SECURITIES PURCHASE AGREEMENT
THIS
SECURITIES PURCHASE AGREEMENT (the "Agreement") is made as of August 9, 2006,
by
and between Xxxxxxxxxxxxx.xxx, Inc., a Nevada corporation (the "Company"),
and
Mellon HBV Master U.S. Event Driven Fund, L.P. and Mellon HBV Master Global
Event Driven Fund, L.P. (each an "Investor" and collectively, the
"Investors").
WITNESSETH:
WHEREAS,
in order to provide funding for working capital, capital expenditures, mandatory
debt repayment and general corporate purposes for the Company in conjunction
with the reverse triangular merger (the “Merger”) of the Company, Pump
Acquisition Corp., a wholly owned Company subsidiary Nevada corporation
(“Pump”), and Innopump, Inc., a Nevada corporation ("Innopump") pursuant to the
Merger Agreement among those parties, in the form attached as Exhibit
A
(the
"Merger Agreement"), the Company desires to sell to the Investors, and the
Investors desire to purchase from the Company, (a) 10% senior secured redeemable
convertible promissory notes in the aggregate principal amount of $7,500,000
(the "Notes"), in the form attached as Exhibit
B hereto,
and (b) warrants (the “Warrants”), in the form attached as Exhibit
C hereto,
to purchase that number of shares of the Company’s common stock, $0.001 par
value per share (the “Common Stock”) specified in the Warrant(s) on the terms
and conditions set forth in the Warrants, pursuant to the terms of this
Agreement;
NOW,
THEREFORE, in consideration of the mutual covenants and agreements set forth
in
this Agreement, and for other good and valuable consideration, the receipt
and
sufficiency of which are hereby acknowledged, the parties do hereby agree as
follows:
1. |
Purchase
and Sale of Notes and Warrants
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1.1. |
Issuance
and Sale of Notes and Warrants. Subject to the terms and conditions
of
this Agreement, each of the Investors agrees to purchase at the Closing
(as hereafter defined), and the Company agrees to issue and sell
to each
of the Investors at the Closing, the amount of Notes and the Warrants
forth opposite such Investor’s name on the Signature Page hereto for an
aggregate purchase price of Seven Million-Five-Hundred-Thousand
($7,500,000) Dollars (the "Purchase
Price").
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1.2. |
Closing.
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1.2.1. |
The
closing of the purchase and sale of $7,500,000 principal amount of
Notes
and Warrants under this Agreement (the "Closing") shall be held at
the
offices of Xxxxxxx, Xxxxxxxxx & Xxxxxxxx, LLP, 000 Xxxx Xxxxxx,
00xx
Xxxxx, Xxx Xxxx, Xxx Xxxx (or remotely via the exchange of documents
and
signatures), on August [9], 2006 (the date of the Closing is hereinafter
referred to as the "Closing Date"). Prior to the Closing, the Company
shall transmit to each Investor a copy of the final form of the Merger
Agreement.
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1.2.2. |
At
the Closing, the Company shall deliver to the Investors, the Notes
and
related Warrants against payment of the Purchase Price to the Company
along with the Registration Rights Agreement (the "Registration Rights
Agreement") in the form attached as Exhibit
D hereto
and the Security Agreement (the “Security Agreement”) in the form attached
as Exhibit
E hereto.
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1
1.3. |
The
Notes.
The Notes shall mature in thirty (30) months from the date of the
Notes,
shall bear interest at the rate of ten per cent (10%) per annum and
shall
be senior in priority to all other indebtedness of the Company, hereafter
issued or now outstanding with the exception of Permissible Parity
Indebtedness (as defined in the
Notes).
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1.4. |
Security
Interest.
Payment of, and obligations under, the Notes shall be secured by
a fully
perfected first priority liens and security interests in substantially
all
present and future general intangibles, including copyrights, patents,
trademarks, tradenames, trade secrets and other intellectual property,
and
all present and future license and other contract rights related
thereto,
and all tangible real and personal property and assets of the Company
and
the Guarantors (as hereinafter defined), including accounts receivable
and
other rights to payment, inventory, owned and leased real estate,
fixtures, machinery and equipment, deposit, securities and commodities
accounts, tax refunds and cash exclusive of Permitted Liens (as defined
in
the Notes). All such collateral shall be free and clear of liens,
claims,
and encumbrances other than those in favor of the Investors and Permitted
Liens.
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1.5. |
Guarantors.
Payment
of, and obligations under, the Notes will be unconditionally, irrevocably
and absolutely guaranteed by all present and future (i) United States
subsidiaries (direct or indirect) of the Company, (ii) Innopump (as
the
corporation surviving the Merger), and (iii) subject to applicable
foreign
law, all non-United States subsidiaries (direct or indirect) of the
Company.
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1.6. |
Registration
Rights Agreement.
The
Registration Rights Agreement will provide that within ninety (90)
days
following the date of Closing the Company shall register with the
Securities and Exchange Commission (“SEC”) all Registrable Shares, as such
term is defined in the Registration Rights Agreement. In addition,
the
Company will have an obligation to respond to any SEC inquiries within
ten
(10) business days (subject to extension for delivery by auditors
for the
Company of materials, information or other responses required to
so
respond) and the Registration Statement must be declared effective
at the
earlier of: (i) 180 days from the date of Closing of the transaction
or
(ii) 30
days after receiving a no-review status from the SEC. In the event
the
registration statement has not been declared effective within 180
days
after the date of the Closing, the Company will issue to the Investors
warrants equal to 2% of the number of shares of Common Stock issuable
to
each Investor upon exercise of its Warrant for each 30 day period
thereafter.
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2. |
Representations
and Warranties of the Company.
The Company hereby represents and warrants to the Investors, as of
the
date of the Closing except as set forth on a Schedule of Exceptions
to
Representations and Warranties attached hereto as Exhibit
F (the
"Schedule of Exceptions"), the
following:
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2.1. |
Subsidiaries.
The Company does not presently own or control, directly or indirectly,
any
interest in any other corporation, association, or other business
entity
except as disclosed in the SEC Reports (as hereinafter defined) (each,
a
"Subsidiary" and collectively, the "Subsidiaries"). Unless the context
requires otherwise, all references herein to the "Company" shall
refer to
the Company and its Subsidiaries. The Company is not a party to any
joint
venture, partnership or similar
arrangement.
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2.2. |
Organization.
Good Standing and Qualification.
The Company is a corporation duly organized, validly existing, and
in good
standing under the laws of the State of Nevada, and has all requisite
corporate power and authority to carry on its business as now conducted.
The Subsidiaries are duly organized in their respective jurisdictions
of
organization, validly existing and in good standing in such respective
jurisdictions and each has the power and authority to carry on its
respective business as now conducted. The Company and the Subsidiaries
are
duly qualified to transact business and are in good standing in each
jurisdiction in which the failure so to qualify would have a Material
Adverse Effect (as hereinafter defined) on the Company's business
or
properties.
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2.3. |
Capitalization
and Voting Rights.
The number of authorized, issued and outstanding capital stock of
the
Company as of the date hereof is, and as of the Closing Date immediately
prior to the Merger will be, set forth in Exhibit
G-1.
All of the outstanding capital stock of the Company has been duly
authorized and is validly issued, fully paid and nonassessable. All
capital stock of the Company has been issued in compliance with all
applicable federal and state securities laws. Except as disclosed
in
Exhibit G-1, no securities of the Company or any Subsidiary are entitled
to preemptive or similar rights, nor is any holder of securities
of the
Company or any Subsidiary entitled to preemptive or similar rights
arising
out of any agreement or understanding with the Company or any Subsidiary
by virtue of any of the Transaction Documents (defined hereinafter).
Except as disclosed in Exhibit G-1, there are no outstanding options,
warrants, script rights to subscribe to, calls or commitments of
any
character whatsoever relating to, or securities, except as a result
of the
purchase and sale of the Securities, or rights or obligations convertible
into or exchangeable for, or giving any Person (as defined below)
any
right to subscribe for or acquire, any shares of capital stock, or
contracts, commitments, understandings, or arrangements by which
the
Company or any Subsidiary is or may become bound to issue additional
shares of capital stock, or securities or rights convertible or
exchangeable into shares of capital stock. On a pro-forma and fully
diluted basis, giving effect to the Merger and the issuance of the
Notes
and the Warrants hereunder, the number of authorized, issued and
outstanding shares of capital stock of the Company will be as set
forth in
Exhibit
G-2.
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2.4. |
Authorization.
All corporate action on the part of the Company, its officers, directors
and shareholders necessary for the authorization, execution, and
delivery
of this Agreement, the Notes, the Warrants, the Registration Rights
Agreement and the Security Agreement (collectively, the "Transaction
Documents"), the performance of all obligations of the Company hereunder
and thereunder and the authorization, issuance (or reservation for
issuance), and delivery of the Notes and Warrants and the shares
of Common
Stock issuable upon conversion of the Notes and exercise of the Warrants
(collectively, the "Securities"), has been taken or will be taken
prior to
the Closing, and the Transaction Documents constitute valid and legally
binding obligations of the Company, enforceable in accordance with
their
respective terms, except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, and other laws of general
application affecting enforcement of creditors' rights generally,
(ii) as
limited by laws relating to the availability of specific performance,
injunctive relief, or other equitable remedies, and (iii) to the
extent
the indemnification provisions contained in the Transaction Documents
may
be limited by applicable federal or state
laws.
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2.5. |
Valid
Issuance of Notes, Warrants and Common Stock.
The Notes and Warrants being purchased by the Investors hereunder,
when
issued, sold, and delivered in accordance with the terms hereof for
the
consideration provided for herein, will be duly and validly issued,
fully
paid and non-assessable and, based in part upon the representations
of the
Investors in this Agreement, will be issued in compliance with all
applicable federal and state securities laws. The Common Stock issuable
upon conversion of the Notes and exercise of the Warrants has been
duly
and validly reserved for issuance, and upon issuance in accordance
with
the terms of the Notes and the Warrants and payment of the conversion
price as required by the Notes and payment of the exercise price
as
required by the Warrants, shall be duly and validly issued, fully
paid and
nonassessable, and issued in compliance with all applicable securities
laws, as presently in effect, of the United States and each of the
states
whose securities laws govern the issuance of the Notes and Warrants
hereunder.
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2.6. |
Filings,
Consents and Approvals.
Except as set forth on Exhibit
H neither
the Company nor any Subsidiary is 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 the Transaction Documents, other than filings to comply
with requirements under the Securities Act of 1933, as amended (the
"Act"), and applicable Blue Sky filings and (ii) 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 could not have
or
result in, individually or in the aggregate, a material adverse effect
on
the results of operations, business, assets, properties, prospects
or
financial condition of the Company and its Subsidiaries taken as
a whole
("Material Adverse Effect").
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2.7. |
Litigation.
There is no action, suit, proceeding, claim or investigation pending
or,
to the knowledge of the Company, currently threatened against the
Company
which questions the validity of the Transaction Documents, or the
right of
the Company to enter into any of them, or to consummate the transactions
contemplated hereby or thereby, or which might result, either individually
or in the aggregate, in any Material Adverse Effect, nor is the Company
aware that there is any basis for the foregoing. The foregoing includes,
without limitation, actions, pending or threatened (or any basis
therefor
known to the Company), involving the prior employment of any of the
Company's employees, their use in connection with the Company's business
of any information or techniques allegedly proprietary to any of
their
former employers, or their obligations under any agreements with
prior
employers. The Company is not a party or subject to the provisions
of any
order, writ, injunction, judgment, or decree of any court or government
agency or instrumentality.
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2.8. |
Compliance
with Other Instruments.
The Company is not in violation or default of any provisions of its
Articles of Incorporation or Bylaws, as amended, or of any instrument,
judgment, order, writ, decree, mortgage, indenture, lease, license
or
contract to which it is a party or by which it is bound or, to its
knowledge, of any provision of federal, state, or local statute,
rule, or
regulation applicable to the Company, except as would not reasonably
be
expected, singly or in the aggregate, to have a Material Adverse
Effect.
The execution, delivery, and performance of the Transaction Documents
and
the consummation of the transactions contemplated thereby will not
result
in any such violation or be in conflict with or constitute, with
or
without the passage of time and giving of notice, either a default
under
any such provision, instrument, judgment, order, writ, decree or
contract,
or an event which results in the creation of any lien, charge, or
encumbrance upon any assets of the Company or the suspension, revocation,
impairment, forfeiture, or nonrenewal of any material permit, license,
authorization, or approval applicable to the Company, its business
or
operations, or any of its assets or properties, except as would not
reasonably be expected, singly or in the aggregate, to have a Material
Adverse Effect.
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2.9. |
Permits.
The Company has all material franchises, permits, licenses, and any
similar authority necessary for the conduct of its business as now
being
conducted by it, the lack of which could have a Material Adverse
Effect
and believes it can obtain, without undue burden or expense, any
similar
authority for the conduct of its business as planned to be conducted.
The
Company is not in default in any material respect under any of such
franchises, permits, licenses, or other similar
authority.
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2.10. |
Compliance
with Laws.
The conduct of business by the Company and each Subsidiary as presently
and proposed to be conducted is not subject to continuing oversight,
supervision, regulation or examination by any governmental official
or
body of the United States or any other jurisdiction wherein the Company
or
any Subsidiary conducts or proposes to conduct such business, except
such
regulation as is applicable to commercial enterprises generally.
Neither
the Company nor any of the Subsidiaries has received any notice of
any
violation of or noncompliance with, any federal, state, local or
foreign
laws, ordinances, regulations and orders (including, without limitation,
those relating to environmental protection occupational safety and
health,
federal securities laws, equal employment opportunity, consumer
protection, credit reporting, "truth-in-lending", and warranties
and trade
practices) applicable to its business or to the business of any
Subsidiary, the violation of; or noncompliance with, which would
have a
Material Adverse Effect, and the Company knows of no facts or set
of
circumstances which would give rise to such a
notice.
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2.11. |
Brokers.
Except as set forth in Section 8.7, no broker, investment banker
or other
person is entitled to any broker’s, finder’s or other similar fee or
commission is payable by the Company in connection with the transactions
contemplated by this Agreement.
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2.12. |
No
Adverse Effects.
Except as disclosed on Schedule Section 2.12 hereto, since March
31, 2006,
(i) the business of the Company has been conducted only in the
ordinary course; (ii) there has been no change that individually or
in the aggregate, has had a Material Adverse Effect on the Company;
and
(iii) there has been no damage, destruction or loss or, to the
knowledge of the Company, other occurrence or development, whether
or not
Insured against, which, either singly or in the aggregate, constitute
a
Material Adverse Effect, and the Company has no knowledge of any
threatened occurrence or development which would constitute a Material
Adverse Effect.
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2.13. |
Taxes.
True
and correct copies of the Company’s federal and state income tax returns
for the years ended December 31, 2004 and December 31, 2005 have
been
delivered to the Investors. All tax returns (including information
returns) required by any jurisdiction to have been filed as of the
date of
this Agreement by or with respect to the Company have been timely
filed,
except for returns with respect to which extensions have been granted,
and
each such return is true, correct and complete in all material
respects.
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2.13.1. |
All
material liabilities of the Company to any jurisdiction for taxes
of every
kind and nature, including interest thereon and penalties with respect
thereto (collectively “Taxes”)
relating to any period prior to March 31, 2006 have
been timely paid or are accrued and provided for in the Company Financial
Statements as of March 31, 2006. Any liability for Taxes incurred
by the
Company since March 31, 2006 was incurred in the ordinary course
of
business.
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2.13.2. |
The
Company is not required to file any foreign income tax returns. The
state
income tax returns of the Company have not been audited by the appropriate
taxing authorities within the past five (5) years. To the Company’s
knowledge, neither the Internal Revenue Service nor any state, local
or
other taxing authority has proposed any additional Taxes, interest
or
penalties with respect to the Company or any of its operations or
business; there are no pending or, to the Company’s knowledge, threatened
tax claims or assessments; and there are no pending or, to the Company’s
knowledge, threatened tax examinations by any taxing
authorities.
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2.13.3. |
The
Company has not given any waivers of rights (which are currently
in
effect) under applicable statutes of limitations with respect to
the
income tax returns for any fiscal
year.
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2.14. |
Title
to Property.
The Company has valid title to the personal property set forth on
Schedule
Section 2.14, free and clear of all liens, claims, charges, security
interests and encumbrances other than Permitted Liens (as defined
in the
Security Agreement). Such assets are (i) sufficient and adequate
for the
Company to carry on its business as presently conducted; and (ii)
are in
reasonably good condition and repair, normal wear and tear excepted.
The
Company does not own any real
property.
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2.15. |
Intellectual
Property.
Schedule Section 2.15 hereto sets forth a true and complete list
of all
(i) trademarks, service marks and tradenames, and the federal, state
and foreign registrations and applications thereof (“Trademarks”),
(ii) patents and patent applications and extensions and renewals
thereof (“Patent
Rights”),
(iii) registered copyrights and copyright applications and renewals
thereof (“Copyrights”),
and (iv) licenses held with respect to any trademark, service xxxx,
trade name, patent or copyright (other than shrink-wrap licenses
relating
to generally available software) (“License
Rights”)
held by the Company. All Trademarks, Patent Rights, Copyrights, License
Rights and Trade Secrets (“Intellectual Property”) of the Company that are
owned by the Company are owned free and clear of any and all licenses,
liens, claims, security interests, charges or other encumbrances
or
restrictions of any kind, except as reflected on Schedule Section
2.15 and
no licenses for the use of any of such rights have been granted by
the
Company to any third parties. All of such rights are valid, enforceable
and in good standing and are reasonably sufficient and appropriate
for the
conduct of the business of the Company as currently and proposed
to be
conducted. To the Company’s knowledge, the operation of the Company does
not infringe in any way on or conflict with any registered or unregistered
patent, trademark, trade name, copyright, trade secret, contract,
license
or other right, of any person, and the Company does not license any
such
right from others except as set forth on Schedule Section 2.15. No
claim
is pending or, to the knowledge of the Company, threatened or has
been
made within the past five years, to the effect that any such infringement
or conflict has occurred. No other Intellectual Property, other than
Intellectual Property owned or licensed by the Company, is required
by it
for its business as conducted prior to the date hereof. The Company
has no
knowledge of any infringement by any third parties upon any of the
Intellectual Property of the
Company.
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2.16. |
Benefit
Plans.
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2.16.1. |
The
Company does not maintain or contribute to, and has not previously
maintained or contributed to, an “employee pension benefit plan” (as
defined in Section 3(2) of the Employee Retirement Income Security
Act of
1974, as amended (“ERISA”). The Company does not currently contribute to,
and has not previously contributed to, any multiemployer plan (as
defined
in Section 3(37) of ERISA).
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2.16.2. |
Schedule
Section 2.16.2 sets forth a true and complete list of each “employee
welfare benefit plan” (as defined in Section 3(1) of ERISA)
maintained by the Company or to which the Company contributes or
is
required to contribute on behalf of officers and employees of the
Company
(such employee welfare benefit plans being hereinafter collectively
referred to as the “Company
Welfare Benefit Plans“).
With respect to each Company Welfare Benefit Plan, all contributions
or
premiums due by the Closing Date have been paid.
Each Company Welfare Benefit Plan has been administered to date in
compliance with the requirements of ERISA and all other applicable
laws,
and all reports, if any, required by any government agency with respect
to
each Welfare Benefit Plan have been timely filed. There are no actions,
suits or claims (other than routine claims for benefits) pending
or which
could reasonably be expected to be asserted against the Company in
connection with any Welfare Benefit Plan, and there are no civil
or
criminal actions pending or, to the knowledge of the Company, threatened
against the Company with respect to any such Welfare Benefit
Plan.
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2.16.3. |
Schedule Section
2.16.3 lists each deferred compensation plan, bonus plan, employee
stock
purchase plan, stock option plan and any other “employee benefit plan” (as
defined in Section 3(2) of ERISA), agreement, arrangement or commitment
not required under a previous subsection to be listed on Schedule
2.16.3
or maintained by the Company with respect to the compensation of
any of
the Company’s employees.
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2.17. |
No
Soliciatation.
Other than from the Investors, the Company has not directly or indirectly
solicited the purchase or sale of the Notes and the
Warrants.
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2.18. |
No
Shareholder Rights Plan.
The
Company has not adopted a shareholder rights plan or “poison pill” or any
similar arrangement that limits the voting rights of its
stockholders.
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2.19. |
Disclosure.
This Agreement, the Notes, the Warrants and any other statements
or
certificates made or delivered in connection herewith or therewith,
when
taken together with the Disclosure Materials (as defined below),
do not
contain any untrue statement of a material fact or omit to state
a
material fact necessary to make the statements herein or therein
not
misleading.
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2.20. |
SEC
Reports: Financial Statements.
The Company has filed all reports required to be filed by it under
the
Securities Exchange Act of 1934, as amended (the “Exchange Act”),
including pursuant to Section 13(a) or 15(d)1 thereof; for the two
years
preceding the date hereof (or such shorter period as the Company
was
required by law to file such material) (the foregoing materials being
collectively referred to herein as the "SEC Reports" and, together
with
the Schedule of Exceptions to this Agreement, the "Disclosure Materials")
on a timely basis or has received a valid extension of such time
of filing
and has filed any such SEC Reports prior to the expiration of any
such
extension. As of their respective dates, the SEC Reports complied
in all
material respects with the requirements of the Securities Act and
the
Exchange Act and the rules and regulations of the Securities and
Exchange
Commission (“SEC”) promulgated thereunder, and none of the SEC Reports,
when filed, contained any untrue statement of a material fact or
omitted
to state a material fact required to be stated therein or necessary
in
order to make the statements therein, in light of the circumstances
under
which they were made, not misleading. All material agreements to
which the
Company is a party or to which the property or assets of the Company
are
subject have been filed as exhibits to the SEC Reports to the extent
required. The financial statements of the Company included in the
SEC
Reports comply in all material respects with applicable accounting
requirements and the rules and regulations of the SEC with respect
thereto
as in effect at the time of filing. Such financial statements have
been
prepared in accordance with generally accepted accounting principles
applied on a consistent basis during the periods involved ("GAAP"),
except
as may be otherwise specified in such financial statements or the
notes
thereto, and fairly present in all material respects the financial
position of the Company and its consolidated subsidiaries as of and
for
the dates thereof and the results of operations and cash flows for
the
periods then ended, subject, in the case of unaudited statements,
to
normal, immaterial, year-end audit adjustments. Additionally, since
the
adoption of the Xxxxxxxx-Xxxxx Act of 2002 (the "New Act"), the Company
has complied in all material respects with the laws, rules and regulations
applicable to the Company under the New
Act.
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8
3. |
Representations
and Warranties of the Investors.
Each of the Investors, severally and not jointly, hereby represents
and
warrants that:
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3.1. |
Authorization.
The Transaction Documents constitute valid and legally binding obligations
of such Investor enforceable in accordance with their terms, except
(i) as
limited by applicable bankruptcy, insolvency, reorganization, moratorium,
and other laws of general application affecting enforcement of creditors'
rights generally and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable
remedies.
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3.2. |
Purchase
Entirely for Own Account.
The Note and Warrant to be purchased by such Investor and the Common
Stock
issuable upon conversion of the Note and exercise of the Warrant
will be
acquired for investment for such Investor's own account and not with
a
view to the resale or distribution of any part thereof. Each Investor
represents that it has full power and authority to enter into this
Agreement.
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3.3. |
Disclosure
of Information.
Such Investor acknowledges that it has received all the information
that
it has requested relating to the Company and the purchase of the
Notes and
Warrants, has had an opportunity to review and question the Company
in
connection with all public filings of the Company under applicable
state
and federal rules and regulations, or as required by the SEC or state
regulatory agencies and has had an opportunity to ask questions and
receive answers from the Company regarding the terms and conditions
of the
offering of the Notes and Warrants. Such Investor further represents
that
it has reviewed the Merger Agreement and other information regarding
the
business of Innopump, and has had an opportunity to ask questions
and
receive answers from the Company regarding the terms and conditions
of the
Merger and business of Innopump. The foregoing, however, does not
limit or
modify the representations and warranties of the Company in Section
2 of
this Agreement or the right of any Investor to rely
thereon.
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3.4. |
Accredited
Investor.
Such Investor is an "accredited investor" within the meaning of Rule
501
of Regulation D of the SEC, as presently in
effect.
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3.5. |
Restricted
Securities.
Such Investor understands that the Notes and Warrants, and the shares
of
Common Stock issuable upon conversion of the Notes and exercise of
the
Warrants, that are being purchased are characterized as “restricted
securities" under the federal securities laws inasmuch as they are
being
acquired from the Company in a transaction not involving a public
offering, and that under such laws and applicable regulations such
securities may be resold without registration under the Act, only
in
certain limited circumstances. In this connection, the Investor represents
that it is familiar with SEC Rule 144, as presently in effect, and
understands the resale limitations imposed thereby and by the
Act.
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9
3.6. |
Legends.
It is understood that the certificates evidencing the Notes and the
Warrants (and the Common Stock issuable upon conversion and exercise
thereof) may bear the following
legend:
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"THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND ARE SUBJECT TO RESTRICTIONS
ON TRANSFERABILITY AS SET FORTH IN THIS CERTIFICATE. THE SECURITIES REPRESENTED
HEREBY MAY NOT BE SOLD, TRANSFERRED, OR OTHERWISE DISPOSED OF IN THE ABSENCE
OF
AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT OR AN OPINION OF COUNSEL,
REASONABLY ACCEPTABLE TO COUNSEL FOR THE COMPANY, TO THE EFFECT THAT THE
PROPOSED SALE, TRANSFER, OR DISPOSITION MAY BE EFFECTUATED WITHOUT REGISTRATION
UNDER THE ACT."
3.7. |
Agent
Appointment.
(a)
At the Closing, the Note Requisite Holders (as hereinafter defined
and for
these purposes, as existing on such date) may at its sole discretion
appoint an agent ("Agent") pursuant to the Notes. In such capacity,
Agent
shall only be obligated to take action and shall act as directed
by the
Note Requisite Holders; neither Agent nor any of its officers, directors,
managers, members, employees or affiliates shall be responsible to
Investors for any losses that any of such Investors may incur hereunder.
The Agent shall be entitled to conclusively rely on any such direction
or
consent from the Note Requisite Holders. In addition, the Agent may
act in
reliance upon any signature believed by it to be genuine, and may
assume
that any person who has been designated by the Investors to give
any
written instructions, notice or receipt, or make any statements in
connection with the provisions hereof has been duly authorized to
do so.
Agent shall have no duty to make inquiry as to the genuineness, accuracy
or validity of any statements or instructions or any signatures on
statements or instructions.
|
3.7.1. |
Each
Investor hereby confirms that Agent if appointed shall act as its
security
agent (the "Security Agent") under the Security Agreement with respect
to
the Collateral (as defined in the Security Agreement), to take all
actions
as contemplated in such capacity in the Security Agreement and to
be
entitled to the benefits of the provisions of the Security Agreement.
Each
Investor acknowledges that actions by the Security Agent under the
Security Agreement shall be authorized by the Note Requisite
Holders.
|
3.7.2. |
Agent
may resign as Agent or Security Agent at any time by giving written
notice
("Notice") to the Company and the Investors, which resignation shall
be
effective 30 days from the date of the Notice ("Effective Resignation
Date"). Upon the earlier of (i) the Effective Resignation Date or
(ii) the
appointment of a successor Agent or Security Agent by the Note Requisite
Holders, Agent shall have no further obligations hereunder or pursuant
to
the applicable agreements. In the event a successor Agent is not
appointed
by the Note Requisite Holders on or before the Effective Resignation
Date,
then Agent shall have the right to deliver any Collateral held by
it with
a clerk of a court of competent jurisdiction or a third party escrow
provider pending the appointment of a successor Agent by the Note
Requisite Holders.
|
10
3.7.3. |
For
purposes hereof, "Note Requisite Holder(s)" shall mean holders of
Notes
representing at least 51% of the aggregate amount of principal and
accrued
interest then outstanding under such
Notes.
|
3.7.4. |
Agent's
capacity as Agent and Security Agent, the Company and the Investors
each
agree to indemnify and hold the Agent harmless from and against any
and
all expenses (including counsel fees), liabilities, claims, damages,
actions, suits or other charges incurred by or assessed against the
Agent
for anything done or omitted by them in the performance of their
duties,
except upon final judicial determination of gross negligence or willful
misconduct on the part of the
Agent.
|
3.8. |
Investor
Questionnaire.
If requested by the Company, the Investor covenants to execute and
deliver
to the Company prior to, at or promptly following the Closing an
investor
questionnaire supplied by the
Company.
|
4. |
Conditions
of the Investors' Obligations at Closing.
The obligations of the Investors under subsection 1.1 of this Agreement
are subject to the fulfillment on or before the Closing of each of
the
following conditions or the waiver of one or more conditions by the
Investors:
|
4.1. |
Representations
and Warranties.
The representations and warranties of the Company contained in Section
2
hereof shall be true on and as of the Closing with the same effect
as
though such representations and warranties had been made on and as
of the
date of the Closing.
|
4.2. |
Performance.
The Company shall have performed and complied with all agreements,
obligations, and conditions contained in this Agreement that are
required
to be performed or complied with by it on or before the
Closing.
|
4.3. |
Compliance
Certificate.
The President of the Company shall deliver to the Investors, at the
Closing, a certificate certifying that the conditions specified in
Sections 4.1 and 4.2 have been
fulfilled.
|
4.4. |
Proceedings
and Documents.
All corporate and other proceedings in connection with the transactions
contemplated at the Closing and all documents incident thereto shall
be
reasonably satisfactory in form and substance to the Investors and
counsel
to the Investors, and they shall have received all such counterpart
original and certified or other copies of such documents as they
may
reasonably request.
|
4.5. |
Secretary's
Certificate.
The Company shall have delivered to the Investors a certificate executed
by the Secretary of the Company dated as of the Closing certifying
the
following matters: (a) the resolutions adopted by the Company's Board
of
Directors relating to the transactions contemplated by this Agreement;
and
(b) the Articles of Incorporation and Bylaws of the Company as amended
and
in effect on the date of Closing.
|
11
4.6. |
Delivery
of Notes and Warrants.
The Company shall have delivered the Notes and Warrants to the Investors,
as specified in Section 1.
|
4.7. |
Ancillary
Agreements.
The Company and the Investors shall have entered into the Registration
Rights Agreement and the Security Agreement. Innopump (as the corporation
surviving the Merger) shall have delivered to the Investors a guaranty
of
the Notes substantially in the form attached hereto as Exhibit I,
and a
Security Agreement (the Registration Rights Agreement, the Security
Agreement, the guaranty, and all the documents and instruments related
thereto are hereinafter referred to as “Ancillary
Agreements”.
|
4.8. |
UCC
Financing Statement.
A
uniform commercial code financing statement shall have been filed
in the
Office of the Secretary of State of Nevada with respect to the collateral
set forth in the Security Agreement, and naming the Agent as the
secured
party.
|
4.9. |
Opinion
of Counsel.
The Investors shall have received an opinion of counsel to the Company
substantially in the form attached hereto as Exhibit
J.
|
4.10. |
Other
Payments.
Concurrent with the Closing, the Company shall pay the Investor
Compensation and Indebtedness Repayments (as such terms are defined
in
Section 8.7 hereto).
|
4.11. |
Current
Filing Status.
The Company, as of the Closing, shall be current in its filings pursuant
to the Exchange Act.
|
4.12. |
OTC
Trading.
Trading in the shares of the Company’s common stock on the OTC Bulletin
Board shall not have been
suspended.
|
4.13. |
Auditor.
As of the Closing, the Company shall have selected as its independent
public accounting firm a firm reasonably acceptable to the
Investors.
|
4.14. |
Absence
of Material Advance Effect.
Since March 31, 2006, there shall not have occurred an event constituting
a Material Adverse Effect.
|
4.15. |
Lock-up
Agreement.
ODC Partners, LLC and certain shareholders of Innopump specified
by the
Investors shall have entered into a lock-up agreement with a term
of
thirty months reasonably acceptable to the Investors with regard
to the
shares acquired in the Merger, permitting however the restricted
parties
to transfer or dispose of such shares in accordance with Rule 144
or in a
registration statement declared effective under the
Act.
|
4.16. |
Completion
of Diligence.
Completion of legal and financial due diligence to the satisfaction
of
each of the Investors, including disclosure of all pending material
agreements and contracts
|
12
4.17. |
Merger
of Innopump.
Concurrently with the Closing, the Company shall consummate the Merger
of
Innopump with Pump pursuant to the Merger Agreement.
|
5. |
Conditions
of the Company's Obligations at Closing.
The obligations of the Company to the Investors under this Agreement
are
subject to the fulfillment on or before the Closing of each of the
following conditions by the
Investors:
|
5.1. |
Representations
and Warranties.
The representations and warranties of the Investors contained in
Section 3
shall be true on and as of the Closing with the same effect as though
such
representations and warranties had been made on and as of the
Closing.
|
5.2. |
Payment
of Purchase Price.
The Investors shall have delivered the purchase price specified in
Section
1.1.
|
5.3. |
Ancillary
Agreements.
The Company, the Guarantors and the Investors shall have entered
into the
Ancillary Agreements.
|
5.4. |
Investor
Confirmations.
Each Investor has delivered a Confirmation with respect to his
investment.
|
6. |
Indemnification.
The Company agrees to indemnify and hold harmless each Investor,
its
affiliate and their respective general partners, employees, officers,
directors, members, agents and other representatives (collectively,
the
"Indemnitees"), against any investigations, proceedings, claims or
actions
and for any expenses, damages, liabilities or losses (joint or several)
arising out of such investigations, proceedings, claims or actions,
to
which the Indemnitees may become subject, whether under the act or
any
rules or regulations promulgated thereunder, the Exchange Act, or
any
rules or regulations promulgated thereunder, or any state law or
regulation, or common law, that arise out of or are based upon any
breach
by the Company of any representation, warranty, agreement, obligation
or
covenant of the Company contained herein. The Company also agrees
to
reimburse the Indemnitees for any legal or other expenses reasonably
incurred in connection with investigating or defending any such
investigations, proceedings, claims or actions, as such expenses
or other
costs are incurred. Any indemnity obligation of the Company to an
Investor
pursuant to this Section 6 shall be limited to the net proceeds received
from such Investor at Closing.
|
7. |
Post-Closing
Covenants.
|
7.1. |
Board
Rights.
So long as any Notes remain outstanding, the holders of the Notes
shall
have the option to appoint one representative who shall receive notice
of
and be entitled to attend (without participation) all meetings of
the
Board of Directors of the Company. Prior to attending any board meeting,
such representative shall have delivered to the Company a signed
confidentiality and non disclosure agreement in a form reasonably
acceptable to the Company. In place of the attendance option, the
holders
of the Notes shall have the option to designate one representative
(reasonably acceptable to the Company) whom the Company shall appoint
to
the Board of Directors with such representative been designated as
a
management candidate in any succeeding election of
directors.
|
13
7.2. |
EBIDTA
Shortfall Warrants.
The Company covenants with the Investors that should it not meet
the
EBIDTA targets set forth in Schedule A annexed hereto, it shall issue
to
the holders of the Notes, in the manner specified in Schedule A and
in
proportion to the respective principal amount of Notes held by the
holders, the number of common stock purchase warrants set forth in
Schedule A (the “EBIDTA Shortfall Warrants”), which warrants, other than
for the terms set forth in Schedule A, shall be in the same form
as the
Warrants issued pursuant to Section
1.1.
|
7.3. |
Name
Change and Trading Symbol.
Within fourteen (14) days following the Closing, the Company shall
change
its name and trading symbol to a name and symbol reasonably acceptable
to
the Note Requisite Holders, assuming availability of the name and
symbol.
|
7.4. |
Domicile
in Delaware.
Within forty five (45) days following the Closing, the Company (through
a
merger with a subsidiary) shall reincorporate in the State of
Delaware.
|
7.5. |
Reverse
Stock Split.
Within fourteen (14) days of the Closing, the Company shall effect
a
reverse-stock split on terms (range of 1 for 20 to 1 for 50) mutually
agreeable to the Company and the
Investors.
|
7.6. |
Rights
of First Refusal.
Through the earlier of (i) September 29, 2009 or (ii) such date that
the
Investors, in their sole discretion, determine that a liquid market
for
the shares of the Company’s common stock has developed, the Company shall
afford to the Investors a right of first refusal for future financings.
The Investors shall have a period of ten (10) business days from
the
Investors receipt of a proposal to elect to exercise their right
of first
refusal.
|
7.7. |
Use
of Proceeds.
The proceeds from the sale of the Notes shall be used by the Company
to
repay due and mandatory debt of Innopump outstanding immediately
prior to
the Merger and disclosed to the Investors prior to delivery of this
Agreement, to fund the ongoing working capital needs of the Company
and
other business purposes as the Company may determine are appropriate.
No
part of the proceeds of the Notes will be used for the purpose, whether
immediate, incidental or ultimate, of buying or carrying or extending
credits for buying or carrying Margin Stock. “Margin Stock” means “margin
stock” as used and defined in Regulation T, U or X of the Regulations of
the Board of Governors of the Federal Reserve
System.
|
7.8. |
Notice
of Defaults.
So long as any of the Notes remain outstanding, the Company shall
promptly
give written notice to each Investor of the occurrence of any event
which,
alone or with notice, the passage of time or both, would constitute
an
Event of Default under the Notes. Each notice delivered hereunder
shall be
accompanied by a statement of Borrower setting forth in detail the
event
or development requiring such notice and any action taken or proposed
to
be taken with respect thereto.
|
14
7.9. |
Auditor.
Continue to engage an independent public accounting firm reasonably
acceptable to the Investors.
|
8. |
Miscellaneous.
|
8.1. |
Survival
of Warranties.
All of the representations and warranties made herein shall survive
the
execution and delivery of this Agreement for a period of 30 months
following the Closing. The Investors are entitled to rely, and the
parties
hereby acknowledge that the Investors have so relied, upon the truth,
accuracy and completeness of each of the representations and warranties
of
the Company contained herein, irrespective of any independent
investigation made by Investors. The Company is entitled to rely,
and the
parties hereby acknowledge that the Company has so relied, upon the
truth,
accuracy and completeness of each of the representations and warranties
of
the Investors contained herein, irrespective of any independent
investigation made by the Company.
|
8.2. |
Successors
and Assigns.
This Agreement shall be binding upon and shall inure to the benefit
of the
respective successors and assigns of the parties, except that the
Company
shall not have the right to assign or otherwise transfer all or any
part
of its rights or obligations hereunder or any interest herein without
the
prior written consent of the Investors provided, however, that any
Investor shall be permitted to assign its rights under this Agreement
and
the Ancillary Agreements to any affiliate of such
Investor.
|
8.3. |
Governing
Law.
This Agreement shall be governed by and construed under the laws
of the
State of New York as applied to agreements among New York residents
entered into and to be performed entirely within New York without
regard
to choice of law provisions thereof. The Company (1) agrees that
any legal
suit, action or proceeding arising out of or relating to this Agreement
shall be instituted exclusively in New York State Supreme Court,
County of
New York, or in the United States District Court for the Southern
District
of New York, (2) waives any objection which the Company may have
now or
hereafter to the venue of any such suit, action or proceeding, and
(3)
irrevocably consents to the jurisdiction of the New York State Supreme
Court, County of New York, and the United States District Court for
the
Southern District of New York in any such suit, action or proceeding.
The
Company further agrees to accept and acknowledge service of any and
all
process which may be served in any such suit, action or proceeding
in the
New York State Supreme Court, County of New York, or in the United
States
District Court for the Southern District of New York and agrees that
service of process upon the Company mailed by certified mail to the
Company's address shall be deemed in every respect effective service
of
process upon the Company, in any such suit, action or proceeding.
THE
PARTIES HERETO AGREE TO WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL
OF
ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT
OR ANY DOCUMENT OR AGREEMENT CONTEMPLATED
HEREBY.
|
8.4. |
Counterparts.
This Agreement may be executed in two or more counterparts, each
of which
shall be deemed an original, but all of which together shall constitute
one and the same instrument. This Agreement, once executed by a party,
may
be delivered to the other party hereto by facsimile transmission
of a copy
of this Agreement bearing the signature of the party so delivering
this
Agreement.
|
15
8.5. |
Titles
and Subtitles.
The titles and subtitles used in this Agreement are used for convenience
only and are not to be considered in construing or interpreting this
Agreement.
|
8.6. |
Notices.
Any notice required or permitted by this Agreement shall be in writing
and
shall be deemed sufficient upon receipt, when delivered personally
or by
courier, overnight delivery service or confirmed facsimile, or forty-eight
(48) hours after being deposited, in the U.S. mail as certified or
registered mail with postage prepaid, if such notice is addressed
to the
party to be notified at such party's address or facsimile number
as set
forth below or as subsequently modified by written notice. Any party
may
change its address for such communications by giving notice thereof
to the
other parties in conformity with this
Section.
|
8.7. |
Agency;
Other Fees.
Each party represents that it neither is nor will be obligated for
any
finders' or brokers' fee or commission in connection with this
transaction; provided, however, that in the event the Closing is
consummated, the Company shall pay to the Investors a closing fee
of
$22,500 and a deferred commitment fee of $22,500 for the Investors
prior
bridge financing to Innopump, and reimburse Investors for expenses
up to
$65,000 , including, without limitation, fees and disbursements of
counsel, incurred by the Investors in connection with this transaction.
In
addition, in conjunction with the Closing, the Company shall repay
all
existing indebtedness of the Company for money borrowed, including
the
bridge financing to Innopump. Amounts payable as required repayments
hereunder are referred herein as “Indebtedness
Repayments.”
|
8.8. |
Transaction
Expenses: Enforcement of Transaction Documents.
Subject to Section 8.7, the Company and each Investor shall pay their
respective costs and expenses incurred with respect to the negotiation,
execution, delivery and performance of this Agreement. If any action
at
law or in equity is necessary to enforce or interpret the terms of
the
Transaction Documents, the prevailing party shall be entitled to
reasonable attorney's fees, costs, and necessary disbursements in
addition
to any other relief to which such party may be
entitled.
|
8.9. |
Amendments
and Waivers.
This Agreement may be amended or terminated and the observance of
any term
of this Agreement may be waived with respect to all parties to this
Agreement (either generally or in a particular instance and either
retroactively or prospectively), with the written consent of the
Company
and the Note Requisite Holders. Notwithstanding the foregoing, (a)
this
Agreement may not be amended or terminated and the observance of
any term
hereunder may not be waived with respect to any Investor without
the
written consent of such Investor unless such amendment, termination
or
waiver applies to all Investors in the same fashion and (b) Section
2,
Section 3, Section 6, Section 8.1, and Section 8.9 may not be amended
without the written consent of the Company and holders of at least
85
percent of the aggregate amount of principal and accrued interest
then
outstanding under the Notes. The Company shall give prompt written
notice
of any amendment or termination hereof or waiver hereunder to any
party
hereto that did not consent in writing to such amendment, termination
or
waiver. Any amendment, termination or waiver affected in accordance
with
this Section 8.9 shall be binding on all parties hereto, even if
they do
not execute such consent. No waivers of or exceptions to any term,
condition or provision of this Agreement, in any one or more instances,
shall be deemed to be, or construed as, a further or continuing waiver
of
any such term, condition or provision. Notwithstanding the foregoing,
each
holder of a Note, in its sole and absolute discretion, may agree
with the
Company to extend the maturity date of the Note held by
it.
|
16
8.10. | Severability. If one or more provisions of this Agreement are held to be unenforceable under applicable law, such provision shall be excluded from this Agreement and the balance of this Agreement shall be interpreted as if such provision were so excluded and shall be enforceable in accordance with its terms. |
8.11. | Entire Agreement. This Agreement and the documents referred to herein constitute the entire agreement among the parties and no party shall be liable or bound to any other party in any manner by any warranties, representations, or covenants except as specifically set forth herein or therein. |
8.12. | Independent Nature of Investors' Obligations and Rights. The obligations of each Investor under this Agreement or any Transaction Document hereunder are several and not joint with the obligations of any other Investor, and no Investor shall be responsible in any way for the performance of the obligations of any other Investor under this Agreement or any Transaction Document. Nothing contained herein or in any Transaction Document, and no action taken by any Investor pursuant thereto, shall be deemed to constitute the Investors as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Investors are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Document. |
Balance
of Page Intentionally Left Blank
Signature
Page Follows:
17
IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
above written.
Company:
Xxxxxxxxxxxxx.xxx,
Inc.
By:
|
|||
Name:
|
|||
Title:
President
and Chief Executive Officer
|
(Investors:
To sign Financing Signature Page Annexed Hereto)
SIGNATURE
PAGE
18
FINANCING
SIGNATURE PAGE
By
execution and delivery of this signature page, you are agreeing to become an
Investor as defined in that certain Securities Purchase Agreement (the "Purchase
Agreement") by and among Xxxxxxxxxxxxx.xxx, Inc., a Nevada corporation (the
"Company") and the Investors (as defined in the Purchase Agreement), dated
August _, 2006, and acknowledges having read the representations in the Purchase
Agreement section entitled "Representations and Warranties of the Investors,"
and hereby represents that the statements contained therein are complete and
accurate with respect to the undersigned as an Investor. The undersigned further
hereby agrees to be bound by the terms and conditions of the Purchase Agreement
as an "Investor" hereunder and that execution by the Investor of this Financing
Signature Page shall constitute an agreement to be bound by the terms and
conditions of the Registration Rights Agreement, with the same effect as if
such
separate, but related agreement, was separately signed.
Lastly,
the undersigned hereby acknowledges that the Note Requisite Holders may appoint
an agent to act on its behalf as further described in Section 3.7 of the
Purchase Agreement.
INVESTORS:
Mellon
HBV Master U.S. Event Driven Fund, L.P.
By:
|
|||
Name:
|
Principal
Amount
of Note Purchased: $
Warrants: |
||
Title:
|
Address:
|
||
Date: _____________,
2006
|
Federal
ID No.:
|
Mellon
HBV Master Global Event Driven Fund, L.P.
By:
|
|||
Name:
|
Principal
Amount
of Note Purchased: $
Warrants: |
||
Title:
|
Address:
|
||
Date: _____________,
2006
|
Federal
ID No.:
|
SIGNATURE
PAGE
19
Schedule
of Exhibits
Exhibit A | Form of Merger Agreement | |
Exhibit B | Form of Senior Secured Redeemable Convertible Note | |
Exhibit C | Form of Warrant | |
Exhibit D | Form of Registration Rights Agreement | |
Exhibit E | Form of Security Agreement | |
Exhibit F | Schedule of Exceptions | |
Exhibit G-1 | Company Capitalization | |
Exhibit G-2 | Proforma Capitalization | |
Exhibit H | Filings, Consents and Approvals | |
Exhibit I | Form of Guaranty | |
Exhibit J | Form of Opinion |
20
SCHEDULE
A
WARRANT
PENALTY
3
Penalty
Dates based on 12 month rolling EBITDA targets are established as follows (as
per the model provided):
Months
from Closing
|
Forecasted
EBITDA
|
EBITDA
Target
|
||
12
|
See
attached annex
|
90%
of Forecast
|
||
24
|
See
attached annex
|
90%
of Forecast
|
||
30
|
See
attached annex
|
90%
of Forecast
|
To
the
extent that the Company’s EBITDA falls short of the EBITDA Target for that
period, a Penalty Warrant will be issued to purchase an additional amount of
the
Company’s common stock calculated as follows:
EBITDA
Target - Actual EBITDA
Forecasted
EBITDA x
Number
of shares underlying convertible debt
Such
calculation will be in the aggregate and not calculated discretely.
The
Penalty Warrant(s) shall bear a strike price per share of the average closing
price for 30 consecutive days following the Financial Reporting Date immediately
following each EBITDA Target date for the Company’s Common Stock (as reported on
Bloomberg).
The
Penalty Warrant(s) shall not be exercisable until the maturity date of the
Convertible Note (the “Maturity Date”) and will expire 3 years from Maturity
Date.
The
Penalty Warrant(s) are cancelable upon any of the following:
1
|
If
the Company, exceeds any subsequent EBITDA Target by 10%;
|
2
|
After
each period representative of the periods associated with the EBITDA
Target dates, if the average closing price for 30 consecutive days
following the EBITDA Target date for the Company’s Common Stock (as
reported on Bloomberg) is at a price which is greater than a 50%
annualized return of the conversion price and has minimum average
trading
volume for such period of $500,000/day, and there is a current
registration statement then in effect in respect of such Common Stock,
there shall be no Penalty Warrants
issued.
|
3
|
The
Holder of the Convertible Note has converted prior to the Maturity
Date.
|
21