INVESTMENT AGREEMENT
INVESTMENT AGREEMENT (this “AGREEMENT”), dated as of April 22, 2014 by and between
RADTEK, Inc., a Nevada corporation (the “Company”), and Dutchess Opportunity Fund, II, LP, a
Delaware Limited Partnership (the “Investor”).
WHEREAS, the parties desire that, upon the terms and subject to the conditions contained
herein, the Investor shall invest up to twenty million dollars ($20,000,000) to purchase the
Company's Common Stock with $0.001 par value per share (the “Common Stock”);
WHEREAS, such investments will be made in reliance upon the provisions of Section 4(2) under
the Securities Act of 1933, as amended (the “1933 Act”), Rule 506 of Regulation D, and the rules
and regulations promulgated thereunder, and/or upon such other exemption from the registration
requirements of the 1933 Act as may be available with respect to any or all of the investments in
Common Stock to be made hereunder; and
WHEREAS, contemporaneously with the execution and delivery of this Agreement, the parties
hereto are executing and delivering a Registration Rights Agreement substantially in the form
attached hereto (the “Registration Rights Agreement”) pursuant to which the Company has
agreed to provide certain registration rights under the 1933 Act, and the rules and regulations
promulgated thereunder, and applicable state securities laws.
NOW THEREFORE, in consideration of the foregoing recitals, which shall be considered an
integral part of this Agreement, the covenants and agreements set forth hereafter, and other
good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged,
the Company and the Investor hereby agree as follows:
SECTION 1. DEFINITIONS.
As used in this Agreement, the following terms shall have the following meanings
specified or indicated below, and such meanings shall be equally applicable to the singular and
plural forms of such defined terms.
“1933 Act” shall have the meaning set forth in the recitals of this Agreement.
“1934 Act” shall mean the Securities Exchange Act of 1934, as it may be amended.
“AAA” shall have the meaning specified in Section 12.
“Affiliate” shall have the meaning specified in Section 5(H).
“Agreement” shall mean this Investment Agreement.
“Articles of Incorporation” shall have the meaning specified in Section 4(C).
“By-laws” shall have the meaning specified in Section 4(C).
“Closing” shall have the meaning specified in Section 2(F).
“Closing Date” shall have the meaning specified in Section 2(F), which is 5 trading days
after the “put notice”.
“Common Stock” shall have the meaning set forth in the recitals of this Agreement.
“Company” shall have the meaning set forth in the preamble of this Agreement.
“Control” or “Controls” shall have the meaning specified in Section 5(H).
“DTC” shall have the meaning specified in Section 2(F).
“DWAC” shall have the meaning specified in Section 2(F).
“Effective Date” shall mean the date the SEC declares effective under the 1933 Act the
Registration Statement covering the Securities.
“Equity Line Transaction Documents” shall mean this Agreement and the Registration
Rights Agreement.
“FAST” shall have the meaning specified in Section 2(F).
“Indemnities” shall have the meaning specified in Section 11.
“Indemnified Liabilities” shall have the meaning specified in Section 11.
“Indemnitor” shall have the meaning specified in Section 11.
“Investor” shall have the meaning indicated in the preamble of this Agreement.
“Material Adverse Effect” shall have the meaning specified in Section 4(A).
“Maximum Common Stock Issuance” shall have the meaning specified in Section 2(G).
“Minimum Acceptable Price” with respect to any Put Notice Date shall be the price
defined by the Company in the applicable Put Notice.
“Open Market Adjustment Amount” shall have the meaning specified in Section 2(H).
“Open Market Share Purchase” shall have the meaning specified in Section 2(H).
“Open Period” shall mean the period beginning on and including the Trading Day
immediately following the Effective Date and ending on the earlier to occur of (i) the date which is
thirty-six (36) months from the Effective Date; or (ii) termination of the Agreement in accordance
with Section 9, below.
“Pricing Period” shall mean the five (5) consecutive Trading Days beginning on the Put
Notice Date and ending on and including the date that is four (4) Trading Days after such Put
Notice Date.
“Principal Market” shall mean the Nasdaq Capital Market, the NYSE Amex, the New York
Stock Exchange, the Nasdaq Global Market, the Nasdaq Global Select Market or the OTC
Bulletin Board, whichever is the principal market on which the Common Stock is listed.
“Prospectus” shall mean the prospectus, preliminary prospectus and supplemental
prospectus used in connection with the Registration Statement.
“Purchase Amount” shall mean the total amount being paid by the Investor on a particular
Closing Date to purchase the Securities.
“Purchase Price” shall mean ninety-five percent (95%) of the lowest daily VWAP (as
defined herein) of the Common Stock during the Pricing Period.
“Put” shall have the meaning set forth in Section 2(B) hereof.
“Put Amount” shall have the meaning set forth in Section 2(B) hereof.
“Put Notice” shall mean a written notice in the form attached hereto as Exhibit C, sent to
the Investor by the Company stating the Put Amount in U.S. dollars the Company intends to sell
to the Investor pursuant to the terms of the Agreement and stating the current number of Shares
issued and outstanding on such date.
“Put Notice Date” shall mean the Trading Day, as set forth below, immediately following
the day on which the Investor receives a Put Notice, however a Put Notice shall be deemed
delivered on (a) the Trading Day it is received by facsimile or email by the Investor if such notice
is received prior to noon Eastern Time, or (b) the immediately succeeding Trading Day if it is
received by facsimile or otherwise after noon Eastern Time on a Trading Day. No Put Notice may
be deemed delivered on a day that is not a Trading Day.
“Put Restriction” shall mean the days during the Pricing Period. During this time, the
Company shall not be entitled to deliver another Put Notice.
“Put Shares Due” shall have the meaning specified in Section 2(H).
“Registration Rights Agreement” shall have the meaning set forth in the recitals of this
Agreement.
“Registration Statement” means the registration statement of the Company filed under
the 1933 Act covering the resale by the Investor of the Common Stock issuable hereunder.
“Related Party” shall have the meaning specified in Section 5(H).
“Resolutions” shall have the meaning specified in Section 8(E).
“SEC” shall mean the U.S. Securities & Exchange Commission.
“SEC Documents” shall have the meaning specified in Section 4(G).
“Securities” shall mean the shares of Common Stock issued pursuant to the terms of the
Agreement.
“Shares” shall mean the shares of the Company’s Common Stock.
“Share Delivery Date” shall mean 7 days after the “Put Date”.
“Subsequent Purchasers” shall have the meaning specified in Section 2(I).
3
“Subsidiaries” shall have the meaning specified in Section 4(A).
“Trading Day” shall mean any day on which the Principal Market for the Common Stock is
open for trading, from the hours of 9:30 am until 4:00 pm Boston Time.
“VWAP” shall mean the volume weighted average price during a Trading Day.
SECTION 2. PURCHASE AND SALE OF COMMON STOCK.
(A)
PURCHASE AND SALE OF COMMON STOCK. Subject to the terms and
conditions set forth herein, the Company may issue and sell to the Investor, and the Investor
shall purchase from the Company, up to that number of Shares having an aggregate Purchase
Price of twenty million dollars ($20,000,000).
(B)
DELIVERY OF PUT NOTICES. Subject to the terms and conditions of the Equity
Line Transaction Documents, and from time to time during the Open Period, the Company may,
in its sole discretion, deliver a Put Notice to the Investor which states the dollar amount
(designated in U.S. Dollars) (the “Put Amount”) of Shares which the Company intends to sell to
the Investor on a Closing Date (the “Put”). The Put Amount shall be equal to up to either 1) three
hundred percent (300%) of the average daily volume (U.S. market only) of the Common Stock
for the three (3) Trading Days prior to the applicable Put Notice Date, multiplied by the average
of the three (3) daily closing prices immediately preceding the Put Date or 2) three hundred
thousand dollars ($300,000). During the Open Period, the Company shall not be entitled to
submit a Put Notice until the Pricing Period for the prior Put has been completed. The Common
Stock identified in the Put Notice shall be purchased for a price equal to the Purchase Price.
(C)
COMPANY’S RIGHT TO SUSPEND. On each Put Notice submitted to the
Investor by the Company, the Company shall have the option to specify a Suspension Price for
that Put. In the event the Common Stock falls below the Suspension Price, the Put shall be
temporarily suspended. The Put shall resume at such time as the Common Stock is above the
Suspension Price, provided the dates for the Pricing Period for that particular Put are still valid.
In the event the Pricing Period has been complete, any shares above the Suspension Price due
to the Investor shall be sold to the Investor by the Company at the Suspension Price under the
terms of this Agreement. The Suspension Price for a Put may not be changed by the Company
once submitted to the Investor.
(D)
CONDITIONS TO INVESTOR'S OBLIGATION TO PURCHASE SHARES.
Notwithstanding anything to the contrary in this Agreement, the Company shall not be entitled to
deliver a Put Notice and the Investor shall not be obligated to purchase any Shares at a Closing
unless each of the following conditions are satisfied:
(1)
a Registration Statement shall have been declared effective and shall
remain effective and available for the resale of all the Registrable Securities (as defined in the
Registration Rights Agreement) at all times until the Closing with respect to the subject Put
Notice;
(2)
at all times during the period beginning on the related Put Notice Date and
ending on and including the related Closing Date, the Common Stock shall have been listed on
the Principal Market and shall not have been suspended from trading thereon for a period of two
(2) consecutive Trading Days during the Open Period and the Company shall not have been
notified of any pending or threatened proceeding or other action to suspend the trading of the
Common Stock;
(3)
the Company has complied with its obligations and is otherwise not in
breach of or in default under this Agreement, the Registration Rights Agreement or any other
agreement executed in connection herewith which has not been cured prior to delivery of the Put
Notice;
(4)
no injunction shall have been issued and remain in force, or action
commenced by a governmental authority which has not been stayed or abandoned, prohibiting
the purchase or the issuance of the Securities; and
(5)
the issuance of the Securities pursuant to this Agreement will not violate
any shareholder approval requirements of the Principal Market.
If any of the events described in clauses (1) through (5) above occurs during a Pricing Period,
then the Investor shall have no obligation to purchase the Common Stock subject to the
applicable Put Notice.
(E)
INTENTIONALLY OMITTED.
(F)
MECHANICS OF PURCHASE OF SHARES BY INVESTOR. The closing of the
purchase by the Investor of Shares (a “Closing”) shall occur on the date which is no later than
five (5) Trading Days following the applicable Put Notice Date (each a “Closing Date”). On each
Closing Date, (I) the Company shall deliver to the Investor pursuant to this Agreement,
certificates representing the Shares to be issued to the Investor on such date and registered in
the name of the Investor; and (II) the Investor shall deliver to the Company the Purchase Price to
be paid for such Shares, based on the Put Amount set forth in Section 2(B). In lieu of delivering
physical certificates representing the Securities and provided that the Company's transfer agent
then is participating in The Depository Trust Company (“DTC”) Fast Automated Securities
Transfer (“FAST”) program, upon request of the Investor, the Company shall use all
commercially reasonable efforts to cause its transfer agent to electronically transmit the
Securities by crediting the account of the Investor's prime broker (as specified by the Investor
within a reasonable period in advance of the Investor's notice) with DTC through its Deposit
Withdrawal Agent Commission (“DWAC”) system. (Company RDTK is not FAST or DWAC)
The Company understands that a delay in the issuance of Securities beyond the Closing
Date could result in economic damage to the Investor. After the Effective Date, as compensation
to the Investor for such loss, the Company agrees to make payments to the Investor for late
issuance of Securities (delivery of Securities after the applicable Closing Date) in accordance
with the following schedule (where “No. of Days Late” is defined as the number of trading days
beyond the Closing Date, with the Amounts being cumulative.):
LATE PAYMENT FOR EACH NO. OF DAYS LATE
1
$100
2
$200
3
$300
4
$400
5
$500
6
$600
7
$700
5
8
$800
9
$900
10
$1000
Over 10
$1,000 + $200 for each Business
Day late beyond 10 days
The Company shall make any payments incurred under this Section in immediately
available funds upon demand by the Investor. Nothing herein shall limit the Investor's right to
pursue actual damages for the Company's failure to issue and deliver the Securities to the
Investor, except that such late payments shall offset any such actual damages incurred by the
Investor, and any Open Market Adjustment Amount, as set forth below.
(G)
OVERALL LIMIT ON COMMON STOCK ISSUABLE. Notwithstanding anything
contained herein to the contrary, if during the Open Period the Company becomes listed on an
exchange that limits the number of shares of Common Stock that may be issued without
shareholder approval, then the number of Shares issuable by the Company and purchasable by
the Investor, shall not exceed that number of the shares of Common Stock that may be issuable
without shareholder approval (the “Maximum Common Stock Issuance”). If such issuance of
shares of Common Stock could cause a delisting on the Principal Market, then the Maximum
Common Stock Issuance shall first be approved by the Company's shareholders in accordance
with applicable law and the By-laws and Articles of Incorporation of the Company, as amended.
The parties understand and agree that the Company's failure to seek or obtain such shareholder
approval shall in no way adversely affect the validity and due authorization of the issuance and
sale of Securities or the Investor's obligation in accordance with the terms and conditions hereof
to purchase a number of Shares in the aggregate up to the Maximum Common Stock Issuance
limitation, and that such approval pertains only to the applicability of the Maximum Common
Stock Issuance limitation provided in this Section 2(H).
(H)
OPEN MARKET ADJUSTMENT. If, by the third (3rd) business day after a Closing
Date, the Company fails to deliver any portion of the Securities subject to a Put Notice to the
Investor (the “Put Shares Due”) and the Investor purchases, in an open market transaction or
otherwise, shares of Common Stock necessary to make delivery by the Investor of shares in
respect of sales to subsequent purchasers, pursuant to transactions entered into before the
Closing Date (“Subsequent Purchasers”), which such shares of Common Stock would have been
delivered to the Investor by the Company but for the Company’s failure to so deliver (the “Open
Market Share Purchase”), then the Company shall pay to the Investor, in addition to any other
amounts due to Investor pursuant to the Put, and not in lieu thereof, the Open Market Adjustment
Amount (as defined below). The “Open Market Adjustment Amount” is the amount equal to the
excess, if any, of (x) the Investor's total purchase price (including brokerage commissions, if any)
for the Open Market Share Purchase minus (y) the net proceeds (after brokerage commissions,
if any) received by the Investor from the sale of the Put Shares Due to such Subsequent
Purchasers. The Company shall pay the Open Market Adjustment Amount to the Investor in
immediately available funds within five (5) business days of written demand by the Investor. By
way of illustration and not in limitation of the foregoing, if the Investor purchases shares of
Common Stock having a total purchase price (including brokerage commissions) of $11,000 to
cover an Open Market Share Purchase with respect to shares of Common Stock it sold to
Subsequent Purchasers for net proceeds of $10,000, the Open Market Adjustment Amount
which the Company will be required to pay to the Investor will be $1,000.
(I)
LIMITATION ON AMOUNT OF OWNERSHIP. Notwithstanding anything to the
contrary in this Agreement, in no event shall the Investor be entitled to purchase that number of
Shares, which when added to the sum of the number of shares of Common Stock beneficially
owned (as such term is defined under Section 13(d) and Rule 13d-3 of the 1934 Act), by the
Investor, would exceed 4.99% of the number of shares of Common Stock outstanding on the
Closing Date, as determined in accordance with Rule 13d-1(j) of the 1934 Act.
SECTION 3. INVESTOR'S REPRESENTATIONS, WARRANTIES AND COVENANTS. The
Investor represents and warrants to the Company, and covenants, that:
(A)
SOPHISTICATED INVESTOR. The Investor has, by reason of its business and
financial experience, such knowledge, sophistication and experience in financial and business
matters and in making investment decisions of this type that it is capable of (1) evaluating the
merits and risks of an investment in the Securities and making an informed investment decision;
(2) protecting its own interest; and (3) bearing the economic risk of such investment for an
indefinite period of time.
(B)
AUTHORIZATION; ENFORCEMENT. The Investor has the requisite power and
authority to enter into and perform this Agreement and the Registration Rights Agreement. The
execution and delivery of the Equity Line Transaction Documents by the Investor and the
consummation by it of the transactions contemplated hereby and thereby have been duly and
validly authorized by the Investor's general partners and no further consent or authorization is
required by its partners. This Agreement has been duly and validly authorized, executed and
delivered on behalf of the Investor and is a valid and binding agreement of the Investor
enforceable against the Investor in accordance with its terms, subject as to enforceability to
general principles of equity and to applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable
creditors' rights and remedies.
(C)
SECTION 9 OF THE 1934 ACT. During the term of this Agreement, the Investor
will comply with the provisions of Section 9 of the 1934 Act, and the rules promulgated
thereunder, with respect to transactions involving the Common Stock. The Investor agrees not to
sell the Company's stock short, either directly or indirectly through its affiliates, principals or
advisors, the Company's common stock during the term of this Agreement.
(D)
ACCREDITED INVESTOR. Investor is an “Accredited Investor” as that term is
defined in Rule 501(a) of Regulation D of the 1933 Act.
(E)
NO CONFLICTS. The execution, delivery and performance of the Transaction
Documents by the Investor and the consummation by the Investor of the transactions
contemplated hereby and thereby will not (1) result in a violation of the partnership agreement or
other organizational documents of the Investor, (2) conflict with, or constitute a material default
(or an event which with notice or lapse of time or both would become a material default) under, or
give to others any rights of termination, amendment, acceleration or cancellation of, any material
agreement, contract, indenture mortgage, indebtedness or instrument to which the Investor is a
party, or to the Investor’s knowledge result in a violation of any law, rule, regulation, order,
judgment or decree (including United States federal and state securities laws and regulations)
applicable to the Investor or by which any property or asset of the Investor is bound or affected.
(F)
NO VIOLATIONS. Except as disclosed in Schedule 3(f), the Investor is not in
violation of any term of, or in default under, the partnership agreement of other organizational
7
documents of the Investor or any material contract, agreement, mortgage, indebtedness,
indenture, instrument, judgment, decree or order or any statute, rule or regulation applicable to
the Investor, except for conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations that would not, individually or in the aggregate, constitute or
reasonably be expected to constitute a material adverse effect on the Investor. The business of
the Investor is not being conducted, and shall not be conducted, in violation of any law, statute,
ordinance, rule, order or regulation of any governmental authority or agency, regulatory or
self-regulatory agency, or court, except for violations the sanctions for which either, individually
or in the aggregate, would not have or reasonably be expected to have a material adverse effect
on the Investor. Except as specifically contemplated by this Agreement and as required under
the 1933 Act or any securities laws of any states, to the Investor’s knowledge, the Investor is not
required to obtain any consent, authorization, permit or order of, or make any filing or registration
(except the filing of a registration statement as outlined in the Registration Rights Agreement)
with, any court, governmental authority or agency, regulatory or self-regulatory agency or other
third party in order for it to execute, deliver or perform any of its obligations under, or
contemplated by, the Equity Line Transaction Documents in accordance with the terms hereof or
thereof except for those consents, authorizations, permits, orders or filings as have been
obtained or effected on or prior to the date hereof and are in full force and effect as of the date
hereof. Except as disclosed in Schedule 3(f), the Investor is unaware of any facts or
circumstances which might give rise to any violation or default set forth in this Section 3(F).
(G)
OPPORTUNITY TO DISCUSS. The Investor has received all materials relating to
the Company's business, finance and operations which it has requested. The Investor has had
an opportunity to discuss the business, management and financial affairs of the Company with
the Company's management.
(H)
INVESTMENT PURPOSES. The Investor is purchasing the Securities for its own
account for investment purposes and not with a view towards distribution and agrees to resell or
otherwise dispose of the Securities solely in accordance with the registration provisions of the
1933 Act (or pursuant to an exemption from such registration provisions).
(I)
NO REGISTRATION AS A DEALER. The Investor is not and will not be required
to be registered as a “dealer” under the 1934 Act, either as a result of its execution and
performance of its obligations under this Agreement or otherwise.
(J)
GOOD STANDING. The Investor is a Limited Partnership, duly organized,
validly existing and in good standing in the state of Delaware.
(K)
TAX LIABILITIES. The Investor understands that it is liable for its own tax
liabilities.
(L)
REGULATION M. The Investor will comply with Regulation M under the 1934 Act,
if applicable.
SECTION 4. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. Except as set
forth in the Schedules attached hereto, or as disclosed in the Company's SEC Documents, the
Company represents and warrants to the Investor that:
(A)
ORGANIZATION AND QUALIFICATION. The Company is a corporation duly
organized and validly existing in good standing under the laws of the State of Nevada, USA and
has the requisite corporate power and authorization to own its properties and to carry on its
business as now being conducted. Both the Company and the companies it owns or controls
(“Subsidiaries”) are duly qualified to do business and are in good standing in every jurisdiction in
which its ownership of property or the nature of the business conducted by it makes such
qualification necessary, except to the extent that the failure to be so qualified or be in good
standing would not have a Material Adverse Effect. As used in this Agreement, “Material Adverse
Effect” means any material adverse effect on (1) the properties, assets, operations, results of
operations, or financial condition of the Company and its Subsidiaries, if any, taken as a whole,
(2) the transactions contemplated hereby or by the agreements and instruments to be entered
into in connection herewith, or (3) the authority or ability of the Company to perform its
obligations under the Equity Line Transaction Documents other than as a result of (a) changes
adversely affecting the United States economy (so long as the Company is not disproportionately
affected thereby), (b) changes adversely affecting the industry in which the Company operates
(so long as the Company is not disproportionately affected thereby), (c) the announcement or
consummation of the transactions contemplated by this Agreement, and (d) changes in the
market price of the Common Stock.
(B)
AUTHORIZATION;
ENFORCEMENT;
COMPLIANCE
WITH
OTHER
INSTRUMENTS.
(1)
The Company has the requisite corporate power and authority to enter into
and perform the Equity Line Transaction Documents, and to perform its obligations contemplated
hereby and thereby.
(2)
The execution and delivery of the Equity Line Transaction Documents by
the Company and the consummation by it of the transactions contemplated hereby and thereby,
including without limitation the reservation for issuance and the issuance of the Securities
pursuant to this Agreement, have been duly and validly authorized by the Company's Board of
Directors and no further consent or authorization is required by the Company, its Board of
Directors, or its shareholders.
(3)
The Equity Line Transaction Documents have been duly and validly
executed and delivered by the Company.
(4)
The Equity Line Transaction Documents constitute the valid and binding
obligations of the Company enforceable against the Company in accordance with their terms,
except as such enforceability may be limited by general principles of equity or applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of creditors' rights and remedies.
(C)
CAPITALIZATION. As of the date hereof, the authorized capital stock of the
Company consists of 1,990,000,000 shares of Common Stock (and 10,000,000 shares of
preferred stock, with no preferred shares issued) with $0.001 par value per share, of as of April
22, 2014, 121,336,800 shares were issued and outstanding. Except as disclosed in the
Company’s publicly available filings with the SEC: (1) no shares of the Company's capital stock
are subject to preemptive rights or any other similar rights or any liens or encumbrances suffered
or permitted by the Company; (2) there are no outstanding debt securities; (3) there are no
outstanding shares of capital stock, options, warrants, scrip, rights to subscribe to, calls or
commitments of any character whatsoever relating to, or securities or rights convertible into, any
shares of capital stock of the Company or any of its Subsidiaries, or contracts, commitments,
understandings or arrangements by which the Company or any of its Subsidiaries is or may
become bound to issue additional shares of capital stock of the Company or any of its
9
Subsidiaries or options, warrants, scrip, rights to subscribe to, calls or commitments of any
character whatsoever relating to, or securities or rights convertible into, any shares of capital
stock of the Company or any of its Subsidiaries; (4) there are no agreements or arrangements
under which the Company or any of its Subsidiaries is obligated to register the sale of any of their
securities under the 1933 Act (except the Registration Rights Agreement); (5) there are no
outstanding securities of the Company or any of its Subsidiaries which contain any redemption or
similar provisions, and there are no contracts, commitments, understandings or arrangements by
which the Company or any of its Subsidiaries is or may become bound to redeem a security of
the Company or any of its Subsidiaries; (6) there are no securities or instruments containing
anti-dilution or similar provisions that will be triggered by the issuance of the Securities as
described in this Agreement; (7) the Company does not have any stock appreciation rights or
“phantom stock” plans or agreements or any similar plan or agreement; and (8) there is no
dispute as to the classification of any shares of the Company's capital stock.
The Company has furnished to the Investor, or the Investor has had access through the
SEC’s XXXXX website to, true and correct copies of the Company's Articles of Incorporation, as
amended and in effect on the date hereof (the “Articles of Incorporation”), and the Company's
By-laws, as in effect on the date hereof (the “By-laws”), and the terms of all securities convertible
into or exercisable for Common Stock and the material rights of the holders thereof in respect
thereto.
(D)
ISSUANCE OF SHARES. The Company has reserved up to 40,000,000 Shares
for issuance pursuant to this Agreement, which have been duly authorized and reserved for
issuance (subject to adjustment pursuant to the Company's covenant set forth in Section 5(F)
below) pursuant to this Agreement. Upon issuance in accordance with this Agreement, the
Securities will be validly issued, fully paid for and non-assessable and free from all taxes, liens
and charges with respect to the issue thereof. In the event the Company cannot register a
sufficient number of Shares for issuance pursuant to this Agreement, the Company will use its
best efforts to authorize and reserve for issuance the number of Shares required for the
Company to perform its obligations hereunder as soon as reasonably practicable.
(E) NO CONFLICTS. The execution, delivery and performance of the Equity Line
Transaction Documents by the Company and the consummation by the Company of the
transactions contemplated hereby and thereby will not (I) result in a violation of the Articles of
Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series
of preferred stock of the Company or the By-laws; or (II) conflict with, or constitute a material
default (or an event which with notice or lapse of time or both would become a material default)
under, or give to others any rights of termination, amendment, acceleration or cancellation of,
any material agreement, contract, indenture mortgage, indebtedness or instrument to which the
Company or any of its Subsidiaries is a party, or to the Company's knowledge result in a violation
of any law, rule, regulation, order, judgment or decree (including United States federal and state
securities laws and regulations and the rules and regulations of the Principal Market or principal
securities exchange or trading market on which the Common Stock is traded or listed) applicable
to the Company or any of its Subsidiaries or by which any property or asset of the Company or
any of its Subsidiaries is bound or affected. Except as disclosed in Schedule 4(e), neither the
Company nor its Subsidiaries is in violation of any term of, or in default under, the Articles of
Incorporation, any Certificate of Designations, Preferences and Rights of any outstanding series
of preferred stock of the Company or the By-laws or their organizational charter or by-laws,
respectively, or any contract, agreement, mortgage, indebtedness, indenture, instrument,
judgment, decree or order or any statute, rule or regulation applicable to the Company or its
Subsidiaries, except for possible conflicts, defaults, terminations, amendments, accelerations,
cancellations and violations that would not individually or in the aggregate have or constitute a
Material Adverse Effect. The business of the Company and its Subsidiaries is not being
conducted, and shall not be conducted, in violation of any law, statute, ordinance, rule, order or
regulation of any governmental authority or agency, regulatory or self-regulatory agency, or court,
except for possible violations the sanctions for which either individually or in the aggregate would
not have a Material Adverse Effect. Except as specifically contemplated by this Agreement and
as required under the 1933 Act or any securities laws of any states, to the Company's knowledge,
the Company is not required to obtain any consent, authorization, permit or order of, or make any
filing or registration (except the filing of a registration statement as outlined in the Registration
Rights Agreement between the Parties) with, any court, governmental authority or agency,
regulatory or self-regulatory agency or other third party in order for it to execute, deliver or
perform any of its obligations under, or contemplated by, the Equity Line Transaction Documents
in accordance with the terms hereof or thereof. All consents, authorizations, permits, orders,
filings and registrations which the Company is required to obtain pursuant to the preceding
sentence have been obtained or effected on or prior to the date hereof and are in full force and
effect as of the date hereof. Except as disclosed in Schedule 4(e), the Company and its
Subsidiaries are unaware of any facts or circumstances which might give rise to any violation or
default of any of the foregoing. The Company is not, and will not be, in violation of the listing
requirements of the Principal Market as in effect on the date hereof and on each of the Closing
Dates and is not aware of any facts which would reasonably lead to delisting of the Common
Stock by the Principal Market in the foreseeable future.
(F) SEC DOCUMENTS; FINANCIAL STATEMENTS. As of the date hereof, the Company
has filed all reports, schedules, forms, statements and other documents required to be filed by it
with the SEC pursuant to the reporting requirements of the 1934 Act (all of the foregoing filed
prior to the date hereof and all exhibits included therein and financial statements and schedules
thereto and documents incorporated by reference therein being hereinafter referred to as the
"SEC Documents"). The Company has delivered to the Investor or its representatives, or they
have had access through the SEC’s XXXXX website to, true and complete copies of the SEC
Documents. As of their respective filing dates, the SEC Documents complied in all material
respects with the requirements of the 1934 Act and the rules and regulations of the SEC
promulgated thereunder applicable to the SEC Documents, and none of the SEC Documents, at
the time they were filed with the SEC, contained any untrue statement of a material fact or
omitted to state a material fact required to be stated therein or necessary to make the statements
therein, in light of the circumstances under which they were made, not misleading. As of their
respective dates, the financial statements of the Company included in the SEC Documents
complied as to form in all material respects with applicable accounting requirements and the
published rules and regulations of the SEC with respect thereto. Such financial statements have
been prepared in accordance with generally accepted accounting principles, and audited by a
firm that is a member a member of the Public Companies Accounting Oversight Board ("PCAOB")
consistently applied, during the periods involved (except (I) as may be otherwise indicated in
such financial statements or the notes thereto, or (II) in the case of unaudited interim statements,
to the extent they may exclude footnotes or may be condensed or summary statements) and
fairly present in all material respects the financial position of the Company as of the dates thereof
and the results of its operations and cash flows for the periods then ended (subject, in the case of
unaudited statements, to normal year-end audit adjustments). No other written information
provided by or on behalf of the Company to the Investor which is not included in the SEC
Documents, including, without limitation, information referred to in Section 4(D) of this
Agreement, contains any untrue statement of a material fact or omits to state any material fact
necessary to make the statements therein, in the light of the circumstance under which they are
or were made, not misleading. Neither the Company nor any of its Subsidiaries or any of their
11
officers, directors, employees or agents have provided the Investor with any material, nonpublic
information which was not publicly disclosed prior to the date hereof and any material, nonpublic
information provided to the Investor by the Company or its Subsidiaries or any of their officers,
directors, employees or agents prior to any Closing Date shall be publicly disclosed by the
Company prior to such Closing Date.
(G) ABSENCE OF CERTAIN CHANGES. Except as otherwise set forth in the SEC
Documents, the Company does not intend to change the business operations of the Company in
any material way. The Company has not taken any steps, and does not currently expect to take
any steps, to seek protection pursuant to any bankruptcy law nor does the Company or its
Subsidiaries have any knowledge or reason to believe that its creditors intend to initiate
involuntary bankruptcy proceedings.
(H) ABSENCE OF LITIGATION AND/OR REGULATORY PROCEEDINGS. Except as set
forth in the SEC Documents, there is no action, suit, proceeding, inquiry or investigation before
or by any court, public board, government agency, self-regulatory organization or body pending
or, to the knowledge of the executive officers of Company or any of its Subsidiaries, threatened
against or affecting the Company, the Common Stock or any of the Company's Subsidiaries or
any of the Company's or the Company's Subsidiaries' officers or directors in their capacities as
such, in which an adverse decision could have a Material Adverse Effect.
(I) ACKNOWLEDGMENT REGARDING INVESTOR'S PURCHASE OF SHARES. The
Company acknowledges and agrees that the Investor is acting solely in the capacity of an arm's
length purchaser with respect to the Equity Line Transaction Documents and the transactions
contemplated hereby and thereby. The Company further acknowledges that the Investor is not
acting as a financial advisor or fiduciary of the Company (or in any similar capacity) with respect
to the Equity Line Transaction Documents and the transactions contemplated hereby and
thereby and any advice given by the Investor or any of its respective representatives or agents in
connection with the Equity Line Transaction Documents and the transactions contemplated
hereby and thereby is merely incidental to the Investor's purchase of the Securities, and is not
being relied on by the Company. The Company further represents to the Investor that the
Company's decision to enter into the Equity Line Transaction Documents has been based solely
on the independent evaluation by the Company and its representatives.
(J)
NO
UNDISCLOSED
EVENTS,
LIABILITIES,
DEVELOPMENTS
OR
CIRCUMSTANCES. Except as set forth in the SEC Documents, as of the date hereof, no event,
liability, development or circumstance has occurred or exists, or to the Company's knowledge is
contemplated to occur, with respect to the Company or its Subsidiaries or their respective
business, properties, assets, prospects, operations or financial condition, that would be required
to be disclosed by the Company under applicable securities laws on a registration statement filed
with the SEC relating to an issuance and sale by the Company of its Common Stock and which
has not been publicly announced.
(K) EMPLOYEE RELATIONS. Neither the Company nor any of its Subsidiaries is
involved in any union labor dispute nor, to the knowledge of the Company or any of its
Subsidiaries, is any such dispute threatened. Neither the Company nor any of its Subsidiaries is
a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that
relations with their employees are good. No executive officer (as defined in Rule 501(f) of the
0000 Xxx) has notified the Company that such officer intends to leave the Company's employ or
otherwise terminate such officer's employment with the Company.
(L) INTELLECTUAL PROPERTY RIGHTS. The Company and its Subsidiaries own or
possess adequate rights or licenses to use all trademarks, trade names, service marks, service
xxxx registrations, service names, patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights necessary to conduct their
respective businesses as now conducted. Except as set forth in the SEC Documents, none of
the Company's trademarks, trade names, service marks, service xxxx registrations, service
names, patents, patent rights, copyrights, inventions, licenses, approvals, government
authorizations, trade secrets or other intellectual property rights necessary to conduct its
business as now or as proposed to be conducted have expired or terminated, or are expected to
expire or terminate within two (2) years from the date of this Agreement. The Company and its
Subsidiaries do not have any knowledge of any infringement by the Company or its Subsidiaries
of trademark, trade name rights, patents, patent rights, copyrights, inventions, licenses, service
names, service marks, service xxxx registrations, trade secret or other similar rights of others, or
of any such development of similar or identical trade secrets or technical information by others
and, except as set forth in the SEC Documents, there is no claim, action or proceeding being
made or brought against, or to the Company's knowledge, being threatened against, the
Company or its Subsidiaries regarding trademark, trade name, patents, patent rights, invention,
copyright, license, service names, service marks, service xxxx registrations, trade secret or
other infringement; and the Company and its Subsidiaries are unaware of any facts or
circumstances which might give rise to any of the foregoing. The Company and its Subsidiaries
have taken commercially reasonable security measures to protect the secrecy, confidentiality
and value of all of their intellectual properties.
(M) ENVIRONMENTAL LAWS. The Company and its Subsidiaries (I) are, to the
knowledge of the Company and its Subsidiaries, in compliance with any and all applicable
foreign, federal, state and local laws and regulations relating to the protection of human health
and safety, the environment or hazardous or toxic substances or wastes, pollutants or
contaminants ("Environmental Laws"); (II) have, to the knowledge of the Company, received all
permits, licenses or other approvals required of them under applicable Environmental Laws to
conduct their respective businesses; and (III) are in compliance, to the knowledge of the
Company, with all terms and conditions of any such permit, license or approval where, in each of
the three (3) foregoing cases, the failure to so comply would have, individually or in the
aggregate, a Material Adverse Effect.
(N) TITLE. The Company and its Subsidiaries have good and marketable title to all
personal property owned by them which is material to the business of the Company and its
Subsidiaries, in each case free and clear of all liens, encumbrances and defects except such as
are described in the SEC Documents or such as do not materially affect the value of such
property and do not interfere with the use made and proposed to be made of such property by
the Company or any of its Subsidiaries. Any real property and facilities held under lease by the
Company or any of its Subsidiaries are held by them under valid, subsisting and enforceable
leases with such exceptions as are not material and do not interfere with the use made and
proposed to be made of such property and buildings by the Company and its Subsidiaries.
(O) INSURANCE. Each of the Company's Subsidiaries are insured by insurers of
recognized financial responsibility against such losses and risks and in such amounts as
management of the Company reasonably believes to be prudent and customary in the
businesses in which the Company and its Subsidiaries are engaged. Neither the Company nor
any of its Subsidiaries has been refused any insurance coverage sought or applied for and
neither the Company nor its Subsidiaries has any reason to believe that it will not be able to
13
renew its existing insurance coverage as and when such coverage expires or to obtain similar
coverage from similar insurers as may be necessary to continue its business at a cost that would
not have a Material Adverse Effect.
(P) REGULATORY PERMITS. The Company and its Subsidiaries have in full force and
effect all certificates, approvals, authorizations and permits from the appropriate federal, state,
local or foreign regulatory authorities and comparable foreign regulatory agencies, necessary to
own, lease or operate their respective properties and assets and conduct their respective
businesses, and neither the Company nor any such Subsidiary has received any notice of
proceedings relating to the revocation or modification of any such certificate, approval,
authorization or permit, except for such certificates, approvals, authorizations or permits which if
not obtained, or such revocations or modifications which, would not have a Material Adverse
Effect.
(Q) INTERNAL ACCOUNTING CONTROLS. The Company and each of its Subsidiaries
maintain a system of internal accounting controls sufficient to provide reasonable assurance that
(I) transactions are executed in accordance with management's general or specific
authorizations; (II) transactions are recorded as necessary to permit preparation of financial
statements in conformity with generally accepted accounting principles by a firm with
membership to the PCAOB and to maintain asset accountability; (III) reasonable controls to
safeguard assets are in place; and (IV) the recorded accountability for assets is compared with
the existing assets at reasonable intervals and appropriate action is taken with respect to any
differences.
(R) NO MATERIALLY ADVERSE CONTRACTS, ETC. Neither the Company nor any of
its Subsidiaries is subject to any charter, corporate or other legal restriction, or any judgment,
decree or order which in the judgment of the Company's officers has or is expected in the future
to have a Material Adverse Effect. Neither the Company nor any of its Subsidiaries is a party to
any contract or agreement which in the judgment of the Company's officers has or is expected to
have a Material Adverse Effect.
(S) TAX STATUS. The Company and each of its Subsidiaries has made or filed all United
States federal and state income and all other tax returns, reports and declarations required by
any jurisdiction to which it is subject (unless and only to the extent that the Company and each of
its Subsidiaries has set aside on its books provisions reasonably adequate for the payment of all
unpaid and unreported taxes) and has paid all taxes and other governmental assessments and
charges that are material in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith and has set aside on its books provision
reasonably adequate for the payment of all taxes for periods subsequent to the periods to which
such returns, reports or declarations apply. There are no unpaid taxes in any material amount
claimed to be due by the taxing authority of any jurisdiction, and the officers of the Company
know of no basis for any such claim.
(T) CERTAIN TRANSACTIONS. Except as set forth in the SEC Documents filed at least
ten (10) days prior to the date hereof and except for arm's length transactions pursuant to which
the Company makes payments in the ordinary course of business upon terms no less favorable
than the Company could obtain from disinterested third parties and other than the grant of stock
options disclosed in the SEC Documents or stock options granted in the future as contemplated
by current compensation agreements or plans disclosed in the SEC Documents, none of the
officers, directors, or employees of the Company is presently a party to any transaction with the
Company or any of its Subsidiaries (other than for services as employees, officers and directors),
including any contract, agreement or other arrangement providing for the furnishing of services
to or by, providing for rental of real or personal property to or from, or otherwise requiring
payments to or from any officer, director or such employee or, to the knowledge of the Company,
any corporation, partnership, trust or other entity in which any officer, director, or any such
employee has a substantial interest or is an officer, director, trustee or partner.
(U) DILUTIVE EFFECT. The Company understands and acknowledges that the number
of shares of Common Stock issuable upon purchases pursuant to this Agreement will increase in
certain circumstances including, but not necessarily limited to, the circumstance wherein the
trading price of the Common Stock declines during the period between the Effective Date and
the end of the Open Period. The Company's executive officers and directors have studied and
fully understand the nature of the transactions contemplated by this Agreement and recognize
that they have a potential dilutive effect on the shareholders of the Company. The Board of
Directors of the Company has concluded, in its good faith business judgment, and with full
understanding of the implications, that such issuance is in the best interests of the Company.
The Company specifically acknowledges that, subject to such limitations as are expressly set
forth in the Equity Line Transaction Documents, its obligation to issue shares of Common Stock
upon purchases pursuant to this Agreement is absolute and unconditional regardless of the
dilutive effect that such issuance may have on the ownership interests of other shareholders of
the Company.
(V) LOCK-UP. The Company shall cause its officers and directors to refrain from selling
Common Stock during each Pricing Period.
(W) NO GENERAL SOLICITATION. Neither the Company, nor any of its affiliates, nor
any person acting on its behalf, has engaged in any form of general solicitation or general
advertising (within the meaning of Regulation D) in connection with the offer or sale of the
Common Stock to be offered as set forth in this Agreement.
(X) NO BROKERS, FINDERS OR FINANCIAL ADVISORY FEES OR COMMISSIONS.
No brokers, finders or financial advisory fees or commissions will be payable by the Company, its
agents or Subsidiaries, with respect to the transactions contemplated by this Agreement, except
as otherwise disclosed in this Agreement.
SECTION 5. COVENANTS OF THE COMPANY
(A)
EFFORTS. The Company shall use all commercially reasonable efforts to timely
satisfy each of the conditions set forth in Section 8 of this Agreement.
(B)
BLUE SKY. The Company shall, at its sole cost and expense, on or before each
of the Closing Dates, take such action as the Company shall reasonably determine is necessary
to qualify the Securities for, or obtain exemption for the Securities for, sale to the Investor at each
of the Closings pursuant to this Agreement under applicable securities or “Blue Sky” laws of such
states of the United States, as reasonably specified by the Investor, and shall provide evidence
of any such action so taken to the Investor on or prior to the Closing Date.
(C)
REPORTING STATUS. Until one of the following occurs, the Company shall file
all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not
terminate its status, or take an action or fail to take any action, which would terminate its status
15
as a reporting company under the 1934 Act: (1) this Agreement terminates pursuant to Section 9,
or (2) the date on which the Investor has sold all the Securities; provided that the Investor shall
promptly notify the Company after the Investor has sold all the Securities.
(D)
USE OF PROCEEDS. The Company will use the proceeds from the sale of the
Securities (excluding amounts paid by the Company for fees as set forth in the Equity Line
Transaction Documents) for general corporate and working capital purposes and acquisitions or
assets, businesses or operations or for other purposes that the Board of Directors, in its good
faith, deems to be in the best interest of the Company.
(E)
FINANCIAL INFORMATION. During the Open Period, the Company agrees to
make available to the Investor via the SEC’s XXXXX website or other electronic means the
following documents and information on the forms set forth: (1) within five (5) Trading Days after
the filing thereof with the SEC, a copy of its Annual Reports on Form 10-K, its Quarterly Reports
on Form 10-Q, any Current Reports on Form 8-K and any Registration Statements or
amendments filed pursuant to the 1933 Act; (2) copies of any notices and other information
made available or given to the shareholders of the Company generally, contemporaneously with
the making available or giving thereof to the shareholders; and (3) within two (2) calendar days of
filing or delivery thereof, copies of all documents filed with, and all correspondence sent to, the
Principal Market, any securities exchange or market, or the Financial Industry Regulatory
Authority, unless such information is material nonpublic information.
(F)
RESERVATION OF SHARES. The Company shall reserve up to 40,000,000
Shares for the issuance of the Securities to the Investor as required hereunder. In the event that
the Company determines that it does not have a sufficient number of authorized shares of
Common Stock to reserve and keep available for issuance as described in this Section 5(F), the
Company shall use all commercially reasonable efforts to increase the number of authorized
shares of Common Stock by seeking shareholder approval for the authorization of such
additional shares.
(G)
LISTING. The Company shall promptly secure and maintain the listing of all of the
Registrable Securities (as defined in the Registration Rights Agreement) on the Principal Market
and each other national securities exchange and automated quotation system, if any, upon
which shares of Common Stock are then listed (subject to official notice of issuance) and shall
maintain, such listing of all Registrable Securities from time to time issuable under the terms of
the Equity Line Transaction Documents. Neither the Company nor any of its Subsidiaries shall
take any action which would be reasonably expected to result in the delisting or suspension of
the Common Stock on the Principal Market (excluding suspensions of not more than one (1)
trading day resulting from business announcements by the Company). The Company shall
promptly provide to the Investor copies of any notices it receives from the Principal Market
regarding the continued eligibility of the Common Stock for listing on such automated quotation
system or securities exchange. The Company shall pay all fees and expenses in connection with
satisfying its obligations under this Section 5(G).
(H)
TRANSACTIONS WITH AFFILIATES. The Company shall not, and shall cause
each of its Subsidiaries not to, enter into, amend, modify or supplement, or permit any Subsidiary
to enter into, amend, modify or supplement, any agreement, transaction, commitment or
arrangement with any of its or any Subsidiary's officers, directors, persons who were officers or
directors at any time during the previous two (2) years, shareholders who beneficially own 5% or
more of the Common Stock, or Affiliates or with any individual related by blood, marriage or
adoption to any such individual or with any entity in which any such entity or individual owns a 5%
or more beneficial interest (each a “Related Party”), except for (1) customary employment
arrangements and benefit programs on reasonable terms, (2) any agreement, transaction,
commitment or arrangement on an arms-length basis on terms no less favorable than terms
which would have been obtainable from a disinterested third party other than such Related
Party,(3) any agreement, transaction, commitment or arrangement which is approved by a
majority of the disinterested directors of the Company, or (4) extensions or amendments of any
existing employment agreement. For purposes hereof, any director who is also an officer of the
Company or any Subsidiary of the Company shall not be a disinterested director with respect to
any such agreement, transaction, commitment or arrangement. “Affiliate” for purposes hereof
means, with respect to any person or entity, another person or entity that, directly or indirectly, (1)
has a 5% or more equity interest in that person or entity, (2) has 5% or more common ownership
with that person or entity, (3) controls that person or entity, or (4) is under common control with
that person or entity. “Control” or “Controls” for purposes hereof means that a person or entity
has the power, directly or indirectly, to conduct or govern the policies of another person or entity.
(I)
FILING OF FORM 8-K. On or before the date which is four (4) Trading Days after
the date of execution of this Agreement, the Company shall file a Current Report on Form 8-K
with the SEC describing the terms of the transaction contemplated by the Equity Line
Transaction Documents in the form required by the 1934 Act, if such filing is required.
(J)
CORPORATE EXISTENCE. The Company shall use all commercially reasonable
efforts to preserve and continue the corporate existence of the Company.
(K)
NOTICE OF CERTAIN EVENTS AFFECTING REGISTRATION; SUSPENSION
OF RIGHT TO MAKE A PUT. The Company shall promptly notify the Investor upon the
occurrence of any of the following events in respect of a Registration Statement or related
prospectus in respect of an offering of the Securities: (1) receipt of any request for additional
information by the SEC or any other federal or state governmental authority during the period of
effectiveness of the Registration Statement for amendments or supplements to the Registration
Statement or related prospectus; (2) the issuance by the SEC or any other federal or state
governmental authority of any stop order suspending the effectiveness of any Registration
Statement or the initiation of any proceedings for that purpose; (3) receipt of any notification with
respect to the suspension of the qualification or exemption from qualification of any of the
Securities for sale in any jurisdiction or the initiation or notice of any proceeding for such purpose;
(4) the happening of any event that makes any statement made in such Registration Statement
or related prospectus or any document incorporated or deemed to be incorporated therein by
reference untrue in any material respect or that requires the making of any changes in the
Registration Statement, related prospectus or documents so that, in the case of a Registration
Statement, it will not contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein not misleading,
and that in the case of the related prospectus, it will not contain any untrue statement of a
material fact or omit 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; and (5) the Company's reasonable determination that a post-effective amendment to
the Registration Statement would be appropriate, and the Company shall promptly make
available to Investor any such supplement or amendment to the related prospectus. The
Company shall not deliver to the Investor any Put Notice during the continuation of any of the
foregoing events in this Section 5(K).
(L)
REIMBURSEMENT. If (I) the Investor becomes involved in any capacity in any
action, proceeding or investigation brought by any shareholder of the Company, in connection
17
with or as a result of the consummation of the transactions contemplated by the Equity Line
Transaction Documents, or if the Investor is impleaded in any such action, proceeding or
investigation by any person (other than as a result of a breach of the Investor’s representations
and warranties set forth in this Agreement); or (II) the Investor becomes involved in any capacity
in any action, proceeding or investigation brought by the SEC against or involving the Company
(unless the Company is involved in the action, proceeding or investigation as a witness only) or
in connection with or as a result of the consummation of the transactions contemplated by the
Equity Line Transaction Documents (other than as a result of a breach of the Investor’s
representations and warranties set forth in this Agreement), or if this Investor is impleaded in any
such action, proceeding or investigation by any person, then in any such case, the Company will
reimburse the Investor for its actual, reasonable legal and other expenses (including the cost of
any investigation and preparation) incurred in connection therewith, as such expenses are
incurred. In addition, other than with respect to any matter in which the Investor is a named party,
the Company will pay to the Investor the charges, as reasonably determined by the Investor, for
the time of any officers or employees of the Investor devoted to appearing and preparing to
appear as witnesses, assisting in preparation for hearings, trials or pretrial matters, or otherwise
with respect to inquiries, hearing, trials, and other proceedings relating to the subject matter of
this Agreement. The reimbursement obligations of the Company under this section shall be in
addition to any liability which the Company may otherwise have, shall extend upon the same
terms and conditions to any affiliates of the Investor that are actually named in such action,
proceeding or investigation, and partners, directors, agents, employees, attorneys, accountants,
auditors and controlling persons (if any), as the case may be, of Investor and any such affiliate,
and shall be binding upon and inure to the benefit of any successors of the Company, the
Investor and any such affiliate and any such person. However, in all events, if the Investor is
found to be guilty of violations of the federal or state securities laws (or pleads “no contest” or
other similar plea or settles an investigation or pleading without a specific finding of liability but is
still subject to civil or criminal liability), the Company will have no responsibility to pay any of the
Investor’s fees and expenses regardless of whether or not the Company is or is also found to
have liability.
(M)
TRANSFER AGENT. Upon effectiveness of the Registration Statement, and for
so long as the Registration Statement is effective, the Company shall deliver instructions to its
transfer agent to issue Shares to the Investor that are covered for resale by the Registration
Statement free of restrictive legends.
(N)
ACKNOWLEDGEMENT OF TERMS. The Company hereby represents and
warrants to the Investor that: (1) it is voluntarily entering into this Agreement of its own freewill, (2)
it is not entering this Agreement under economic duress, (3) the terms of this Agreement are
reasonable and fair to the Company, and (4) the Company has had independent legal counsel of
its own choosing review this Agreement, advise the Company with respect to this Agreement,
and represent the Company in connection with this Agreement.
SECTION 6. INTENTIONALLY OMITTED.
SECTION 7. CONDITIONS OF THE COMPANY'S OBLIGATION TO SELL. The obligation
hereunder of the Company to issue and sell the Securities to the Investor is further subject to the
satisfaction, at or before each Closing Date, of each of the following conditions set forth below.
These conditions are for the Company's sole benefit and may be waived by the Company at any
time in its sole discretion.
(A)
The Investor shall have executed this Agreement and the Registration Rights
Agreement and delivered the same to the Company.
(B)
The Investor shall have delivered to the Company the Purchase Price for the
Securities being purchased by the Investor between the end of the Pricing Period and the
Closing Date via a Put Settlement Sheet (hereto attached as Exhibit D). Immediately after
receipt of confirmation of delivery of such Securities to the Investor, the Investor, by wire transfer
of immediately available funds pursuant to the wire instructions provided by the Company, will
disburse the funds constituting the Purchase Amount.
(C)
The representations and warranties of the Investor shall be true and correct in all
material respects as of the date when made and as of the applicable Closing Date as though
made at that time and the Investor shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by the Equity Line Transaction
Documents to be performed, satisfied or complied with by the Investor on or before such Closing
Date.
(D)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have
been enacted, entered, promulgated or endorsed by any court or governmental authority of
competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.
SECTION 8. FURTHER CONDITIONS OF THE INVESTOR'S OBLIGATION TO PURCHASE.
The obligation of the Investor hereunder to purchase Shares is subject to the satisfaction, on or
before each Closing Date, of each of the following conditions set forth below.
(A)
The Company shall have executed the Equity Line Transaction Documents and
Commitment Shares and delivered the same to the Investor.
(B)
The Common Stock shall be authorized for quotation on the Principal Market and
trading in the Common Stock shall not have been suspended by the Principal Market or the SEC,
at any time beginning on the date hereof and through and including the respective Closing Date
(excluding suspensions of not more than one (1) Trading Day resulting from business
announcements by the Company, provided that such suspensions occur prior to the Company's
delivery of the Put Notice related to such Closing).
(C)
The representations and warranties of the Company shall be true and correct in
all material respects as of the date when made and as of the applicable Closing Date as though
made at that time and the Company shall have performed, satisfied and complied in all material
respects with the covenants, agreements and conditions required by the Equity Line Transaction
Documents to be performed, satisfied or complied with by the Company on or before such
Closing Date. The Investor may request an update as of such Closing Date regarding the
representation contained in Section 4(C) above.
(D)
The Company shall have executed and delivered to the Investor the certificates
representing, or have executed electronic book-entry transfer of, the Securities (in such
denominations as the Investor shall request) being purchased by the Investor at such Closing.
(E)
The Board of Directors of the Company shall have adopted resolutions consistent
with Section 4(B)(2) above (the “Resolutions”) and such Resolutions shall not have been
amended or rescinded prior to such Closing Date.
19
(F)
INTENTIONALLY OMITTED.
(G)
No statute, rule, regulation, executive order, decree, ruling or injunction shall have
been enacted, entered, promulgated or endorsed by any court or governmental authority of
competent jurisdiction which prohibits the consummation of any of the transactions contemplated
by this Agreement.
(H)
The Registration Statement shall be effective on each Closing Date and no stop
order suspending the effectiveness of the Registration statement shall be in effect or to the
Company's knowledge shall be pending or threatened. Furthermore, on each Closing Date (1)
neither the Company nor the Investor shall have received notice that the SEC has issued or
intends to issue a stop order with respect to such Registration Statement or that the SEC
otherwise has suspended or withdrawn the effectiveness of such Registration Statement, either
temporarily or permanently, or intends or has threatened to do so (unless the SEC's concerns
have been addressed and Investor is reasonably satisfied that the SEC no longer is considering
or intends to take such action), and (2) no other suspension of the use or withdrawal of the
effectiveness of such Registration Statement or related prospectus shall exist.
(I)
At the time of each Closing, the Registration Statement (including information or
documents incorporated by reference therein) and any amendments or supplements thereto
shall not contain any untrue statement of a material fact or omit to state any material fact
required to be stated therein or necessary to make the statements therein not misleading or
which would require public disclosure or an update supplement to the prospectus.
(J)
If applicable, the shareholders of the Company shall have approved the issuance
of any Shares in excess of the Maximum Common Stock Issuance in accordance with Section
2(H) or the Company shall have obtained appropriate approval pursuant to the requirements of
Nevada law and the Company’s Articles of Incorporation and By-laws.
(K)
The conditions to such Closing set forth in Section 2(E) shall have been satisfied
on or before such Closing Date.
(L)
The Company shall have certified to the Investor the number of Shares of
Common Stock outstanding when a Put Notice is given to the Investor. The Company's
delivery of a Put Notice to the Investor constitutes the Company's certification of the reservation
for issuance of the necessary number of shares of Common Stock subject to a Put Notice.
SECTION 9. TERMINATION. This Agreement shall terminate upon any of the following events:
(A)
when the Investor has purchased an aggregate of $20,000,000 (twenty million
dollars) in the Common Stock of the Company pursuant to this Agreement; or,
(B)
on the date which is thirty-six (36) months after the Effective Date; or,
(C)
upon written notice of the Company to the Investor. Any and all shares, or
penalties, if any, due under this Agreement shall be immediately payable and due upon
termination of this Agreement.
SECTION 10. SUSPENSION. The Company’s right to cause the Investor to purchase Shares
pursuant to a Put Notice, and the Investor’s obligation to purchase Shares under this Agreement
shall be suspended upon any of the following events, and shall remain suspended until such
event is rectified:
(A)
The trading of the Common Stock is suspended by the SEC, the Principal Market
or FINRA for a period of two (2) consecutive Trading Days during the Open Period; or,
(B)
The Common Stock ceases to be registered under the 1934 Act or listed or traded
on the Principal Market. Immediately upon the occurrence of one of the above-described
events, the Company shall send written notice of such event to the Investor.
SECTION 11. INDEMNIFICATION. In consideration of the parties’ mutual obligations set forth
in the Transaction Documents, each of the parties (in such capacity, an “Indemnitor”) shall
defend, protect, indemnify and hold harmless the other and all of the other party's shareholders,
officers, directors, employees, counsel, and direct or indirect investors and any of the foregoing
person's agents or other representatives (including, without limitation, those retained in
connection with the transactions contemplated by this Agreement) (collectively, the
“Indemnitees”) from and against any and all actions, causes of action, suits, claims, losses, costs,
penalties, fees, liabilities and damages, and reasonable expenses in connection therewith
(irrespective of whether any such Indemnitee is a party to the action for which indemnification
hereunder is sought), and including reasonable attorneys' fees and disbursements (the
“Indemnified Liabilities”), incurred by any Indemnitee as a result of, or arising out of, or relating to
(A) any material misrepresentation or breach of any representation or warranty made by the
Indemnitor in the Equity Line Transaction Documents or any other certificate, instrument or
document contemplated hereby or thereby; (B) any material breach of any covenant, agreement
or obligation of the Indemnitor contained in the Equity Line Transaction Documents or any other
certificate, instrument or document contemplated hereby or thereby; or (C) any cause of action,
suit or claim brought or made against such Indemnitee by a third party and arising out of or
resulting from the execution, delivery, performance or enforcement of the Equity Line
Transaction Documents or any other certificate, instrument or document contemplated hereby or
thereby, except insofar as (Y) any such misrepresentation, breach or any untrue statement,
alleged untrue statement, omission or alleged omission is made in reliance upon and in
conformity with information furnished to Indemnitor which is specifically intended for use in the
preparation of any such Registration Statement, preliminary prospectus, prospectus or
amendments to the prospectus, (Z) any such Indemnified Liabilities resulted or arose from the
breach by the Indemnitee party hereto of any representation, warranty, covenant or agreement
of such Indemnitee contained in the Equity Line Transaction Documents or the negligence,
recklessness, willful misconduct or bad faith of such Indemnitee. To the extent that the foregoing
undertaking by the Indemnitor may be unenforceable for any reason, the Indemnitor shall make
the maximum contribution to the payment and satisfaction of each of the Indemnified Liabilities
which is permissible under applicable law. The indemnity provisions contained herein shall be in
addition to any cause of action or similar rights Indemnitor may have, and any liabilities the
Indemnitor or the Indemnitees may be subject to.
SECTION 12. GOVERNING LAW; DISPUTES SUBMITTED TO ARBITRATION. All disputes
arising under this agreement shall be governed by and interpreted in accordance with the laws of
the Commonwealth of Massachusetts, without regard to principles of conflict of laws. The
parties to this agreement will submit all disputes arising under this agreement to arbitration in
Boston, MA before a single arbitrator of the American Arbitration Association (“AAA”). The
arbitrator shall be selected by application of the rules of the AAA, or by mutual agreement of the
parties, except that such arbitrator shall be an attorney admitted to practice law in
Commonwealth of Massachusetts. No party to this Agreement will challenge the jurisdiction or
21
venue provisions as provided in this section. No party to this agreement will challenge the
jurisdiction or venue provisions as provided in this section. Nothing contained herein shall
prevent the party from obtaining an injunction.
SECTION 13. LEGAL EXPENSES; AND MISCELLANEOUS EXPENSES. Except as otherwise
set forth in the Equity Line Transaction Documents, each party shall pay the fees and expenses
of its advisers, counsel, the accountants and other experts, if any, and all other expenses
incurred by such party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement. Any attorneys' fees and expenses incurred by either the
Company or the Investor in connection with the preparation, negotiation, execution and delivery
of any amendments to this Agreement or relating to the enforcement of the rights of any party,
after the occurrence of any breach of the terms of this Agreement by another party or any default
by another party in respect of the transactions contemplated hereunder, shall be paid on demand
by the party which breached the Agreement and/or defaulted, as the case may be. The Company
shall pay all stamp and other taxes and duties levied in connection with the issuance of any
Securities. The Company will pay $15,000 in cash toward the preparation of the Equity Line
Transaction Document on the earlier of 1) Closing of the first Put or 2) 120 days after the date of
this Agreement.
SECTION 14. COUNTERPARTS. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the other party;
provided that a facsimile signature shall be considered due execution and shall be binding upon
the signatory thereto with the same force and effect as if the signature were an original
signature.
SECTION 15. HEADINGS; SINGULAR/PLURAL. The headings of this Agreement are for
convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.
Whenever required by the context of this Agreement, the singular shall include the plural and
masculine shall include the feminine.
SECTION 16. SEVERABILITY. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect the validity or
enforceability of the remainder of this Agreement in that jurisdiction or the validity or
enforceability of any provision of this Agreement in any other jurisdiction.
SECTION 17. ENTIRE AGREEMENT; AMENDMENTS. This Agreement is the FINAL
AGREEMENT between the Company and the Investor with respect to the terms and conditions
set forth herein, and, the terms of this Agreement may not be contradicted by evidence of prior,
contemporaneous, or subsequent oral agreements of the Parties. No provision of this Agreement
may be amended other than by an instrument in writing signed by the Company and the Investor,
and no provision hereof may be waived other than by an instrument in writing signed by the party
against whom enforcement is sought. The execution and delivery of the Equity Line Transaction
Documents shall not alter the force and effect of any other agreements between the Parties, and
the obligations under those agreements.
SECTION 18. NOTICES. Any notices or other communications required or permitted to be given
under the terms of this Agreement must be in writing and will be deemed to have been delivered
(A) upon receipt, when delivered personally; (B) upon receipt, when sent by facsimile or email
with the signed document attached in PDF format (provided confirmation of transmission is
mechanically or electronically generated and kept on file by the sending party); or (C) one (1) day
after deposit with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers for such
communications shall be:
If to the Company:
0000 Xxxxxxxxx Xxxxxx Xx.
Xxxxx 0000, c/o PEG
Xxxxxxxxxx, XX 00000
Telephone: (000) 000-0000
If to the Investor:
Dutchess Opportunity Fund, II, LP
00 Xxxxxxxxxxxx Xxxxxx, Xxxxx 0
Xxxxxx, XX 00000
Telephone: (000) 000-0000
Each party shall provide five (5) days prior written notice to the other party of any change in
address or facsimile number.
SECTION 19. NO ASSIGNMENT. This Agreement and any rights, agreements or obligations
hereunder may not be assigned, by operation of law, merger or otherwise, without the prior
written consent of the other party hereto, and any purported assignment by a party witho ut prior
written consent of the other party will be null and void and not binding on such other party.
Subject to the preceding sentence, all of the terms, agreements, covenants, representations,
warranties and conditions of this Agreement are binding upon, and inure to the benefit of and are
enforceable by, the parties and their respective successors and assigns.
SECTION 20. NO THIRD PARTY BENEFICIARIES. This Agreement is intended for the benefit
of the parties hereto and is not for the benefit of, nor may any provision hereof be enforced by,
any other person, except that the Company acknowledges that the rights of the Investor may be
enforced by its general partner.
SECTION 21. SURVIVAL. The indemnification provisions set forth in Section 11, shall survive
each of the Closings and the termination of this Agreement.
SECTION 22. PUBLICITY. The Company and the Investor shall consult with each other in
issuing any press releases or otherwise making public statements with respect to the
transactions contemplated hereby and no party shall issue any such press release or otherwise
make any such public statement without the prior consent of the other party, which consent shall
not be unreasonably withheld or delayed, except that no prior consent shall be required if such
disclosure is required by law, in which such case the disclosing party shall provide the other party
with prior notice of such public statement. The Investor acknowledges that this Agreement and
all or part of the Equity Line Transaction Documents may be deemed to be “material contracts”
as that term is defined by Item 601(b)(10) of Regulation S-B, and that the Company may
therefore be required to file such documents as exhibits to reports or registration statements filed
under the 1933 Act or the 1934 Act. The Investor further agrees that the status of such
documents and materials as material contracts shall be determined solely by the Company, in
consultation with its counsel.
23
SECTION 23. FURTHER ASSURANCES. Each party shall do and perform, or cause to be done
and performed, all such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may reasonably request
in order to carry out the intent and accomplish the purposes of this Agreement and the
consummation of the transactions contemplated hereby.
SECTION 24. INTENTIONALLY OMITTED.
SECTION 25. NO STRICT CONSTRUCTION. The language used in this Agreement will be
deemed to be the language chosen by the parties to express their mutual intent, and no rules of
strict construction will be applied against any party, as the parties mutually agree that each has
had a full and fair opportunity to review this Agreement and seek the advice of counsel on it.
SECTION 26. REMEDIES. The Investor shall have all rights and remedies set forth in this
Agreement and the Registration Rights Agreement and all rights and remedies which such
holders have been granted at any time under any other agreement or contract and all of the
rights which the Investor has by law. Any person having any rights under any provision of this
Agreement shall be entitled to enforce such rights specifically (without posting a bond or other
security), to recover damages by reason of any default or breach of any provision of this
Agreement, including the recovery of reasonable attorneys fees and costs, and to exercise all
other rights granted by law.
SECTION 27. PAYMENT SET ASIDE. To the extent that the Company makes a payment or
payments to the Investor hereunder or under the Registration Rights Agreement or the Investor
enforces or exercises its rights hereunder or thereunder, and such payment or payments or the
proceeds of such enforcement or exercise or any part thereof are subsequently invalidated,
declared to be fraudulent or preferential, set aside, recovered from, disgorged by or are required
to be refunded, repaid or otherwise restored to the Company, a trustee, receiver or any other
person under any law (including, without limitation, any bankruptcy law, state or federal law,
common law or equitable cause of action), then to the extent of any such restoration the
obligation or part thereof originally intended to be satisfied shall be revived and continued in full
force and effect as if such payment had not been made or such enforcement or setoff had not
occurred.
SECTION 28. PRICING OF COMMON STOCK. For purposes of this Agreement, the VWAP of
the Common Stock shall be as reported on a direct feed service.
SECTION 29. NON-DISCLOSURE OF NON-PUBLIC INFORMATION.
(A)
The Company shall not disclose non-public information concerning the Company
to the Investor, its advisors, or its representatives.
(B)
Nothing herein shall require the Company to disclose non-public information to
the Investor or its advisors or representatives, provided, however, that notwithstanding anything
herein to the contrary, the Company will, as hereinabove provided, immediately notify the
advisors and representatives of the Investor and, if any, underwriters, of any event or the
existence of any circumstance (without any obligation to disclose the specific event or
circumstance) of which it becomes aware, constituting non-public information (whether or not
requested of the Company specifically or generally during the course of due diligence by such
persons or entities), which, if not disclosed in the prospectus included in the Registration
Statement would cause such prospectus to include a material misstatement or to omit a material
fact required to be stated therein in order to make the statements, therein, in light of the
circumstances in which they were made, not misleading. Nothing contained in this Section 29
shall be construed to mean that such persons or entities other than the Investor (without the
written consent of the Investor prior to disclosure of such information) may not obtain non-public
information in the course of conducting due diligence in accordance with the terms of this
Agreement and nothing herein shall prevent any such persons or entities from notifying the
Company of their opinion that based on such due diligence by such persons or entities, that the
Registration Statement contains an untrue statement of material fact or omits a material fact
required to be stated in the Registration Statement or necessary to make the statements
contained therein, in light of the circumstances in which they were made, not misleading.
SECTION 30. ACKNOWLEDGEMENTS OF THE PARTIES. Notwithstanding anything in this
Agreement to the contrary, the parties hereto hereby acknowledge and agree to the following: (A)
the Investor makes no representations or covenants that it will not engage in trading in the
securities of the Company, other than the Investor will not sell any of the Company's common
stock at any time during a Pricing Period; (B) the Company shall, by 8:30 a.m. Boston Time on
the fourth Trading Day following the date hereof, file a current report on Form 8-K disclosing the
material terms of the transactions contemplated hereby and in the other Equity Line Transaction
Documents; (C) the Company has not and shall not provide material non-public information to
the Investor unless prior thereto the Investor shall have executed a written agreement regarding
the confidentiality and use of such information; and (D) the Company understands and confirms
that the Investor will be relying on the acknowledgements set forth in clauses (A) through (C)
above if the Investor effects any transactions in the securities of the Company.
[Signature Page Follows]
25
SIGNATURE PAGE OF INVESTMENT AGREEMENT
Your signature on this Signature Page evidences your agreement to be bound by the
terms and conditions of the Investment Agreement and the Registration Rights Agreement as of
the date first written above.
The undersigned signatory hereby certifies that he has read and understands the
Investment Agreement, and the representations made by the undersigned in this Investment
Agreement are true and accurate, and agrees to be bound by its terms.
DUTCHESS OPPORTUNITY FUND, II, LP
By:
Xxxxxxx X. Xxxxxxxx
Managing Member of:
Dutchess Capital Management, II, LLC
General Partner to:
Dutchess Opportunity Fund, II, LP
By:
______
Xxxxx Xxxx Xxx
President
LIST OF EXHIBITS
EXHIBIT A
Registration Rights Agreement
EXHIBIT B
Opinion of Company's Counsel
EXHIBIT C
Put Notice
EXHIBIT D
Put Settlement Sheet
EXHIBIT E
Amended Articles of Incorporation Amending Par Value of Shares
EXHIBIT A
REGISTRATION RIGHTS AGREEMENT
(Attached)
A-1
EXHIBIT B
OPINION OF COMPANY’S COUNSEL
(Attached)
B-1
EXHIBIT C
FORM OF PUT NOTICE
Date:
RE: Put Notice Number
Dear Xx. Xxxxxxxx:
This is to inform you that as of today, [Company Name]. an XXXXX corporation (the "Company"), hereby
elects to exercise its right pursuant to the Investment Agreement entered into with Dutchess Opportunity
Fund II, LP (“Dutchess”) to require Dutchess to purchase shares of its common stock. The Company
hereby certifies that:
1. The undersigned is the duly elected ______________ of the Company.
2. There are no fundamental changes to the information set forth in the Registration Statement which
would require the Company to file a post effective amendment to the Registration Statement.
3. The Company has performed in all material respects all covenants and agreements to be performed by
the Company and has complied in all material respects with all obligations and conditions contained in this
Agreement on or prior to the Put Notice Date, and shall continue to perform in all material respects all
covenants and agreements to be performed by the Company through the applicable Put Date. All
conditions to the delivery of this Put Notice are satisfied as of the date hereof.
4. The undersigned hereby represents, warrants and covenants that it has made all filings (“SEC Filings”)
required to be made by it pursuant to applicable securities laws (including, without limitation, all filings
required under the Securities Exchange Act of 1934, which include Forms 00-X, 00-X, 0-X, xxx.). All SEC
Filings and other public disclosures made by the Company, including, without limitation, all press releases,
analysts meetings and calls, etc. (collectively, the “Public Disclosures”), have been reviewed and approved
for release by the Company’s attorneys and, if containing financial information, the Company’s
independent certified public accountants. None of the Company’s Public Disclosures contain any untrue
statement of a material fact or omit 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.
5. The amount of this put is up to
shares.
6. The Pricing Period runs from
until
.
7. The Suspension Price is $
.
8. The current number of shares issued and outstanding as of the Company are:
9. The number of shares currently available for resale pursuant to the Registration Statement on Form S-1
for the Equity Line are:
.
[Company Name]
By:
Name:
Title:
EXHIBIT D
FORM OF PUT SETTLEMENT SHEET
Date:
RE: RADTEK CO, LTD
Dear
:
Pursuant to the Put given by RADTEK CO, LTD to Dutchess Opportunity Fund, II, LP on
20__, we are now submitting the amount of common shares for you to issue to
Dutchess.
Please deliver __________ shares without restrictive legend via book entry to Dutchess
Opportunity Fund, II, LP immediately to the following account:
XXXXXX
Once these shares are received by us, we will have the funds wired to the Company.
Regards,
Xxxxxxx X. Xxxxxxxx
DATE
PRICE
Date of Day 1
VWAP of Day 1
Date of Day 2
VWAP of Day 2
Date of Day 3
VWAP of Day 3
Date of Day 4
VWAP of Day 4
Date of Day 5
VWAP of Day 5
LOWEST VWAP IN PRICING PERIOD
PUT AMOUNT
PURCHASE PRICE (NINETY-FIVE PERCENT (95%))
AMOUNT OF SHARES DUE
The undersigned has completed this Put as of this ___th day of _________, 20__.
By:
Name:
Title: