stock, $0.01 par value (the “Class A
Common Stock”), of the Company at the purchase price of
$835.00 (the “Exercise Price”), at any time or from
time to time prior to 5:00 P.M. Boston time, on December 16, 2006
(the “Expiration Date”), all subject to the terms,
conditions and adjustments set forth below in this
Warrant.
This Warrant is one of the Class A
Common Stock Warrants (the “Warrants,” such term to
include any such warrants issued in substitution therefor)
originally issued in connection with the execution and delivery of
the Class B Common Stock and Warrant Purchase Agreement dated as of
December 16, 1999 (as from time to time in effect, the
“Purchase Agreement”) by and among the Company and the
Investors. Certain capitalized terms used in this Warrant are
defined in Section 11 hereof.
1. EXERCISE OR CONVERSION OF WARRANT.
1.1. Manner of Exercise or
Conversion; Payment.
(a) Exercise. This Warrant
may be exercised by the holder hereof, in whole or in part, during
normal business hours on any Business Day on or prior to the
Expiration Date, by surrender of this Warrant to the Company at its
office maintained pursuant to Section 10.2(a) hereof, accompanied
by a subscription in substantially the form attached to this
Warrant (or a reasonable facsimile thereof) duly executed by such
holder and accompanied by payment, in cash or by check payable to
the order of the Company (or by any combination of such methods),
in the amount obtained by multiplying (a) the number of shares of
Class A Common Stock
(without giving effect to any
adjustment thereof) designated in such subscription by (b) the
Exercise Price, and such holder shall thereupon be entitled to
receive the number of duly authorized, validly issued, fully paid
and nonassessable shares of Class A Common Stock determined as
provided in Section 2 hereof.
(b) Conversion. This Warrant
may be converted by the holder hereof, in whole or in part, into
shares of Class A Common Stock, during normal business hours on any
Business Day on or prior to the Expiration Date, by surrender of
this Warrant to the Company at its office maintained pursuant to
Section 10.2(a) hereof, accompanied by a conversion notice in
substantially the form attached to this Warrant (or a reasonable
facsimile thereof) duly executed by such holder, and such holder
shall thereupon be entitled to receive a number of duly authorized,
validly issued, fully paid and nonassessable shares of Class A
Common Stock equal to the quotient of:
(i) the excess of:
(A) an amount equal to the sum of
(x) the product of (aa) the number of shares of Class A Common
Stock determined as provided in Section 2 hereof which such holder
would be entitled to receive upon exercise of this Warrant for the
number of shares of Class A Common Stock designated in such
conversion notice multiplied by (bb) the Current Market
Price of each such share of Class A Common Stock so designated and
(y) the Current Market Price of any Other Securities and the fair
value of any other property (determined in good faith by the Board
of Directors of the Company) such holder would be entitled to
receive upon exercise of this Warrant for the number of shares of
Class A Common Stock designated in such conversion
notice
over
(B) an amount equal to (x) the
number of shares of Class A Common Stock (without giving effect to
any adjustment thereof) designated in such conversion notice
multiplied by (y) the Exercise Price
divided by
(ii) such Current Market Price of a
share of Class A Common Stock.
For all purposes of this Warrant (other than
this Section 1.1), any reference herein to the exercise of this
Warrant shall be deemed to include a reference to the conversion of
this Warrant into Class A Common Stock in accordance with the terms
of this Section 1.1(b).
1.2. When Exercise Effective
. Each exercise of this Warrant shall be deemed to have been
effected immediately prior to the close of business on the Business
Day on which this Warrant shall have been surrendered to the
Company as provided in Section 1.1 hereof, and at such time the
Person or Persons in whose name or names any certificate or
certificates for shares of Class A Common Stock shall be issuable
upon such exercise as provided in Section 1.3 hereof shall be
deemed to have become the holder or holders of record
thereof.
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1.3. Delivery of Stock
Certificates, etc. As soon as practicable after each exercise
of this Warrant, in whole or in part, and in any event within three
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 hereof or as such
holder may direct:
(a) a certificate or certificates
for the number of duly authorized, validly issued, fully paid and
nonassessable shares of Class A Common Stock to which such holder
shall be entitled upon such exercise plus, in lieu of any
fractional share to which such holder would otherwise be entitled,
cash in an amount equal to the same fraction of the Current Market
Price per share on the Business Day next preceding the date of such
exercise; and
(b) in case such exercise is in part
only, a new Warrant or Warrants of like tenor, dated the date
hereof and calling in the aggregate on the face or faces thereof
for the number of shares of Class A Common Stock equal to the
number of such shares (without giving effect to any adjustment
thereof) called for on the face of this Warrant minus the number of
such shares designated by the holder upon such exercise as provided
in Section 1.1 hereof.
2. ADJUSTMENT OF COMMON STOCK ISSUABLE UPON
EXERCISE.
2.1. General; Number of Shares;
Warrant Price . The number of shares of Class A Common Stock
which the holder of this Warrant shall be entitled to receive upon
each exercise hereof shall be equal to the product of:
(a) the number of shares of Class A
Common Stock which would otherwise (but for the provisions of this
Section 2) be issuable upon such exercise, as designated by the
holder hereof pursuant to Section 1.1 hereof, and
(b) a fraction of which (i) the
numerator is the Initial Warrant Price, and (ii) the denominator is
the Warrant Price in effect on the date of such
exercise.
The “Initial Warrant Price” shall be
the Exercise Price. The “Warrant Price” shall initially
be the Initial Warrant Price and shall be adjusted and readjusted
from time to time as provided in this Section 3 and, as so adjusted
or readjusted, shall remain in effect until a further adjustment or
readjustment thereof is required by this Section 2. The
“Trigger Price” shall initially be $167 per share of
Class A Common Stock and shall be adjusted and readjusted from time
to time as provided in this Section 2 and, as so adjusted and
readjusted, shall remain in effect until a further adjustment or
readjustment thereof is required by Section 2.
2.2. Adjustments for Dividends,
Distributions, Stock Splits, etc.
(a) Dividends and
Distributions . In case at any time or from time to time, the
holders of Class A Common Stock shall have received, or (on or
after the record date fixed for the determination of shareholders
eligible to receive) shall have become entitled to receive, without
payment therefor:
(i) other or additional stock or
Other Securities or property (other than cash) by way of dividend,
or
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(ii) any cash, or
(iii) other or additional stock or
Other Securities or property (including cash) by way of spinoff,
split-up, reclassification, recapitalization, combination of shares
or similar corporate rearrangement, other than
additional shares of Class A Common Stock issued as a stock
dividend or in a stock split (adjustments in respect of which are
provided for in Section 2.2(b) below), then and in each such case
the holder of this Warrant, on the exercise hereof as provided in
Section 1, shall be entitled without the payment of any additional
consideration or the taking of any further action, to receive the
amount of stock and Other Securities and property (including cash
in the cases referred to in subdivisions (ii) and (iii) of this
Section 2.2(a)) which such holder would hold on the date of such
exercise if on the date hereof such holder had been the holder of
record of the number of shares of Common Stock provided for herein
and had thereafter, during the period from the date hereof to and
including the date of such exercise, retained such shares and all
such other or additional stock and Other Securities and property
(including cash in the cases referred to in subdivisions (ii) and
(iii) of this Section 2.2(a)) receivable by him as aforesaid during
such period, giving effect to all adjustments called for during
such period by this Section 2.
(b) Treatment of Stock Dividends,
Stock Splits, etc. In the event that the Company shall (i)
issue Common Stock Equivalents, or securities exercisable for or
convertible into Common Stock Equivalents, as dividend or other
distribution on outstanding Common Stock Equivalents, (ii)
subdivide its outstanding shares of Common Stock Equivalents, or
(iii) combine its outstanding shares of Common Stock Equivalents
into a smaller number of shares of Common Stock Equivalents, then,
in each such event, the Warrant Price and the Trigger Price shall,
simultaneously with the happening of such event, be adjusted by
multiplying each of the then current Warrant Price and Trigger
Price by a fraction, (a) the numerator of which shall be the number
of shares of Common Stock Equivalents outstanding immediately prior
to such event, and (b) the denominator of which shall be the number
of shares of Common Stock Equivalents outstanding immediately after
such event, and the product so obtained shall thereafter be the
Warrant Price and the Trigger Price, respectively, then in effect.
The Warrant Price and Trigger Price, as so adjusted, shall be
readjusted in the same manner upon the happening of any successive
event or events described herein in this Section 2.2(b). Upon each
adjustment of the Warrant Price or Trigger Price, the holder of
this Warrant shall thereafter be entitled to purchase at the
Warrant Price resulting from such adjustment, the number of shares
obtained by dividing the product of the number of shares
purchasable pursuant hereto immediately prior to such adjustment
and the Warrant Price immediately preceding such adjustment by the
Warrant Price resulting from such adjustment.
2.3. Reorganization,
Consolidation or Merger. In case at any time or from time to
time the Company shall (a) effect a reorganization, (b) consolidate
with or merge into any other Person, (c) voluntarily or
involuntarily dissolve, liquidate or wind-up, or (d) transfer all
or substantially all of its properties or assets to any other
person, then in each such case, as a condition thereto, lawful and
adequate provision shall be made so that the holder of this
Warrant, on the exercise or conversion hereof as provided in
Section 1 at any time after the consummation of such
reorganization, consolidation or merger or the effective date of
such dissolution, as the case may be, shall receive, in lieu of the
Class A Common Stock issuable on such exercise immediately prior to
such consummation or such effective date, the stock and other
securities
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and property (including cash) to which such
holder would have been entitled upon such consummation or in
connection with such reorganization, consolidation, merger or
dissolution, as the case may be, if such holder had so exercised
this Warrant, immediately prior thereto, all subject to further
adjustments thereafter as provided in this Section 2.
2.4. Adjustment for Issuance of
Common Stock Equivalents Below Trigger Price.
(a) General . In any case to
which Sections 2.2 and 2.3 hereof are not applicable, where the
Company shall issue or sell shares of its Common Stock Equivalents
after February 1, 2001 without consideration or for a consideration
per share less than the Trigger Price in effect pursuant to the
terms of this Warrant at the time of issuance or sale of such
additional shares, except where such shares are issued or sold
pursuant to the exercise of any warrant or option or issued prior
to the date of this Warrant or issued in connection with or
pursuant to documentation entered into in connection with a
financing by the Company in which the Company issues shares of
Series A Redeemable Participating Preferred Stock, then the Warrant
Price in effect hereunder shall simultaneously with such issuance
or sale be reduced to a price determined by multiplying the Warrant
Price then in effect hereunder by a fraction, the numerator of
which is the sum of (a) the product of the total number of shares
of Common Stock Equivalents outstanding immediately prior to such
issuance or sale on a fully diluted basis, after giving effect to
the exchange or conversion of all outstanding Convertible
Securities and the exercise of all Options outstanding multiplied
by the Trigger Price in effect hereunder at the time of such
issuance or sale, plus (b) the aggregate consideration received by
the Company upon such issuance or sale, and the denominator of
which is the product of the total number of shares of Common Stock
Equivalents outstanding immediately after issuance or sale of such
additional shares on a fully diluted basis, after giving effect to
the exchange or conversion of all outstanding Convertible
Securities and the exercise of all Options outstanding multiplied
by the Trigger Price in effect hereunder at the time of such
issuance.
(b) Options; Convertible
Securities . In case the Company shall issue or sell any
Options or Convertible Securities after December 16, 1999 there
shall be determined the price per share for which Common Stock
Equivalents are issuable upon the conversion or exercise thereof,
such determination to be made by dividing (a) the sum of the total
amount received or receivable by the Company as consideration for
the issue or sale of such Options or Convertible Securities plus
the minimum aggregate amount of additional consideration payable to
the Company upon the conversion or exercise thereof, by (b) the
maximum number of shares of Common Stock Equivalents of the Company
issuable upon the conversion or exercise of all of such Options or
Convertible Securities. If the price per share so determined shall
be less than the applicable Trigger Price, then, for purposes of
Section 2.4(a) hereof, such issue or sale shall be deemed to be an
issue or sale (as of the date of issue or sale of such Options or
Convertible Securities) of such maximum number of shares of Common
Stock Equivalents at the price per share so determined and such
maximum number of shares shall be deemed to be outstanding after
such issuance, provided that, upon the expiration of such rights of
conversion or exercise of such Options or Convertible Securities,
if any thereof shall not have been exercised, the adjusted Warrant
Price shall forthwith be readjusted and thereafter be the price
which it would have been had an adjustment been made on the basis
that the only shares of Common Stock Equivalents so issued or sold
were issued or sold upon the conversion or exercise of such Options
or Convertible Securities, and that they were issued or sold for
the consideration actually received
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by the Company upon such conversion
or exchange, plus the consideration, if any, actually received by
the Company for the issue or sale of all such Options or
Convertible Securities which shall have been converted or
exchanged.
(c) Record Date . If the
Company takes a record of the holders of Common Stock Equivalents
for the purpose of entitling them (i) to receive a dividend or
other distribution payable in Common Stock Equivalents, Options or
Convertible Securities, or (ii) to subscribe for or purchase Common
Stock Equivalents, Opt