Common use of California Blue Sky Clause in Contracts

California Blue Sky. Foothill understands that the sale of the Preferred Stock that are the subject of this Agreement has not been qualified with the Commissioner of Corporation of the State of California and the issuance of the Preferred Stock or the payment or receipt of any part of the consideration therefor prior to the qualification is unlawful, unless the sale of Preferred Stock is exempt from the qualification by Section 25100, 25102, or 25105 of the California Corporations Code. Such Noteholder further understands that the rights of all parties to this Agreement are expressly conditioned upon the qualification being obtained, unless the sale is so exempt.

California Blue Sky. Foothill understands that the sale of the December 2001 Preferred Stock that are is the subject of this Agreement has not been qualified with the Commissioner of Corporation of the State of California and the issuance of the December 2001 Preferred Stock or the payment or receipt of any part of the consideration therefor prior to the qualification is unlawful, unless the sale of the December 2001 Preferred Stock is exempt from the qualification by Section 25100, 25102, or 25105 of the California Corporations Code. Such Noteholder further understands that the rights of all parties to this Agreement are expressly conditioned upon the qualification being obtained, unless the sale is so exempt.

California Blue Sky. Foothill understands that the sale of exchange for the December 2002 Preferred Stock that are is the subject of this Agreement has not been qualified with the Commissioner of Corporation of the State of California and the issuance of the December 2002 Preferred Stock or the payment or receipt of any part of the consideration therefor prior to the qualification is unlawful, unless the sale of exchange for the December 2002 Preferred Stock is exempt from the qualification by Section 25100, 25102, or 25105 of the California Corporations Code. Such Noteholder further understands that the rights of all parties to this Agreement are expressly conditioned upon the qualification being obtained, unless the sale exchange is so exempt.