Units1 T3 Motion, Inc. Units Consisting of One Share of Common Stock, One Class H Warrant and One Class I Warrant UNDERWRITING AGREEMENT
Exhibit 1.1
Xxxxx0
X0 Motion, Inc.
Units Consisting of One Share of Common Stock,
One Class H Warrant and One Class I Warrant
One Class H Warrant and One Class I Warrant
UNDERWRITING AGREEMENT
, 2011
Chardan Capital Markets, LLC
As the Representative of the
several underwriters named in Schedule I hereto
00 Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxx, XX 00000
As the Representative of the
several underwriters named in Schedule I hereto
00 Xxxxx Xxxxxx, Xxxxx 0000
Xxx Xxxx, XX 00000
Ladies and Gentlemen:
T3 Motion, Inc., a Delaware corporation (the “Issuer”), proposes to sell to the several
underwriters (the “Underwriters”) named in Schedule I hereto for whom you are acting as
representative (the “Representative”) an aggregate of Units (the “Firm Securities”),
each Unit consisting of one share of the Issuer’s Common Stock, $0.001 par value, one Class H
Warrant and one Class I Warrant (the Common Stock, Class H Warrants and Class I Warrants being
referred to as the “Component Securities”). The respective amounts of the Firm Securities to be so
purchased by the several Underwriters are set forth opposite their names in Schedule I
hereto. The Issuer also propose to sell at the Underwriters’ option an aggregate of up to
additional Units (the “Option Securities”)2 as set forth below.
As the Representative, you have advised the Issuer (a) that you are authorized to enter into
this Underwriting Agreement (the “Agreement”) on behalf of the several Underwriters, and (b) that
the several Underwriters are willing, acting severally and not jointly, to purchase the numbers of
Firm Securities set forth opposite their respective names in Schedule I, plus their pro
rata portion of the Option Securities if you elect to exercise the over-allotment option in whole
or in part for the accounts of the several Underwriters. The Firm Securities and the Option
Securities (to the extent the aforementioned option is exercised) are herein collectively called
the “Units.”
| 1 | Plus an option to purchase up to additional Units to cover over-allotments. | |
| 2 | 5% of the number of Firm Securities. |
The Issuer has prepared a registration statement on Form S-1 (File No. 333-171163) with
respect to the Units and the Component Securities pursuant to the Securities Act of 1933, as
amended (the “Securities Act”), and the rules and regulations (the “Rules and Regulations”) of the
United States Securities and Exchange Commission (the “Commission”) thereunder. As used in this
Agreement, “Effective Time” means the date and the time as of which such registration statement, or
the most recent post-effective amendment thereto, if any, was declared effective by the Commission;
“Effective Date” means the date of the Effective Time; “Preliminary Prospectus” means each
prospectus included in such registration statement, or amendments thereof, before it became
effective under the Securities Act and any prospectus filed with the Commission by the Issuer with
the consent of the Representative pursuant to Rule 424(a) of the Rules and Regulations; “Pricing
Prospectus” means the Preliminary Prospectus that was included in the Registration Statement
immediately prior to the Applicable Time (as defined below); “Prospectus” means the prospectus in
the form first used to confirm sales of Units; “Registration Statement” means such registration
statement, as amended at the Effective Time, including all information deemed to be a part of the
registration statement as of the Effective Time pursuant to Rule 430A of the Rules and Regulations;
“Free Writing Prospectus” means any “free writing prospectus” as defined in Rule 405 under the
Securities Act relating to the Units; and “Issuer Free Writing Prospectus” means any “issuer free
writing prospectus” as defined in Rule 433 under the Securities Act relating to the Units. If the
Issuer has filed an abbreviated registration statement to register additional Component Securities
pursuant to Rule 462(b) under the Securities Act (the “Rule 462 Registration Statement”), then any
reference herein to the term “Registration Statement” shall be deemed to include such Rule 462
Registration Statement. For the purposes of this Agreement, the “Applicable Time”1 is
___:___ __m (Eastern time) on the date of this Agreement.
In consideration of the mutual agreements contained herein and of the interests of the parties
in the transactions contemplated hereby, the parties hereto agree as follows:
1. Representations and Warranties of the Issuer.
The Issuer represents and warrants to each of the Underwriters as follows:
(a) The Registration Statement has been filed with the Commission under the Securities Act and
has become effective under the Securities Act. No stop order suspending the effectiveness of such
registration statement is in effect, and no proceedings for such purpose are pending before or, to
the knowledge of the Issuer, threatened by the Commission. The Commission has not issued any order
preventing or suspending the use of any Preliminary Prospectus or any Issuer Free Writing
Prospectus. Copies of such registration statement and each of the amendments thereto have been
delivered by the Issuer to you. The Registration Statement conforms, and any further amendments or
supplements to the Registration Statement will conform, in all material respects to the
requirements of the Securities Act and the Rules and Regulations. The Prospectus and the Pricing
Prospectus each conforms and, as amended or supplemented, will conform, in all material respects to
the requirements of the Securities Act and the Rules and Regulations. As of the Effective Date,
the date hereof, the Closing Date (as
| 1 | Applicable Time is the time, shortly after the Units are priced, when the first sales are confirmed (whether orally or in writing). |
defined below) and each Option Closing Date (as defined below), if any, the Registration Statement
does not and will not, and any further amendments to the Registration Statement will not, when they
become effective, contain an untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not misleading; as of its
date and the date hereof, the Prospectus does not, and as amended or supplemented on the Closing
Date and each Option Closing Date, if any, will not, contain an untrue statement of a material fact
or omit to state a material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading; the Pricing Prospectus, as supplemented
by the Issuer Free Writing Prospectuses and other documents listed in Schedule II(a)
hereto, taken together with the final pricing information included on the cover page of the
Prospectus (collectively, the “Disclosure Package”), as of the Applicable Time did not include any
untrue statement of a material fact or omit to state any material fact necessary in order to make
the statements therein, in the light of the circumstances under which they were made, not
misleading; each Issuer Free Writing Prospectus listed on Schedule II(a) hereto does not
conflict with the information contained in the Registration Statement; and each such Issuer Free
Writing Prospectus listed on Schedule II(b) as supplemented by and taken together with the
Disclosure Package as of the Applicable Time, did not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in the
light of the circumstances under which they were made, not misleading; provided, however, that the
representations and warranties set forth in this sentence do not apply to statements or omissions
in the Registration Statement, the Prospectus, the Pricing Prospectus or any Issuer Free Writing
Prospectus or any such amendment or supplement in reliance upon and in conformity with written
information furnished to the Issuer by any Underwriter through Chardan Capital Markets, LLC
expressly for use therein, such information being listed in Section 13 below. The Issuer filed the
Registration Statement with the Commission before using any Issuer Free Writing Prospectus and, to
the extent within the Issuer’s control, each Issuer Free Writing Prospectus was preceded or
accompanied by the most recent Preliminary Prospectus satisfying the requirements of Section 10
under the Securities Act, which Preliminary Prospectus included an estimated price range.
(b) Each of the statements made by the Issuer in such documents within the coverage of Rule
175(b) of the Rules and Regulations, including (but not limited to) any projections, results of
operations or statements with respect to future available cash or future cash distributions of the
Issuer, was made or will be made with a reasonable basis and in good faith. Notwithstanding the
foregoing, this representation and warranty shall not apply to any statements or omissions made in
reliance upon and in conformity with written information concerning the Underwriters furnished to
the Issuer by or on behalf of any Underwriter specifically for inclusion in the Registration
Statement, the Pricing Prospectus or the Prospectus.
(c) This Agreement has been duly authorized, executed and delivered by the Issuer, and
constitutes a valid, legal, and binding obligation of the Issuer, enforceable in accordance with
its terms, except as rights to indemnity hereunder may be limited by federal or state securities
laws and except as such enforceability may be limited by bankruptcy, insolvency, reorganization or
similar laws affecting the rights of creditors generally, and subject to general principles of
equity. The Issuer has full power and authority to enter into this Agreement and to authorize,
issue and sell
the Units and each of the Component Securities (and the shares of Common Stock issuable upon
exercise of each of the Warrants) as contemplated by this Agreement.
(d) The Issuer has been duly organized and is validly existing as a corporation in good
standing under the laws of the State of Delaware, with corporate power and authority to own or
lease its properties and conduct its business as described in the Prospectus and the Disclosure
Package. Each of the subsidiaries of the Issuer, as listed in Exhibit 21 to Item 16(a) of the
Registration Statement (collectively, the “Subsidiaries”), has been duly organized and is validly
existing as a corporation in good standing under the laws of the jurisdiction of its incorporation,
with corporate power and authority to own or lease its properties and conduct its business as
described in the Prospectus and the Disclosure Package. The Subsidiaries are the only
subsidiaries, direct or indirect, of the Issuer required to be listed on Exhibit 21 to Item 16(a)
of the Registration Statement. The Issuer and each of the Subsidiaries are duly qualified to
transact business and are in good standing in all jurisdictions in which the conduct of their
business requires such qualification, except where the failure to be so qualified or to be in good
standing would not have a material adverse effect on the condition (financial or otherwise),
properties, assets, liabilities, rights, operations, earnings, business, or prospects of the Issuer
and its Subsidiaries taken as a whole, whether or not arising from transactions in the ordinary
course of business (a “Material Adverse Effect”). The outstanding shares of capital stock of each
of the Subsidiaries have been duly authorized and validly issued, are fully paid and non-assessable
and are wholly owned by the Issuer or another Subsidiary free and clear of all liens, encumbrances
and equities and claims; and no options, warrants or other rights to purchase, agreements or other
obligations to issue or other rights to convert any obligations into shares of capital stock or
ownership interests in the Subsidiaries are outstanding.
(e) The outstanding shares of Common Stock of the Issuer have been duly authorized and validly
issued and are fully paid and non-assessable; the Units and each of the Component Securities (and
shares of Common Stock underlying each of the Warrants) to be issued and sold by the Issuer have
been duly authorized and when issued and paid for as contemplated herein will be validly issued,
fully paid and non-assessable; and no preemptive rights of Shareholders exist with respect to any
of the Units or the issue and sale thereof or any of the Component Securities. Neither the filing
of the Registration Statement nor the offering or sale of the Units as contemplated by this
Agreement gives rise to any rights, other than those which have been waived or satisfied, for or
relating to the registration of any shares of Common Stock.
(f) The information set forth under the caption “Capitalization” in the Prospectus and the
Disclosure Package is true and correct. The Units and each Component Security conform to the
respective descriptions thereof contained in the Prospectus and the Disclosure Package. The form
of certificates for the Units and the Component Securities conforms to the corporate law of
Delaware. Immediately after the issuance and sale of the Units to the Underwriters, no shares of
Series A Preferred Stock of the Issuer shall be issued and outstanding that would cause the Issuer
not to be able to list its Units or Component Securities on AMEX (as defined below), and no holder
of any shares of capital stock, securities convertible into or exchangeable or exercisable for
capital stock or options, warrants or other rights to purchase capital stock or any other
securities of the Issuer shall have any existing or future right to acquire any
shares of Series A Preferred Stock of the Issuer. No holders of securities of the Issuer have
rights to the registration of such securities under the Registration Statement that have not been
waived.
(g) The consolidated financial statements of the Issuer and the Subsidiaries, together with
related notes and schedules as set forth in the Registration Statement, the Prospectus and the
Disclosure Package, present fairly the financial position and the results of operations and cash
flows of the Issuer and the consolidated Subsidiaries, at the indicated dates and for the indicated
periods. Such financial statements and related schedules have been prepared in accordance with
U.S. generally accepted principles of accounting (“GAAP”), consistently applied throughout the
periods involved, except as disclosed therein, and all adjustments necessary for a fair
presentation of results for such periods have been made; provided, however, that financial
statements that are unaudited are subject to normal year end adjustments and do not contain certain
footnotes required by GAAP. The summary financial and statistical data included in the
Registration Statement, the Prospectus and the Disclosure Package presents fairly the information
shown therein and such data has been compiled on a basis consistent with the financial statements
presented therein and the books and records of the Issuer. The statistical, industry-related and
market-related data included in the Registration Statement, the Prospectus and the Disclosure
Package are based on or derived from sources which the Issuer reasonably and in good faith believes
are reliable and accurate.
(h) The Issuer maintains a system of internal accounting controls sufficient to provide
reasonable assurances that (i) transactions are executed in accordance with management’s general or
specific authorization; (ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting principles and to maintain
accountability for assets; (iii) access to assets is permitted only in accordance with management’s
general or specific authorization; and (iv) the recorded accountability for assets is compared with
existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.
(i) To the Issuer’s knowledge, KMJ Xxxxxx & Company LLP, which has certified certain financial
statements of the Issuer and delivered its opinion with respect to the audited financial statements
and schedules included in the Registration Statement and the Prospectus, is an independent
registered public accounting firm with respect to the Issuer within the meaning of the Securities
Act and the Rules and Regulations.
(j) There is no action, suit, claim or proceeding pending or, to the knowledge of the Issuer,
threatened against the Issuer or any of the Subsidiaries before any court or administrative agency
or otherwise (1) that are required to be described in the Registration Statement, the Prospectus or
the Disclosure Package and are not so described or (2) which, if determined adversely to the Issuer
or any of its Subsidiaries, would be likely to have a Material Adverse Effect or prevent the
consummation of the transactions contemplated hereby, except as set forth in the Registration
Statement, the Prospectus and the Disclosure Package.
(k) No labor problem or dispute with the employees of the Issuer or the Subsidiaries exists
or, to the Issuer’s knowledge, is threatened, and the Issuer is not aware of any existing or
threatened labor disturbance by the employees of any of its or its Subsidiaries’
principal suppliers, contractors or customers, except for such problems, disputes or disturbances
that are not reasonably expected to have a Material Adverse Effect.
(l) The Issuer and the Subsidiaries have good and marketable title to all of the properties
and assets reflected in the financial statements (or as described in the Prospectus and the
Disclosure Package) hereinabove described, subject to no lien, mortgage, pledge, charge or
encumbrance of any kind except (i) those reflected in such financial statements (or as described in
the Prospectus and the Disclosure Package) or), (ii) which are not material in amount. The Issuer
and the Subsidiaries occupy their leased properties under valid and binding leases conforming in
all material respects to the description thereof set forth in the Prospectus and the Disclosure
Package.
(m) The Issuer and the Subsidiaries have filed all Federal, State, local and foreign tax
returns which have been required to be filed and have paid all taxes indicated by said returns and
all assessments received by them or any of them to the extent that such taxes have become due and
are not being contested in good faith and for which an adequate reserve for accrual has been
established in accordance with GAAP. All tax liabilities have been adequately provided for in the
financial statements of the Issuer to the extent required by GAAP, and the Issuer does not know of
any actual or proposed additional material tax assessments that are required by GAAP to be provided
for in such financial statements. There are no transfer taxes or other similar fees or charges
under Federal law or the laws of any state, or any political subdivision thereof, required to be
paid in connection with the execution and delivery of this Agreement or the issuance by the Issuer
or sale by the Issuer of the Units.
(n) Since the respective dates as of which information is given in the Registration Statement
and the Prospectus, as it may be amended or supplemented, there has not been any material adverse
change or, to the knowledge of the Company, any development involving a prospective change which
has had or is reasonably likely to have a Material Adverse Effect, whether or not occurring in the
ordinary course of business, and there has not been any material transaction entered into or any
material transaction that is probable of being entered into by the Issuer or the Subsidiaries,
other than transactions in the ordinary course of business and changes and transactions described
in the Prospectus and the Disclosure Package. The Issuer and the Subsidiaries have no material
contingent obligations that are not disclosed in the Issuer’s financial statements or otherwise in
the Registration Statement and the Prospectus.
(o) Neither the Issuer nor any of the Subsidiaries is or, with the giving of notice or lapse
of time or both, will be, in violation of or in default under its Certificate of Incorporation
(“Charter”) or By-Laws or any agreement, lease, contract, indenture or other instrument or
obligation to which it is a party or by which it, or any of its properties, is bound and which
violation or default has had or is reasonably likely to have a Material Adverse Effect which has
not been disclosed in the Registration Statement or Disclosure Package. The execution and delivery
of this Agreement and the consummation of the transactions herein contemplated and the fulfillment
of the terms hereof will not conflict with or result in a breach of any of the terms or provisions
of, or constitute a default under: (i) the Charter or By-Laws of the Issuer or (ii) any contract,
indenture, mortgage, deed of trust or other agreement or instrument to which the Issuer or any of
the Subsidiaries is a party, or any order, rule or regulation applicable to the Issuer or any of
the
Subsidiaries of any court or of any regulatory body or administrative agency or other governmental
body having jurisdiction.
(p) Each approval, consent, order, authorization, designation, declaration or filing by or
with any regulatory, administrative or other governmental body necessary in connection with the
execution and delivery by the Issuer of this Agreement and the consummation of the transactions
herein contemplated (except such additional steps as may be required by the Commission, the
Financial Institutions Regulatory Authority (“FINRA”) or such additional steps as may be necessary
to qualify the Units for public offering by the Underwriters under state securities or Blue Sky
laws or foreign laws) has been obtained or made and is in full force and effect.
(q) The Issuer and each of the Subsidiaries has all material licenses, certifications,
permits, franchises, approvals, clearances and other regulatory authorizations (“Permits”) from
governmental authorities as are necessary to conduct its businesses as currently conducted and to
own, lease and operate its properties in the manner described in the Prospectus and the Disclosure
Package. There is no claim, proceeding or controversy, pending or, to the knowledge of the Issuer
or any of the Subsidiaries, threatened, involving the status of or sanctions under any of the
Permits. The Issuer and each of the Subsidiaries has fulfilled and performed all of its material
obligations with respect to the Permits, and to the Issuer’s knowledge, no event has occurred which
allows, or after notice or lapse of time would allow, the revocation, termination, modification or
other impairment of the rights of the Issuer or any of the Subsidiaries under such Permit. None of
the Permits contains any restriction that is materially burdensome on the Issuer or any of its
Subsidiaries.
(r) To the Issuer’s knowledge, there are no affiliations or associations between any member of
FINRA and any of the Issuer’s officers, directors or 5% or greater security holders, except as set
forth in the Registration Statement.
(s) Neither the Issuer, nor to the Issuer’s knowledge, any of its affiliates, has taken,
directly or indirectly, any action designed to cause or result in, or which constitutes, the
stabilization or manipulation of the price of the shares of Common Stock to facilitate the sale or
resale of the Units.
(t) Neither the Issuer nor any of the Subsidiaries is an “investment company”
within the meaning of such term under the Investment Issuer Act of 1940, and the rules and
regulations of the Commission thereunder (collectively, the “1940 Act”).
(u) The Issuer and each of the Subsidiaries carry, or are covered by, insurance in such
amounts and covering such risks as is adequate for the conduct of their respective businesses and
the value of their respective properties and as is customary for companies engaged in similar
industries. All policies of insurance insuring the Issuer or any Subsidiary or any of their
respective businesses, assets, employees, officers and directors are in full force and effect, and
the Issuer and the Subsidiaries are in compliance with the terms of such policies in all material
respects. There are no claims by the Issuer or any Subsidiary under any such policy or instrument
as to which an insurance company is denying liability or defending under a reservation of rights
clause.
(v) The Issuer is in compliance in all material respects with all presently applicable
provisions of the Employee Retirement Income Security Act of 1974, as amended, including the
regulations and published interpretations thereunder (“ERISA”); no “reportable event” (as defined
in ERISA) has occurred with respect to any “pension plan” (as defined in ERISA) for which the
Issuer would have any liability; the Issuer has not incurred and does not expect to incur liability
under (i) Title IV of ERISA with respect to termination of, or withdrawal from, any “pension plan”
or (ii) Sections 412 or 4971 of the Internal Revenue Code of 1986, as amended, including the
regulations and published interpretations thereunder (the “Code”); and each “pension plan” for
which the Issuer would have any liability that is intended to be qualified under Section 401(a) of
the Code is so qualified in all material respects and nothing has occurred, whether by action or by
failure to act, which would cause the loss of such qualification.
(w) Other than as contemplated by this Agreement, the Issuer has not incurred any liability
for any finder’s or broker’s fee, or agent’s commission in connection with the execution and
delivery of this Agreement or the consummation of the transactions contemplated hereby.
(x) Other than the Subsidiaries, the Issuer does not own, directly or indirectly, any shares
of capital stock and does not have any other equity or ownership or proprietary interest in any
corporation, partnership, association, trust, limited liability company, joint venture or other
entity.
(y) There are no statutes, regulations, contracts or other documents (including, without
limitation, any voting agreement) that are required to be described in the Registration Statement,
the Prospectus or the Disclosure Package or to be filed as exhibits to the Registration Statement
that are not described or filed as required. Neither the Issuer nor any of the Subsidiaries has
sent or received any notice indicating the termination of or intention to terminate any of the
contracts or agreements referred to or described in the Registration Statement, Prospectus or the
Disclosure Package, or filed as an exhibit to the Registration Statement, and no such termination
has been threatened by the Issuer, any Subsidiary or, to our knowledge, any other party to any such
contract or agreement except for any terminations that would not have a Material Adverse Effect.
(z) Neither the Issuer nor any Subsidiary is in violation of any statute, any rule,
regulation, decision or order of any governmental agency or body or any court, domestic or foreign,
relating to the use, disposal or release of hazardous chemicals, toxic substances or radioactive
and biological materials or relating to the protection or restoration of the environment or human
exposure to hazardous chemicals, toxic substances or radioactive and biological materials
(collectively, “Environmental Laws”) which could reasonably be expected to have a Material Adverse
Effect. To the Issuer’s knowledge, neither the Issuer nor the Subsidiaries own or operate any real
property contaminated with any substance that is subject to any Environmental Laws, is liable for
any off-site disposal or contamination pursuant to any Environmental Laws, or is subject to any
claim relating to any Environmental Laws, which violation, contamination, liability or claim would
individually or in the aggregate have a Material
Adverse Effect; and the Issuer is not aware of any pending investigation which might lead to such a
claim.
(aa) No payments or inducements have been made or given, directly or indirectly, to any
federal or local official or candidate for, any federal or state office in the United States or
foreign offices by the Issuer or any Subsidiary, or to the Issuer’s knowledge, by any of their
officers, directors, employees, agents or any other person in connection with any opportunity,
contract, permit, certificate, consent, order, approval, waiver or other authorization relating to
the business of the Issuer or any Subsidiary, except for such payments or inducements as were
lawful under applicable laws, rules and regulations. Neither the Issuer nor any Subsidiary, nor,
to the knowledge of the Issuer, any director, officer, agent, employee or other person associated
with or acting on behalf of the Issuer or any Subsidiary, (i) has used any corporate funds for any
unlawful contribution, gift, entertainment or other unlawful expense relating to political
activity; (ii) made any direct or indirect unlawful payment to any government official or employee
from corporate funds; (iii) violated or is in violation of any provision of the Foreign Corrupt
Practices Act of 1977; or (iv) made any bribe, unlawful rebate, payoff, influence payment, kickback
or other unlawful payment in connection with the business of the Issuer or any Subsidiary.
(bb) The Issuer and each of the Subsidiaries owns, licenses, or otherwise has rights in all
United States and foreign patents, trademarks, service marks, tradenames, copyrights, trade secrets
and other proprietary rights necessary for the conduct of its respective business as currently
carried on and as proposed to be carried on as described in the Prospectus and the Disclosure
Package (collectively and together with any applications or registrations for the foregoing, the
“Intellectual Property”). Except as specifically described in the Prospectus and the Disclosure
Package, (i) no third parties have obtained rights to any such Intellectual Property from the
Issuer, other than licenses granted in the ordinary course and those that would not have a Material
Adverse Effect; (ii) to the Issuer’s knowledge, there is no infringement or misappropriation by
third parties of any such Intellectual Property; (iii) there is no pending or, to the Issuer’s
knowledge, overtly threatened action, suit, proceeding or claim by others challenging the Issuer’s
or any Subsidiary’s rights in or to any such Intellectual Property, and the Issuer is unaware of
any facts which would form a basis for any such claim; (iv) there is no pending or, to the Issuer’s
knowledge, overtly threatened action, suit, proceeding or claim by others challenging the validity,
enforceability, or scope of any such Intellectual Property; and the Issuer is unaware of any facts
which would form a basis for any such claim; (v) there is no pending or, to the Issuer’s knowledge,
overtly threatened action, suit, proceeding or claim by others that the Issuer or any of the
Subsidiaries, or any of the Issuer’s or its Subsidiaries’ products, product candidates, or
services, infringes, misappropriates, or otherwise violates, or that the development or
commercialization of the products, product candidates, or services described in the Prospectus and
the Disclosure Package, would infringe upon, misappropriate or otherwise violate, any patent,
trademark, copyright, trade secret or other proprietary right of others, and the Issuer is unaware
of any facts which would form a basis for any such claim; (vi) to the Issuer’s knowledge there is
no patent or patent application that contains claims that cover or may cover any Intellectual
Property described in the Prospectus or the Disclosure Package as being owned by or licensed to the
Issuer or any of the Subsidiaries or that is necessary for the conduct of their businesses as
currently or contemplated to be conducted or that interferes with the issued or pending claims of
any such Intellectual Property; (vii) there is no prior art or public or commercial activity of
which the Issuer is aware that may render any patent held by the Issuer or any of the Subsidiaries
invalid or any patent application held by the Issuer or any of the Subsidiaries unpatentable which
has not been disclosed to the U.S. Patent and Trademark Office; and (viii) neither Issuer nor its
Subsidiaries have committed any act or omitted to undertake any act the effect of such commission
or omission would render the Intellectual Property invalid or unenforceable in whole or in part.
None of the technology employed by the Issuer has been obtained or, to the Issuer’s knowledge, is
being used by the Issuer in violation of the rights of any person or third party.
(cc) The conduct of business by the Issuer and each of the Subsidiaries complies, and at all
times has complied, in all material respects with federal, state, local and foreign laws, statutes,
ordinances, rules, regulations, decrees, orders, Permits and other similar items (“Laws”)
applicable to its business, including, without limitation, (i) the Occupational Safety and Health
Act, the Environmental Protection Act, the Toxic Substance Control Act and similar federal, state,
local and foreign Laws applicable to hazardous or regulated substances and radioactive or biologic
materials and (ii) licensing and certification Laws covering any aspect of the business of the
Issuer or any of the Subsidiaries, including all export control laws of the United States
government. Neither the Issuer nor any of the Subsidiaries has received any notification
asserting, or has knowledge of, any present or past failure to comply with or violation of any such
Laws, except for violations that could not reasonably be expected to have a Material Adverse
Effect.
(dd) The information contained in the Registration Statement and the Prospectus
regarding the Issuer’s expectations, plans and intentions, and any other information that
constitutes “forward-looking” information within the meaning of the Securities Act and the
Securities Exchange Act of 1934, as a amended (the “Exchange Act”) were made by the Issuer
on a reasonable basis and reflect the Issuer’s good faith belief and/or estimate of the
matters described therein.
(ee) Any certificate signed by any officer of the Issuer pursuant to Section 6(f) and
delivered to the Representative or counsel for the Underwriters shall be deemed a representation
and warranty by the Issuer to each Underwriter and shall be deemed to be a part of this Section 1
and incorporated herein by this reference.
(ff) The Issuer is in compliance with all applicable provisions of the Xxxxxxxx-Xxxxx Act of
2002 (the “Xxxxxxxx-Xxxxx Act”) and is actively taking steps to ensure that it will be in
compliance with other provisions of the Xxxxxxxx-Xxxxx Act that will become applicable to the
Issuer.
(gg) The Issuer has established and maintains “disclosure controls and procedures” (as defined
in Rules 13a-15(e) and 15d-15(e) of the Exchange Act; except as otherwise set forth in the current
SEC reports filed under the Exchange Act, the Issuer’s “disclosure controls and procedures” are
reasonably designed to ensure that all information (both financial and non-financial) required to
be disclosed by the Issuer in the reports that it will file or furnish under the Exchange Act is
recorded, processed, summarized and reported within the time periods specified in the rules and
regulations of the Commission, and that all such
information is accumulated and communicated to the Issuer’s management as appropriate to allow
timely decisions regarding required disclosure and to make the certifications of the Chief
Executive Officer and Chief Financial Officer of the Issuer required under the Exchange Act with
respect to such reports.
(hh) There are no outstanding loans, advances (except normal advances for business expenses in
the ordinary course of business) or guarantees of indebtedness by the Issuer to or for the benefit
of any of the officers or directors of the Issuer or any of their respective family members, except
as disclosed in the Prospectus and the Disclosure Package. The Issuer has not directly or
indirectly extended or maintained credit, arranged for the extension of credit, or renewed an
extension of credit, in the form of a personal loan to or for any director or executive officer of
the Issuer.
(ii) The section entitled “Management’s Discussion and Analysis of Financial Condition and
Results of Operation — Critical Accounting Policies” in the Registration Statement, the Prospectus
and the Disclosure Package accurately and fully describes accounting policies which the Issuer
believes are the most important in the portrayal of the financial condition and results of
operations of the Issuer and its consolidated subsidiaries and which require management’s most
difficult, subjective or complex judgments.
(jj) Neither the Issuer nor any of its affiliates has, prior to the date hereof, made any
offer or sale of any securities which could be “integrated” for purposes of the Securities Act or
the rules and regulations promulgated thereunder with the offer and sale of the Units pursuant to
the Registration Statement. Except as disclosed in the Prospectus and the Disclosure Package,
neither the Issuer nor any of its affiliates has sold or issued any security during the six month
period preceding the date of the Prospectus, including but not limited to any sales pursuant to
Rule 144A or Regulation D or S under the Securities Act, other than shares of Common Stock issued
pursuant to employee benefit plans, qualified stock option plans or the employee compensation plans
or pursuant to outstanding options, rights or warrants as described in the Prospectus and the
Disclosure Package.
2. Purchase, Sale and Delivery of the Firm Securities.
(a) On the basis of the representations, warranties and covenants herein contained, and
subject to the conditions herein set forth, the Issuer agrees to sell to the Underwriters and each
Underwriter agrees, severally and not jointly, to purchase, at a price of $_____ per
Unit3, the number of Firm Securities set forth opposite the name of each Underwriter in
Schedule I hereof, subject to adjustments in accordance with Section 9 hereof.
(b) Payment for the Firm Securities to be sold hereunder is to be made in New York Clearing
House funds by Federal wire transfer (same day) against delivery of certificates therefor to the
Representative for the several accounts of the Underwriters. Such payment and delivery are to be
made through the facilities of the Depository Trust Company, New York, New York at 10:00 a.m., New
York time, on the third business day after the date of this Agreement or at such other time and
date not later than five business days thereafter as you and the Issuer shall agree
| 3 | 8.0% discount to public offering price. |
upon, such time and date being herein referred to as the “Closing Date.” As used herein, “business
day” means a day on which the New York Stock Exchange is open for trading and on which banks in New
York are open for business and are not permitted by law or executive order to be closed.
(c) In addition, on the basis of the representations and warranties herein contained and
subject to the terms and conditions herein set forth, the Issuer hereby grants an option to the
several Underwriters to purchase the Option Securities at the price per Unit as set forth in the
first paragraph of this Section. The option granted hereby may be exercised in whole or in part by
giving written notice (i) at any time before the Closing Date and (ii) only once thereafter within
45 days after the date of this Agreement, by you, as the Representative of the several
Underwriters, to the Issuer setting forth the number of Option Securities as to which the several
Underwriters are exercising the option, the names and denominations in which the Option Securities
are to be registered and the time and date at which such certificates are to be delivered. The
time and date at which certificates for Option Securities are to be delivered shall be determined
by the Representative but shall not be earlier than three nor later than 10 full business days
after the exercise of such option, nor in any event prior to the Closing Date (such time and date
being herein referred to as the “Option Closing Date”). If the date of exercise of the option is
three or more days before the Closing Date, the notice of exercise shall set the Closing Date as
the Option Closing Date. The number of Option Securities to be purchased by each Underwriter shall
be in the same proportion to the total number of Option Securities being purchased as the number of
Firm Securities being purchased by such Underwriter bears to the total number of Firm Securities,
adjusted by you in such manner as to avoid fractional shares. The option with respect to the
Option Securities granted hereunder may be exercised only to cover over-allotments in the sale of
the Firm Securities by the Underwriters. You, as the Representative of the several Underwriters,
may cancel such option at any time prior to its expiration by giving written notice of such
cancellation to the Issuer. To the extent, if any, that the option is exercised, payment for the
Option Securities shall be made on the Option Closing Date in Federal (same day funds) through the
facilities of the Depository Trust Company in New York, New York drawn to the order of the Issuer.
3. Offering by the Underwriters.
It is understood that the several Underwriters are to make a public offering of the Firm
Securities as soon as the Representative deems it advisable to do so. The Representative shall
advise them that it is advisable to do so as soon as the conditions in Section 6 have been
satisfied or waived. The Firm Securities are to be initially offered to the public at the initial
public offering price set forth in the Prospectus. The Representative may from time to time
thereafter change the public offering price and other selling terms upon prior notice to the
Issuer, and only subsequent to the Issuer filing a Prospectus Supplement with the Commission
describing such changed terms; provided, that such changes shall not affect the net offering
proceeds payable to the Issuer. To the extent, if at all, that any Option Securities are purchased
pursuant to Section 2 hereof, the Underwriters will offer them to the public on the foregoing
terms.
It is further understood that you will act as the Representative for the Underwriters in the
offering and sale of the Units in accordance with a Master Agreement Among Underwriters entered
into by you and the several other Underwriters. The Underwriters may engage members in
good standing of FINRA to act as selected dealers in connection with the sale of the Units. Such
selected dealers, if any, will be compensated solely by the Underwriters.
4. Covenants.
(a) The Issuer covenants and agrees with the several Underwriters that it will (i) prepare and
timely file with the Commission under Rule 424(b) of the Rules and Regulations a Prospectus in a
form approved by the Representative containing information previously omitted at the time of
effectiveness of the Registration Statement in reliance on Rule 430A of the Rules and Regulations;
(ii) not file any amendment to the Registration Statement or supplement to the Prospectus, any
Preliminary Prospectus or any Issuer Free Writing Prospectus of which Chardan Capital Markets, LLC
shall not previously have been advised and furnished with a copy or to which the Representative
shall have reasonably objected in writing or which is not in compliance with the Rules and
Regulations; and (iii) file on a timely basis all reports and any definitive proxy or information
statements required to be filed by the Issuer with the Commission subsequent to the date of the
Prospectus and prior to the termination of the offering of the Units by the Underwriters.
(b) The Issuer has not distributed and without the prior consent of Chardan Capital Markets,
LLC, it will not distribute any prospectus or other offering material (including, without
limitation, any offer relating to the Units that would constitute a Free Writing Prospectus and
content on the Issuer’s website that may be deemed to be a prospectus or other offering material)
in connection with the offering and sale of the Units, other than the materials referred to in
Section 1(a). Each Underwriter represents and agrees that it has not made and, without the prior
consent of the Issuer and Chardan Capital Markets, LLC, it will not make, any offer relating to the
Offered Securities that would constitute an Issuer Free Writing Prospectus. Any such Issuer Free
Writing Prospectus, the use of which has been consented to by the Issuer and Chardan Capital
Markets, LLC, is listed on Schedule II(a) or Schedule II(b) hereto. The Issuer has
complied and will comply with the requirements of Rule 433 under the Securities Act applicable to
any Issuer Free Writing Prospectus, including timely filing with the Commission or retention where
required and legending. The Issuer represents that it has satisfied and agrees that it will
satisfy the conditions under Rule 433 under the Securities Act to avoid a requirement to file with
the Commission any electronic road show. The Issuer agrees that if at any time following issuance
of an Issuer Free Writing Prospectus any event has occurred or occurs as a result of which such
Issuer Free Writing Prospectus would conflict with the information in the Registration Statement,
the Pricing Prospectus or the Prospectus or would include an untrue statement of a material fact or
omit to state any material fact necessary in order to make the statements therein, in light of the
circumstances then prevailing, not misleading, the Issuer will give prompt notice thereof to
Chardan Capital Markets, LLC and, if requested by Chardan Capital Markets, LLC, will prepare and
furnish without charge to each Underwriter an Issuer Free Writing Prospectus or other document
which will correct such conflict, statement or omission; provided, however, that this
representation and warranty shall not apply to any statements or omissions in an Issuer Free
Writing Prospectus made in reliance upon and in conformity with information furnished in writing to
the Issuer by an Underwriter through Chardan Capital Markets, LLC expressly for use therein.
(c) The Issuer will not take, directly or indirectly, any action designed to cause or result
in, or that constitutes, the stabilization or manipulation of the price of any securities of the
Issuer.
(d) The Issuer will advise the Representative promptly (i) when the Registration Statement or
any post-effective amendment thereto shall have become effective; (ii) of receipt of any comments
from the Commission; (iii) of any request of the Commission for amendment of the Registration
Statement or for supplement to the Prospectus or for any additional information; and (iv) of the
issuance by the Commission of any stop order suspending the effectiveness of the Registration
Statement or the use of the Prospectus or of the institution of any proceedings for that purpose.
The Issuer will use its best efforts to prevent the issuance of any such stop order preventing or
suspending the use of the Prospectus and to obtain as soon as possible the lifting thereof, if
issued. The Issuer will maintain the effectiveness of the Registration Statement (or shall file and
maintain the effectiveness of another registration statement on a suitable form) until all of the
Warrant Shares have been issued or all of the Warrants shall have been redeemed or have expired
unexercised, unless all non-Affiliated holders of Warrants may use cashless exercise to obtain
Warrant Shares and immediately resell them without restriction under Rule 144 or any successor
exemption from registration.
(e) The Issuer will cooperate with the Representative in endeavoring to qualify the Units for
sale under the securities laws of such jurisdictions as the Representative may reasonably have
designated in writing and will make such applications, file such documents, and furnish such
information as may be reasonably required for that purpose, provided the Issuer shall not be
required to qualify as a foreign corporation or to file a general consent to service of process in
any jurisdiction where it is not now so qualified or required to file such a consent. The Issuer
will, from time to time, prepare and file such statements, reports, and other documents, as are or
may be required to continue such qualifications in effect for so long a period as the
Representative may reasonably request for distribution of the Units.
(f) The Issuer will deliver to, or upon the order of, the Representative, from time to time,
as many copies of any Preliminary Prospectus as the Representative may reasonably request. The
Issuer will deliver to, or upon the order of, the Representative during the period when delivery of
a Prospectus is required under the Securities Act, as many copies of the Prospectus in final form,
or as thereafter amended or supplemented, as the Representative may reasonably request. The Issuer
will deliver to the Representative at or before the Closing Date, four signed copies of the
Registration Statement and all amendments thereto including all exhibits filed therewith, and will
deliver to the Representative such number of copies of the Registration Statement (including such
number of copies of the exhibits filed therewith that may reasonably be requested) and of all
amendments thereto, as the Representative may reasonably request.
(g) The Issuer will comply with the Securities Act and the Rules and Regulations, and the
Exchange Act, and the rules and regulations of the Commission thereunder, so as to permit the
completion of the distribution of the Units as contemplated in this Agreement and the Prospectus.
If during the period in which a prospectus is required by law to be delivered by an Underwriter or
dealer, any event shall occur as a result of which, in the judgment of the Issuer or in the
reasonable opinion of the Underwriters, it becomes necessary to amend or supplement the
Prospectus in order to make the statements therein, in the light of the circumstances existing at
the time the Prospectus is delivered to a purchaser, not misleading, or, if it is necessary at any
time to amend or supplement the Prospectus to comply with any law, the Issuer promptly will prepare
and file with the Commission an appropriate amendment to the Registration Statement or supplement
to the Prospectus so that the Prospectus as so amended or supplemented will not, in the light of
the circumstances when it is so delivered, be misleading, or so that the Prospectus will comply
with the law.
(h) The Issuer will make generally available to its security holders, as soon as it is
practicable to do so, but in any event not later than 15 months after the effective date of the
Registration Statement, an earnings statement (which need not be audited) in reasonable detail,
covering a period of at least 12 consecutive months beginning after the effective date of the
Registration Statement, which earning statement shall satisfy the requirements of Section 11(a) of
the Securities Act and Rule 158 of the Rules and Regulations and will advise you in writing when
such statement has been so made available.
(i) Prior to the Closing Date, the Issuer will furnish to the Underwriters, as soon as they
have been prepared by or are available to the Issuer, a copy of any unaudited interim financial
statements of the Issuer for any period subsequent to the period covered by the most recent
financial statements appearing in the Registration Statement and the Prospectus.
(j) The Issuer covenants and agrees that no offering, sale, short sale or other disposition of
any shares of Common Stock of the Issuer or other securities convertible into or exchangeable or
exercisable for shares of Common Stock or derivative of Common Stock (or any agreement for such)
will be made for a period of 180 days after the date of this Agreement (the “Restriction Period”),
directly or indirectly, by the Issuer otherwise than as contemplated hereunder or with the prior
written consent of Chardan Capital Markets, LLC; provided, however, that if (i) the Issuer issues
an earnings release or material news, or a material event relating to the Issuer occurs, during the
last 17 days of the Restriction Period, or (ii) prior to the expiration of the Restriction Period,
the Issuer announces that it will release earnings results during the 16-day period beginning on
the last day of the Restriction Period, the restrictions imposed hereunder shall continue to apply
until the expiration of the 18-day period beginning on the issuance of the earnings release or the
occurrence of the material news or material event. The foregoing will not apply to (A) equity
grants made to employees, consultants, officers or directors of the Issuer pursuant to employee
benefit plans described in the Prospectus and the Disclosure Package; (B) issuances pursuant to the
exercise or conversion of exercisable or convertible securities outstanding on the date of this
Agreement; or (C) issuances pursuant to this Agreement, including securities issuable in connection
with the Underwriters’ Warrants.
(k) The Issuer will use its best efforts to list, subject to notice of issuance, the Units and
each Component Security on the NYSE Amex (“Amex”). The Units will only be tradable as Units (and
not the Component Securities separately) for a period of 90 calendar days after the Closing Date;
except with the express prior written consent of the Representative. Following the giving of any
such written consent, the Issuer shall issue a press release and file a Form 8-K disclosing the
date on which the Component Securities will begin to trade separately on
the Amex. The Issuer shall take all steps to notify Amex and any depositary for the Units of such
separate trading date.
(l) The Issuer has caused each officer, director and stockholder set forth on Schedule
III attached hereto, to furnish to you, on or prior to the date of this Agreement, letter
agreements, in form and substance satisfactory to the Underwriters, pursuant to which each such
person shall agree not to offer, sell, sell short or otherwise dispose of any shares of Common
Stock of the Issuer or other capital stock of the Issuer, or any other securities convertible,
exchangeable or exercisable for Common Stock or derivative of Common Stock, except as set forth on
Schedule III attached hereto owned by such person for a period of 180 days after the date of this
Agreement, except with the prior written consent of Chardan Capital Markets, LLC (“Lockup
Agreements”).
(m) The Issuer intends to apply the net proceeds of its sale of the Units as described under
the heading “Use of Proceeds” in the Prospectus and the Disclosure Package and shall file reports
with the Commission with respect to the sale of the Units and the application of the proceeds
therefrom as may be required in accordance with Rule 463 under the Securities Act.
(n) The Issuer shall not invest, or otherwise use the proceeds received by the Issuer from its
sale of the Units in such a manner as would require the Issuer or any of the Subsidiaries to
register as an investment company under the 0000 Xxx.
(o) The Issuer will maintain a transfer agent and, if necessary under the jurisdiction of
incorporation of the Issuer, a registrar for the Units, the Common Stock, and upon separation of
the Units, the Class H Warrants and the Class I Warrants.
(p) The Issuer hereby agrees to issue and sell to the Underwriters (and/or their designees)
Closing Date Share Purchase Options (“Underwriters’ Warrants”) for the purchase of an aggregate of
Shares [5% of the Firm Securities] for an aggregate purchase price of $100.00. The
Underwriters’ Warrants in the form attached hereto as Exhibit A shall be exercisable, in
whole or in part, commencing one (1) year after the Closing Date and expiring five (5) years after
the Effective Date at an exercise price per Share of $ , which is equal to 125% of the
public offering price of the Units. The Underwriters understand and agree that there are
significant restrictions pursuant to FINRA Rule 5110 against transferring the Underwriters’
Warrants and the Shares issuable upon exercise thereof during the first 180 days after the issuance
date and by their acceptance thereof shall agree that they will not, sell, transfer, assign, pledge
or hypothecate the Underwriters’ Warrants, or any portion thereof, or be the subject of any
hedging, short sale, derivative, put or call transaction that would result in the effective
economic disposition of any of such securities for a period of 180 days following the date of
effectiveness of the Registration Statement to anyone other than (i) a selected dealer in
connection with the offering contemplated hereby, or (ii) a bona fide officer or partner of the
Underwriters or of any such selected dealer; and only if any such transferee agrees to the
foregoing lock-up restrictions, or (iii) as expressly permitted by FINRA Rule 5110(g)(2). The
Underwriters’ Warrants shall be registered on the Registration Statement, and shall have one demand
and unlimited piggyback registration rights thereafter as needed permit to the exercise of the
Underwriters’ Warrants.
Delivery and payment for the Underwriter’s Warrants shall be made on the Closing Date and
shall be issued in the name or names and in such authorized denominations as the Representative may
request upon at least three business days’ prior notice to the Issuer.
5. Costs and Expenses.
The Issuer will pay all costs, expenses and fees incident to the performance of the
obligations of the Issuer under this Agreement, including, without limiting the generality of the
foregoing, the following: accounting fees of the Issuer; the fees and disbursements of counsel for
the Issuer; the cost of printing and delivering to, or as requested by, the Underwriters copies of
the Registration Statement, Preliminary Prospectuses, the Pricing Prospectus, any Issuer Free
Writing Prospectus, the Prospectus, the Underwriters’ Selling Memorandum and the Underwriters’
Invitation Letter, if any, the Listing Application, the Blue Sky Survey and any supplements or
amendments thereto; transfer and warrant agent fees; any transfer taxes; the cost of “tombstone”
advertising in the Wall Street Journal and the New York Times; the filing fees of the Commission;
the filing fees and expenses (including legal fees and disbursements) incident to securing any
required review by FINRA of the terms of the sale of the Units; the Listing Fee of the Amex and the
expenses, including the fees and disbursements of counsel for the Underwriters up to a maximum
amount of $25,000, incurred in connection with the qualification of the Units under State
securities or Blue Sky laws. The Issuer also agrees to pay all costs and expenses of the
Underwriters, including the fees and disbursements of counsel for the Underwriters, incident to the
offer and sale of directed Units by the Underwriters to employees and persons having business
relationships with the Issuer and any of the Subsidiaries, if any.
The Issuer shall also pay a non-accountable expense allowance equal to 2.5% of the gross
offering price to the public, plus up to $25,000 of the Underwriters’ actual road show expenses
plus the fees and expense of the Underwriters’ counsel, but not to exceed the sum of $125,000 in
any event. The Issuer shall not, however, be required to pay for any of the Underwriters other
expenses (other than those related to qualification under FINRA Rule 5110 and State securities or
Blue Sky laws as stated above) except that, if this Agreement shall not be consummated because the
conditions in Section 6 hereof are not satisfied, or because this Agreement is terminated by the
Representative pursuant to Section 11 hereof, or by reason of any failure, refusal or inability on
the part of the Issuer to perform any undertaking or satisfy any condition of this Agreement or to
comply with any of the terms hereof on its part to be performed, unless such failure to satisfy
said condition or to comply with said terms be due to the default or omission of any Underwriter,
then the Issuer shall reimburse the several Underwriters for their reasonable out-of-pocket
expenses, including all fees and disbursements of counsel, reasonably incurred in connection with
investigating, marketing and proposing to market the Units or in contemplation of performing their
obligations hereunder, in an amount not to exceed $125,000; but the Issuer shall not in any event
be liable to any of the several Underwriters for damages on account of loss of anticipated profits
from the sale by them of the Units.
6. Conditions of Obligations of the Underwriters.
The several obligations of the Underwriters to purchase the Firm Securities on the Closing
Date and the Option Securities, if any, on the Option Closing Date are subject to the
accuracy, as of the Closing Date and the Option Closing Date, if any, of the representations and
warranties of the Issuer contained herein, and to the performance by the Issuer of its covenants
and obligations hereunder and to the following additional conditions:
(a) The Registration Statement and all post-effective amendments thereto shall have become
effective and any and all filings required by Rule 424 and Rule 430A of the Rules and Regulations
shall have been made, and any request of the Commission for additional information (to be included
in the Registration Statement or otherwise) shall have been disclosed to the Representative and
complied with to their reasonable satisfaction. All material required to be filed by the Issuer
pursuant to Rule 433(d) under the Securities Act shall have been filed with the Commission within
the applicable time period prescribed for such filing by Rule 433 under the Securities Act; if the
Issuer has elected to rely upon Rule 462(b) under the Securities Act, the Rule 462(b) Registration
Statement shall have become effective by 10:00 P.M., Washington, D.C. time, on the date of this
Agreement. No stop order suspending the effectiveness of the Registration Statement, as amended
from time to time, shall have been issued and no proceedings for that purpose shall have been taken
or, to the knowledge of the Issuer, shall be contemplated by the Commission; no stop order
suspending or preventing the use of the Pricing Prospectus, Prospectus or any Issuer Free Writing
Prospectus shall have been initiated or, to the knowledge of the Issuer, shall be contemplated by
the Commission; all requests for additional information on the part of the Commission shall have
been complied with to your reasonable satisfaction; and no injunction, restraining order, or order
of any nature by a Federal or state court of competent jurisdiction shall have been issued as of
the Closing Date which would prevent the issuance of the Units.
(b) The Representative shall have received on the Closing Date and each Option Closing Date,
if any, the opinions of LKP Global Law, LLP, counsel for the Issuer dated the Closing Date or the
Option Closing Date, if any, addressed to the Underwriters to the effect as set forth on Schedule
IV.
(c) The Representative shall have received from Xxxxxxxxx Xxxxx LLP, counsel for the
Underwriters, an opinion dated the Closing Date and the Option Closing Date, if any, with respect
to the formation of the Issuer, the validity of the Units and each Component Security and other
related matters as the Representative reasonably may request, and such counsel shall have received
such papers and information as they request to enable them to pass upon such matters. The
Representative shall endeavor in good faith to obtain such opinion.
(d) The Representative shall have received at or prior to the Closing Date from Law Offices of
Xxxxxx Xxxxxx a memorandum or summary, in form and substance satisfactory to the Representative,
with respect to the qualification for offering and sale by the Underwriters of the Units under the
State securities or Blue Sky laws of such jurisdictions as the Representative may reasonably have
designated to the Issuer. The Representative shall endeavor in good faith to obtain such
memorandum.
(e) You shall have received, on each of the dates hereof, the Closing Date and the Option
Closing Date, if any, a letter dated the date hereof, the Closing Date or the Option
Closing Date, if any, in form and substance satisfactory to you, of KMJ Xxxxxx & Company, LLP
confirming that they are independent public accountants within the meaning of the Securities Act
and the applicable published Rules and Regulations thereunder and stating that in their opinion the
financial statements and schedules examined by them and included in the Registration Statement
comply in form in all material respects with the applicable accounting requirements of the
Securities Act and the related published Rules and Regulations; and containing such other
statements and information as is ordinarily included in accountants’ “comfort letters” to
Underwriters with respect to the financial statements and certain financial and statistical
information contained in the Registration Statement and the Prospectus.
(f) The Representative shall have received on the Closing Date and the Option Closing Date, if
any, a certificate or certificates of the Issuer’s Chief Executive Officer and Chief Financial
Officer to the effect that, as of the Closing Date or the Option Closing Date, if any, each of them
severally represents as follows:
(i) The Registration Statement has become effective under the Securities Act and, to the
knowledge of such officer, no stop order suspending the effectiveness of the Registrations
Statement has been issued, and no proceedings for such purpose have been taken or are, to his
knowledge, contemplated by the Commission;
(ii) The representations and warranties of the Issuer contained in Section 1 hereof are true
and correct as of the Closing Date or the Option Closing Date, if any;
(iii) All filings required to have been made pursuant to Rules 424 or 430A under the
Securities Act have been made;
(iv) They have carefully examined the Registration Statement and the Prospectus and, to their
knowledge, as of the effective date of the Registration Statement and as of the Closing Date (or
Option Closing Date, as applicable), such Registration Statement and Prospectus did not contain any
untrue statement of any material fact and did not omit to state a material fact required to be
stated therein or necessary in order to make the statements therein not misleading, and, to their
knowledge, since the effective date of the Registration Statement, no event has occurred which
should have been set forth in a supplement to or an amendment of the Prospectus which has not been
so set forth in such supplement or amendment; and
(v) Since the respective dates as of which information is given in the Disclosure Package, (1)
there has not been any material adverse change or any development involving a prospective change,
which has had or is reasonably likely to have a Material Adverse Effect, whether or not arising in
the ordinary course of business; (2) neither the Issuer nor any of its subsidiaries shall have
sustained any loss or interference with its business from fire, explosion, flood or other calamity,
whether or not covered by insurance, or from any labor dispute or court or governmental action,
order or decree, otherwise than as set forth or contemplated in the Disclosure Package, and (3)
there shall not have been any change in the capital stock (other than issuances of capital stock in
the ordinary course of business pursuant to the Issuer’s employee benefit plans) or long-term debt
of the Issuer or any of the Subsidiaries.
(g) The Issuer shall have furnished to the Representative such further certificates and
documents confirming the representations and warranties, covenants and conditions contained herein
and related matters as the Representative may reasonably have requested.
(h) The Firm Securities and Option Securities, if any, shall have been approved for
designation upon notice of issuance on Amex.
(i) The Lockup Agreements described in Section 4(l) shall have been executed by the respective
parties.
The opinions and certificates mentioned in this Agreement shall be deemed to be in compliance
with the provisions hereof only if they are in all material respects reasonably satisfactory to the
Representative and to Xxxxxxxxx Xxxxx LLP, counsel for the Underwriters.
If any of the conditions hereinabove provided for in this Section shall not have been
fulfilled when and as required by this Agreement to be fulfilled, the obligations of the
Underwriters hereunder may be terminated by the Representative.
In such event, the Issuer and the Underwriters shall not be under any obligation to each other
(except to the extent provided in Sections 5 and 8 hereof).
7. Conditions of the Obligations of the Issuer.
The obligations of the Issuer to sell and deliver the portion of the Units required to be
delivered as and when specified in this Agreement are subject to the conditions that at the Closing
Date or the Option Closing Date, if any, no stop order suspending the effectiveness of the
Registration Statement shall have been issued and in effect or proceedings therefor initiated or
threatened.
8. Indemnification.
(a) The Issuer agrees:
(i) to indemnify and hold harmless each Underwriter and each person, if any, who controls such
Underwriter within the meaning of Section 15 of the Securities Act, against any losses, claims,
damages or liabilities to which such Underwriter or any such controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) arise out of or are based upon (i) any untrue statement
or alleged untrue statement of any material fact contained in (A) the Registration Statement, any
Preliminary Prospectus, the Pricing Prospectus, the Prospectus or any amendment or supplement
thereto, (B) any Issuer Free Writing Prospectus or any “issuer information” filed or required to be
filed pursuant to Rule 433(d) under the Securities Act or (ii) the omission or alleged omission to
state therein a material fact required to be stated therein or necessary to make the statements
therein not misleading, or (iii) any alleged act or failure to act by any Underwriter in connection
with, or relating in any manner to, the Units or the offering contemplated hereby, and which is
included as part of or referred to in any loss, claim, damage,
liability or action arising out of or based upon matters covered by clause (i) or (ii) above
(provided, however, that the Issuer shall not be liable under this clause (iii) to the extent that
it is determined in a final judgment by a court of competent jurisdiction that such loss, claim,
damage, liability or action resulted directly from any such acts or failures to act undertaken or
omitted to be taken by such Underwriter through its gross negligence or willful misconduct);
provided, however, that the Issuer will not be liable in any such case to the extent that any such
loss, claim, damage or liability arises out of or is based upon an untrue statement or alleged
untrue statement, or omission or alleged omission made in the Registration Statement, any
Preliminary Prospectus, Pricing Prospectus, the Prospectus, or such amendment or supplement, or any
Issuer Free Writing Prospectus or any “issuer information” filed or required to be filed pursuant
to Rule 433(d) under the Securities Act in reliance upon and in conformity with written information
furnished to the Issuer by or through the Representative specifically for use in the preparation
thereof, such information being listed in Section 13 below.
(ii) to reimburse each Underwriter and each such controlling person upon demand for any legal
or other out-of-pocket expenses reasonably incurred by such Underwriter or such controlling person
in connection with investigating or defending any such loss, claim, damage or liability, action or
proceeding or in responding to a subpoena or governmental inquiry related to the offering of the
Units, whether or not such Underwriter or controlling person is a party to any action or
proceeding. In the event that it is finally judicially determined that the Underwriters were not
entitled to receive payments for legal and other expenses pursuant to this subparagraph, the
Underwriters will promptly return all sums that had been advanced pursuant hereto.
(b) Each Underwriter severally and not jointly will indemnify and hold harmless the Issuer,
each of its directors, each of its officers who have signed the Registration Statement and each
person, if any, who controls the Issuer within the meaning of Section 15 of the Securities Act,
against any losses, claims, damages or liabilities to which the Issuer or any such director,
officer, or controlling person may become subject under the Securities Act or otherwise, insofar as
such losses, claims, damages or liabilities (or actions or proceedings in respect thereof) arise
out of or are based upon (i) any untrue statement or alleged untrue statement of any material
fact contained in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus,
the Prospectus or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus
(ii) the omission or the alleged omission to state therein a material fact required to be stated
therein or necessary to make the statements therein not misleading in the light of the
circumstances under which they were made; and will reimburse any legal or other expenses reasonably
incurred by the Issuer or any such director, officer, or controlling person in connection with
investigating or defending any such loss, claim, damage, liability, action or proceeding; provided,
however, that each Underwriter will be liable in each case to the extent, but only to the extent,
that such untrue statement or alleged untrue statement or omission or alleged omission has been
made in the Registration Statement, any Preliminary Prospectus, the Pricing Prospectus, the
Prospectus or any amendment or supplement thereto, or in any Issuer Free Writing Prospectus in
reliance upon and in conformity with written
information furnished to the Issuer by or through the Representative specifically for use in the
preparation thereof, such information being listed in Section 13 below.
(c) In case any proceeding (including any governmental investigation) shall be instituted
involving any person in respect of which indemnity may be sought pursuant to this Section, such
person (the “indemnified party”) shall promptly notify the person against whom such indemnity may
be sought (the “indemnifying party”) in writing. No indemnification provided for in Section 8(a)
or (b) shall be available to any party who shall fail to give notice as provided in this Subsection
if the party to whom notice was not given was unaware of the proceeding to which such notice would
have related and was materially prejudiced by the failure to give such notice. In case any such
proceeding shall be brought against any indemnified party and it shall notify the indemnifying
party of the commencement thereof, the indemnifying party shall be entitled to participate therein
and, to the extent that it shall wish, jointly with any other indemnifying party similarly
notified, to assume the defense thereof, with counsel reasonably satisfactory to such indemnified
party and shall pay as incurred the fees and disbursements of such counsel related to such
proceeding. In any such proceeding, any indemnified party shall have the right to retain its own
counsel at its own expense. Notwithstanding the foregoing, the indemnifying party shall pay as
incurred (or within 30 days of presentation) the fees and expenses of the counsel retained by the
indemnified party in the event (i) the indemnifying party and the indemnified party shall have
mutually agreed to the retention of such counsel, (ii) the named parties to any such proceeding
(including any impleaded parties) include both the indemnifying party and the indemnified party and
representation of both parties by the same counsel would be inappropriate due to actual or
potential differing interests between them or (iii) the indemnifying party shall have failed to
assume the defense and employ counsel reasonably acceptable to the indemnified party within a
reasonable period of time after notice of commencement of the action.
It is understood that the indemnifying party shall not, in connection with any proceeding or
related proceedings in the same jurisdiction, be liable for the reasonable fees and expenses of
more than one separate firm for all such indemnified parties. Such firm shall be designated in
writing by you in the case of parties indemnified pursuant to Section 8(a) and by the Issuer in the
case of parties indemnified pursuant to Section 8(b). The indemnifying party shall not be liable
for any settlement of any proceeding effected without its written consent but if settled with such
consent or if there be a final judgment for the plaintiff, the indemnifying party agrees to
indemnify the indemnified party from and against any loss or liability by reason of such settlement
or judgment. In addition, the indemnifying party will not, without the prior written consent of
the indemnified party, settle or compromise or consent to the entry of any judgment in any pending
or threatened claim, action or proceeding of which indemnification may be sought hereunder (whether
or not any indemnified party is an actual or potential party to such claim, action or proceeding)
unless such settlement, compromise or consent includes an unconditional release of each indemnified
party from all liability arising out of such claim, action or proceeding.
(d) If the indemnification provided for in this Section is unavailable to or insufficient to
hold harmless an indemnified party under Section 8(a) or (b) above in respect of any losses,
claims, damages or liabilities (or actions or proceedings in respect thereof) referred to therein,
then each indemnifying party shall contribute to the amount paid or payable by such indemnified
party as a result of such losses, claims, damages or liabilities (or actions or proceedings
in respect thereof) in such proportion as is appropriate to reflect the relative benefits received
by the Issuer on the one hand and the Underwriters on the other from the offering of the Units.
If, however, the allocation provided by the immediately preceding sentence is not permitted by
applicable law then each indemnifying party shall contribute to such amount paid or payable by such
indemnified party in such proportion as is appropriate to reflect not only such relative benefits
but also the relative fault of the Issuer on the one hand and the Underwriters on the other in
connection with the statements or omissions which resulted in such losses, claims, damages or
liabilities, (or actions or proceedings in respect thereof), as well as any other relevant
equitable considerations. The relative benefits received by the Issuer on the one hand and the
Underwriters on the other shall be deemed to be in the same proportion as the total net proceeds
from the offering (before deducting expenses) received by the Issuer bear to the total underwriting
discounts and commissions received by the Underwriters, in each case as set forth in the table on
the cover page of the Prospectus. The relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or the omission or
alleged omission to state a material fact relates to information supplied by the Issuer on the one
hand or the Underwriters on the other and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Issuer and the Underwriters agree that it would not be just and equitable if contributions
pursuant to this Subsection were determined by pro rata allocation (even if the Underwriters were
treated as one entity for such purpose) or by any other method of allocation which does not take
account of the equitable considerations referred to above in this Subsection. The amount paid or
payable by an indemnified party as a result of the losses, claims, damages or liabilities (or
actions or proceedings in respect thereof) referred to above in this Subsection shall be deemed to
include any legal or other expenses reasonably incurred by such indemnified party in connection
with investigating or defending any such action or claim. Notwithstanding the provisions of this
Subsection, (i) no Underwriter shall be required to contribute any amount in excess of the
underwriting discounts and commissions applicable to the Units purchased by such Underwriter and
(ii) no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. The Underwriters’ obligations in this Subsection to contribute are
several in proportion to their respective underwriting obligations and not joint.
(e) In any proceeding relating to the Registration Statement, any Preliminary Prospectus, the
Pricing Prospectus, the Prospectus or any supplement or amendment thereto, or any Issuer Free
Writing Prospectus, each party against whom contribution may be sought under this Section hereby
consents to the jurisdiction of any court having jurisdiction over any other contributing party,
agrees that process issuing from such court may be served upon him or it by any other contributing
party and consents to the service of such process and agrees that any other contributing party may
join him or it as an additional defendant in any such proceeding in which such other contributing
party is a party.
(f) Any losses, claims, damages, liabilities or expenses for which an indemnified party is
entitled to indemnification or contribution under this Section shall be paid by the indemnifying
party to the indemnified party as such losses, claims, damages, liabilities or expenses are
incurred. The indemnity and contribution agreements contained in this Section and the
representations and warranties of the Issuer set forth in this Agreement shall remain operative and
in full force and effect, regardless of (i) any investigation made by or on behalf of any
Underwriter or any person controlling any Underwriter, the Issuer, its directors or officers or any
persons controlling the Issuer, (ii) acceptance of any Units and payment therefor hereunder, and
(iii) any termination of this Agreement. A successor to any Underwriter, or to the Issuer, its
directors or officers, or any person controlling the Issuer, shall be entitled to the benefits of
the indemnity, contribution and reimbursement agreements contained in this Section.
9. Default by Underwriters.
If on the Closing Date or the Option Closing Date, if any, any Underwriter shall fail to
purchase and pay for the portion of the Units which such Underwriter has agreed to purchase and pay
for on such date (otherwise than by reason of any default on the part of the Issuer), you, as the
Representative of the Underwriters, shall use your reasonable efforts to procure within 36 hours
thereafter one or more of the other Underwriters, or any others, to purchase from the Issuer such
amounts as may be agreed upon and upon the terms set forth herein, the Firm Securities or Option
Securities, as the case may be, which the defaulting Underwriter or Underwriters failed to
purchase. If during such 36 hours you, as such Representative, shall not have procured such other
Underwriters, or any others, to purchase the Firm Securities or Option Securities, as the case may
be, agreed to be purchased by the defaulting Underwriter or Underwriters, then (a) if the
aggregate number of Units with respect to which such default shall occur does not exceed 10% of the
Firm Securities or Option Securities, as the case may be, covered hereby, the other Underwriters
shall be obligated, severally, in proportion to the respective numbers of Firm Securities or Option
Securities, as the case may be, which they are obligated to purchase hereunder, to purchase the
Firm Securities or Option Securities, as the case may be, which such defaulting Underwriter or
Underwriters failed to purchase, or (b) if the aggregate number of Units of Firm Securities or
Option Securities, as the case may be, with respect to which such default shall occur exceeds 10%
of the Firm Securities or Option Securities, as the case may be, covered hereby, the Issuer or you
as the Representative of the Underwriters will have the right to terminate this Agreement without
liability on the part of the non-defaulting Underwriters or of the Issuer except to the extent
provided in Section 8 hereof. In the event of a default by any Underwriter or Underwriters, as set
forth in this Section, the Closing Date or Option Closing Date, if any, may be postponed for such
period, not exceeding seven days, as you, as Representative, may determine in order that the
required changes in the Registration Statement or in the Prospectus or in any other documents or
arrangements may be effected. The term “Underwriter” includes any person substituted for a
defaulting Underwriter. Any action taken under this Section shall not relieve any defaulting
Underwriter from liability in respect of any default of such Underwriter under this Agreement.
10. Notices.
All communications hereunder shall be in writing and, except as otherwise provided herein,
will be mailed, delivered, or faxed and confirmed as follows:
| if to the Underwriters, to | Chardan Capital Markets, LLC | |||||
| 00 Xxxxx Xxxxxx, Xxxxx 0000 | ||||||
| Xxx Xxxx, XX 00000 | ||||||
| Attention: | ||||||
| Fax: (000) 000-0000 | ||||||
| if to the Issuer, to | ||||||
| T3 Motion, Inc. | ||||||
| 0000 Xxxxxx Xxxxxx, Xxxxxxxx X | ||||||
| Xxxxx Xxxx, XX 00000 | ||||||
| Attention: | Ki Nam | |||||
| Chief Executive Officer | ||||||
| Fax: (000) 000-0000 | ||||||
11. Termination.
(a) This Agreement may be terminated by you at any time prior to the Closing Date if any of
the following has occurred: (i) since the respective dates as of which information is given in the
Registration Statement and the Prospectus, any material adverse change or any development involving
a prospective change, which (A) in the reasonable discretion of any group of Underwriters (which
may include Chardan Capital Markets, LLC) that has agreed to purchase in the aggregate at least 50%
of the Firm Securities, as long as Chardan Capital Markets, LLC does not affirmatively assert that
termination should not occur, or (B) in the reasonable discretion of Chardan Capital Markets, LLC
(whether or not the condition of clause (A) is satisfied) has had or is reasonably likely to have a
Material Adverse Effect, (ii) any outbreak, attack, or escalation of hostilities or declaration of
war, national emergency, act of terrorism or other national or international calamity or crisis or
change in economic, financial or political conditions if the effect of such outbreak, escalation,
declaration, emergency, calamity, crisis or change on the financial markets of the United States
would, in (A) the reasonable discretion of any group of Underwriters (which may include Chardan
Capital Markets, LLC) that has agreed to purchase in the aggregate at least 50% of the Firm
Securities, as long as Chardan Capital Markets, LLC does not affirmatively assert that termination
should not occur, or (B) in the reasonable discretion of Chardan Capital Markets, LLC (whether or
not the condition of clause (A) is satisfied), make it impracticable or inadvisable to market the
Units or to enforce contracts for the sale of the Units, or (iii) suspension of trading in
securities generally on the New York Stock Exchange or the Amex or limitation on prices (other than
limitations on hours or numbers of days of trading) for securities on either such Exchange, (iv)
the enactment, publication, decree or other promulgation of any statute, regulation, rule or order
of any court or other governmental authority which in your opinion materially and adversely affects
or is reasonably likely to materially and adversely affect the business or operations of the
Issuer, (v) declaration of a banking moratorium by United States or New York State authorities,
(vi) the
suspension of trading of the Issuer’s common stock by the Amex, the Over the Counter Bulletin
Board, the Commission, or any other governmental authority or, (vii) the taking of any action by
any governmental body or agency in respect of its monetary or fiscal affairs which in your
reasonable opinion has a material adverse effect on the securities markets in the United States; or
(b) as provided in Sections 6 and 9 of this Agreement.
12. Successors.
This Agreement has been and is made solely for the benefit of the Issuer and Underwriters and
their respective successors, executors, administrators, heirs and assigns, and the officers,
directors and controlling persons referred to herein, and no other person will have any right or
obligation hereunder. No purchaser of any of the Units from any Underwriter shall be deemed a
successor or assign merely because of such purchase.
13. Information Provided by Underwriters.
The Issuer and the Underwriters acknowledge and agree that the only information
furnished or to be furnished by any Underwriter to the Issuer for inclusion in any Preliminary
Prospectus, Prospectus, Issuer Free Writing Prospectus or the Registration Statement consists of
the information under the caption “Underwriting and Plan of Distribution” in the Prospectus
consisting of information regarding the identity of the Underwriters, the discounts, commissions,
fees and other agreements relating to the compensation of the Underwriters and the regulation of
overallotments, stabilization and penalty bids, including the information set forth in the last
three paragraphs of in such section (i.e., the “Underwriting and Plan of Distribution” portion of
the Prospectus).
14. Research Independence
In addition, the Issuer acknowledges that the Underwriters’ research analysts and research
departments are required to be independent from their respective investment banking divisions and
are subject to certain regulations and internal policies, and that such Underwriters’ research
analysts may hold and make statements or investment recommendations and/or publish research reports
with respect to the Issuer and/or the offering that differ from the views of its investment
bankers. The Issuer hereby waives and releases, to the fullest extent permitted by law, any claims
that the Issuer may have against the Underwriters with respect to any conflict of interest that may
arise from the fact that the views expressed by their independent research analysts and research
departments may be different from or inconsistent with the views or advice communicated to the
Issuer by such Underwriters’ investment banking divisions. The Issuer acknowledges that each of
the Underwriters is a full service securities firm and as such from time to time, subject to
applicable securities laws, may effect transactions for its own account or the account of its
customers and hold long or short position in debt or equity securities of the companies which may
be the subject to the transactions contemplated by this Agreement.
15. No fiduciary duty
Notwithstanding any preexisting relationship, advisory or otherwise, between the parties or
any oral representations or assurances previously or subsequently made by the underwriters, the
Issuer acknowledges and agrees that:
(a) nothing herein shall create a fiduciary or agency relationship between the Issuer and the
Underwriters;
(b) the Underwriters are not acting as advisors, expert or otherwise, to the Issuer
in connection with this offering, sale of the Units or any other services the Underwriters may be
deemed to be providing hereunder, including, without limitation, with respect to the public
offering price of the Units;
(c) the relationship between the Issuer and the Underwriters is entirely and solely
commercial, based on arms-length negotiations;
(d) any duties and obligations that the Underwriters may have to the Issuer shall be limited
to those duties and obligations specifically stated herein; and
(e) notwithstanding anything in this Underwriting Agreement to the contrary, the Issuer
acknowledges that the Underwriters may have financial interests in the success of the Offering that
are not limited to the difference between the price to the public and the purchase price paid to
the Issuer by the Underwriters for the Units and the Underwriters have no obligation to disclose,
or account to the Issuer for, any of such additional financial interests.
The Issuer hereby waives and releases, to the fullest extent permitted by law, any claims that
the Issuer may have against the Underwriters with respect to any breach or alleged breach of
fiduciary duty.
16. Miscellaneous.
The reimbursement, indemnification and contribution agreements contained in this Agreement and
the representations, warranties and covenants in this Agreement shall remain in full force and
effect regardless of (a) any termination of this Agreement, (b) any investigation made by or on
behalf of any Underwriter or controlling person thereof, or by or on behalf of the Issuer or its
directors or officers and (c) delivery of and payment for the Units under this Agreement.
This Agreement may be executed in counterparts, each of which shall be deemed an original, but
all of which together shall constitute one and the same instrument.
This Agreement shall be governed by, and construed in accordance with, the laws of the State
of New York. The Issuer and the Underwriters hereby irrevocably waive, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby.
This Agreement constitutes the entire agreement of the parties to this Agreement and
supersedes all prior written or oral and all contemporaneous oral agreements, understandings and
negotiations with respect to the subject matter hereof.
This Agreement may only be amended or modified in writing, signed by all of the parties
hereto, and no condition herein (express or implied) may be waived unless waived in writing by each
party whom the condition is meant to benefit.
[remainder of page intentionally blank]
If the foregoing letter is in accordance with your understanding of our agreement, please sign
and return to us the enclosed duplicates hereof, whereupon it will become a binding agreement among
the Issuer and the several Underwriters in accordance with its terms.
| Very truly yours, T3 MOTION, INC. |
||||
| By | ||||
| Ki Nam | ||||
| Chief Executive Officer | ||||
The foregoing Underwriting Agreement is hereby confirmed
and accepted as of the date first above written.
and accepted as of the date first above written.
CHARDAN CAPITAL MARKETS, LLC
As the Representative of the several
Underwriters listed on Schedule I
Underwriters listed on Schedule I
By: Chardan Capital Markets, LLC
By:
|
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Name:
|
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Title:
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