COMMON STOCK PURCHASE AGREEMENT
Exhibit 10.2
THIS COMMON STOCK PURCHASE AGREEMENT (the “Agreement”), is made as of May 27, 2008 by
and between Superconductor Technologies Inc., a Delaware corporation (the “Company”), and
(the “Investor”).
RECITALS
A. The Company and the Investor desire to enter into this transaction to
purchase and sell the securities set forth herein pursuant to a currently effective shelf
registration statement on Form S-3, which has at least $80,000,000 in unallocated securities
registered thereunder (Registration Number 333-148115) (the “Registration Statement”),
which Registration Statement has been declared effective in accordance with the Securities Act of
1933, as amended, and the rules and regulations promulgated thereunder (the “Act”), by the
United States Securities and Exchange Commission (the “Commission”).
B. The Investor wishes to purchase from the Company, and the Company wishes to
sell to the Investor, upon the terms and conditions stated in this Agreement, 1,000,000 shares of
common stock, no par value per share, of the Company (the “Common Stock”), at a purchase
price of $3.00 per share.
NOW, THEREFORE, the Company and the Investor hereby agree as follows:
AGREEMENT
1. As of the Closing (as defined below) and subject to the terms and conditions
hereof, the Company and the Investor agree that the Investor will purchase from the Company and the
Company will issue and sell to the Investor one million shares of Common Stock (the
“Shares”) for a purchase price of $3.00 per share, or an aggregate purchase price of
$3,000,000 (the “Purchase Price”).
2. The completion of the purchase and sale of the Shares shall occur at a closing
(the “Closing”) which is expected to occur on May 30, 2007 at or about 8:00 a.m., Los
Angeles time (unless another time or date shall be agreed upon by the Company and the Investor).
At the Closing, (i) the Investor shall pay its Purchase Price to the Company for the Shares to be
issued and sold to such Investor at the Closing, by wire transfer of immediately available funds in
accordance with the Company’s written wire instructions, and (ii) upon confirmation of receipt of
such wire, unless otherwise requested by the Investor and agreed to by the Company, the Shares
purchased by the Investor will be delivered by electronic book-entry at The Depository Trust
Company (“DTC”), registered in the Investor’s name and address as set forth below, and will
be released by Registrar and Transfer Company, the Company’s transfer agent (the “Transfer
Agent”), to the Investor at the Closing. After the execution of this Agreement by the
Investor, the Investor shall direct the broker-dealer at which the account or accounts to be
credited with the Shares are maintained to set up a deposit/withdrawal at custodian
(“DWAC”) instructing the Transfer Agent to credit such account or accounts with the
Shares. The Shares shall be free of restrictive legends.
3. The Company has delivered to the Investor and shall file with the Commission a
prospectus and prospectus supplement (collectively the “Prospectus”), which form a part of
the Registration Statement, reflecting the offering of the Shares in conformity with the Act,
including Rule 424(b) thereunder. The Investor agrees that such Prospectus may be delivered to it
in electronic form.
4. The offering and sale of the Shares are being made pursuant to the Registration
Statement and the Prospectus. The Investor acknowledges that the Company intends to enter into
agreements with certain other investors on substantially the same form of this Agreement (and at
the same price per share) on or about the date hereof covering (including the Shares being issued
hereunder) up to a total of 2,000,000 shares of Common Stock (the “Offering”) pursuant to
the Registration Statement and the Prospectus. Except for (i) the Offering, and (ii) issuances of
Common Stock (a) to employees, directors and consultants pursuant to grants under the Company’s
equity incentive plan(s), (b) pursuant to currently outstanding warrants, rights and convertible
securities, and (c) for consideration other than cash or cash equivalents, the Company will not
sell any other shares of Common Stock, whether under the Registration Statement or pursuant to
privately negotiated sales, prior to August 30, 2008;
provided, this sentence shall not restrict issuances of Common Stock on terms more favorable
to the Company than the terms provided for in the Offering.
5. The Company hereby makes the following representations, warranties and
covenants to the Investor:
(a) The Company is an entity duly incorporated, validly existing and in good
standing under the laws of the state of Delaware, with the requisite power and authority to own and
use its properties and assets and to carry on its business as currently conducted. The Company has
the requisite corporate power and authority to enter into and to consummate the transactions
contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution
and delivery of this Agreement by the Company and the issuance of the Shares have been duly
authorized by all necessary action on the part of the Company and no further consent or action is
required by the Company, its board of directors or its shareholders. This Agreement has been (or
upon delivery will be) duly executed by the Company and, when delivered in accordance with the
terms hereof, will constitute the valid and binding obligation of the Company enforceable against
the Company in accordance with its terms, except as may be limited by any bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or other similar laws affecting the enforcement
of creditors’ rights generally or by general principles of equity.
(b) The execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby do not and will not (i)
conflict with or violate any provision of the Company’s articles of incorporation or bylaws, (ii)
subject to obtaining the Required Approvals (as defined below), conflict with, or constitute a
default (or an event that with notice or lapse of time or both would become a default) under, or
give to others any rights of termination, amendment, acceleration or cancellation (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument
(evidencing a Company debt or otherwise) or other understanding to which the Company is a party or
by which any property or asset of the Company is bound or affected, or (iii) result in a violation
of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court
or governmental authority to which the Company is subject (including federal and state securities
laws and regulations) and the rules and regulations of any self-regulatory organization to which
the Company or its securities are subject, or by which any property or asset of the Company is
bound or affected except in each case of clause (ii) or (iii) such as would not, individually or in
the aggregate, have a except have a material adverse effect on the business, properties, financial
condition or results of operations of the Company as set forth in the Registration Statement and
the Prospectus (exclusive of any amendments or supplements thereto subsequent to the Closing date)
or materially impair the Company’s ability to perform its obligations under this Agreement (a
“Material Adverse Effect”).
(c) The Company is not required to obtain any consent, waiver, authorization or
order of, give any notice to, or make any filing or registration with, any court or other federal,
state, local or other governmental authority or other Person in connection with the execution,
delivery and performance by the Company of this Agreement, other than (i) the required filing of
the Prospectus and the Registration Statement, (ii) applicable state securities law filings, (iii)
the required filings with The Nasdaq Stock Market (the “Trading Market”), and (iv) in all
other cases, where the failure to obtain such consent, waiver, authorization or order, or to give
such notice or make such filing or registration would not have a Material Adverse Effect (clauses
(i), (ii) and (iii) collectively, the “Required Approvals”). The Company has obtained all
the Required Approvals, except for those which will be obtained in the ordinary course prior to the
Closing.
(d) The Shares are duly authorized and, when issued and paid for in accordance with
the terms hereof, will be duly and validly issued, fully paid and nonassessable, free and clear of
all liens, encumbrances and rights of first refusal, and conform to the description of Common Stock
contained in the Prospectus. The Company has reserved a sufficient number of duly authorized
shares of common stock to issue all of the Shares. At the Closing, the Shares shall have been
approved for quotation on the Trading Market.
(e) The Registration Statement (including any prospectus and prospectus supplement
and all information or documents incorporated by reference therein) was declared effective by the
Commission on February 13, 2008. The Registration Statement is effective on the date hereof and no
order preventing or suspending the use of the Registration Statement or any Prospectus has been or
is intended by the Commission to be issued by the Commission. The term “Registration
Statement” as used in this Agreement means the Registration
Statement at the time it became effective and as supplemented or amended from time to time,
including all financial schedules and exhibits thereto and all documents incorporated by reference
or deemed to be incorporated by reference therein. The Registration Statement, as of the time it
was declared effective, and any amendments or supplements thereto as of the effective date thereof,
and any prospectus included therein complied, and the Prospectus complies, as of the applicable
filing date thereof, in all material respects with the requirements of the Act, and none of such
Registration Statement nor any such Prospectus, nor any report, schedule, form or statement filed
by the Company under the Securities Exchange Act of 1934 (the “Exchange Act”) pursuant to
Sections 13(a) or 15(d) thereunder and incorporated into the Prospectus, contains or, at the time
of filing with the Commission contained, any untrue statement of material fact or omits or, at the
time of filing with the Commission, omitted to state any material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances under which
they were made, not misleading. The offering, sale and issuance of the Shares to the Investor are
registered under the Act by the Registration Statement, and no action taken or omitted to be taken
by the Company shall cause such Shares not to be freely transferable and tradable by the Investor
without restriction. The Shares are being issued as described in the Registration Statement.
(f) The Company has not, in the twelve (12) months preceding the date hereof,
received notice from the Trading Market to the effect that the Company is not in compliance with
the listing or maintenance requirements thereof. The Company is, and has no reason to believe that
it will not in the foreseeable future continue to be, in material compliance with the listing and
maintenance requirements for continued trading of the Common Stock on the Trading Market. The
issuance and sale of the Shares hereunder complies in all material respects with the rules or
regulations of the Trading Market.
(g) During the 30 days prior to the date hereof, the Company has not, and to its knowledge no
one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to
result in the stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Common Stock, (ii) sold, bid for, purchased, or, paid
any compensation for soliciting purchases of, any of the Common Stock, or (iii) paid or agreed to
pay to any Person any compensation for soliciting another to purchase any other securities of the
Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Company’s
placement agent in connection with the placement of the Common Stock.
6. The Investor hereby makes the following representations, warranties and covenants
to the Company:
(a) The Investor is purchasing the Shares for its own account, in the ordinary
course of its business and the Investor has no arrangement with any Person to participate in the
distribution of the Shares. The Investor represents that it has received the Prospectus prior to
or in connection with its receipt of this Agreement. In connection with its decision to purchase
the Shares, the Investor has relied only upon the Prospectus and the documents incorporated by
reference therein, and the representations and warranties of the Company contained herein.
(b) The Investor, together with its affiliates (as that term is defined under Rule
405 of the Act), has not, prior to the date of this Agreement, sold, offered to sell, solicited
offers to buy, disposed of, loaned, pledged or granted any right with respect to (collectively, a
“Disposition”), the Shares purchased in the Offering. Such prohibited sales or other transactions
would include, without limitation, effecting any short sale or having in effect any short position
(whether or not such sale or position is against the box and regardless of when such position was
entered into) or any purchase, sale or grant of any right (including, without limitation, any put
or call option) with respect to the Shares purchased in the offering made by the Prospectus.
(c) The Investor shall not issue any press release or make any other public
announcement relating to this Agreement unless (i) the content thereof is mutually agreed to by the
Company and the Investor, or (ii) the Investor is advised by its counsel that such press release or
public announcement is required by law. The Investor will timely make all required filings and
disclosures relating to the Investor’s purchase of the Shares as may be required under the Exchange
Act, if any.
(d) The Investor has the requisite power and authority to enter into and to
consummate the transactions contemplated by this Agreement and otherwise to carry out its
obligations hereunder. The execution and delivery of this Agreement by the Investor and the
consummation by it of the transactions contemplated hereunder have been duly authorized by all
necessary action on the part of the Investor. This Agreement has been duly executed by the
Investor and, when delivered in accordance with the terms hereof, will constitute the valid and
binding obligation of the Investor enforceable against the Investor in accordance with its terms,
except as may be limited by any bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or other similar laws affecting the enforcement of creditors’ rights generally or by
general principles of equity.
(e) The Investor understands that nothing in this Agreement or any other materials
presented to the Investor in connection with the purchase or sale of the Shares constitutes legal,
tax or investment advice. The Investor has consulted such legal, tax or investment advisors as it,
in its sole discretion, deems necessary or appropriate in connection with its purchase of the
Shares.
(f) The Investor hereby acknowledges that it is acting independently from any other
investor (and has engaged separate legal counsel) in connection with the Offering, and that it is
not acting as a member of a “group” (as such term is defined in Rule 13d of the Exchange Act) with
any other investor in connection with the Offering.
(g) The Investor hereby acknowledges that the Company will pay a commission to MDB Capital
Group LLC of 6% of the gross proceeds of the Offering.
7. Subject to the provisions of this Section 7, the Company will indemnify and
hold the Investor and its directors, officers, shareholders, partners, members, employees and
agents (each, an “Investor Party”) harmless from any and all losses, liabilities,
obligations, claims, contingencies, damages, costs and expenses, including all judgments, amounts
paid in settlements, court costs and reasonable attorneys’ fees and costs of investigation that any
such Investor Party may suffer or incur (the “Indemnified Liabilities”) as a result of or
relating to any breach of any of the representations, warranties, covenants or agreements made by
the Company in this Agreement. The Company shall not be liable to any Investor under this
provision in respect of any Indemnified Liability if such liability arises out of any
misrepresentation by the Investor in Section 6 of this Agreement or actions taken by such Investor
otherwise than as explicitly set forth herein. To the extent that the foregoing undertaking by the
Company may be unenforceable for any reason, the Company shall make the maximum contribution to the
payment and satisfaction of each of the Indemnified Liabilities which is permissible under
applicable law. If any action shall be brought against any Investor Party in respect of which
indemnity may be sought pursuant to this Agreement, such Investor Party shall promptly notify the
Company in writing, and the Company shall have the right to assume the defense thereof with counsel
of its own choosing. Any Investor Party shall have the right to employ separate counsel in any
such action and participate in the defense thereof (it being understood, however, that the Company
shall not be liable for the expenses of more than one separate counsel (other than local counsel),
reasonably approved by the Company), but the fees and expenses of such counsel shall be at the
expense of such Investor Party except to the extent that (i) the employment thereof has been
specifically authorized by the Company in writing, (ii) the Company has failed after a reasonable
period of time to assume such defense and to employ counsel or (iii) in such action there is, in
the reasonable opinion of such separate counsel, a material conflict on any material issue between
the position of the Company and the position of such Investor Party. The Company will not be
liable to any Investor Party under this Section 7 for any settlement by an Investor Party effected
without the Company’s prior written consent, which shall not be unreasonably withheld or delayed.
8. The Company shall, by 9:00 a.m. (New York City time) on the day immediately
following the date hereof, issue a press release, disclosing the material terms of the transactions
contemplated hereby.
9. This Agreement shall be governed by, and construed in accordance with, the internal laws of
the State of Delaware, without giving effect to the principles of conflicts of law.10. The Company
confirms that its has not provided Investor, in the course of its review of the Company, with any
information that the Company believes constitutes material non-public information.
11. This Agreement may be executed in two or more counterparts, each of which shall
constitute an original, but all of which, when taken together, shall constitute but one instrument,
and shall become effective when one or more counterparts have been signed by each party hereto and
delivered to the other parties.
[SIGNATURE PAGE TO COMMON STOCK PURCHASE AGREEMENT WITH SUPERCONDUCTOR
TECHNOLOGIES INC., DATED MAY 27, 2008]
TECHNOLOGIES INC., DATED MAY 27, 2008]
IN WITNESS WHEREOF, the Investor and the Company have caused this Common Stock
Purchase Agreement to be duly executed as of the date first written above.
| Superconductor Technologies Inc. | ||||||||||
By:
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By: | |||||||||
| Xxxx Xxxxxx | Name: | |||||||||
| President & CEO | Title: | |||||||||
| Address: | ||||||||||
| Tax ID No: | ||||||||||
| Contact Name: | ||||||||||
| Tel: | ||||||||||
| Name in which book-entry should be made (if different): | ||||||||||
| Number of Shares | ||||||||||
