SUBSCRIPTION AGREEMENT
Name
of Subscriber:
Xxxxx
Technologies, Inc.
000
Xxxxxxxx, 0xx Xxxxx
Xxx
Xxxx,
Xxx Xxxx 00000
Ladies
and Gentlemen:
1. Subscription.
I (sometimes
referred to herein as the “Investor”) hereby subscribe for and agree to purchase
[ ] Unit(s) (as defined below) of Xxxxx Technologies, Inc, a Delaware
corporation (the “Company”), on the terms and conditions described herein and in
the Private Placement Memorandum of the Company and the Exhibits thereto
(collectively, the “Offering Documents”), each dated ________, 2007, together
with all supplements, if any, relating to this offering. Terms not defined
herein are as defined in the Offering Documents. The purchase price per Unit
is
$1,000,000. The Maximum Offering is $30,000,000, or 30
Units. There is no Minimum Offering. The Company reserves
the right to accept fractional Units.
THE
AGGREGATE AMOUNT
SUBSCRIBED FOR HEREBY IS $[ ]
2. Description
of Units.Each Unit consists
of 500,000 shares of common stock of the Company.
3. Purchase;
Registration Rights.
(a) I
hereby
tender to the Company cash or a check or wire transfer (information to be
provided to me on my request) made payable to the order of Xxxxx Technologies,
Inc. in the amount indicated above, an executed copy of this Subscription
Agreement and an executed copy of my Investor Questionnaire. The wire
information is:
Send
to:
Regions Bank, 8th
Floor,
0000 Xxxxx xx Xxxx Xxxx, Xxxxx Xxxxxx, XX, 00000.
ABA#:
000000000
SWIFT:
XXXXXX00XXX
For
further credit to: Global Bank of Commerce, Ltd, Account#
0902214071
SWIFT
XXXXXXXX
For
final
credit to: Xxxxx Technologies Inc, Account # 000-000-00.
1
(b) This
offering will continue until the
earlier of (a) the sale of 30 Units or (b) ___________, 2007, unless extended
without notice by the Company to no later than ___________, 2007 (the
“Termination Date”). Upon the earlier of a closing for my
subscription or completion of the offering, I will be notified promptly by
the
Company as to whether my subscription has been accepted by the
Company.
(c) REGISTRATION
RIGHTS.
i. The
Company hereby grants to the holders of the Units (collectively, the “Holders”),
based on upon the Registration Rights Agreement set forth in Schedule A annexed
hereto, a one time demand registration right and “piggy-back” registration
rights to register the shares of common stock included in the Units (the
“Unit
Shares”). The Company upon notice by the Holders will as promptly as
practicable and in no event later than eight (8) weeks of such notice, prepare
and file with the Securities and Exchange Commission (“SEC”) a registration
statement under the Securities Act of 1933, as amended (the “Act”) covering the
resale of the Unit Shares and use its best efforts to cause such registration
statement to become effective as soon as practicable thereafter.
4. Acceptance
or Rejection of
Subscription.
(a) I
understand and agree that the Company reserves the right to reject this
subscription for the Units, in whole or in part, for any reason and at any
time
prior to the Closing, notwithstanding prior receipt by me of notice of
acceptance of my subscription.
(b) In
the event of the rejection of this
subscription, my subscription payment will be promptly returned to me without
interest or
deduction and this Subscription Agreement shall have no force or effect.
In the
event my subscription is accepted and the offering is completed, the funds
specified above shall be released to the Company.
5. Closing.
The closing ("Closing") of this
offering may occur any time and from time to time by the Company prior to
the
Termination Date. There is no Minimum Offering. The Units
subscribed for herein shall not be deemed issued to or owned by me until
one
copy of this Subscription Agreement has been executed by me and countersigned
by
the Company and the Closing with respect to such Units has
occurred.
6. Disclosure.
Because this offering is limited to
accredited investors as defined in Section 2(15) of
the Securities Act of 1933, as
amended (the “Securities Act”), and Rule 501 promulgated thereunder, in reliance
upon the exemption contained in Section 4(2) of the Securities Act and
applicable state securities laws, the Units are being sold without registration
under the Securities Act. I acknowledge receipt of the Offering Documents
and
all related documents and represent that I have carefully reviewed and
understand the Offering Documents and its exhibits. I have received all
information and materials regarding the Company that I have requested.
2
I
fully understand that the Company has
a limited financial and operating history and that the Units are speculative
investments, which involve a high degree of risk of the loss of my entire
investment. I fully understand the nature of the risks involved in purchasing
the Units and I am qualified by my knowledge and experience to evaluate
investments of this type. I have carefully considered the potential risks
relating to the Company and purchase of its Units and have, in particular,
reviewed each of the risks set forth in the Offering Documents. Both my
advisors
and I have had the opportunity to ask questions of and receive answers
from
representatives of the Company or persons acting on its behalf concerning
the
Company and the terms and conditions of a proposed investment in the Company
and
my advisors and I have also had the opportunity to obtain additional information
necessary to verify the accuracy of information furnished about the Company.
Accordingly, I have independently evaluated the risks of purchasing the
Units.
7. Investor
Representations and Warranties. I acknowledge, represent
and warrant
to, and agree with, the Company as follows:
(a) I
am
aware that my investment involves a high degree of risk as disclosed in the
Offering Documents and have read carefully the Offering Documents.
(b) I
acknowledge
and am aware that there is no assurance
as to the future performance of the Company.
(c) I
acknowledge that there may be certain
adverse tax consequences to me in connection with my purchase of Units, and
the
Company has advised me to seek the advice of experts in such areas prior
to
making this investment.
(d) I
am purchasing the Units for my own
account for
investment purposes and not with a view to or for sale in connection with
the
distribution of the Units or the shares of common stock, nor with any present
intention of selling or otherwise disposing of all or any part of the foregoing
securities. I agree that I must bear the entire economic risk of my investment
for an indefinite period of time because, among other reasons, the Units
have
not been registered under the Securities Act or under the securities laws
of any
state and, therefore, cannot be resold, pledged, assigned or otherwise disposed
of unless they are subsequently registered under the Securities Act and under
applicable securities laws of certain states or an exemption from such
registration is available. Furthermore, I hereby acknowledge and agree that
I
will not sell, transfer, pledge, encumber, give or otherwise dispose of,
either
publicly or privately, the Units or the shares of common stock. I hereby
authorize the Company to place a legend denoting the restrictions on the
Units
that may be issued to me, as well as the shares of common
stock.
(e) Except
as described in my Investor
Questionnaire, I am not a member of the National Association of Securities
Dealers, Inc. (“NASD”); I am not and have not, for a period of 12 months prior
to the date of this Subscription Agreement, been affiliated or associated
with
any company, firm, or other entity which is a member of the NASD; and I do
not
own any stock or other interest in any member of the NASD (other than interests acquired
in open market
purchases).
3
(f) I
recognize that the Units, as an
investment, involve a high degree of risk including, but not limited to,
the
risk of economic losses from operations of the Company and the total
loss of my investment.
I
believe that the investment in the Units is suitable for me based upon my
investment objectives and financial needs, and I have adequate means for
providing for my current financial needs and contingencies and have no need
for
liquidity with respect to my investment in the Company.
(g) I
have been given access to full and
complete information regarding the Company and have utilized such access
to my
satisfaction for the purpose of obtaining information in addition to, or
verifying information included in, the Offering Documents and
related documents, and
I have
either met with or been given reasonable opportunity to meet with officers of the
Company for
the purpose of asking questions of, and receiving answers from, such officers
concerning the terms and conditions of the offering of the Units and the
business and operations of the Company and to obtain any additional information,
to the extent reasonably available.
(h) I
have such knowledge and experience in
financial and business matters as to be capable of evaluating the merits
and
risks of an investment in the Units and have obtained, in my judgment,
sufficient information from the Company to evaluate the merits and risks
of an
investment in the Company. I have not utilized any person as my purchaser
representative as defined in Regulation D under the Securities Act in connection
with evaluating such merits and risks.
(i) I
have relied solely upon my own
investigation in making a decision to invest in the Company.
(j) I
have received no representation or
warranty from the Company or any of its officers, directors, employees or
agents
in respect of my investment in the Company and I have received no information (written
or otherwise)
from them relating to the Company or its business other than as set forth
in the
Offering Documents. I am not participating in the offer as a result of or
subsequent to: (i) any advertisement, article, notice or other communication
published in any newspaper, magazine or similar media or broadcast over
television or radio or (ii) any seminar or meeting whose attendees have been
invited by any general solicitation or general advertising.
(k) I
have had full opportunity to ask
questions and to receive satisfactory answers concerning the offering and other
matters
pertaining to my investment and all such questions have been answered to
my full
satisfaction.
(l) I
have been provided an opportunity to
obtain any additional information concerning the offering and the Company and
all other
information to the extent the Company possesses such information or can acquire
it without unreasonable effort or expense.
4
(m) I
am an "accredited investor" as defined
in Section 2(15) of the Securities Act and in Rule 501 promulgated thereunder.
I
can bear the entire economic risk of the investment in the Units for an
indefinite period of time and I am knowledgeable about and experienced in
investments in the equity securities of non-publicly traded companies,
including early stage
companies. I am acquiring the Units for my own account for investment purposes
only and not with a view to the resale or distribution of such securities
within
the meaning of the Securities Act of 1933, as amended. I am not acting as
an
underwriter or a conduit for sale to the public or to others of unregistered
securities, directly or indirectly, on behalf of the Company or any person
with
respect to such securities.
(n) I
understand that (1) the Units and the
underlying securities have not been registered under the Securities Act,
or the
securities laws of certain states in reliance on specific exemptions from
registration, (2) no securities administrator of any state or the federal
government has recommended or endorsed this offering or made any finding
or
determination relating to the fairness of an investment in the Company and
(3)
the Company is relying on my representations and agreements for the purpose
of
determining whether this transaction meets the requirements of the exemptions
afforded by the Securities Act and certain state securities
laws.
(o) I
understand that (1) since neither the
offer nor sale of the Units has been registered under the Securities Act
or the securities laws
of
any state, the Units may not be sold, assigned, pledged or otherwise disposed
of
unless they are so registered or an exemption from such registration is
available, and (2) it is not anticipated that there will be any market for
the
resale of the Units.
(p) I
have been urged to seek independent
advice from my professional advisors relating to the suitability
of an investment in
the Company in view of my overall financial needs and with respect to the
legal
and tax implications of such investment.
(q) If
the Investor is a corporation,
company, trust, employee benefit plan, individual retirement account, Xxxxx Plan,
or other
tax-exempt entity, it is authorized and qualified to become an Investor in
the
Company and the person signing this Subscription Agreement on behalf of such
entity has been duly authorized by such entity to do so.
(r) The
information contained in my Investor
Questionnaire, as well as any information which I have furnished to the Company
with respect to my financial position and business experience, is correct
and complete as
of the date of this Subscription Agreement and, if there should be any material
change in such information prior to the Closing of the offering, I will furnish
such revised or corrected information to the Company. I hereby acknowledge
and
am aware that except for any rescission rights that may be provided under
applicable laws, I am not entitled to cancel, terminate or revoke this
subscription, and any agreements made in connection herewith shall survive
my
death or disability.
5
8. Indemnification.
I hereby agree to indemnify and hold
harmless the Company and its officers, directors, stockholders, employees,
agents, and counsel against any and all losses, claims, demands, liabilities,
and expenses (including reasonable legal or other expenses, including reasonable
attorneys’ fees) incurred by each such person in connection with defending or
investigating any such claims or liabilities, whether or not resulting in
any
liability to such person, to which any such indemnified party may become
subject
under the Securities Act, under any other statute, at common law or otherwise,
insofar as such losses, claims, demands, liabilities and expenses (a) arise
out
of or are based upon any untrue statement or alleged untrue statement of
a
material fact made by me and contained in this Subscription Agreement or
my
Investor Questionnaire, or (b) arise out of or are based upon any breach
by me
of any representation, warranty, or agreement made by me contained herein
or
therein.
9. Severability.
In the event any parts of this
Subscription Agreement are found to be void, the remaining provisions of
this
Subscription Agreement shall nevertheless be binding with the same effect
as
though the void parts were deleted.
10. Choice
of Law and Jurisdiction.
This Subscription Agreement shall be governed by the laws of the State of
Floridaas
applied to contracts entered into and
to be performed entirely within the State of Florida.
Any action arising out of this
Subscription Agreement shall be brought exclusively in a court of competent
jurisdiction in Broward
County, Florida,
and the parties hereby irrevocably
waive any objections they may have to venue in Broward County,
Florida.
11. Counterparts.This
Subscription Agreement may be
executed in one or more counterparts, each of which shall be deemed an original
but all of which together shall constitute one and the same instrument. The
execution of this Subscription Agreement may be by actual or facsimile
signature.
12. Benefit.
This Subscription Agreement shall be
binding upon and inure to the benefit of the parties hereto.
13. Notices
and Addresses. All notices,
offers, acceptance and any other acts under this Subscription Agreement (except
payment) shall be in writing, and shall be sufficiently given if delivered
to
the addresses in person, by Federal Express or similar courier delivery or
by
facsimile delivery, as follows:
Investor:
|
At
the address designated on the
signature page of this Subscription Agreement.
|
The
Company:
|
Xxxxx
Technologies,
Inc.
000
Xxxxxxxx, 0xx Xxxxx
Xxx
Xxxx, Xxx Xxxx 00000
|
or
to such other address as any of them,
by notice to the others may designate from time to time. The transmission
confirmation receipt from the sender's facsimile machine shall be conclusive
evidence of successful facsimile delivery. Time shall be counted to, or from,
as
the case may be, the delivery in person or by mailing.
14. Entire
Agreement. This
Subscription Agreement constitutes the entire agreement between the parties
with
respect to the subject matter hereof and supersedes all prior oral and written
agreements between the parties hereto with respect to the subject matter
hereof.
This Subscription Agreement may not be changed, waived, discharged, or
terminated orally but, rather, only by a statement in writing signed by the
party or parties against which enforcement or the change, waiver, discharge
or
termination is sought.
6
15. Section
Headings. Section headings
herein have been inserted for reference only and shall not be deemed to limit
or
otherwise affect, in any matter, or be deemed to interpret in whole or in
part,
any of the terms or provisions of this Subscription
Agreement.
16. Survival
of Representations, Warranties and Agreements. The representations,
warranties and
agreements contained herein shall survive the delivery of, and the payment for,
the Units.
17. Acceptance
of Subscription. The
Company may accept this Subscription Agreement at any time for all or any
portion of the Units subscribed for by executing a copy hereof as provided
and
notifying me within a reasonable time thereafter.
RESIDENTS
OF
ALL STATES:
THE
UNITS OFFERED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS
OF ANY STATE OR OTHER JURISDICTION AND ARE BEING OFFERED AND SOLD IN RELIANCE
ON
EXEMPTIONS FROM THE REGISTRATION REQUIREMENTS OF SAID ACT AND SUCH LAWS.
THE
UNITS ARE SUBJECT TO REGISTRATIONS ON TRANSFERABILITY AND RESALE AND MAY
NOT BE
TRANSFERRED OR RESOLD EXCEPT AS PERMITTED UNDER SAID ACT AND SUCH LAWS PURSUANT
TO REGISTRATION OR EXEMPTION THEREFROM. INVESTORS SHOULD BE AWARE THAT THEY
WILL
BE REQUIRED TO BEAR THE FINANCIAL RISKS OF THIS INVESTMENT FOR AN INDEFINITE
PERIOD OF TIME. THE UNITS HAVE NOT BEEN APPROVED OR DISAPPROVED BY THE
SECURITIES AND EXCHANGE COMMISSION, ANY STATE SECURITIES COMMISSION OR OTHER
REGULATORY AUTHORITY, NOR HAVE ANY OF THE FOREGOING AUTHORITIES PASSED UPON
OR
ENDORSED THE MERITS OF THIS OFFERING OR THE ACCURACY OR ADEQUACY OF THE OFFERING
DOCUMENTS. ANY REPRESENTATION TO THE CONTRARY IS UNLAWFUL.
RESIDENTS
OF
FLORIDA: EACH
FLORIDA RESIDENT WHO SUBSCRIBES FOR THE PURCHASE OF SECURITIES HEREIN HAS
THE
RIGHT, PURSUANT TO SECTION 517.061(11)(A)(5) OF THE FLORIDA SECURITIES ACT,
TO
WITHDRAW HIS SUBSCRIPTION FOR THE PURCHASE AND RECEIVE A FULL REFUND OF ALL
MONIES PAID WITHIN THREE BUSINESS DAYS AFTER THE EXECUTION OF THE SUBSCRIPTION
AGREEMENT OR PAYMENT FOR THE PURCHASE HAS BEEN MADE, WHICHEVER IS
LATER.
7
WITHDRAWAL
WILL BE WITHOUT ANY FURTHER
LIABILITY TO ANY PERSON. TO ACCOMPLISH THIS WITHDRAWAL, A SUBSCRIBER
NEED ONLY SEND A LETTER OR TELEGRAM TO THE COMPANY AT THE ADDRESS SET FORTH
IN
THIS CONFIDENTIAL PRIVATE PLACEMENT MEMORANDUM INDICATING HIS INTENTION TO
WITHDRAW.
SUCH
LETTER OR TELEGRAM SHOULD BE SET
AND POSTMARKED PRIOR TO THE END OF THE AFOREMENTIONED THIRD BUSINESS
DAY. IT IS ADVISABLE TO SEND SUCH LETTER BY CERTIFIED MAIL, RETURN
RECEIPT REQUESTED, TO ENSURE THAT IT IS RECEIVED AND ALSO TO EVIDENCE THE
TIME
IT WAS MAILED. IF THE REQUEST IS MADE ORALLY, IN PERSON OR BY
TELEPHONE TO AN OFFICER OF THE COMPANY, A WRITTEN CONFIRMATION THAT THE REQUEST
HAS BEEN RECEIVED SHOULD BE REQUESTED.
8
Manner
in Which Title is to be
Held. (check one)
|
|
___
Individual
Ownership
|
|
___
Community
Property
|
|
___
Joint Tenant with Right of
Survivorship (both parties must sign)
|
|
___
Partnership
|
|
___
Tenants in
common
|
|
X Corporation
|
|
___
Trust
|
|
___
XXX or
Xxxxxx
|
|
___
Other (please
indicate)
|
|
Dated:______________________
|
|
INDIVIDUAL
INVESTORS
|
ENTITY
INVESTORS
|
____________________________
|
Name
of entity, if
any
|
____________________________
|
|
Signature(Individual)
|
By:
|
*Signature
|
|
____________________________ |
Its: ________________________
|
Signature
(Joint)
|
Title: _______________________
|
(all
record holders must
sign)
|
|
____________________________ | ____________________________ |
Name(s)
Typed or
Printed
|
Name
Typed or
Printed
|
____________________________ | ____________________________ |
____________________________ | ____________________________ |
____________________________ | ____________________________ |
Address
to Which
Correspondence
|
Address
to Which
Correspondence
|
Should
be
Directed
|
Should
be
Directed
|
____________________________ | ____________________________ |
City,
State and Zip
Code
|
City,
State and Zip
Code
|
____________________________ | ____________________________ |
Tax
Identification
or
|
Tax
Identification
or
|
Social
Security
Number
|
Social
Security
Number
|
|
*
|
If
Units are being subscribed for
by any entity, the Certificate of Signatory on the next page must
also be
completed
|
The
foregoing subscription is accepted
and the Company hereby agrees to be bound by its terms.
Xxxxx
Technologies,
INC.
|
|
Dated:
|
By:_____________________
|
Name:
|
|
Its:
|
9
CERTIFICATE
OF
SIGNATORY
(To
be completed if Units are being
subscribed for by an entity)
I,
|
the
Director
|
|
(name
of
signatory)
|
(title)
|
|
of
|
(“Entity”), a
Corporation
|
|
(name
of
entity)
|
(type
of
entity)
|
|
hereby
certify that I am empowered and
duly authorized by the Entity to execute the Subscription Agreement and to
purchase the Units, and certify further that the Subscription Agreement has
been
duly and validly executed on behalf of the Entity and constitutes a legal
and
binding obligation of the Entity.
IN
WITNESS WHEREOF, I have set my hand
this ______ day of _____________ 2007.
__________________________________
(Signature)
10
ACCREDITED
INVESTOR
QUESTIONNAIRE
Purpose
of this
Questionnaire
The
Units (the “Units”), consisting of
500,000 shares of common stock of Xxxxx Technologies, Inc., a Delaware
corporation (the “Company”), are being offered under the Securities Act of 1933,
as amended (the “1933 Act”), or the securities laws of any state, in reliance on
the exemptions contained in Sections 4(2) and 4(6) and Regulation D Rule
506 of
the 1933 Act and on similar exemptions under applicable state laws. Under
Sections 4(2) and 4(6) and Regulation D Rule 506 and/or certain state laws,
the
Company may be required to determine that an individual, or an individual
together with a “purchaser representative” or each individual equity owner of an
investing entity meets certain suitability requirements before selling the
Units
to such individual or entity. THE COMPANY MAY, AT ITS ELECTION, NOT SELL
UNITS
TO A SUBSCRIBER WHO HAS NOT COMPLETELY FILLED OUT THIS QUESTIONNAIRE. This
Questionnaire does not constitute an offer to sell or a solicitation of an
offer
to buy the Units or any other security.
Instructions
One
(1) copy of this Questionnaire
should be completed, signed, dated, and delivered to Xxxxx Technologies,
Inc.,
000 Xxxxxxxx, 0xx Xxxxx, Xxx Xxxx, Xxx Xxxx 00000.
Please
Answer All
Questions
If
the appropriate answer is “None” or
“Not Applicable,” so state. Please print or type your answers to all questions.
Attach additional sheets if necessary to complete your answers to any
item.
Your
answers will be kept strictly
confidential at all times; however, the Company may present this Questionnaire
to such parties as it deems appropriate, including its counsel, in order
to
assure itself that the offer and sale of the Units will not result in a
violation of the registration provisions of the 1933 Act or a violation of
the
securities laws of any state.
(1)
Please provide the following
personal information:
Name: _________________________________________________________ Age:
________________________
Residence
Address
(including
zip code):
_______________________________________________
Telephone
Numbers:
Residence: ______________________________________________________ Business:
____________________
11
(2)
Please describe your present
or
most recent business or occupation and indicate such information as the nature
of your employment, the principal business of your employer, the principal
activities under your management or supervision, and the scope (e.g., dollar
volume, industry rank, etc.) of such activities.
(3)
|
Please
provide the following
information concerning your financial
experience.
|
3.1
Indicate by check xxxx which
of
the following categories best describes the extent of your prior experience
in
the areas of investment listed below:
Substantial
Experience
|
Limited
Experience
|
No
Experience
|
|
Marketable
Securities
|
|||
Private
Placements
|
|||
Limited
Partnerships
|
|||
Initial
Public
Offerings
|
3.2
Indicate by check xxxx whether
or
not you maintain any of the following types of accounts over which you, rather
than a third party, exercise investment discretion, and the length of time
you
have maintained each type of account.
Securities
(cash)
Yes
_________ No _______
Number
of
years
____________
Securities
(margin)
Yes
_______
No _______
Number
of
years
____________
(4)
I am an accredited investor
(as
defined in Rule 501(a) of Reg. D) because (check each appropriate
description):
|
_____
|
I
am a natural person whose
individual net worth, or joint net worth with my spouse, exceeds
$1,000,000.
|
|
_____
|
I
am a natural person who had
individual income exceeding $200,000 in each of the two most recent
years
or joint income with my spouse exceeding $300,000 in each of those
years
and I have a reasonable expectation of reaching the same income
level in
the current year.
|
|
_____
|
I
am a broker-dealer registered
pursuant to Section 15 of the Securities Exchange Act of
1934.
|
12
|
_____
|
I
am an organization described in
Section 501(c)(3) of the Internal Revenue Code, not formed for
the
specific purpose of acquiring the Units, with total assets exceeding
$5,000,000.
|
|
_____
|
I
am a corporation, Massachusettsor
similar business trust or
partnership, not formed for the specific purpose of acquiring the
Units,
with total assets exceeding
$5,000,000.
|
|
_____
|
I
am a trust, not formed for the
specific purpose of acquiring the Units, with total assets exceeding
$5,000,000 and whose purchase is directed by a "sophisticated person,"
as
defined in Rule 506(b)(2)(ii) of Reg.
D.
|
|
(For
the purposes of this
questionnaire, a "sophisticated person" means any person who has
such
knowledge and experience in financial and business matters that
he or she
is capable of evaluating the merits and risks of
the prospective
investment.)
|
|
_____
|
I
am an employee benefit plan
within the meaning of the Employee Retirement Income Security Act
of 1974
and (i) investment decisions for such plan are made by a plan fiduciary,
as defined in Section 3(21) of such Act, which is a bank, savings
and loan
association, insurance company or registered investment advisor
or (ii)
such plan has total assets exceeding $5,000,000 or (iii) if a self
directed plan, investment decisions are made solely by accredited
investors.
|
|
_____
|
I
am an entity in which all of the
equity owners are accredited
investors.
|
|
_____
|
I
am an accredited investor for
the following reasons:
|
(5)
Check, if
appropriate:
|
_____
|
I
hereby represent and warrant
that I have such knowledge and experience in financial and business
matters that I am capable of evaluating the merits and risks of
any
prospective investment in the
Company.
|
(6)
If you did not check the box
to
Question 5, please answer the following additional
questions:
6.1
Please describe any pre-existing
personal or business relationship that you have with the Company or any of
its
officers and directors.
13
6.2
Please describe any business
or
financial experience that you have had that would allow the Company to
reasonably conclude that you are capable of protecting your interests in
connection with your prospective investment in the Company. If none, so
state.
6.3
If your answer to Question
6.2
above was "None," in order to evaluate the merits and risks of the investment,
will you be relying upon the advice of any other person(s) who will be acting
as
your purchaser representative(s)?
Yes
_____
No _____
If
"yes," please identify each such
person and indicate his business address and telephone number in the space
below
(each such person must complete, and you must review and acknowledge, a separate
purchaser representative questionnaire which will be supplied at your request
and which must be returned to the Company prior to the sale of any Units
to
you).
(7)
By signing this Questionnaire,
I
hereby confirm the following statements:
I
am aware that the offering of the
Units will involve securities for which no market currently exists, thereby
requiring any investment to be maintained for an indefinite period of time,
and
I have no need to liquidate the investment.
I
acknowledge that any delivery to me of
any documentation relating to the Units prior to the determination by the
Company of my suitability as an investor shall not constitute an offer of
the
Units until such determination of suitability shall be made, and I agree
that I
shall promptly return all such documentation to the Company upon
request.
Neither
I nor any of my associates or
affiliates: (i) are a member or a person associated with a member firm of
the
NASD, (ii) own any stock or other securities of any NASD member, or (iii)
made
subordinated loans to any NASD member.
My
answers to the foregoing questions
are true and complete to the best of my information and belief, and I will
promptly notify the Company of any changes in the information I have
provided.
I
also understand and agree that,
although the Company will use its best efforts to keep the information provided
in answers to this Questionnaire strictly confidential, the Company may present
this Questionnaire and the information provided in answers to it to such
parties
as it may deem advisable if called upon to establish the availability under
any
federal or state securities laws of an exemption from registration of the
private placement or if the contents thereof are relevant to any issue in
any
action, suit, or proceeding to which the Company is a party or by which it
or
they are or may be bound.
14
I
realize that this Questionnaire does
not constitute an offer by the Company to sell the Units but is merely a
request
for information.
_____________________________________
Printed
Name
_____________________________________
Signature
_____________________________________
Social
Security Number or Employee
Identification Number
Date
and Place
Executed:
Date: _______________________________ Place:______________________________
15
SCHEDULE
“A”
REGISTRATION
RIGHTS AGREEMENT
THIS
REGISTRATION RIGHTS AGREEMENT
(the “Agreement”)
is made as of ____________, 2007 by and among Xxxxx Technologies Inc, a Delaware
corporation (the “Company”), and the Persons
who
have executed the counterpart signature pages of this Agreement as an Investor.
(the “Investor”).
WITNESSETH:
WHEREAS,
pursuant to the terms of a
securities purchase agreement, dated as of event date herewith, between the
Company and the Investor (the “Subscription Agreement”), the
Investor has
(a)
purchased ___ unit(s) of Xxxxx Technologies, Inc, with each unit consisting of 500,000
shares
of common stock of the Company (“Units”).;
and
WHEREAS,
the Company has agreed with
the Investor to grant certain registration rights with respect to the
Units;
NOW
THEREFORE, in consideration of the
foregoing, the parties agree as follows:
1. Definitions. As
used in this Agreement, the following terms shall have the following
meanings:
2.
“Commission”
or
“SEC”
shall
mean the Securities
and Exchange Commission, or any other federal agency at the time administering
the Securities Act.
“Common
Stock” shall mean the
common stock, $0.0001 par value per share of the Company.
“Exchange
Act” shall mean the
Securities Exchange Act of 1934, as amended, or any similar federal statute
and
the rules and regulations thereunder, all as the same shall be in effect
at the
time.
“Holder”
shall
mean the
Investor and any other holder of outstanding Registrable Securities or anyone
who holds outstanding Registrable Securities to whom the registration rights
conferred by this Agreement have been transferred in compliance with this
Agreement.
“Initiating
Holders” shall mean
any Holder or Holders of at least fifty-one percent (51%) of the Registrable
Securities then outstanding.
1
“Inactive
Public
Company” shall mean any corporation: (i) whose shares of
common stock have been registered under the Exchange Act; (ii) that is current
in its periodic filings under the Exchange Act; (iii) that is trading on
the
NASD over-the-counter Bulletin Board or other United States securities exchange;
and (iv) that is, or (immediately prior to the closing of any Reverse Merger)
will be, engaged in no active trade or business and have no or limited
liabilities and obligations.
“Register,”
“registered”
and
“registration”
shall
refer to a
registration effected by preparing and filing a registration statement in
compliance with the Securities Act, and the declaration or ordering of the
effectiveness of such registration statement, and compliance with applicable
state securities laws of such states in which Holders notify the Company
of
their intention to offer Registrable Securities.
“Registrable
Securities” shall
mean all of the following to the extent the same have not been sold to the
public (i) any and all of the Warrant Shares; (ii) any and all of the Conversion
Shares, (iii) any capital stock issued in respect of Warrant Shares or
Conversion Shares referred to in (i) or (ii) above in any reorganization;
or
(iv) any capital stock issued in respect of the Warrant Shares, Conversion
Shares or Common Stock referred to in (i), (ii) or (iii) as a result of a
stock
split, stock dividend, recapitalization or combination. Notwithstanding the
foregoing, Registrable Securities shall not include otherwise Registrable
Securities (i) sold by a person in a transaction in which his rights under
this
Agreement are not properly assigned; or (ii) (A) sold to or through a broker
or
dealer or underwriter in a public distribution or a public securities
transaction, or (B) sold in a transaction exempt from the registration and
prospectus delivery requirements of the Securities Act under Section 4(1)
thereof so that all transfer restrictions, and restrictive legends with respect
thereto, if any, are removed upon the consummation of such sale or (C) the
registration rights associated with such securities have been terminated
pursuant to Section 12 of this Agreement. Notwithstanding the
foregoing, the Registrable Securities shall cease to be Registrable Securities
if and to the extent that the Holder is able to dispose of all
of
such Holder’s Registrable Securities (i) in one three-month period pursuant to
the provisions of Rule 144, or (ii) otherwise pursuant to the provisions
of Rule
144(k).
“Reverse
Merger” shall mean any transaction involving any of the
following: (i) the merger of the Company with and into any Inactive Public
Company, (ii) the merger of the Company with a subsidiary of such Inactive
Public Company (with the Company as the surviving corporation of such merger),
or (iii) the exchange of shares of Common Stock of the Company for shares
of
common stock of the Inactive Public Company.
“Rule
144” shall mean Rule 144,
as amended from time to time, under the Securities Act or any successor or
similar rule as may be enacted by the Commission from time to time, but shall
not include Rule 144A.
2
“Rule
144A” shall mean Rule
144A under the Securities Act or any successor or similar rule as may be
enacted
by the Commission from time to time, but shall not include Rule
144.
“Securities
Act” shall mean the
Securities Act of 1933, as amended, or any similar federal statute and the
rules
and regulations thereunder, all as the same shall be in effect at the
time.
3. Restrictions
on Transferability. The Registrable Securities shall not be
sold, assigned, transferred or pledged except upon the conditions specified
in
this Agreement, which conditions are intended to ensure compliance with the
provisions of the Securities Act. Each Holder will cause any proposed purchaser,
assignee, transferee, or pledgee of the Registrable Securities held by a
Holder
to agree to take and hold such securities subject to the provisions and upon
the
conditions specified in this Agreement.
4. Restrictive
Legend. Each certificate representing Registrable Securities
shall (unless otherwise permitted by the provisions of Section 4 below) be
stamped or otherwise imprinted with a legend as provided in Warrant (in addition
to any legend required under applicable state securities laws or
otherwise). Each Holder consents to the Company making a notation on
its records and giving instructions to any transfer agent of the Registrable
Securities in order to implement the restrictions on transfer established
in
this Agreement.
5. Notice
of
Proposed Transfer. The Holder of each certificate representing
Registrable Securities, by acceptance thereof, agrees to comply in all respects
with the provisions of this Section 5. Each such Holder agrees not to
make any disposition of all or any portion of any Registrable Securities
unless
and until:
a. There
is
in effect a registration statement under the Securities Act covering such
proposed disposition and such disposition is made in accordance with such
registration statement; or
b. Such
Holder shall have notified the Company of the proposed disposition and shall
have furnished the Company with a detailed statement of the circumstances
surrounding the proposed disposition, and if reasonably requested by the
Company, such Holder shall furnish the Company with an opinion of counsel,
reasonably satisfactory to the Company that such disposition shall not require
registration of such shares under the Securities Act. It is agreed,
however, that no such opinion will be required for Rule 144 or Rule 144A
transactions, except as required by the Company’s transfer agent or in unusual
circumstances.
c. Notwithstanding
the provisions of paragraphs (a) and (b) above, no such registration statement
or opinion of counsel shall be necessary for a transfer by a Holder which
is a
partnership to a partner of such partnership or a retired partner of such
partnership who retires after the date hereof, or to the estate of any such
partner or retired partner or the transfer by gift, will, or intestate
succession of any partner to his spouse or siblings, lineal descendants or
ancestors of such partner or spouse, provided, however,
that such transferee
agrees in writing to be subject to all of the terms hereof to the same extent
as
if he were an original Holder hereunder.
3
6. Demand
Registration.
a. The
Company hereby grants to the holders of the Units (collectively, the “Holders”)
a one time demand registration right to register the shares of common stock
included in the Units (the “Unit Shares”). The Company upon notice by the
Holders shall as promptly as practicable and in no event later than eight
(8)
weeks of such notice use its best efforts to obtain effectiveness of the
Registration Statement with respect to all Registrable Securities as soon
thereafter as is practicable, and shall respond to all oral and written comments
from the staff of the SEC.
b. The
parties shall endeavor to take all actions to obtain effectiveness of such
Demand Registration Statement or, if and to the extent such rule becomes
available, utilize the re-sale exemptions provided under Rule 144 in order
to
provide liquidity for these shares.
c.
In the event that, in lieu of an underwritten registered initial public
offering, the Company consummates as Reverse Merger, the Company will undertake
to (i) structure the financing required as a condition of such Reverse Merger
to
be directly with the Company (as opposed to the Inactive Public Company,
and
(ii) cause the Inactive Public Company to file a Form S-4 registration statement
under Rule 145 to register under the Securities Act of 1933, as amended,
all of
the outstanding shares of Company Common Stock (including shares issued upon
conversion or exercise of Registrable Securities) pursuant to a prospectus/proxy
statement included in such Form S-4 registration statement, and use its best
efforts to have such registration statement declared effective by the SEC.
In
lieu of such Form S-4 registration statement, the Company shall comply with
the
provisions of Section 5a. of this Agreement.
6.
Piggyback
Registration.
a. If
at any
time or from time to time, the Company shall determine to register any of
its
securities, for its own account or the account of any of its shareholders,
other
than (A) a registration relating solely to employee benefit plans, or a
registration relating solely to an SEC Rule 145 transaction, or (B) a
registration on any form (excluding Form X-0, X-0, X-0 or S-3, or their
successor forms) which does not include substantially the same information
as
would be required to be included in a registration statement covering the
sale
of Registrable Securities, the Company will:
4
i. give
to
each Holder written notice thereof as soon as practicable prior to filing
the
registration statement; and
ii. use
its
best efforts include in such registration and in any underwriting involved
therein, all the Registrable Securities specified in a written request or
requests, made within fifteen (15) days after receipt of such written notice
from the Company, by any Holder or Holders, except as set forth in subsection
(b) below.
b. If
the
registration is for a registered public offering involving an underwriting
(whether or not an initial public offering), the Company shall so advise
the
Holders as a part of the written notice given pursuant to Section
6(a)(i). In such event, the right of any Holder to registration
pursuant to Section 6 shall be conditioned upon such Holder’s participation in
such underwriting and the inclusion of such Holder’s Registrable Securities in
the underwriting to the extent provided herein. All Holders proposing to
distribute their securities through such underwriting shall (together with
the
Company and the other holders distributing their securities through such
underwriting) enter into an underwriting agreement in customary form with
the
underwriter or underwriters selected for such underwriting by the Company.
Each
Holder acknowledges, that the managing underwriter(s):
(i)
may require that each Holder including Registrable Securities in such registered
underwritten public offering agree to “lock up” such Registrable Securities and
refrain from effecting any sale of distribution of such Registrable Securities
for a period of one hundred and eighty (180) days following the effective
date
of the registration statement in respect of such underwritten public offering
by
the Company; or
(ii)
may determine that marketing factors require: (A) either a limitation on
the
number of shares to be underwritten, in which event, the managing underwriter(s)
may limit the number of Registrable Securities to be included in the
registration and underwriting; or (B) that all
of
the
Registrable Securities must be excluded entirely from such underwritten public
offering registration for the Company (provided that no shares held by officers
and directors of the Company, other than Registrable Securities that may
be
owned by officers and directors, shall be included in the registration and
underwriting). Notwithstanding
the foregoing, the Company shall not agree with any underwriter with respect
to
any “lock ups,” “cut-backs” or exclusions of the Registrable Securities from any
registration statement contemplated by this Section 5 without, in each instance,
the prior written consent of the Investor or any other Holder of the Registrable
Securities.
c.
The Company shall so advise all Holders and the other Holders distributing
their
securities through such underwriting pursuant to piggyback registration rights
similar to this Section 6, and the number of shares of Registrable Securities
and other securities that may be included in the registration and underwriting
shall be allocated among all Holders and other holders in proportion, as
nearly
as practicable, to the respective amounts of Registrable Securities held
by such
Holders and other securities held by other holders at the time of filing
the
registration statement.
5
If
any
Holder disapproves of the terms of any such underwriting, he may elect to
withdraw therefrom by written notice to the Company and the managing
underwriter. If, by the withdrawal of such Registrable Securities, a greater
number of Registrable Securities held by other Holders may be included in
such
registration (up to the limit imposed by the underwriters), the Company shall
offer to all Holders who have included Registrable Securities in the
registration the right to include additional Registrable Securities. Any
Registrable Securities excluded or withdrawn from such underwriting shall
be
withdrawn from such registration.
7.
Expenses
of Registration. In addition to the fees and expenses
contemplated by Section 8 hereof, all expenses incurred in connection with
all
registrations pursuant to Section 5 or Section 6 hereof, including without
limitation all registration, filing and qualification fees, printing expenses,
and all fees and disbursements of counsel for the Company and any reasonable
fees for legal counsel to the Investor and all other Holders of Registrable
Securities (provided that any fees for counsel shall be approved by the Company
in writing in advance if greater then $5,000), and expenses of any special
audits of the Company’s financial statements incidental to or required by such
registration, shall be borne by the Company, except that the Company shall
not
be required to pay underwriters’ fees, discounts or commissions relating to
Registrable Securities or fees of a separate legal counsel of a Holder other
than the counsel described above.
8.
Registration
Procedures. In the case of each registration affected by the
Company pursuant to this Agreement, the Company will keep each Holder
participating therein advised in writing as to the initiation of each
registration and as to the completion thereof. In addition, at its expense
the
Company will:
a.
keep such registration pursuant to Section 5 continuously effective until
all of
the securities covered by such registration statement have been sold pursuant
to
such registration statement or all of the Registrable Securities covered
by such
registration statement may be sold without registration under Rule 144 of
the
Securities Act;
b.
promptly prepare and file with the Commission such amendments and supplements
to
such registration statement and the prospectus used in connection therewith
as
may be necessary to comply with the provisions of the Securities Act, and
to
keep such registration statement effective for that period of time specified
in
Section 8(a) above;
c.
furnish such number of prospectuses and other documents incident thereto
as a
Holder from time to time may reasonably request;
d.
use reasonable best efforts to obtain the withdrawal of any order suspending
the
effectiveness of a registration statement, or the lifting of any suspension
of
the qualification of any of the Registrable Securities for sale in any
jurisdiction, at the earliest possible moment;
6
e.
register or qualify such Registrable Securities for offer and sale under
the
securities or blue sky laws of such jurisdictions as any Holder or underwriter
reasonably requires, and keep such registration or qualification effective
during the period set forth in Section 8(a) above;
f.
cause all Registrable Securities covered by such registrations to be listed
or
quoted on each securities exchange, including the American Stock Exchange,
on
which similar securities issued by the Company are then listed or
quoted,
g.
enter into such customary agreements (including underwriting agreements in
customary form) and take all such other actions as the holders of a majority
of
the Registrable Securities being sold or the underwriters, if any, reasonably,
request in order to expedite or facilitate the disposition of such Registrable
Securities (including, without limitation, effecting a stock split or a
combination of shares);
h.
make available for inspection upon reasonable request by any seller of
Registrable Securities and any attorney, accountant or other agent retained
by
any such seller or underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company’s
officers, directors, employees and independent accountants to supply all
information reasonably requested by any such seller, underwriter, attorney,
accountant or agent in connection with such registration statement;
i.
notify each Holder, at any time a prospectus covered by such registration
statement is required to be delivered under the Securities Act, of the happening
of any event of which it has knowledge as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to
be
stated therein or necessary to make the statements therein not misleading
in the
light of the circumstances then existing;
j.
take such other actions as shall be reasonably requested by any
Holder.
9.
Indemnification.
a.
In the event of a registration of any of the Registrable Securities under
the
Securities Act pursuant to Section 5 or Section 6 of this Agreement, the
Company
will indemnify and hold harmless each Holder of such Registrable Securities
thereunder and each other person, if any, who controls such Holder within
the
meaning of the Securities Act, against any losses, claims, damages or
liabilities, joint or several, to which such Holder, underwriter or controlling
person may become subject under the Securities Act or otherwise, insofar
as such
losses, claims, damages
7
or
liabilities (or actions in respect thereof) arise out of or are based upon
any
untrue statement or alleged untrue statement of any material fact contained
in
any registration statement under which such Registrable Securities were
registered under the Securities Act, any preliminary prospectus or final
prospectus contained therein, or any amendment or supplement thereof, or
arise
out of or are based upon 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 any violation by the Company of any rule or
regulation promulgated under the Securities Act or any state securities law
applicable to the Company and relating to action or inaction required of
the
Company in connection with any such registration, and will reimburse each
such
Holder, each of its officers, directors and partners, and each person
controlling such Holder, each such underwriter and each person who controls
any
such underwriter, for any reasonable legal and any other expenses incurred
in
connection with investigating, defending or settling any such claim, loss,
damage, liability or action, provided that the Company will not be liable
in any
such case to the extent that any such claim, loss, damage or liability arises
out of or is based on any untrue statement or omission based upon written
information furnished to the Company by an instrument duly executed by such
Holder or underwriter specifically for use therein.
b.
Each Holder will, if Registrable Securities held by or issuable to such Holder
are included in the securities as to which such registration is being effected,
indemnify and hold harmless the Company, each of its directors and officers,
each underwriter, if any, of the Company’s securities covered by such a
registration statement, each person who controls the Company and each
underwriter within the meaning of the Securities Act, and each other such
Holder, each of its officers, directors and partners and each person controlling
such Holder, against all claims, losses, expenses, damages and liabilities
(or
actions in respect thereof) arising out of or based on any untrue statement
(or
alleged untrue statement) of a material fact contained in any such registration
statement, prospectus, offering circular or other document, or any omission
(or
alleged omission) to state therein a material fact required to be stated
therein
or necessary to make the statements therein not misleading, and will reimburse
the Company, such Holders, such directors, officers, partners, persons or
underwriters for any reasonable legal or any other expenses incurred in
connection with investigating, defending or settling any such claim, loss,
damage, liability or action, in each case to the extent, but only to the
extent,
that such untrue statement (or alleged untrue statement) or omission (or
alleged
omission) is made in such registration statement, prospectus, offering circular
or other document in reliance upon and in conformity with written information
furnished to the Company by an instrument duly executed by such Holder
specifically for use therein; provided, however,
the total amount for
which any Holder, its officers, directors and partners, and any person
controlling such Holder, shall be liable under this Section 9(b) shall not
in
any event exceed the aggregate proceeds received by such Holder from the
sale of
Registrable Securities sold by such Holder in such registration.
8
c. Each
party entitled to indemnification under this Section 9 (the “Indemnified Party”) shall give
notice to the party required to provide indemnification (the “Indemnifying Party”) promptly
after such Indemnified Party has actual knowledge of any claims as to which
indemnity may be sought, and shall permit the Indemnifying Party to assume
the
defense of any such claim or any litigation resulting therefrom, provided
that
counsel for the Indemnifying Party, who shall conduct the defense of such
claim
or litigation, shall be approved by the Indemnified Party (whose approval
shall
not be unreasonably withheld), and the Indemnified Party may participate
in such
defense at such party’s expense, and provided further that the failure of any
Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations hereunder, unless such failure resulted
in
actual detriment to the Indemnifying Party. No Indemnifying Party, in the
defense of any such claim or litigation, shall, except with the consent of
each
Indemnified Party, consent to entry of any judgment or enter into any settlement
which does not include as an unconditional term thereof the giving by the
claimant or plaintiff to such Indemnified Party of a release from all liability
in respect of such claim or litigation.
d. Notwithstanding
the foregoing, to the extent that the provisions on indemnification contained
in
the underwriting agreements entered into among the selling Holders, the Company
and the underwriters in connection with the underwritten public offering
are in
conflict with the foregoing provisions, the provisions in the underwriting
agreement shall be controlling as to the Registrable Securities included
in the
public offering;
e. If
the
indemnification provided for in this Section 9 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any
loss,
liability, claim, damage or expense referred to therein, then the indemnifying
party, in lieu of indemnifying such indemnified party thereunder, shall
contribute to the amount paid or payable by such indemnified party as a result
of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the
one
hand and of the indemnified party on the other hand in connection with the
statements or omissions which resulted in such loss, liability, claim, damage
or
expense as well as any other relevant equitable considerations. The relevant
fault of the indemnifying party and the indemnified party shall be determined
by
reference to, among other things, whether the untrue or alleged untrue statement
of a material fact or the omission to state a material fact relates to
information supplied by the indemnifying party or by the indemnified party
and
the parties’ relative intent, knowledge, access to information and opportunity
to correct or prevent such statement or omission. Notwithstanding the foregoing,
the amount any Holder shall be obligated to contribute pursuant to this Section
8(e) shall be limited to an amount equal to the proceeds to such Holder of
the
Restricted Securities sold pursuant to the registration statement which gives
rise to such obligation to contribute (less the aggregate amount of any damages
which the Holder has otherwise been required to pay in respect of such loss,
claim, damage, liability or action or any substantially similar loss, claim,
damage, liability or action arising from the sale of such Restricted
Securities).
9
f. The
indemnification provided by this Section 9 shall be a continuing right to
indemnification and shall survive the registration and sale of any securities
by
any Person entitled to indemnification hereunder and the expiration or
termination of this Agreement.
10.
Information
by Holder. The Holder or Holders of Registrable Securities
included in any registration shall promptly furnish to the Company such
information regarding such Holder or Holders and the distribution proposed
by
such Holder or Holders as the Company may request in writing and as shall
be
required in connection with any registration referred to herein.
11.
Rule
144
Reporting. With a view to making available to Holders of
Registrable Securities the benefits of certain rules and regulations of the
SEC
which may permit the sale of the Registrable Securities to the public without
registration, the Company agrees at all times to file with the Commission
all
reports and other documents required of the Company under the Securities
Act and
the Exchange Act.
12.
Transfer
of Registration Rights. The rights to cause the Company to
register Registrable Securities of a Holder and keep information available
granted to a Holder by the Company under Section 5 or Section 6 of this
Agreement may be assigned by a Holder to any partner or shareholder of such
Holder, to any other Holder, or to a transferee or assignee; provided, that
the
Company is given written notice by the Holder at the time of or within a
reasonable time after said transfer, stating the name and address of said
transferee or assignee and identifying the securities with respect to which
such
registration rights are being assigned.
13.
Termination
of Rights. The rights of any particular Holder to cause the
Company to register securities under Section 5 or Section 6 of this Agreement
shall terminate with respect to such Holder at such time that such Holder
is
able to dispose of all of such Holder’s Registrable Securities (i) in one
three-month period pursuant to the provisions of Rule 144, provided that
such
Holder holds not more than one percent (1%) of the outstanding voting stock
of
the Company, or (ii) otherwise pursuant to the provisions of Rule
144(k).
14.
Remedies
upon Default or Delay. Without limitation of any other remedy
available to a Holder under applicable law or otherwise, if the Company shall
(1) fail to register Registrable Securities after it shall have been requested
to do so by a Holder or otherwise required to do so in accordance with Section
5
or Section 6 of this Agreement, or (2) fail to perform any of its obligations
hereunder and as a result of such failure Holders have not been able to sell
their Registrable Securities, or (3) act or fail to act in any manner such
that
one or more Holders have been delayed in the sale of their Registrable
Securities, which delay is not expressly permitted by this Agreement, then
any
Holder adversely affected by such action, failure or delay shall be entitled
to
the relief set forth in Section 5 or Section 6 above.
10
15.
Miscellaneous.
a.
Amendments.
This Agreement may be amended only by a writing signed by the Holders of
more
than fifty percent (50%) of the Registrable Securities, as constituted from
time
to time. The Holders hereby consent to future amendments to this Agreement
that
permit future investors, other than employees, officers or directors of the
Company, to be made parties hereto and to become Holders of Registrable
Securities; provided,
however,
that no such
future amendment may materially impair the rights of the Holders hereunder
without obtaining the requisite consent of the Holders, as set forth above.
For
purposes of this Section, Registrable Securities held by the Company or
beneficially owned by any officer or employee of the Company shall be
disregarded and deemed not to be outstanding.
b.
Counterparts.
This Agreement may be executed in any number of counterparts, all of which
shall
constitute a single instrument.
c.
Notices, Etc.
All notices and other communications required or permitted hereunder shall
be in
writing and may be sent initially by facsimile transmission and shall be
mailed
by registered or certified mail, postage prepaid, or otherwise delivered
by hand
or by messenger, addressed to the addresses set forth in the Settlement
Agreement. Each such notice or other communication shall for all
purposes of this Agreement be treated as effective or having been given when
delivered if delivered personally, or, if sent by first class, postage prepaid
mail, at the earlier of its receipt or seventy-two (72) hours after the same
has
been deposited in a regularly maintained receptacle for the deposit of the
United States mail, addressed and mailed as aforesaid.
d.
Severability.
If any provision of this Agreement shall be held to be illegal, invalid or
unenforceable, such illegality, invalidity or unenforceability shall attach
only
to such provision and shall not in any manner affect or render illegal, invalid
or unenforceable any other provision of this Agreement, and this Agreement
shall
be carried out as if any such illegal, invalid or unenforceable provision
were
not contained herein.
e.
Governing Law.
This Agreement shall be governed by and construed under the laws of the State
of
Delaware without regard to principles of conflict of law.
balance
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11
IN
WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be duly executed on the day and year first above
written.
THE
COMPANY:
____________________________________.
By:
12
SIGNATURE
PAGE TO REGISTRATION RIGHTS AGREEMENT
THE
INVESTOR:
__________________________________
By:
_______________________________
Name:
Title:
13