AGREEMENT TO ISSUE WARRANTS
THIS AGREEMENT TO ISSUE WARRANTS (this "Agreement") is entered into as of
this 9th day of January, 1997, by and among XXXXXX XXXXX INCORPORATED, a Nevada
corporation (the "Company"), and EZER MZION ORGANIZATION ("Holder"), based on
the following premises.
Premises
A. Holder holds warrants (the "Outstanding Warrants") to acquire shares
of common stock of the Company, par value $0.001 per share (the "Common Stock").
X. Xxxxxx has agreed to the early exercise of the Outstanding Warrants
currently held by it and the modification of the Company's registration
obligations with respect to the shares of Common Stock underlying the
Outstanding Warrants in consideration of the Company's agreement to reduce the
exercise price of the Outstanding Warrants and to grant it additional warrants
to acquire shares of Common Stock on the terms and conditions set forth in this
Agreement.
Agreement
NOW, THEREFORE, based on the stated premises, which are incorporated herein
by reference, and for and in consideration of the mutual covenants and
agreements hereinafter set forth and the mutual benefit to the parties to be
derived therefrom, and other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, it is hereby agreed as follows:
Article I
Warrants
1.1 Outstanding Warrants. Holder holds Outstanding Warrants to acquire
370,208 shares of Common Stock. The Outstanding Warrants currently have an
exercise price of $6.25 per share of Common Stock. The parties agree to reduce
the exercise price of the Outstanding Warrants to $5.30 per share; provided
that, the Outstanding Warrants are exercised on the timetable and other terms
and conditions set forth in this Agreement.
1.2 Exercise of Outstanding Warrants. Holder agrees to deliver to the
Company $877,998 on or before January 31, 1997, as payment of the exercise price
of a portion of the Outstanding Warrants. Holder agrees to deliver an
additional $1,084,104.40 to the Company on or before April 16, 1997, as payment
of the exercise price for its remaining Outstanding Warrants. On receipt of the
first payment on or before January 31, 1997, the Company agrees to immediately
provide irrevocable written instructions to its transfer agent to issue a
certificate representing 140,480 shares of Common Stock be registered in the
name of Ezer Mzion Organization, and to deliver such certificates to Holder. An
additional 25,180 shares shall be held in reserve and issued on the timely
payment of the second amount on or before April 16, 1997. On receipt of the
second payment on or before April 16, 1997, the reserved shares shall be issued
and an additional 204,548 shares shall be issued and delivered to Holder.
1.3 Failure to Make Payments. In the event that Holder fails to make the
payment due by January 31, 1997, this Agreement shall be null and void and the
parties shall be governed by the prior agreements between the parties concerning
the Outstanding Warrants. In the event that Holder makes the payment due on or
before January 31, 1997, and then fails to timely make the payment due on or
before April 16, 1997, the exercise price of all of the Outstanding Warrants
(including those exercised on or before January 31, 1997) held by Holder shall
be $6.25 per share of Common Stock and the 25,180 shares of stock reserved for
Holder under the provisions of paragraph 1.2 shall not be issued.
1.4 Issuance of Additional Warrants. On exercise of the Outstanding
Warrants on or before April 16, 1997, the Company agrees to issue warrants to
Holder to acquire a like number of shares of Common Stock at an exercise price
of $10.75 per share of Common Stock (the "$10.75 Warrants"). The $10.75
Warrants shall be exercisable at any time after August 1, 1997, and prior to the
close of business on April 16, 1999. The $10.75 Warrants shall be in the form
attached hereto as Exhibit "A" and incorporated herein by this reference.
Article II
Representations, Covenants, and Warranties of the Company
As an inducement to, and to obtain the reliance of, Holder, the Company
represents and warrants as follows:
2.1 Organization of the Company. The Company is a corporation duly
organized, validly existing, and in good standing under laws of the state of
Nevada, and has the corporate power and is duly authorized, qualified,
franchised, and licensed under all applicable laws, regulations, ordinances, and
orders of public authorities to own all of its properties and assets and to
carry on its business in all material respects as it is now being conducted.
The execution and delivery of this Agreement does not, and the consummation of
the transactions contemplated by this Agreement in accordance with the terms
hereof will not, violate any provision of the Company's certificate of
incorporation or bylaws. The Company has taken all action required by law, its
certificate of incorporation, its bylaws, or otherwise to authorize the
execution and delivery of this Agreement and the consummation of the
transactions herein contemplated.
2.2 Approval of Agreement. The board of directors of the Company has
authorized the execution and delivery of this Agreement by the Company and has
approved the consummation of the transactions contemplated hereby. This
Agreement is the legal, valid, and binding agreement of the Company enforceable
between the parties in accordance with its terms.
2.3 Financial Information. Each of the financial statements contained in
the information referred to in section 2.4 present fairly the financial
condition of the Company as of the respective dates of such financial statements
and the results of its operations for the periods indicated. All such audited
and unaudited financial statements have been prepared in accordance with
generally accepted accounting principles consistently applied throughout the
periods involved as explained in the notes to such financial statements and have
been presented in accordance with the requirements of the rules and regulations
promulgated by the SEC regarding the form and content of and requirements for
financial statements to be filed with the SEC.
2.4 Information. The information concerning the Company set forth in this
Agreement, the annual report on Form 10-KSB filed with the SEC for the year
ended June 30, 1996, and the quarterly report on Form 10-QSB for the quarter
ended September 30, 1996, is, or was, as of the date of the respective reports,
complete and accurate in all material respects and did not contain any untrue
statement of a material fact or omit to state a material fact required to make
the statements made, in light of the circumstances under which they were made,
not misleading.
2.5 Third-Party Consents. None of the contracts, agreements, leases, or
other commitments, written or oral, to which the Company is a party or to which
any of its properties or assets are subject require the consent of any other
party in order to consummate the transactions herein contemplated, except where
the failure to obtain such consent would not have a material adverse effect on
the transactions contemplated herein. Except for the satisfaction of
requirements of federal and state securities and corporation laws, no
authorization, approval, consent, or order of, or registration, declaration, or
filing with, any court or other governmental body is required in connection with
the execution and delivery by the Company of this Agreement and the consummation
by the Company of the transactions contemplated hereby.
2.6 No Conflict With Other Instruments. The execution of this Agreement
and the consummation of the transactions contemplated by this Agreement will not
result in the breach of any term or provision of, or constitute an event of
default under, any indenture, mortgage, deed of trust, lease, or other contract,
agreement, or instrument to which the Company is a party or to which any of its
properties or operations are subject and the breach of which would have a
material adverse effect on the Company.
Article III
Representations, Covenants, and Warranties of Holder
As an inducement to, and to obtain the reliance of the Company, Holder
represents and warrants as follows:
3.1 Binding Agreement. This Agreement is the legal, valid, and binding
obligation of Holder enforceable in accordance with its terms.
3.2 Third-Party Consents. None of the contracts, agreements, leases, or
other commitments, written or oral, to which Holder is a party or to which any
of its properties or assets are subject require the consent of any other party
in order to consummate the transactions herein contemplated, except where the
failure to obtain such consent would not have a material adverse effect on the
transactions contemplated herein. No authorization, approval, consent, or order
of, or registration, declaration, or filing with, any court or other
governmental body is required in connection with the execution and delivery by
Holder of this Agreement and the consummation by Holder of the transactions
contemplated hereby.
3.3 No Conflict With Other Instruments. The execution of this Agreement
and the consummation of the transactions contemplated hereby, will not result in
the breach of any term or provision of, constitute an event of default under, or
require the consent or approval of any third-party pursuant to, any material
contract, agreement, or instrument to which Holder is a party or to which any of
its properties or assets are subject.
3.4 Information. The information concerning Holder set forth in this
Agreement is complete and accurate in all material respects and does not contain
any untrue statement of a material fact or omit to state a material fact
required to make the statements made, in light of the circumstances under which
they were made, not misleading.
Article IV
Special Covenants
4.1 Indemnification by Holder. Holder agrees to indemnify and hold
harmless the Company and its directors and officers, and each person, if any,
who controls the Company within the meaning of the Securities Act of 1933, as
amended (the "Securities Act"), from and against any and all losses, claims,
damages, expenses, liabilities, or actions to which any of them may become
subject under applicable law (including the Securities Act and the Exchange Act)
and will reimburse them for any legal or other expenses reasonably incurred by
them in connection with investigating or defending any claims or actions,
whether or not resulting in liability, insofar as such losses, claims, damages,
expenses, liabilities, or actions arise out of or are based upon any untrue
statement or alleged untrue statement of a material fact contained in any
application or statement filed with a governmental body or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary in order to make the statements
therein not misleading, but only insofar as any such statement or omission was
made in reliance upon and in conformity with information furnished in writing by
Holder expressly for use therein. Holder agrees at any time upon the request of
the Company to furnish to it a written letter or statement confirming the
accuracy of the information with respect to Holder contained in any report or
other application or statement referred to in this Article IV, or in any draft
of any such documents, and confirming that the information with respect to
Holder contained in such document or draft was furnished by Holder, indicating
the inaccuracies or omissions contained in such document or draft or indicating
the information not furnished by Holder expressly for use therein. The
indemnity agreement contained in this section 4.1 shall remain operative and in
full force and effect, regardless of any investigation made by or on behalf of
the Company and shall survive the consummation of the transactions contemplated
by this Agreement.
4.2 Indemnification by the Company. The Company will indemnify and hold
harmless Holder from and against any and all losses, claims, damages, expenses,
liabilities, or actions to which it may become subject under applicable law
(including the Securities Act and the Exchange Act) and will reimburse it for
any legal or other expenses reasonably incurred by it in connection with
investigating or defending any claims or actions, whether or not resulting in
liability, insofar as such losses, claims, damages, expenses, liabilities, or
actions arise out of or are based upon any breach of this Agreement or any
untrue statement or alleged untrue statement of a material fact contained in any
application or statement filed with a governmental body or arise out of or are
based upon the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary in order to make the statements
therein not misleading, but only insofar as any such statement or omission was
made in reliance upon and in conformity with information furnished in writing by
the Company expressly for use therein. The Company agrees at any time upon the
request of Holder to furnish to it a written letter or statement confirming the
accuracy of the information with respect to the Company contained in any report
or other application or statement referred to in this Article IV, or in any
draft of any such document, and confirming that the information with respect to
the Company contained in such document or draft was furnished by the Company,
indicating the inaccuracies or omissions contained in such document or draft or
indicating the information not furnished by the Company expressly for use
therein. The indemnity agreement contained in this section 4.2 shall remain
operative and in full force and effect, regardless of any investigation made by
or on behalf of Holder and shall survive the consummation of the transactions
contemplated by this Agreement.
4.3 The Acquisition of Purchased Stock. The consummation of this
Agreement and the issuance of $10.75 Warrants to Holder contemplated herein and
the issuance of Common Stock on the exercise of the Outstanding Warrants
constitutes the offer and sale of securities as those terms are defined under
the Securities Act and applicable state statutes. Such transactions shall be
consummated in reliance on certain exemptions from the registration requirements
of federal and state securities laws, which depend, among other items, on the
circumstances under which such securities are acquired.
(a) In order to provide documentation for reliance upon such
exemptions, Holder makes the following representations and warranties:
(i) Holder acknowledges that neither the SEC nor the securities
commission of any state or other federal agency has made any
determination as to the merits of acquiring the Warrants or the shares
of Common Stock issuable on exercise of the Warrants, and that this
transaction involves certain risks.
(ii) Holder has received and read this Agreement and understand
the risks related to the consummation of the transactions herein
contemplated.
(iii) Holder has such knowledge and experience in business
and financial matters that it is capable of evaluating the Company and
its business operations.
(iv) Holder has adequate means of providing for its current needs
and possible personal contingencies and have no need now, and
anticipates no need in the foreseeable future, to sell any of the
Warrants or the shares of Common Stock issuable on exercise of the
Warrants. Holder is able to bear the economic risks of this
investment, and, consequently, without limiting the generality of the
foregoing, is able to hold the Warrants and the shares of Common Stock
issuable on exercise of the Warrants for an indefinite period of time,
and has a sufficient net worth to sustain a loss of the entire
investment, in the event such loss should occur.
(v) Holder has been provided with all information contained in
the Company's annual report on Form 10-K for the year ended June 30,
1996, and all subsequent interim reports filed by the Company with the
Securities and Exchange Commission. Holder's representatives have
personally met with the officers and directors of the Company and have
investigated the intellectual property assets of the Company. Holder
and its representatives have been given the opportunity to meet with
and ask questions of the officers and directors of the Company and to
obtain any additional information they consider material to the
acquisition of the Warrants and the shares of Common Stock issuable on
exercise of the Warrants.
(vi) Holder is acquiring the Warrants and the shares of Common
Stock issuable on exercise of the Warrants for its own account and not
for resale to others.
(vii) Holder confirms that it is an "accredited investor" as
defined under rule 501 of regulation D promulgated under the
Securities Act.
(viii) Holder is not organized under the laws of the United
States or any of the states of the United States and was not formed by
a United States person for the purpose of investing in securities.
(ix) Holder understands that none of the Warrants or the shares
of Common Stock issuable on exercise of the Warrants has been
registered, but are being acquired by reason of a specific exemption
under the Securities Act as well as under certain state statutes for
transactions by an issuer not involving any public offering and that
any disposition of the Warrants and the shares of Common Stock
issuable on exercise of the Warrants may, under certain circumstances,
be inconsistent with this exemption and may make the holder an
"underwriter" within the meaning of the Securities Act. Holder
further acknowledges that the Warrants and the shares of Common Stock
issuable on exercise of the Warrants must be held and may not be sold,
transferred, or otherwise disposed of for value unless they are
subsequently registered under the Securities Act or an exemption from
such registration is available; the Company is under no obligation to
register the Warrants or the shares of Common Stock issuable on
exercise of the Warrants under the Securities Act or under section 12
of the Exchange Act, except as provided in this Agreement or as may be
expressly agreed to by it in writing; if rule 144 is available, and no
assurance is given that it will be, initially only routine sales of
the Warrants and the shares of Common Stock issuable on exercise of
the Warrants in limited amounts can be made in reliance on rule 144 in
accordance with the terms and conditions of that rule; the Company is
under no obligation to the undersigned to make rule 144 available,
except as may be expressly agreed to by it in writing; in the event
rule 144 is not available, compliance with regulation A or some other
exemption may be required before any holder can sell, transfer, or
otherwise dispose of the Warrants or the shares of Common Stock
issuable on exercise of the Warrants without registration under the
Securities Act; the Company's registrar and transfer agent will
maintain a stop transfer order against the registration of transfer of
the Warrants and the shares of Common Stock issuable on exercise of
the Warrants; and the certificate(s) representing the Warrants and the
shares of Common Stock issuable on exercise of the Warrants will bear
a legend in substantially the following form so restricting the sale
of the Warrants and the shares of Common Stock issuable on exercise of
the Warrants:
THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT"), AND ARE "RESTRICTED SECURITIES" WITHIN
THE MEANING OF RULE 144 PROMULGATED UNDER THE SECURITIES
ACT. THE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND
MAY NOT BE SOLD OR TRANSFERRED WITHOUT COMPLYING WITH RULE
144 IN THE ABSENCE OF AN EFFECTIVE REGISTRATION OR OTHER
COMPLIANCE UNDER THE SECURITIES ACT.
(b) In order to more fully document reliance on the exemptions as
provided herein, Holder shall execute and deliver to the Company such
further letters of representation, acknowledgment, suitability, or the
like, as the Company and its counsel may reasonably request in connection
with reliance on exemptions from registration under such securities laws.
(c) The parties to this Agreement acknowledge that the basis for
relying on exemptions from registration or qualification are factual,
depending on the conduct of the various parties, and that no legal opinion
or other assurance will be required or given to the effect that the
transactions contemplated hereby are in fact exempt from registration or
qualification.
Article V
Registration Rights
5.1 Registration of Common Stock. On or before April 30, 1997, the
Company shall prepare and file with the Securities and Exchange Commission (the
"SEC"), a registration statement (the "Registration Statement") that includes
resale of the shares of Common Stock issuable on exercise of the Outstanding
Warrants and the $10.75 Warrants subject to this Agreement. Thereafter, the
Company shall use its best efforts to cause such Registration Statement to
become effective as soon as is practicably possible and to keep such
Registration Statement effective as provided herein. The Company further agrees
to:
(a) Prepare and file with the SEC such amendments and post-effective
amendments to the New Registration Statement as may be necessary to keep
the New Registration Statement effective for a period of not less than two
(2) years from the date of exercise of the $10.75 Warrants, or such shorter
period which will terminate when all securities covered by such
Registration Statement have been sold or withdrawn; cause the prospectus
which is part of the Registration Statement to be supplemented by any
required prospectus supplement, and as so supplemented to be filed pursuant
to Rule 424 under the Securities Act; and comply with the provisions of the
Securities Act applicable to it with respect to the disposition of all
securities covered by such Registration Statement during the applicable
period in accordance with the intended methods of disposition by the
sellers thereof set forth in such Registration Statement or supplement to
the prospectus;
(b) Notify any holder of Common Stock covered by the Registration
Statement (the "Selling Shareholders") when a prospectus is required to be
delivered under the Securities Act, when the Company becomes aware of the
happening of any event as a result of which the prospectus included in such
Registration Statement (as then in effect) contains any untrue statement of
a material fact or omits to state a material fact necessary to make the
statements therein (in the case of the prospectus or any preliminary
prospectus, in light of the circumstances under which they were made) not
misleading and, as promptly as practicable thereafter, prepare and file
with the SEC and furnish to Selling Shareholders a supplement or amendment
to such prospectus so that, as thereafter delivered to the purchasers of
such securities, such prospectus will not contain any untrue statement of a
material fact or omit to state a material fact necessary to make the
statements therein, in light of the circumstances under which they were
made, not misleading;
(c) Enter into customary agreements (including an underwriting
agreement in customary form) and take such other actions as are reasonably
required in order to expedite or facilitate the disposition of such
securities;
(d) Use its best efforts to cause all securities of Selling
Shareholders included in such Registration Statement to be listed, by the
date of the first sale of securities pursuant to such Registration
Statement, on each securities or trading exchange on which the Company's
securities of the same class are then listed or proposed to be listed, if
any;
(e) On or prior to the date on which the Registration Statement is
declare effective, use its best efforts to register or qualify, and
cooperate with Selling Shareholders, the underwriter or underwriters, if
any, and their counsel, in connection with the registration or
qualification of, the securities of Selling Shareholders covered by the
Registration Statement for offer and sale under the securities or blue sky
laws of each state and other jurisdiction of the United States as Selling
Shareholders or the underwriter reasonably requests in writing, to use its
best efforts to keep each such registration or qualification effective,
including through new filings, or amendment or renewals, during the period
such Registration Statement is required to be keep effective and to do any
and all other acts or things necessary or advisable to enable the
disposition in all such jurisdictions of the securities of Selling
Shareholders covered by the New Registration Statement; provided that, the
Company will not be required to (1) qualify generally to do business in any
jurisdiction where it would not otherwise be required to qualify but for
this paragraph (e), (2) consent to general service of process in any such
jurisdiction, or (3) subject itself to general taxation in any such
jurisdiction;
(f) Cooperate with Selling Shareholders and the managing underwriter
or underwriters, if any, to facilitate the timely preparation and delivery
of certificates (not bearing any restrictive legends) representing
securities to be sold by Selling Shareholders under the New Registration
Statement, and enable such securities to be in such denominations and
registered in such names as the managing underwriter or underwriters, if
any, or Selling Shareholders may request; and
(g) Use it best efforts to cause the securities of Selling
Shareholders covered by the Registration Statement to be registered with or
approved by such other governmental agencies or authorities within the
United States as may be necessary to enable Selling Shareholders or the
underwriter or underwriters, if any, to consummate the disposition of such
securities.
5.2 Cooperation by Holder.
(a) Holder shall furnish to the Company in writing such information
and affidavits as the Company may reasonably require in connection with any
registration, qualification or compliance with respect to such securities.
It shall be a condition precedent to the obligations of the Company to take
any action pursuant to this Agreement with respect to the securities of any
Selling Shareholder that such Selling Shareholder shall furnish to the
Company such information regarding the Selling Shareholder, the securities
to be registered and other securities in the Company held, and the intended
method of disposition of such securities as shall be required to effect the
registration of such securities.
(b) By exercising its Warrants, Holder shall be deemed to have
confirmed at the time of such exercise the continuing accuracy of the
information respecting its status as an accredited investor and the
suitability of an investment in the Common Stock for it that is contained
herein, all except as it may then advise the Company in writing. The
Company may also require, as a condition precedent to exercise, that Holder
complete and deliver to the Company a suitability letter containing
representations and warranties regarding suitability of the investment of
like tenor to those contained herein.
(c) Holder, upon receipt of any notice from the Company of the
happening of any event of the kind described in paragraph (b) of section
5.2, will forthwith discontinue disposition of the securities until its
receipt of copies of the supplemented or amended prospectus contemplated by
paragraph (b) of section 5.2 or until it is advised in writing (the
"Advice") by the Company that the use of the prospectus may be resumed, and
has received copies of any additional or supplemental filings which are
incorporated by reference in the prospectus, and, if so directed by the
Company, Holder will, or will request the managing underwriter or
underwriters, if any, to, deliver to the Company all copies, other than
permanent file copies then in their possession, of the prospectus covering
such securities current at the time of receipt of such notice. In the
event the Company shall give any such notice, the time period mentioned in
paragraph (a) of section 5.2 shall be extended by the number of days during
the period from and including the date of the giving of such notice to and
including the date when Holder shall have received the copies of the
supplemented or amended prospectus contemplated by paragraph (b) of section
5.2 hereof or the Advice.
(d) At the end of any period during which the Company is obligated to
keep any Registration Statement current and effective (and any required
extensions), Holder shall discontinue sales of securities pursuant to such
Registration Statement upon receipt of notice from the Company of its
intention to remove from registration the securities covered by such
Registration Statement which remain unsold, and Holder shall notify the
Company of the number of securities registered which remain unsold promptly
after receipt of such notice from the Company.
(e) Holder acknowledges that the registration of the resale of the
securities or the availability of an exemption from registration in certain
states may impose certain limitations and conditions on the manner and
nature of such sales. The Company shall advise Holder in writing of such
registration or exemption and the related limitations and conditions from
time to time. Holder shall be solely responsible for its own compliance
with such limitations and conditions.
5.3 Holdback Agreement. Holder, if requested by the managing underwriter
or underwriters for any underwritten, registered offering of the securities of
the Company, agrees not to effect any public sale or distribution of securities,
including a sale pursuant to Rule 144 (or any similar provision then in force)
under the Securities Act, during the 15 days prior to, and during the 120-day
period commencing on the effective date of such registration (except as part of
such registration). In the event Holder is prohibited from effecting a sale of
securities pursuant to this section 5.5, the time period in paragraph (a) of
section 5.2 shall be extended by the number of days Holder is so prohibited.
5.4 Registration and Selling Expenses. All of the costs and expenses of
registration provided for herein will be borne by the Company, including the
fees and expenses of the counsel and accountants for the Company (including the
expenses of any special audit and "cold comfort" letters required by or incident
to such performance), and all other costs and expenses of the Company incident
to the preparation, printing, and filing under the Securities Act of any
registration statement (and all amendments and supplements thereto) and
furnishing copies thereof and of the prospectus included therein, and the costs
and expenses incurred by the Company in connection with the qualification of the
Warrants and shares of Common Stock received on exercise of Warrants under the
state securities or blue sky laws of various jurisdictions; provided that, the
Company shall not bear the costs and expenses of Holder comprising underwriters'
commissions, brokerage fees, transfer taxes, or the fees and expenses of any
counsel, accountant, or other representative retained by Holder.
5.5 Rule 144. The Company agrees that it will use its best efforts to
file in a timely manner all reports required to be filed by it pursuant to the
Exchange Act and, at any time and upon request of Holder, will furnish it with
such information generated by the Company in the ordinary course of business as
may be reasonably necessary to enable it to effect sales of Common Stock
received on exercise of Warrants without registration pursuant to Rule 144 under
the Securities Act. Notwithstanding the foregoing, the Company may deregister
any class of its securities under section 12 of the Exchange Act or suspend its
duty to file reports with respect to any class of its securities pursuant to
section 15(d) of the Exchange Act if it is then permitted to do so pursuant to
the Exchange Act and the rules and regulations thereunder.
5.6 Participation in Underwritten Registrations. Holder may not
participate in any underwritten piggyback registration in which it chooses to
have stock included unless Holder (a) agrees to sell shares of Common Stock
received on exercise of Warrants on the basis provided in any underwriting
arrangements approved by the Company and the underwriter, and (b) completes and
executes all questionnaires, powers of attorney, underwriting agreements and
other documents customarily required under the terms of such underwriting
arrangements.
Article VI
Miscellaneous
6.1 No Brokers. Holder and the Company agree that no third person has in
any way brought the parties together or been instrumental in the negotiation,
execution, or consummation of this Agreement. Holder and the Company agree to
indemnify the other against any claim by any third person for any commission,
brokerage, finder's fee, or other payment with respect to this Agreement or the
transactions contemplated hereby based upon any alleged agreement or
understanding between such party and such third person, whether expressed or
implied, arising from the actions of such party. The covenants set forth in
this section 6.1 shall survive the date hereof and the consummation of the
transactions herein contemplated.
6.2 Governing Law. This Agreement shall in all respects, including all
matters of construction, validity, and performance, be governed by, and
construed and enforced in accordance with, the laws of the state of Utah
applicable to contracts entered into in that state between citizens of that
state and to be performed wholly within that state without reference to any
rules governing conflicts of laws
6.3 Notices. All notices, demands, requests, or other communications
required or authorized hereunder shall be deemed given sufficiently if in
writing and if personally delivered; if sent by facsimile transmission,
confirmed with a written copy thereof sent by overnight express delivery; if
sent by registered mail or certified mail, return receipt requested and postage
prepaid; or if sent by overnight express delivery:
If to the Company, to: Xxxxxx Xxxxx Incorporated
Attn.: Xxxxx X. Xxxxxx, President
0000 Xxxx 000 Xxxxx
Xxxxx, Xxxx 00000
Facsimile Transmission: (000) 000-0000
Confirmation: (000) 000-0000
With copies to: Xxxxx X. Xxxx, Esq.
Xxxxx, Xxxxx & Xxxxxxx, L.L.C.
Eighth Floor, Bank Xxx Xxxxx
00 Xxxx Xxxxxxxx
Xxxx Xxxx Xxxx, Xxxx 00000
Facsimile Transmission: (000) 000-0000
Confirmation: (000) 000-0000
If to Holder, to: Ezer Mzion Organization
00 Xxxxx Xxxxxxx Xxxxxx
Xxxx- Xxxx, Xxxxxx
Facsimile Transmission: ( ) --- ----
Confirmation: ( ) --- ----
or such other addresses and facsimile numbers as shall be furnished in writing
by any party in the manner for giving notices hereunder, and any such notice,
demand, request, or other communication shall be deemed to have been given as of
the date personally delivered or on the first business day after a legible copy
sent by facsimile transmission is received, three days after the date mailed by
registered or certified mail, or on the first business day after the date sent
by overnight delivery.
6.4 Attorneys' Fees. In the event that any party institutes and prevails
in any action or suit to enforce this Agreement or to secure relief from any
default hereunder or breach hereof, the defaulting or breaching party or parties
shall reimburse the nonbreaching party or parties for all costs, including
reasonable attorneys' fees, incurred in connection therewith and in enforcing or
collecting any judgment rendered therein.
6.5 Best Knowledge. Whenever any representation is made to the "best
knowledge" of any party, it shall be deemed to be a representation that an
officer or director or other official of such party, after reasonable
investigation, does not have any current actual knowledge that would make such
representation untrue.
6.6 Entire Agreement. This Agreement, together with the documents to be
delivered pursuant hereto, represents the entire agreement between the parties
relating to the subject matter hereof. To the extent inconsistent therewith,
this Agreement supersedes all earlier agreements governing the Outstanding
Warrants, including the Agreement to Issue Warrants between the parties dated
May 15, 1996, and the warrant certificates representing the Outstanding
Warrants. There are no other courses of dealing, understandings, agreements,
representations, or warranties, written or oral, except as set forth herein.
6.7 Survival; Termination. The representations, warranties, and covenants
of the respective parties as set forth in this Agreement shall survive the
closing and consummation of the transactions contemplated by this Agreement for
a period of two years from the date of this Agreement. The Company's cumulative
liability to Holder for breaches of this Agreement shall not exceed the
aggregate exercise price of the Warrants covered hereby.
6.8 Counterparts. This Agreement may be executed in multiple
counterparts, each of which shall be deemed an original and all of which taken
together shall be but a single instrument.
6.9 Amendment or Waiver. Every right and remedy provided herein shall be
cumulative with every other right and remedy, whether conferred herein, at law,
or in equity, and may be enforced concurrently herewith, and no waiver by any
party of the performance of any obligation by the other shall be construed as a
waiver of the same or any other default then, theretofore, or thereafter
occurring or existing. This Agreement may be amended by a writing signed by all
parties hereto, with respect to any of the terms contained herein, and any term
or condition of this Agreement may be waived or the time for performance thereof
may be extended by a writing signed by the party or parties for whose benefit
the provision is intended.
6.10 Third-Party Beneficiaries. This Agreement is solely between the
parties hereto and no director, officer, stockholder, employee, agent,
independent contractor, or any other person or entity shall be deemed to be a
third-party beneficiary of this Agreement.
6.11 No Public Announcement. None of the parties to this Agreement shall,
without the approval of each other party, make any press release or other public
announcement concerning the transactions contemplated by this Agreement without
first providing a copy of such press release or public announcement to the other
parties to this Agreement at least five days prior to release. Nothing
contained herein shall prohibit any party from making any pubic disclosure or
announcement which is required by law.
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed as of the date first above written.
The Company:
XXXXXX XXXXX INCORPORATED
By /s/ Xxxxx X. Xxxxxx
Xxxxx X. Xxxxxx, President
Holder:
EZER MZION ORGANIZATION
By /s/
, President
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