Exhibit 99.3
The following Form of Subscription Agreement was entered into with the following
purchasers:
Name Date Number of Total
Shares Purchased Purchase Price
H&Q Healthcare Investors March 16, 2001 1,020,000 $4,080,000
H&Q Life Sciences Investors March 16, 2001 680,000 $2,720,000
Lancaster Investment Partners March 16, 2001 150,000 $600,000
Delta Opportunity Fund, Ltd. March 23, 2001 37,500 $150,000
Delta Opportunity Fund March 23, 2001 25,000 $100,000
(Institutional), LLC
Omicron Partners, LP March 23, 2001 62,500 $250,000
NAME OF PURCHASER: _________________________
To: ORTHOVITA, INC.
00 XXXXX XXXXXX XXXXXXX
XXXXXXX, XX 00000
ORTHOVITA, INC.
FORM OF SUBSCRIPTION AGREEMENT
SECTION 1.
1.1 Subscription. The undersigned (the "Purchaser"), intending to be
legally bound, hereby subscribes for and agrees to purchase ___________________
(_______) shares (the "Shares") of common stock, par value $.01 per share (the
"Common Stock") of Orthovita, Inc., a Pennsylvania corporation (the "Company"),
for the purchase price of ________________ U.S. dollars (USD$___________) (the
"Purchase Price") in accordance with the terms and conditions of this
Subscription Agreement (the "Subscription Agreement").
1.2 Purchase of Shares; Delivery of Documents. Payment for the Shares shall
be made by certified check or wire transfer to the escrow account established by
Emerging Growth Equities, Ltd. (the "Placement Agent") at First Union National
Bank as escrow agent (the "Escrow Agent") pursuant to the terms of the Escrow
Agreement among the Company, the Placement Agent and the Escrow Agent (the
"Escrow Agreement"), together with an executed copy of this Subscription
Agreement. At the Closing (as defined in Section 2.1 below), subject to the
terms and conditions set forth herein, the Company shall issue and sell to the
Purchaser, and the Purchaser shall purchase from the Company, the Shares for the
Purchase Price. The purchase and sale of the Shares shall take place prior to
the Termination Date (as defined in that certain Escrow Agreement to which the
Company and Emerging Growth Equities, Ltd. (the "Placement Agent") are party) at
the offices of Xxxxxx, Xxxxx & Xxxxxxx LLP, 0000 Xxxxxx Xxxxxx, Xxxxxxxxxxxx, XX
00000, on the sale of the
Minimum Offering (as hereafter defined) and thereafter at such time(s) and
place(s) as the Company and Placement Agent shall mutually agree upon (each such
time and place are hereby designated as the "Closing"). The term "Minimum
Offering" shall refer to the sale by the Company of no less than $2,500,000 of
Shares (at the per share Purchase Price calculated in accordance with Section
1.3), and the maximum offering shall be for $13,950,000 of Shares.
1.3 Pricing of the Shares of Common Stock. The "Purchase Price" shall mean,
for each Share of Common Stock, an amount equal to USD$4.00 per Share.
SECTION 2.
2.1 Closing. At the Closing of the purchase and sale of the Shares
subscribed to by the Purchaser, the Company shall prepare for delivery to the
Purchaser certificates for the Common Stock to be issued and sold to the
Purchaser, duly registered in the Purchaser's name against payment in full by
the Purchaser of the Purchase Price in United States dollars in immediately
available funds to an account or accounts designated in writing by the Company.
2.2 Closing Deliveries.
(a) At or prior to the Closing, the Company shall deliver or cause to be
delivered to the Purchaser the following in form and substance reasonably
satisfactory to the Purchaser:
(i) An executed copy of this Agreement;
(ii) A certificate representing the Shares of Common Stock purchased
by the Purchaser, registered in the name of such Purchaser, in form
satisfactory to such Purchaser (provided that delivery of such certificate
on the second business day immediately after the date of the Closing shall
be deemed to satisfy the Company's obligation in this Section 2.2(a)(ii));
(iii) An executed Registration Rights Agreement, substantially in the
form attached hereto as Exhibit A (the "Registration Rights Agreement");
(iv) An opinion of the Company's legal counsel; and
(v) Such other documents relating to the transaction as the Purchaser
and its counsel may reasonably request.
(b) At or prior to the Closing, the Purchaser shall deliver or cause to be
delivered to the Company the following in form and substance reasonably
satisfactory to the Company:
(i) An executed copy of this Agreement;
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(ii) The Purchase Price; and
(iii) Such other documents relating to the transaction as the Company
and its counsel may reasonably request.
SECTION 3.
3.1 Representations and Warranties of the Company.
The Company represents and warrants that:
(a) Each of the Company and its subsidiaries is a corporation duly
organized and validly subsisting under the laws of the state of its formation,
and duly qualified to do business and in good standing as a foreign corporation
in each state in which the nature of its business or properties requires such
qualification (except where failure as to qualify would not have a material
adverse effect on the Company taken as a whole), and the Company has full power
and authority, corporate and otherwise, to enter into and perform this
Subscription Agreement, and to execute and deliver the various instruments and
documents provided for herein.
(b) The execution, delivery and performance by the Company of this
Subscription Agreement and the Registration Rights Agreement, and the issuance
and delivery by the Company of the Shares as contemplated hereby, have been duly
authorized by all necessary corporate action and will not violate any provision
of law, court order or decree, or of the Company's Articles of Incorporation or
Bylaws, or result in the breach of, constitute a default under or result in the
creation of any lien, charge or encumbrance upon any property or assets of the
Company pursuant to any agreement or instrument to which the Company or any of
its subsidiaries is a party, or by which it or any of its subsidiaries' property
may be bound or affected. The issuance of the Shares may trigger certain anti-
dilution provisions set forth in: (i) common stock purchase warrants previously
granted by the Company that may result in the issuance of additional shares
under the effected warrants; and (ii) a subscription agreement between the
Company and one of its shareholders pursuant to which such shareholder is
entitled to acquire additional shares of Common Stock for $0.01 per share if the
per share purchase price of the Shares is less than $4.41. Each of the
Subscription Agreement and the Registration Rights Agreement is a valid and
binding obligation of the Company, enforceable in accordance with its terms
subject to general principles of equity and bankruptcy and other laws affecting
creditors' rights generally.
(c) Except as set forth in the Company's Annual Report on Form 10-K for the
year ended December 31, 1999 and all Quarterly Reports on Form 10-Q filed
thereafter (including the Company's Form 10-Q for the quarter ended September
30, 2000), including all exhibits thereto
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(collectively, the "Documents"), there are no material lawsuits or proceedings
pending, or, to the Company's knowledge, threatened, against or affecting the
Company or any of its subsidiaries and there are no proceedings before any
governmental commission, bureau or other administrative agency pending, or, to
the Company's knowledge, threatened, against or affecting the Company or any of
its subsidiaries.
(d) As of March 14, 2001, the authorized capital stock of the Company
consisted of 50,000,000 shares of Common Stock of which 13,989,882 shares were
issued and outstanding. An additional 873,725 shares of Common Stock issuable
upon the exercise of all vested options were outstanding as of March 14, 2001
and 2,234,522 shares of Common Stock issuable upon the exercise of all warrants
were outstanding as of March 14, 2001.
(e) The Shares issuable under this Subscription Agreement have been duly
authorized and, when issued in compliance with this Subscription Agreement
against payment therefor, will be validly issued, fully paid and nonassessable.
The shares of Common Stock issuable upon the exercise of the Placement Agent
Warrant (as such term is defined in Section 3.1(k) below) (the "Placement Agent
Warrant Shares") have been duly authorized and reserved for issuance. When
issued in accordance with the provisions of this Subscription Agreement and the
Placement Agent Warrant, including payment in full of the exercise price
therefor, the Placement Agent Warrant Shares will be validly issued, fully paid
and nonassessable. The Shares and Placement Agent Warrant Shares will be issued
free and clear of any claim, lien, security interest or other encumbrance other
than as set forth therein; provided, however, that the Shares and Placement
Agent Warrant Shares may be subject to restrictions applicable on transfer under
state and/or federal securities laws.
(f) No governmental permit, consent, approval or authorization is required
in connection with (i) the execution, delivery and performance of this
Subscription Agreement and the Registration Rights Agreement by the Company or
(ii) the offer, sale, issuance and delivery of the Shares contemplated hereby by
the Company; provided that, all representations made to the Company by the
Purchaser in this Subscription Agreement and in any other document or instrument
delivered in connection herewith are assumed for purposes of this representation
and warranty to be accurate and complete.
(g) None of the Documents contains, as of the date thereof, any untrue
statement of a material fact or omits to state a material fact necessary to make
the statements made therein, in the light of the circumstances in which and the
date on which they were made, not misleading, and each of such reports or
filings complied as to form in all material respects with the requirements of
the Securities Act of 1933, as amended (the "Securities Act"), and to the
Securities Exchange Act of 1934, as amended (the "Exchange Act"), and the rules
and regulations promulgated under each such Act. As of the date hereof, except
as disclosed in the Documents and except for operating losses in the ordinary
course of business, since September 30, 2000, there has been no material adverse
change and no material adverse development in the business, properties,
operations, condition
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(financial or otherwise), assets, liabilities or results of operations or,
insofar as can be reasonably foreseen, prospects of the Company.
(h) Neither this Agreement nor the Documents, as of the date hereof,
contain any untrue statement of a material fact or omit to state a material fact
required to be stated therein or necessary to make the statements therein not
misleading.
(i) As of the date hereof, the Common Stock is traded on the NASDAQ
National Market System and the EASDAQ stock market.
(j) Subject to the accuracy and completeness of the representations and
warranties of the Purchaser contained in Section 4 hereof, the offer, issuance
and sale by the Company to the Purchaser of the Shares is exempt from the
registration requirements of the Securities Act.
(k) In consideration for services rendered by the Placement Agent in
placing the Shares, the Company has agreed to pay the Placement Agent an
aggregate commission consisting of (x) a cash payment equal to 5% of the
Aggregate Purchase Price and (y) two-year warrants to purchase an aggregate
number the shares of Common Stock equal to 3% of the Shares sold under this
Subscription Agreement at an exercise price per share equal to the Purchase
Price per share (the "Placement Agent Warrants"). Other than as set forth
herein, the Company has no other obligation to pay brokers' fees or commissions
by virtue of the sale of the Shares.
SECTION 4.
4.1 Purchaser Representations and Warranties. The Purchaser hereby
acknowledges, represents and warrants to, and agrees with, the Company and its
affiliates as follows:
(a) The Purchaser has received, read carefully and understands the
Documents and has had an adequate opportunity to consult his own attorney,
accountant or investment advisor (his "Advisors") with respect to the
suitability of the investment contemplated hereby for the Purchaser. The
Purchaser further acknowledges that the Purchaser and his Advisors have also
made such other investigation, review, examination and inquiry concerning the
Company and its business and affairs as they have deemed appropriate so as to
understand the nature of the investment in the Shares, including without
limitation, the merits and risks thereof.
(b) The Purchaser is acquiring the Shares for the Purchaser's own account
as principal, not as a nominee or agent, for investment purposes only, and not
with a view to, or for, resale, distribution or fractionalization thereof in
whole or in part in violation of the Securities Act. Further, the Purchaser does
not have any contract, undertaking, agreement or arrangement with any person to
sell, transfer or grant participations to such person or to any third person,
with respect to the Shares for which the Purchaser is subscribing.
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(c) The Purchaser has full power and authority to enter into this
Subscription Agreement and the Registration Rights Agreement. The execution and
delivery of this Subscription Agreement and the Registration Rights Agreement
has been duly authorized by the Purchaser, and this Subscription Agreement
constitutes a valid and legally binding obligation of the Purchaser.
(d) The Purchaser acknowledges the Purchaser's understanding that the
offering and sale of the Shares is intended to be exempt from registration under
the Securities Act by virtue of Section 4(2) thereof and the provisions of
Regulation D promulgated thereunder ("Regulation D"). In furtherance thereof,
the Purchaser represents and warrants to and agrees with the Company and its
affiliates as follows:
(i) The Purchaser understands that the basis for the exemption from
registration may not be present if, notwithstanding such representations,
the Purchaser's intention is merely to acquire the Shares for a fixed or
determinable period in the future, or for a market rise, or for sale if the
market does not rise. Accordingly, the Purchaser does not have any such
intention;
(ii) The Purchaser has the financial ability to bear the economic risk
of the Purchaser's investment, which is speculative in nature, has adequate
means for providing for the Purchaser's current needs and personal
contingencies and has no need for liquidity with respect to the Purchaser's
investment in the Company; and
(iii) The Purchaser has such knowledge and experience in financial and
business matters as to be capable of evaluating the merits and risks of the
prospective investment in the Shares. If other than an individual, the
Purchaser also represents it has not been organized for the purpose of
acquiring the Shares.
(e) The Purchaser is an "accredited investor," as that term is defined in
Rule 501 of Regulation D (as described in Appendix I hereto).
(f) The Purchaser:
(i) Has been furnished with copies of the Documents. The Purchaser
acknowledges and agrees that the Documents supercede all written
information regarding the Company that the Purchaser may have received
prior to the date of the Documents. The Purchaser has carefully read the
Documents and has relied solely (except as indicated in subsections (ii)
and (iii) below) on the information contained in the Documents (including
all exhibits thereto), provided, however, that the foregoing does not limit
or modify the representations and warranties of the Company contained in
Section 3 hereof or the right of the Purchaser to rely thereon;
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(ii) Has been provided an opportunity for a reasonable period of time
prior to the date hereof to obtain additional information concerning the
offering of the Shares hereunder and the Company to the extent the Company
possesses such information or can acquire it without unreasonable effort or
expense;
(iii) Has been given the opportunity for a reasonable period of time
prior to the date hereof to ask questions of, and receive answers from, the
Company or its representatives concerning the terms and conditions of the
offering of the Shares and other matters pertaining to this investment, and
has been given the opportunity for a reasonable period of time prior to the
date hereof to obtain such additional information necessary to verify the
accuracy of the information contained in the Documents or that which was
otherwise provided in order for the Purchaser to evaluate the merits and
risks of purchase of the Shares to the extent the Company possesses such
information or can acquire it without unreasonable effort or expense;
(iv) Has not been furnished with any oral representation or oral
information in connection with the offering of the Shares which is not
contained herein or in the Documents; and
(v) Has determined that the Shares are a suitable investment for the
Purchaser and that at this time the Purchaser could bear a complete loss of
such investment.
(g) The Purchaser is not relying on the Company or its affiliates with
respect to economic considerations involved in this investment.
(h) This offer is not transferable or assignable by the Purchaser unless
the Purchaser complies with the terms of transfer hereof. The Purchaser further
represents, warrants and agrees that the Purchaser will not sell or otherwise
transfer any of the Shares issued in connection with the this Subscription
Agreement, without registration under the Securities Act or an exemption
therefrom, and that the Purchaser fully understands and agrees that the
Purchaser must bear the economic risk of the Purchaser's purchase because, among
other reasons, none of the Shares have been registered under the Securities Act
or under the securities laws of any state and, therefore, cannot be resold,
pledged, assigned or otherwise disposed of unless subsequently registered under
the Securities Act and under the applicable securities laws of such states or an
exemption from such registration is available. In particular, the Purchaser is
aware that the Shares are "restricted securities," as such term is defined in
Rule 144 promulgated under the Securities Act ("Rule 144"), and may not be sold
pursuant to Rule 144 unless all of the conditions of Rule 144 are met. The
Purchaser also understands that, except as otherwise provided in the
Registration Rights Agreement, the Company is under no obligation to register
any of the Shares on the Purchaser's behalf or to assist the Purchaser in
complying with any exemption from registration under the Securities Act
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or applicable state securities laws. The Purchaser further understands that
sales or transfers of the Shares are further restricted by state securities laws
and the provisions of this Subscription Agreement.
(i) No representations or warranties have been made to the Purchaser by the
Company, or any officer, employee, agent, affiliate or subsidiary of the
Company, other than the representations of the Company contained herein, and in
subscribing for the Shares the Purchaser is not relying upon any representations
other than those contained herein.
(j) Any information which the Purchaser has heretofore furnished to the
Company with respect to the Purchaser's financial position and business
experience is correct and complete as of the date of this Subscription Agreement
and, if there should be any material change in such information, the Purchaser
will immediately furnish such revised or corrected information to the Company.
(k) The Purchaser understands and agrees that the certificates for the
Shares shall bear the following legend, or a similar legend to the same effect,
until (i) the Shares shall have been registered under the Securities Act
pursuant to the Registration Rights Agreement and effectively been disposed of
in accordance with a registration statement that has been declared effective; or
(ii) in the opinion of counsel for the Company such Shares may be sold without
registration under the Securities Act or any applicable "Blue Sky" or state
securities laws:
"THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), AND
ALL SUCH SECURITIES 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."
(l) The Purchaser's overall commitment to investments which are not readily
marketable is not disproportionate to the Purchaser's net worth, and an
investment in the Shares pursuant to the offering hereunder will not cause such
overall commitment to become excessive.
(m) The Purchaser: is not (i) a director, officer, or substantial security
holder of the Company (a "Related Party"), (ii) a subsidiary, affiliate or other
closely-related person of a Related
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Party, or (iii) any person, company or entity in which a Related Party has a
substantial direct or indirect interest.
(n) No Federal or state agency has made any findings or determination as to
the fairness of the offering of the Shares hereunder (or any part thereof) for
public investment, or any recommendation or endorsement of the Shares (or any
part thereof).
SECTION 5.
5.1 Modification. Neither this Subscription Agreement nor any provisions
hereof shall be modified, discharged or terminated except by an instrument in
writing signed by the party against whom any waiver, change, discharge or
termination is sought.
5.2 Notices. All notices, authorizations, consents, notices, waivers,
demands, requests or other communications required or permitted to be given
under the terms of this Subscription Agreement shall be in writing and shall be
deemed to have been delivered (i) upon the date of delivery, if personally
delivered, (ii) one business day after deposit with a nationally-recognized
overnight courier with charges prepaid, or (iii) upon the date of transmission,
when sent by facsimile, provided confirmation of transmission is mechanically or
electronically generated and kept on file by the sending party (if transmission
is completed by or before 5:00 p.m. Eastern Time) or the first business day
following such transmission if completed after 5:00 p.m. Eastern Time. Notices
shall be addressed as follows:
If to the Company, to:
Orthovita, Inc.
00 Xxxxx Xxxxxx Xxxxxxx
Xxxxxxx, XX 00000
Attn: Xxxxx X. Xxxxxxx, President and Chief Executive Officer
Fax: 000-000-0000
With copies (which copies shall not constitute notice) to:
Xxxxxx, Xxxxx & Bockius LLP
0000 Xxxxxx Xxxxxx
Xxxxxxxxxxxx, XX 00000-0000
Attn: Xxxxxxx Xxxxxxxx, Esquire
Fax: 000-000-0000
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If to the Purchaser, to:
-----------------------
-----------------------
-----------------------
Attn:
Fax:
With copies (which copies shall not constitute notice) to:
-----------------------
-----------------------
-----------------------
Attn:
Fax:
or to such other address as the party to whom the notice is to be given may have
furnished to the other party hereto in writing in accordance with the provisions
of this Section 5.2.
5.3 Counterparts. This Subscription Agreement may be executed through the
use of separate signature pages or in any number of counterparts (and by
facsimile signature), and each of such counterparts shall, for all purposes,
constitute one agreement binding on all parties, notwithstanding that all
parties are not signatories to the same counterpart.
5.4 Binding Effect. Except as otherwise provided herein, this Subscription
Agreement shall be binding upon and inure to the benefit of the parties and
their heirs, executors, administrators, successors, legal representatives and
assigns. If the Purchaser is more than one person, the obligation of the
Purchaser shall be joint and several and the agreements, representations,
warranties and acknowledgments herein contained shall be deemed to be made by
and be binding upon each such person and his heirs, executors, administrators
and successors.
5.5 Severability. In the event that any provision of this Subscription
Agreement shall be deemed to be invalid, illegal or unenforceable, the validity,
legality or enforceability of the remaining provisions shall not in any way be
affected or impaired thereby.
5.6 Entire Agreement. This Subscription Agreement and the documents
referenced herein contain the entire agreement of the parties and there are no
representations, covenants or other agreements except as stated or referred to
herein and therein.
5.7 Assignability. This Subscription Agreement is not transferable or
assignable by the Purchaser.
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5.8 Applicable Law. This Subscription Agreement shall be governed by and
construed in accordance with the laws of the Commonwealth of Pennsylvania,
without giving effect to conflicts of law principles of such State.
5.9 Pronouns. The use herein of the masculine pronouns "he," "him" or "his"
or similar terms shall be deemed to include the feminine and neuter genders as
well and the use herein of the singular pronoun shall be deemed to include the
plural as well.
5.10 Survival. The respective indemnities, representations, warranties and
agreements of the Company and the Purchaser contained in this Subscription
Agreement or made by or on behalf on them, respectively, pursuant to this
Subscription Agreement, shall survive the delivery of and payment for the Shares
and shall remain in full force and effect regardless of any investigation made
by or on behalf of any of them or any person controlling any of them.
5.11 H&Q Trusts. The name H&Q Healthcare Investors is the designation of
the Trustees for the time being under an Amended and Restated Declaration of
Trust dated April 21, 1987, as amended, and all persons dealing with H&Q
Healthcare Investors must look solely to the trust property for the enforcement
of any claim against H&Q Healthcare Investors, as neither the Trustees, officers
nor shareholders assume any personal liability for the obligations entered into
on behalf of H&Q Healthcare Investors. The name H&Q Life Sciences Investors is
the designation of the Trustees for the time being under a Declaration of Trust
dated February 20, 1992, as amended, and all persons dealing with H&Q Life
Sciences Investors must look solely to the trust property for the enforcement of
any claims against H&Q Life Sciences Investors, as neither the Trustees,
officers nor shareholders assume any personal liability for the obligations
entered into on behalf of H&Q Life Sciences Investors.
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IN WITNESS WHEREOF, the parties hereto have executed this Subscription Agreement
as of this __ day of ________ 2001.
Number of Shares of Common Stock subscribed for: .
---------
Amount of check enclosed or wire transfer: $ .
---------
Date: ____________ _________________________________________________
(Print Name of Entity)
By:______________________________________________
Tax Id./Social Security No.: ___________________
Address: _______________________________________
_________________________________________
Date:_____________, 2001 ORTHOVITA, INC.
By:______________________________________________
Xxxxx X. Xxxxxxx
President and Chief Executive Officer
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Appendix I
Pursuant to Rule 501 of Regulation D promulgated under the Securities Act,
an accredited investor means:
(a) Any bank as defined in Section 3(a)(2) of the Securities Act, or any
savings and loan association or other institution as defined in
Section 3(a)(5)(A) of the Securities Act whether acting in its
individual or fiduciary capacity; any broker or dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934; any
insurance company as defined in Section 2(13) of the Securities Act;
any investment company registered under the Investment Company Act of
1940 or a business development company as defined in Section 2(a)(48)
of that act; any Small Business Investment Company licensed by the
U.S. Small Business Administration under Section 301(c) or (d) of the
Small Business Investment Act of 1958; any plan established and
maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions, for the
benefit of its employees, if such plan has total assets in excess of
$5,000,000; any employee benefit plan within the meaning of the
Employee Retirement Income Security Act of 1974, if the investment
decision is made by a plan fiduciary, as defined in Section 3(21) of
such act, which is either a bank, savings and loan association,
insurance company, or registered investment advisor, or if the
employee benefit plan has total assets in excess of $5,000,000, or, if
a self-directed plan, with investment decision made solely by persons
that are accredited investors;
(b) Any private business development company as defined in Section
202(a)(22) of the Investment Advisers Act of 1940;
(c) Any organization described in Section 501(c)(3) of the Internal
Revenue Code (the "Code"), corporation, Massachusetts or similar
business trust, or partnership, not formed for the specific purpose of
acquiring the securities offered, with total assets in excess of
$5,000,000;
(d) Any director or executive officer of the Company;
(e) Any natural person whose individual net worth, or joint net worth with
that person's spouse, at the time of such person's purchase exceeds
$1,000,000;
(f) Any natural person who had an individual income in excess of $200,000
in each of the two most recent years or joint income with that
person's spouse in excess of $300,000 in each of those years and who
reasonably expects to reach the same income level in the current year;
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(g) Any trust, with assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the securities offered, whose purchase
is directed by a person having such knowledge and experience in
financial and business matters so such person is capable of evaluating
the merits and risks of the investment to be made; or
(h) Any entity in which all of the equity owners are accredited investors.
In addition, a participant in a defined contribution or profit sharing plan
qualified under Section 401 of the Code may be deemed the purchaser of the
Common Stock for the purpose of determining whether the plan is an accredited
investor if the following conditions are satisfied: (x) the plan trust must
provide for segregated accounts for each plan participant, (y) the plan document
must provide the participant with the power to direct the trustee to make each
particular investment to the extent of the participant's voluntary contributions
plus that portion of employer contributions that have vested to the
participant's benefit and (z) the investment in the Shares must have been made
pursuant to an exercise by the participant of the power to direct the investment
of his or her account in the plan trust.
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EXHIBIT A
FORM OF REGISTRATION RIGHTS AGREEMENT
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