REGISTRATION RIGHTS AGREEMENT
Exhibit
4.1
This
Registration Rights Agreement (this “Agreement”)
is made
and entered into as of July 17, 2008, by and among China TransInfo Technology
Corp., a Nevada corporation (formerly called Intra-Asia Entertainment
Corporation), (collectively with all predecessors thereof, the “Company”),
and
the investors signatory hereto (each an “Investor”
and
collectively, the “Investors”).
This
Agreement is made in connection with the Securities Purchase Agreement, dated
as
of the date hereof, among the Company and the Investors(the “Purchase
Agreement”).
The
Company and the Investors hereby agree as follows:
1. Definitions.
Capitalized terms used and not otherwise defined herein that are defined in
the
Purchase Agreement will have the respective meanings given such terms in the
Purchase Agreement. As used in this Agreement, the following terms have the
respective meanings set forth in this Section 1:
“Advice”
has
the
meaning set forth in Section 6(d).
“Commission
Comments” means
written comments pertaining
solely to Rule 415 which
are
received by the Company from the Commission to a filed Registration Statement,
a
copy of which shall have been provided by the Company to the Holders, which
either (i) requires the Company to limit the number of Registrable Securities
which may be included therein to a number which is less than the number sought
to be included thereon as filed with the Commission or (ii) requires the Company
to either exclude Registrable Securities held by specified Holders or deem
such
Holders to be underwriters with respect to Registrable Securities they seek
to
include in such Registration Statement.
“Cut
Back Shares”
has
the
meaning set forth in Section 2(b).
“Effective
Date”
means,
as to a Registration Statement, the date on which such Registration Statement
is
first declared effective by the Commission.
“Effectiveness
Date”
means:
(a)
with
respect to the initial Registration Statement required to be filed pursuant
to
Section 2(a), the earlier of: (i) the 180th
day
following the Closing Date and (ii) the fifth Trading Day following the date
on
which the Company is notified by the Commission that the initial Registration
Statement will not be reviewed or is no longer subject to further review and
comments;
(b)
with
respect to any additional Registration Statements required to be filed pursuant
to Section 2(a), the earlier of: (i) the 75th
day
following the applicable Filing Date for such additional Registration
Statement(s) and (ii) the fifth Trading Day following the date on which the
Company is notified by the Commission that such additional Registration
Statement(s) will not be reviewed or is no longer subject to further review;
(c)
with
respect to any additional Registration Statements required to be filed pursuant
to Section 2(c), the earlier of: (i) the 75th
day
following the Filing Date for any Registration Statement required to be filed
under Section 2(c) and (ii) the fifth Trading Day following the date on which
the Company is notified by the Commission that such Registration Statement
will
not be reviewed or is no longer subject to further review and comments; and
(d)
with
respect to a Registration Statement required to be filed under Section 2(d),
the
earlier of: (i) the 60th
day
following the date on which the Company becomes eligible to utilize Form S-3
to
register the resale of Common Stock; provided,
that,
if the Commission reviews and has written comments to such filed Registration
Statement that would require the filing of a pre-effective amendment thereto
with the Commission, then the Effectiveness Date under this clause (d)(i) shall
be the 90th
day
following the date on which the Company becomes eligible to utilize Form S-3
to
register the resale of Common Stock, provided
further,
that if
the filing under this Section 2(d) is also the filing required under Section
2(a), then the Effectiveness Date for such filing in the instance where the
Commission has written comments shall be the 180th
day
following the date on which the Company becomes eligible to utilize Form S-3
to
register the resale of Common Stock, and (ii) the fifth Trading Day following
the date on which the Company is notified by the Commission that the
Registration Statement will not be reviewed or is no longer subject to further
review and comments.
(e)
with
respect to a Registration Statement required to be amended or a Registration
Statement required to be filed under Section 2(e), the fifth Trading Day
following the date on which the Company is notified by the Commission that
such
Registration Statement will not be reviewed or is no longer subject to further
review and comments and the Underwriter instructs the Company to request for
effectiveness of such Registration Statement.
“Effectiveness
Period”
means,
as to any Registration Statement required to be filed pursuant to this
Agreement, the period commencing on the Effective Date of such Registration
Statement and ending on the earliest to occur of (a) the fifth anniversary
of
such Effective Date, (b) such time as all of the Registrable Securities covered
by such Registration Statement have been publicly sold by the Holders of the
Registrable Securities included therein, or (c) such time as all of the
Registrable Securities covered by such Registration Statement may be sold by
the
Holders without volume restrictions pursuant to Rule 144 as determined by the
counsel to the Company pursuant to a written opinion letter to such effect,
addressed and acceptable to the Company’s transfer agent and the affected
Holders; provided however,
that if
any Registration Statement is required to be amended or filed pursuant to
Section 2(e), then the Effectiveness Period shall be tolled until the date
when
such amendment to or filing of the Registration Statement becomes
effective.
“Exchange
Act”
means
the Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.
2
“Filing
Date”
means:
(a)
with
respect to the initial Registration Statement required to be filed pursuant
to
Section 2(a), the 45th
day
following the Closing Date;
(b)
with
respect to any additional Registration Statements required to be filed pursuant
to Section 2(a), the 30th
day
following the Effective Date for the last Registration Statement filed pursuant
to this Agreement under Section 2(a);
(c)
with
respect to any additional Registration Statements required to be filed pursuant
to Section 2(c), each such Registration Statement shall be filed by the earlier
of:
(i) for
the
initial Registration Statement required to be filed under Section 2(c), the
six-month anniversary of the Effective Date of the Registration Statement
required to be filed under Section 2(a) and for all subsequent Registration
Statements filed pursuant to Section 2(c), the six-month anniversary of the
Effective Date of the immediately preceding Registration Statement required
to
be filed under Section 2(c), as applicable, and
(ii)
for
the initial Registration Statement required to be filed under Section 2(c),
the
60th
day
following such time as 75% of all Registrable Securities which are included
in
the Registration Statement required to be filed under Section 2(a) have been
sold and for all subsequent Registration Statements, the 60th
day
following such time as 75% of all Registrable Securities which are included
in
the immediately preceding Registration Statement required to be filed under
Section 2(c) have been sold, as applicable; and
(d)
with
respect to a Registration Statement required to be filed under Section 2(d),
the
30th
day
following the date on which the Company becomes eligible to utilize Form S-3
to
register the resale of Common Stock.
(e)
with
respect to any filing of or amendment to a Registration Statement required
pursuant to Section 2(e), the 30th
day
following the receipt of the Instruction pursuant to the notice procedures
set
forth in Section 6(j).
“Holder”
or
“Holders”
means
the holder or holders, as the case may be, from time to time of Registrable
Securities.
“Indemnified
Party”
has the
meaning set forth in Section 5(c).
“Indemnifying
Party”
has the
meaning set forth in Section 5(c).
“Losses”
has the
meaning set forth in Section 5(a).
“New
York Courts”
means
the state and federal courts sitting in the City of New York, Borough of
Manhattan.
“Proceeding”
means an
action, claim, suit, investigation or proceeding (including, without limitation,
an investigation or partial proceeding, such as a deposition), whether commenced
or threatened.
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“Prospectus”
means
the prospectus included in a Registration Statement (including, without
limitation, a prospectus that includes any information previously omitted from
a
prospectus filed as part of an effective registration statement in reliance
upon
Rule 430A promulgated under the Securities Act), as amended or supplemented
by
any prospectus supplement, with respect to the terms of the offering of any
portion of the Registrable Securities covered by a Registration Statement,
and
all other amendments and supplements to the Prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such Prospectus.
“Registrable
Securities”
means:
(i) the Shares and (ii) any securities issued or issuable upon any stock split,
dividend or other distribution, recapitalization or similar events with respect
to, or in exchange for, or in replacement of the Shares. Notwithstanding the
foregoing, a security shall cease to be a Registrable Security for purposes
of
this Agreement from and after such time (x) as the Holder of such security
may
resell such security without volume restrictions under Rule 144, as determined
by the counsel to the Company pursuant to a written opinion letter to such
effect, addressed and acceptable to the Company’s transfer agent and the
affected holders; or (y) such security has been sold by a person pursuant to
a
registration statement under the Securities Act that has been declared effective
and such Registrable Securities have been disposed of pursuant to such effective
registration statement.
“Registration
Statement”
means
the initial registration statement required to be filed in accordance with
Section 2(a) and any additional registration statements required to be filed
under this Agreement, including in each case the Prospectus, amendments and
supplements to such registration statements or Prospectus, including pre- and
post-effective amendments, all exhibits thereto, and all materials incorporated
by reference or deemed to be incorporated by reference therein.
“Rule
144”
means
Rule 144 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such
Rule.
“Rule
415”
means
Rule 415 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such
Rule.
“Rule
424”
means
Rule 424 promulgated by the Commission pursuant to the Securities Act, as such
Rule may be amended from time to time, or any similar rule or regulation
hereafter adopted by the Commission having substantially the same effect as
such
Rule.
“SEC
Restrictions”
has
the
meaning set forth in Section 2(b).
“Securities
Act”
means
the Securities Act of 1933, as amended, and the rules and regulations
promulgated thereunder.
“Selling
Holder Questionnaire”
means
the selling security holder notice and questionnaire attached as Annex B
hereto.
4
“Shares”
means
the shares of Common Stock, par value $0.001 per share, issued or issuable
to
the Investors pursuant to the Purchase Agreement.
“424
Prospectus”
has
the
meaning set forth in Section 2(a).
2. Registration.
(a) On
or
prior to the applicable Filing Date, the Company shall prepare and file with
the
Commission a Registration Statement covering the resale of all Registrable
Securities not already covered by an existing and effective Registration
Statement for an offering to be made on a continuous basis pursuant to Rule
415.
Each
Registration Statement required to be filed under this Agreement shall be filed
on Form S-1 (or if the Company is not then eligible to utilize such form of
registration, it shall utilize such other available form appropriate for such
purpose) and
contain (except if otherwise required pursuant to written comments received
from
the Commission upon a review of such Registration Statement, provided however
that no Holder shall be characterized as an underwriter unless such
characterization is consistent with written information provided by the Holder
in the Selling Holder Questionnaire) the “Plan of Distribution” attached hereto
as Annex
A.
The
Company shall cause each Registration Statement required to be filed under
this
Agreement to be declared effective under the Securities Act as
soon as
possible but, in any event, no later than its Effectiveness Date, and shall
use
its reasonable best efforts to keep each such Registration Statement
continuously effective during its entire Effectiveness Period. By 5:00 p.m.
(New
York City time) on the Business Day immediately following the Effective Date
of
each Registration Statement, the Company shall file with the Commission in
accordance with Rule 424 under the Securities Act the final prospectus to be
used in connection with sales pursuant to such Registration Statement (the
“424
Prospectus”)
(whether or not such filing is technically required under such Rule). If for
any
reason other than due solely to SEC Restrictions, a Registration Statement
is
effective but not all outstanding Registrable Securities are registered for
resale pursuant thereto, then the Company shall prepare and file by the
applicable Filing Date an additional Registration Statement to register the
resale of all such unregistered Registrable Securities for an offering to be
made on a continuous basis pursuant to Rule 415.
(b) Notwithstanding
anything to the contrary contained in this Section 2, if the Company receives
Commission Comments, and following discussions with and responses to the
Commission in which the Company uses its reasonable best efforts to cause as
many Registrable Securities for
as
many Holders as possible to be included in the Registration Statement filed
pursuant to Section 2(a) without characterizing any Holder as an underwriter
unless such characterization is consistent with written information provided
by
the Holder in the Selling Holder Questionnaire (and in such regard uses its
reasonable best efforts to cause the Commission to permit the affected Holders
or their respective counsel to participate in Commission conversations on such
issue together with Company Counsel, and timely conveys relevant information
concerning such issue with the affected Holders or their respective counsel),
the Company is unable to cause the inclusion of all Registrable Securities,
then
the Company may, following not less than three (3) Trading Days (as defined
in
the Purchase Agreement) prior written notice to the Holders (i) remove from
the
Registration Statement such Registrable Securities (the “Cut
Back Shares”)
provided,
that
the number of shares that may be included in the Registration Statement will
be
allocated to the Holders of such Registrable Securities on a pro rata basis
(as
nearly as practicable) based on the number of Registrable Securities held by
all
such Holders, provided
further,
that no
Registrable Securities will be excluded unless and until all other securities
of
the Company and other stockholders not holding Registrable Securities hereunder
who were to participate in an offering subject to a Registration Statement
have
been excluded; and/or (ii) agree to such restrictions and limitations on the
registration and resale of the Registrable Securities, in each case as the
Commission may require in order for the Commission to allow such Registration
Statement to become effective; provided,
that in
no event may the Company characterize any Holder as an underwriter unless such
characterization is consistent with written information provided by the Holder
in the Selling Holder Questionnaire (the restrictions in subclause (i) and
(ii)
above referred to herein as, the “SEC
Restrictions”).
5
(c) If
all of
the Registrable Securities to be included in the Registration Statement filed
pursuant to Section 2(a) cannot be so included due to Commission Comments,
then
the Company shall prepare and file by the applicable Filing Date for such
Registration Statement(s), such number of additional Registration Statements
as
may be necessary in order to ensure that all Registrable Securities are covered
by an existing and effective Registration Statement. Accordingly, if for
example, an initial Registration Statement is filed under this Section 2(c)
to
register shares omitted from a Registration Statement filed under Section 2(a)
due to Commission Comments and Commission Comments again require shares to
be
removed for such newly filed Registration Statement under this Section 2(c),
then the Company will prepare and file additional Registration Statements until
such time as all such required shares are covered by effective Registration
Statements. The Company shall cause such Registration Statement to be declared
effective under the Securities Act as soon as possible but, in any event, by
its
Effectiveness Date, and shall use its reasonable best efforts to keep such
Registration Statement continuously effective under the Securities Act during
the entire Effectiveness Period. By 5:00 p.m. (New York City time) on the
Business Day immediately following the Effective Date of such Registration
Statement, the Company shall file with the Commission in accordance with Rule
424 under the Securities Act the 424 Prospectus (whether or not such filing
is
technically required under such Rule).
(d) Promptly
following any date on which the Company becomes eligible to use a registration
statement on Form S-3 to register Registrable Securities for resale, the Company
shall file a Registration Statement on Form S-3 covering all Registrable
Securities (or a post-effective amendment on Form S-3 to the then effective
Registration Statement) and shall cause such Registration Statement to be filed
by the Filing Date for such Registration Statement and declared effective under
the Securities Act as soon as possible thereafter, but in any event prior to
the
Effectiveness Date therefor. Such
Registration Statement shall contain (except if otherwise required pursuant
to
written comments received from the Commission upon a review of such Registration
Statement, provided that no Holder shall be characterized as an underwriter
unless such characterization is consistent with written information provided
by
the Holder in the Selling Holder Questionnaire) the “Plan of Distribution”
attached hereto as Annex
A.
The
Company shall use its reasonable best efforts to keep such Registration
Statement continuously effective under the Securities Act during the entire
Effectiveness Period. By 5:00 p.m. (New York City time) on the Business Day
immediately following the Effective Date of such Registration Statement, the
Company shall file with the Commission in accordance with Rule 424 under the
Securities Act the 424 Prospectus (whether or not such filing is technically
required under such Rule).
6
(e) Until
the
fifth anniversary of the date hereof, the Investors may notify the Company
in
writing, pursuant to Section 6(j) below, that they will be selling their
Registrable Securities pursuant to a firm commitment underwritten offering
(an
“Underwritten
Offering”),
by an
underwriter which shall be reasonably acceptable to the Company (the
“Underwriter”).
The
Underwriter and the Investors shall instruct (the “Instruction”)
the
Company to file or amend a Registration Statement (or if the Company is not
then
eligible to utilize the form of registration that the effective Registration
Statement is in for the Underwritten Offering, it shall re-file a registration
statement on such other available form appropriate for such purposes) to allow
the Underwritten Offering to be conducted pursuant to an effective registration
statement. On or prior to the applicable Filing Date, the Company will include
any information required about the Underwritten Offering in the Registration
Statement covering the resale of all Registrable Securities as specified in
Section 2(a) to 2(d) above. The Company shall cause each Registration Statement
required to be filed under this Agreement to be declared effective under the
Securities Act as soon as possible but, in any event, no later than its
Effectiveness Date, and shall use its reasonable best efforts to keep each
such
Registration Statement continuously effective during its entire Effectiveness
Period. By 5:00 p.m. (New York City time) on the Business Day immediately
following the Effective Date of each Registration Statement, the Company shall
file with the Commission in accordance with Rule 424 under the Securities Act
the final prospectus to be used in connection with sales pursuant to such
Registration Statement (the “424 Prospectus”) (whether or not such filing is
technically required under such Rule).
(f) If:
(i) a
Registration Statement is not filed on or prior to its Filing Date covering
the
Registrable Securities required under this Agreement to be included therein
(if
the Company files a Registration Statement without affording the Holders the
opportunity to review and comment on the same as required by Section 3(a)
hereof, the Company shall not be deemed to have satisfied this clause (i)),
or
(ii) a Registration Statement is not declared effective by the Commission on
or
prior to its required Effectiveness Date or if by the Business Day immediately
following the Effective Date the Company shall not have filed a “final”
prospectus for the Registration Statement with the Commission under Rule 424(b)
(whether or not such a prospectus is technically required by such Rule), or
(iii) after its Effective Date, without regard for the reason thereunder or
efforts therefore, such Registration Statement ceases for any reason to be
effective and available to the Holders as to the Registrable Securities to
which
it is required to cover at any time prior to the expiration of its Effectiveness
Period for more than an aggregate of 30 Trading Days (which need not be
consecutive) (any such failure or breach being referred to as an “Event,”
and
for purposes of clauses (i) or (ii) the date on which such Event occurs, or
for
purposes of clause (iii) the date which such 30 Trading Day-period is exceeded,
being referred to as “Event
Date”),
then
in addition to any other rights the Holders may have hereunder or under
applicable law: on each such Event Date, and on each monthly anniversary of
each
such Event Date (if the applicable Event shall not have been cured by such
date)
until the applicable Event is cured, the Company shall pay to each Holder an
amount in cash, as partial liquidated damages and not as a penalty, equal to
1.0% of the aggregate Investment Amount paid by such Holder for Securities
pursuant to the Purchase Agreement; provided, however, that the total amount
of
partial liquidated damages payable by the Company pursuant to all Events under
this Section shall be capped at an aggregate of 8.0% of the aggregate Investment
Amount paid by the Investors under the Purchase Agreement. The partial
liquidated damages pursuant to the terms hereof shall apply on a daily pro-rata
basis for any portion of a month prior to the cure of an Event, except for
the
day of the first Event Date. In no event will the Company be liable for
liquidated damages under this Agreement in excess of 1.0% of the aggregate
Investment Amount of the Investors in any 30-day period. The Company shall
not
be liable for liquidated damages under this Agreement as to any Registrable
Securities which are not permitted by the Commission to be included in a
Registration Statement due solely to Commission Comments from the time that
it
is determined that such Registrable Securities are not permitted to be
registered solely due to Commission Comments until such time as the provisions
of this Agreement as to the next applicable Registration Statement required
to
be filed hereunder are triggered, in which case the provisions of this Section
2(e) shall once again apply, if applicable.
7
(g) Each
Holder agrees to furnish to the Company a completed Questionnaire in the form
attached to this Agreement as Annex
B
(a
“Selling
Holder Questionnaire”).
The
Company shall not be required to include the Registrable Securities of a Holder
in a Registration Statement and shall not be required to pay any liquidated
or
other damages under Section 2(d) to any Holder who fails to furnish to the
Company a fully completed Selling Holder Questionnaire at least two Trading
Days
prior to the Filing Date (subject to the requirements set forth in Section
3(a)).
3. Registration
Procedures.
In
connection with the Company’s registration obligations hereunder, the Company
shall:
(a) Not
less
than three Trading Days prior to the filing of a Registration Statement or
any
related Prospectus, other than a 424 Prospectus, or any amendment or supplement
thereto, the Company shall furnish to each Holder copies of such document as
proposed to be filed, which documents will be subject to the review of such
Holder; provided,
however,
that
the Company shall not have the obligation under this Section 3(a) with respect
to the filing of the 424 Prospectus pursuant to Sections 2(a), 2(c) and 2(d).
Such documents may be delivered to such Holder via electronic mail (i.e.,
e-mail). The Company shall not file a Registration Statement, any Prospectus
or
any amendments or supplements thereto in which the “Selling Stockholder” section
thereof differs from the disclosure received from a Holder in its Selling Holder
Questionnaire (as amended or supplemented). The Company shall not file a
Registration Statement, any Prospectus or any amendments or supplements thereto
in which it (i) characterizes any Holder as an underwriter, unless such
characterization is consistent with written information provided by the Holder
in the Selling Holder Questionnaire, (ii) excludes a particular Holder due
to
such Holder refusing to be named as an underwriter, or (iii) reduces the
number of Registrable Securities being registered on behalf of a Holder except
pursuant to, in the case of this subsection (iii), Section 2(b) above, without,
in each case, such Holder’s express written authorization.
8
(b) (i)
Prepare and file with the Commission such amendments, including post-effective
amendments, to each Registration Statement and the Prospectus used in connection
therewith as may be necessary to keep such Registration Statement continuously
effective as to the applicable Registrable Securities for its Effectiveness
Period and prepare and file with the Commission such additional Registration
Statements in order to register for resale under the Securities Act all of
the
Registrable Securities; (ii) cause the related Prospectus to be amended or
supplemented by any required Prospectus supplement, and as so supplemented
or
amended to be filed pursuant to Rule 424; (iii) respond as promptly as
reasonably possible to any comments received from the Commission with respect
to
each Registration Statement or any amendment thereto and, as promptly as
reasonably possible provide the Holders true and complete copies of all
correspondence from and to the Commission relating to such Registration
Statement that would not result in the disclosure to the Holders of material
and
non-public information concerning the Company; and (iv) comply in all material
respects with the provisions of the Securities Act and the Exchange Act with
respect to the Registration Statement(s) and the disposition of all Registrable
Securities covered by each Registration Statement.
(c) Notify
the Holders as promptly as reasonably possible (and, in the case of (i)(A)
below, not less than three Trading Days prior to such filing and, in the case
of
(v) below, not less than three Trading Days prior to the financial statements
in
any Registration Statement becoming ineligible for inclusion therein) and (if
requested by any such Person) confirm such notice in writing no later than
one
Trading Day following the day (i)(A) when a Prospectus or any Prospectus
supplement, other than a 424 Prospectus, or post-effective amendment to a
Registration Statement is proposed to be filed; (B) when the Commission notifies
the Company whether there will be a “review” of such Registration Statement and
whenever the Commission comments in writing on such Registration Statement
(the
Company shall provide true and complete copies thereof and all written responses
thereto to each of the Holders that pertain to the Holders as a Selling
Stockholder or to the Plan of Distribution, but not information which the
Company believes would constitute material and non-public information); and
(C)
with respect to each Registration Statement or any post-effective amendment,
when the same has become effective; (ii) of any request by the Commission or
any
other Federal or state governmental authority for amendments or supplements
to a
Registration Statement or Prospectus or for additional information; (iii) of
the
issuance by the Commission of any stop order suspending the effectiveness of
a
Registration Statement covering any or all of the Registrable Securities or
the
initiation of any Proceedings for that purpose; (iv) of the receipt by the
Company of any notification with respect to the suspension of the qualification
or exemption from qualification of any of the Registrable Securities for sale
in
any jurisdiction, or the initiation or threatening of any Proceeding for such
purpose; and (v) of the occurrence of any event or passage of time that makes
the financial statements included in a Registration Statement ineligible for
inclusion therein or any statement made in such Registration Statement or
Prospectus or any document incorporated or deemed to be incorporated therein
by
reference untrue in any material respect or that requires any revisions to
such
Registration Statement, Prospectus or other documents so that, in the case
of
such Registration Statement or the Prospectus, as the case may be, it will
not
contain any untrue statement of a material fact or omit to state any material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not
misleading.
(d) Use
its
reasonable best efforts to avoid the issuance of, or, if issued, obtain the
withdrawal of (i) any order suspending the effectiveness of a Registration
Statement, or (ii) any suspension of the qualification (or exemption from
qualification) of any of the Registrable Securities for sale in any
jurisdiction, at the earliest practicable moment.
9
(e) Furnish
to each Holder, without charge and at the option of the Company in electronic
format, at least one conformed copy of each Registration Statement and each
amendment thereto and all exhibits to the extent requested by such Person
(including those previously furnished) promptly after the filing of such
documents with the Commission.
(f) Promptly
deliver to each Holder, without charge, as many copies of each Prospectus or
Prospectuses (including each form of prospectus) and each amendment or
supplement thereto as such Persons may reasonably request. The Company hereby
consents to the use of such Prospectus and each amendment or supplement thereto
by each of the selling Holders in connection with the offering and sale of
the
Registrable Securities covered by such Prospectus and any amendment or
supplement thereto.
(g) Prior
to
any public offering of Registrable Securities, register or qualify such
Registrable Securities for offer and sale under the state securities or Blue
Sky
laws of all jurisdictions within the United States as any Holder may request,
to
keep each such registration or qualification (or exemption therefrom) effective
during the Effectiveness Period and to do any and all other acts or things
necessary or advisable to enable the disposition in such jurisdictions of the
Registrable Securities covered by the Registration Statements; provided,
however,
in
connection with any such registration or qualification, the Company shall not
be
required to (i) qualify to do business in any jurisdiction where the Company
would not otherwise be required to qualify, (ii) subject itself to general
taxation in any such jurisdiction, (iii) file a general consent to service
of
process in any jurisdiction, or (iv) make any change to the Company’s Articles
of Incorporation or bylaws.
(h) Cooperate
with the Holders to facilitate the timely preparation and delivery of
certificates representing Registrable Securities to be delivered to a transferee
pursuant to the Registration Statement(s), which certificates shall be free,
to
the extent permitted by the Purchase Agreement, of all restrictive legends,
and
to enable such Registrable Securities to be in such denominations and registered
in such names as any such Holders may request.
(i) Upon
the
occurrence of any event contemplated by Section 3(c)(v), as promptly as
reasonably possible, prepare a supplement or amendment, including a
post-effective amendment, to the affected Registration Statements or a
supplement to the related Prospectus or any document incorporated or deemed
to
be incorporated therein by reference, and file any other required document
so
that, as thereafter delivered, no Registration Statement nor any Prospectus
will
contain an 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,
in
light of the circumstances under which they were made, not misleading.
(j) in
the
event of any Underwritten Offering pursuant to Section 2(e) above, promptly
enter into and perform its obligations under an underwriting agreement, in
usual
and customary form, with the managing underwriter of such offering and take
such
other actions as the underwriters deem necessary to expedite or facilitate
the
disposition of the Registrable Securities (including, without limitation,
effecting a stock split or combination or causing its officers to participate
in
“road shows” to the extent possible given the Company’s business needs).
10
(k) cause
all
such Registrable Securities registered pursuant hereunder to be listed on each
securities exchange on which similar securities issued by the Company are then
listed.
(l) provide
a
transfer agent and registrar for all Registrable Securities registered pursuant
hereunder and a CUSIP number for all such Registrable Securities, in each case
not later than the effective date of such registration.
(m) in
the
event of any Underwritten Offering pursuant to Section 2(e) above, use
reasonable best efforts to furnish, on the date that such Registrable Securities
are delivered to the underwriters for sale (i) an opinion, dated as of such
date, of the counsel representing the Company for the purposes of such
registration, in form and substance as is customarily given to underwriters
in
an underwritten public offering and reasonably satisfactory to a majority in
interest of the Holders, addressed to the underwriters and to the Holders,
and
(ii) a “comfort” letter dated as of such date, from the independent certified
public accountants of the Company, in form and substance as is customarily
given
by independent certified public accountants to underwriters in an underwritten
public offering and reasonably satisfactory to a majority in interest of the
Holders, addressed to the underwriters and to the Holders.
(n) the
Company will cooperate fully with the Investors and the Underwriters and will
use reasonable best efforts to declare effective and maintain the effectiveness
of any and all Registration Statements required hereunder as soon as possible
pursuant to this Agreement, and will take such further actions and execute
such
further documents and instruments as may reasonably be requested by the
Investors or the Underwriters to carry out the provisions of this
Agreement.
4. Registration
Expenses.
All
fees and expenses incident to the performance of or compliance with this
Agreement by the Company shall be borne by the Company whether or not any
Registrable Securities are sold pursuant to a Registration Statement. The fees
and expenses referred to in the foregoing sentence shall include, without
limitation, (i) all registration and filing fees (including, without limitation,
fees and expenses (A) with respect to filings required to be made with any
Trading Market on which the Common Stock is then listed for trading, and (B)
in
compliance with applicable state securities or Blue Sky laws), (ii) printing
expenses (including, without limitation, expenses of printing certificates
for
Registrable Securities and of printing prospectuses if the printing of
prospectuses is reasonably requested by the holders of a majority of the
Registrable Securities included in the Registration Statement), (iii) messenger,
telephone and delivery expenses, (iv) fees and disbursements of counsel for
the
Company, (v) Securities Act liability insurance, if the Company so desires
such
insurance, and (vi) fees and expenses of all other Persons retained by the
Company in connection with the consummation of the transactions contemplated
by
this Agreement. In addition, the Company shall be responsible for all of its
internal expenses incurred in connection with the consummation of the
transactions contemplated by this Agreement (including, without limitation,
all
salaries and expenses of its officers and employees performing legal or
accounting duties), the expense of any annual audit and the fees and expenses
incurred in connection with the listing of the Registrable Securities on any
securities exchange as required hereunder. In no event shall the Company be
responsible for any broker or similar commissions incurred by any Holder or,
except to the extent provided for in the Transaction Documents, any legal fees
or other cost of the Holders in connection with this Agreement.
11
5. Indemnification.
(a) Indemnification
by the Company.
The
Company shall, notwithstanding any termination of this Agreement, indemnify
and
hold harmless each Holder, the officers, directors, agents, investment advisors,
partners, members and employees of each of them, each Person who controls any
such Holder (within the meaning of Section 15 of the Securities Act or Section
20 of the Exchange Act) and the officers, directors, agents and employees of
each such controlling Person, to the fullest extent permitted by applicable
law,
from and against any and all losses, claims, damages, liabilities, costs
(including, without limitation, reasonable costs of preparation and reasonable
attorneys’ fees) and expenses (collectively, “Losses”),
as
incurred, arising out of or relating to any untrue or alleged untrue statement
of a material fact contained in any Registration Statement, any Prospectus
or
any form of prospectus or in any amendment or supplement thereto or in any
preliminary prospectus, or arising out of or relating to any omission or alleged
omission of a material fact required to be stated therein or necessary to make
the statements therein (in the case of any Prospectus or form of prospectus
or
supplement thereto, in light of the circumstances under which they were made)
not misleading, except to the extent, but only to the extent, that (1) such
untrue statements or omissions are based solely upon information regarding
such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use
in
the Registration Statement, such Prospectus or such form of Prospectus or in
any
amendment or supplement thereto (it being understood that the Holder has
approved Annex A hereto for this purpose) or (2) in the case of an occurrence
of
an event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
of an outdated or defective Prospectus after the Company has notified such
Holder in writing that the Prospectus is outdated or defective and prior to
the
receipt by such Holder of an Advice or an amended or supplemented Prospectus,
but only if and to the extent that following the receipt of the Advice or the
amended or supplemented Prospectus the misstatement or omission giving rise
to
such Loss would have been corrected. The Company shall notify the Holders
promptly of the institution, threat or assertion of any Proceeding of which
the
Company is aware in connection with the transactions contemplated by this
Agreement.
12
(b) Indemnification
by Holders.
Each
Holder shall, severally and not jointly, indemnify and hold harmless the
Company, its directors, officers, agents and employees, each Person who controls
the Company (within the meaning of Section 15 of the Securities Act and Section
20 of the Exchange Act), and the directors, officers, agents or employees of
such controlling Persons, to the fullest extent permitted by applicable law,
from and against all Losses, as incurred, arising solely out of or based solely
upon: (x) such Holder’s failure to comply with the prospectus delivery
requirements of the Securities Act or (y) any untrue statement of a material
fact contained in any Registration Statement, any Prospectus, or any form of
prospectus, or in any amendment or supplement thereto, or any omission of a
material fact required to be stated therein or necessary to make the statements
therein not misleading to the extent, but only to the extent that, (1) such
untrue statements or omissions are based solely upon information regarding
such
Holder furnished in writing to the Company by such Holder expressly for use
therein, or to the extent that such information relates to such Holder or such
Holder’s proposed method of distribution of Registrable Securities and was
reviewed and expressly approved in writing by such Holder expressly for use
in
the Registration Statement (it being understood that the Holder has approved
Annex A hereto for this purpose), such Prospectus or such form of Prospectus
or
in any amendment or supplement thereto or (2) in the case of an occurrence
of an
event of the type specified in Section 3(c)(ii)-(v), the use by such Holder
of
an outdated or defective Prospectus after the Company has notified such Holder
in writing that the Prospectus is outdated or defective and prior to the receipt
by such Holder of an Advice or an amended or supplemented Prospectus, but only
if and to the extent that following the receipt of the Advice or the amended
or
supplemented Prospectus the misstatement or omission giving rise to such Loss
would have been corrected. In no event shall the liability of any selling Holder
hereunder be greater in amount than the dollar amount of the net proceeds
received by such Holder upon the sale of the Registrable Securities giving
rise
to such indemnification obligation.
(c) Conduct
of Indemnification Proceedings.
If any
Proceeding shall be brought or asserted against any Person entitled to indemnity
hereunder (an “Indemnified
Party”),
such
Indemnified Party shall promptly notify the Person from whom indemnity is sought
(the “Indemnifying
Party”)
in
writing, and the Indemnifying Party shall assume the defense thereof, including
the employment of counsel reasonably satisfactory to the Indemnified Party
and
the payment of all fees and expenses incurred in connection with defense
thereof; provided,
that
the failure of any Indemnified Party to give such notice shall not relieve
the
Indemnifying Party of its obligations or liabilities pursuant to this Agreement,
except (and only) to the extent that it shall be finally determined by a court
of competent jurisdiction (which determination is not subject to appeal or
further review) that such failure shall have proximately and materially
adversely prejudiced the Indemnifying Party.
An
Indemnified Party shall have the right to employ separate counsel in any such
Proceeding and to participate in the defense thereof, but the fees and expenses
of such counsel shall be at the expense of such Indemnified Party or Parties
unless: (1) the Indemnifying Party has agreed in writing to pay such fees and
expenses; (2) the Indemnifying Party shall have failed promptly, but in any
event within fifteen (15) days of receiving notice of such Proceeding, to assume
the defense of such Proceeding, notify the Indemnified Party of such assuption
and to employ counsel reasonably satisfactory to such Indemnified Party in
any
such Proceeding; or (3) the named parties to any such Proceeding (including
any
impleaded parties) include both such Indemnified Party and the Indemnifying
Party, and such Indemnified Party shall have been advised by counsel that a
conflict of interest is likely to exist if the same counsel were to represent
such Indemnified Party and the Indemnifying Party (in which case, if such
Indemnified Party notifies the Indemnifying Party in writing that it elects
to
employ separate counsel at the expense of the Indemnifying Party, the
Indemnifying Party shall not have the right to assume the defense thereof and
such counsel shall be at the expense of the Indemnifying Party); provided,
that,
the Indemnifying Party shall pay for no more than two separate sets of counsel
for all Indemnified Parties and such legal counsel shall be selected by Holders
of no less than a majority in interest of the then outstanding Registrable
Securities The Indemnifying Party shall not be liable for any settlement of
any
such Proceeding effected without its written consent, which consent shall not
be
unreasonably withheld. No Indemnifying Party shall, without the prior written
consent of the Indemnified Party, effect any settlement of any pending
Proceeding in respect of which any Indemnified Party is a party, unless such
settlement includes an unconditional release of such Indemnified Party from
all
liability on claims that are the subject matter of such Proceeding.
13
All
fees
and expenses of the Indemnified Party (including reasonable fees and expenses
to
the extent incurred in connection with investigating or preparing to defend
such
Proceeding in a manner not inconsistent with this Section) shall be paid to
the
Indemnified Party, as incurred, within ten Trading Days of written notice
thereof to the Indemnifying Party (regardless of whether it is ultimately
determined that an Indemnified Party is not entitled to indemnification
hereunder; provided,
that
the Indemnifying Party may require such Indemnified Party to undertake to
reimburse all such fees and expenses to the extent it is finally judicially
determined that such Indemnified Party is not entitled to indemnification
hereunder).
(d) Contribution.
If a
claim for indemnification under Section 5(a) or 5(b) is unavailable to an
Indemnified Party (by reason of public policy or otherwise), then each
Indemnifying Party, in lieu of indemnifying such Indemnified Party, shall
contribute to the amount paid or payable by such Indemnified Party as a result
of such Losses, in such proportion as is appropriate to reflect the relative
fault of the Indemnifying Party and Indemnified Party in connection with the
actions, statements or omissions that resulted in such Losses as well as any
other relevant equitable considerations. The relative fault of such Indemnifying
Party and Indemnified Party shall be determined by reference to, among other
things, whether any action in question, including any untrue or alleged untrue
statement of a material fact or omission or alleged omission of a material
fact,
has been taken or made by, or relates to information supplied by, such
Indemnifying Party or Indemnified Party, and the parties’ relative intent,
knowledge, access to information and opportunity to correct or prevent such
action, statement or omission. The amount paid or payable by a party as a result
of any Losses shall be deemed to include, subject to the limitations set forth
in Section 5(c), any reasonable attorneys’ or other reasonable fees or expenses
incurred by such party in connection with any Proceeding to the extent such
party would have been indemnified for such fees or expenses if the
indemnification provided for in this Section was available to such party in
accordance with its terms.
The
parties hereto agree that it would not be just and equitable if contribution
pursuant to this Section 5(d) were determined by pro rata allocation or by
any
other method of allocation that does not take into account the equitable
considerations referred to in the immediately preceding paragraph.
Notwithstanding the provisions of this Section 5(d), no Holder shall be required
to contribute, in the aggregate, any amount in excess of the amount by which
the
proceeds actually received by such Holder from the sale of the Registrable
Securities subject to the Proceeding exceeds the amount of any damages that
such
Holder has otherwise been required to pay by reason of such untrue or alleged
untrue statement or omission or alleged omission.
14
The
indemnity and contribution agreements contained in this Section are in addition
to any liability that the Indemnifying Parties may have to the Indemnified
Parties.
6. Miscellaneous.
(a) Remedies.
In the
event of a breach by the Company or by a Holder, of any of their obligations
under this Agreement, each Holder or the Company, as the case may be, in
addition to being entitled to exercise all rights granted by law and under
this
Agreement, including recovery of damages, will be entitled to specific
performance of its rights under this Agreement. The Company and each Holder
agree that monetary damages would not provide adequate compensation for any
losses incurred by reason of a breach by it of any of the provisions of this
Agreement and hereby further agrees that, in the event of any action for
specific performance in respect of such breach, it shall waive the defense
that
a remedy at law would be adequate.
(b) No
Piggyback on Registrations.
Except
as and to the extent specified in Schedule 3.1(v) to the Purchase Agreement,
neither the Company nor any of its security holders (other than the Holders
in
such capacity pursuant hereto) may include securities of the Company in a
Registration Statement other than the Registrable Securities, and the Company
shall not, until the termination of the Effectiveness Period enter into any
agreement providing any such right to any of its security holders.
(c) Compliance.
Each
Holder covenants and agrees that it will comply with the prospectus delivery
requirements of the Securities Act as applicable to it in connection with sales
of Registrable Securities pursuant to the Registration Statement.
(d) Discontinued
Disposition.
Each
Holder agrees by its acquisition of such Registrable Securities that, upon
receipt of a notice from the Company of the occurrence of any event of the
kind
described in Section 3(c), such Holder will forthwith discontinue disposition
of
such Registrable Securities under the Registration Statement until such Holder’s
receipt of the copies of the supplemented Prospectus and/or amended Registration
Statement or until it is advised in writing (the “Advice”)
by the
Company that the use of the applicable Prospectus may be resumed, and, in either
case, has received copies of any additional or supplemental filings that are
incorporated or deemed to be incorporated by reference in such Prospectus or
Registration Statement. The Company may provide appropriate stop orders to
enforce the provisions of this paragraph.
(e) Piggy-Back
Registrations.
If at
any time during the Effectiveness Period there is not an effective Registration
Statement covering all of the Registrable Securities and the Company shall
determine to prepare and file with the Commission a registration statement
relating to an offering for its own account or the account of others under
the
Securities Act of any of its equity securities, other than on Form S-4 or Form
S-8 (each as promulgated under the Securities Act) or their then equivalents
relating to equity securities to be issued solely in connection with any
acquisition of any entity or business or equity securities issuable in
connection with stock option or other employee benefit plans, then the Company
shall send to each Holder written notice of such determination and, if within
fifteen (15) calendar days after receipt of such notice, any such Holder shall
so request in writing, the Company shall include in such registration statement
all or any part of such Registrable Securities such holder requests to be
registered, subject to customary underwriter cutbacks applicable to all holders
of registration rights.
15
(f) Underwriter’s
Cutback.
Notwithstanding the foregoing, if a Registration Statement filed pursuant to
Section 6(e) involves an underwritten offering and the managing underwriter
or
underwriters of such proposed underwritten offering determines that the total
or
kind of securities which the Holders and any other Persons intend to include
in
such offering would be reasonably likely to adversely affect the price,
marketability or distribution of the securities offered in such offering, then
the Company shall include in such Registration Statement (i) first, one hundred
percent (100%) of the securities that the Company (if the Person initiating
such
Registration is the Company) proposes to sell, (ii) second, to the extent of
the
amount of securities which all Holders have requested to be included in such
Registration Statement, which, in the opinion of the managing underwriter or
underwriters, can be sold without such adverse effect referred to above, such
amount to be allocated pro rata among all such Holders based upon the relative
aggregate amount of gross proceeds to be received by such Holders in the
offering, and (iii) third, the securities of any other Person, which, in the
opinion of the managing underwriter or underwriters, can be sold without such
adverse effect referred to above.
(g) No
Other Registration Rights.
The
Company hereby represents that it is not subject to any contractual obligation
for registration rights to register any of its securities under the Securities
Act, except for (i) the registration of the 2008 Make Good Shares (as defined
therein) pursuant to the Registration Rights Agreement, dated May 14, 2007,
with
certain investors, if any; and (ii) such registration obligations that have
already been satisfied.
(h) Amendments
and Waivers.
The
provisions of this Agreement, including the provisions of this Section 6(f),
may
not be amended, modified or supplemented, and waivers or consents to departures
from the provisions hereof may not be given, unless the same shall be in writing
and signed by the Company and the Holders of no less than a majority in interest
of the then outstanding Registrable Securities. Notwithstanding the foregoing,
a
waiver or consent to depart from the provisions hereof with respect to a matter
that relates exclusively to the rights of certain Holders and that does not
directly or indirectly affect the rights of other Holders may be given by
Holders of at least a majority of the Registrable Securities to which such
waiver or consent relates; provided,
further
that no amendment or waiver to any provision of this Agreement relating to
naming any Holder or requiring the naming of any Holder as an underwriter may
be
effected in any manner inconsistent with the written information provided by
the
Holder in the Selling Holder Questionnaire. Section 2(a) may not be amended
or
waived except by written consent of each Holder affected by such amendment
or
waiver.
(i) Reports
Under Exchange Act.
With a
view to making available to the Holders the benefits of Rule 144 promulgated
under the Securities Act and any other rule or regulation of the SEC that may
at
any time permit a Holder to sell securities of the Company to the public without
registration or pursuant to a registration on Form S-3, the Company agrees,
after the earliest of the closing of the sale of securities by the Company
pursuant to a registration statement, the registration by the Company of a
class
of securities under Section 12 of the Exchange Act, or the issuance by the
Company of an offering circular pursuant to Regulation A under the Act, to
use
its reasonable best efforts:
16
·
|
to
make and keep current public information about the Company available
(as
those terms are understood and defined in Rule 144 under the Securities
Act), at all times ;
|
·
|
to
take such action, including the voluntary registration of its Common
Stock
under Section 12 of the Exchange Act, as is necessary to enable the
Holders to utilize Form S-3 for the resale of their Registrable
Securities;
|
·
|
to
file with the SEC in a timely manner all reports and other documents
required of the Company under the Act and the Exchange Act;
and
|
·
|
to
furnish to any Holder, so long as the Holder owns any Registrable
Securities, forthwith upon request (i) a written statement by the
Company
as to its compliance with the reporting requirements of Rule 144
and of
the Securities Act and the Exchange Act (at any time after it has
become
subject to such reporting requirements), or that it qualifies as
a
registrant whose securities may be resold pursuant to Form S-3 (at
any
time after it so qualifies), (ii) a copy of the most recent annual
or
quarterly report of the Company filed by the Company under the Exchange
Act and (iii) such other information as such Holder may reasonably
request
in order to avail itself of any similar rule or regulation of the
SEC that
permits the selling of any such securities without registration or
pursuant to such form.
|
(j) Notices.
Any and
all notices or other communications or deliveries required or permitted to
be
provided hereunder shall be in writing and shall be deemed given and effective
on the earliest of (a) the date of transmission, if such notice or communication
is delivered via facsimile (provided the sender receives a machine-generated
confirmation of successful transmission) at the facsimile number specified
in
this Section or (ii) electronic mail (i.e., Email) prior to 6:30 p.m. (New
York
City time) on a Trading Day, (b) the next Trading Day after the date of
transmission, if such notice or communication is delivered via facsimile at
the
facsimile number specified in this Section or (ii) electronic mail (i.e., Email)
on a day that is not a Trading Day or later than 6:30 p.m. (New York City time)
on any Trading Day, (c) the Trading Day following the date of mailing, if sent
by U.S. nationally recognized overnight courier service, or (d) upon actual
receipt by the party to whom such notice is required to be given. The address
for such notices and communications shall be as follows:
If
to the Company:
|
|
07
Floor E-Wing Center, No. 113 Zhichunlu, Haidan District, Beijing,
People’s
Republic of China 100086
|
|
Attn:
Chief Executive Officer
|
|
Facsimile:
00-00-00000000
|
|
With
a copy to:
|
Xxxxxx
Xxxx Xxxxx Raysman & Xxxxxxx LLP
|
000
0xx Xxxxxx XX
|
|
Xxxxxxxxxx,
X.X. 00000
|
|
Facsimile:
(000) 000-0000
|
|
Attn.:
Xxxxx X. Xxxxxxxxxx, Esq.
|
17
If to an Investor:
|
To
the address set forth under such Investor’s name on the signature pages
hereto.
|
If
to any other Person who is then the registered Holder:
|
|
To
the address of such Holder as it appears in the stock transfer
books of
the Company
|
or
such
other address as may be designated in writing hereafter, in the same manner,
by
such Person.
(k) Successors
and Assigns.
This
Agreement shall inure to the benefit of and be binding upon the successors
and
permitted assigns of each of the parties and shall inure to the benefit of
each
Holder. The Company may not assign its rights or obligations hereunder without
the prior written consent of each Holder. Each Holder may assign their
respective rights hereunder in the manner and to the Persons as permitted under
the Purchase Agreement.
(l) Execution
and Counterparts.
This
Agreement may be executed in any number of counterparts, each of which when
so
executed shall be deemed to be an original and, all of which taken together
shall constitute one and the same Agreement. In the event that any signature
is
delivered by facsimile transmission, such signature shall create a valid binding
obligation of the party executing (or on whose behalf such signature is
executed) the same with the same force and effect as if such facsimile signature
were the original thereof.
(m) Governing
Law and Waiver of Jury Trial.
All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by and construed and enforced in accordance
with the internal laws of the State of New York, without regard to the
principles of conflicts of law thereof. Each party agrees that all Proceedings
concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement (whether brought against a party hereto or its
respective Affiliates, employees or agents) will be commenced in the New York
Courts. Each party hereto hereby irrevocably submits to the exclusive
jurisdiction of the New York Courts for the adjudication of any dispute
hereunder or in connection herewith or with any transaction contemplated hereby
or discussed herein, and hereby irrevocably waives, and agrees not to assert
in
any Proceeding, any claim that it is not personally subject to the jurisdiction
of any New York Court, or that such Proceeding has been commenced in an improper
or inconvenient forum. Each party hereto hereby irrevocably waives personal
service of process and consents to process being served in any such Proceeding
by mailing a copy thereof via registered or certified mail or overnight delivery
(with evidence of delivery) to such party at the address in effect for notices
to it under this Agreement and agrees that such service shall constitute good
and sufficient service of process and notice thereof. Nothing contained herein
shall be deemed to limit in any way any right to serve process in any manner
permitted by law. Notwithstanding Sections 4 and 5 above, if either party shall
commence a Proceeding to enforce any provisions of this Agreement, then the
prevailing party in such Proceeding shall be reimbursed by the other party
for
its attorney’s fees and other costs and expenses incurred with the
investigation, preparation and prosecution of such Proceeding.
18
EACH
PARTY HERETO HEREBY WAIVES ITS RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE
OF
ACTION BASED UPON OR ARISING OUT OF THIS AGREEMENT, THE OTHER TRANSACTION
DOCUMENTS, THE SECURITIES OR THE SUBJECT MATTER HEREOF OR THEREOF. THE SCOPE
OF
THIS WAIVER IS INTENDED TO BE ALL-ENCOMPASSING OF ANY AND ALL DISPUTES THAT
MAY
BE FILED IN ANY COURT AND THAT RELATE TO THE SUBJECT MATTER OF THIS TRANSACTION,
INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY
CLAIMS, AND ALL OTHER COMMON LAW AND STATUTORY CLAIMS. THIS SECTION HAS BEEN
FULLY DISCUSSED BY EACH OF THE PARTIES HERETO AND THESE PROVISIONS WILL NOT
BE
SUBJECT TO ANY EXCEPTIONS. EACH PARTY HERETO HEREBY FURTHER WARRANTS AND
REPRESENTS THAT SUCH PARTY HAS REVIEWED THIS WAIVER WITH ITS LEGAL COUNSEL,
AND
THAT SUCH PARTY KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING
CONSULTATION WITH LEGAL COUNSEL. THIS WAIVER IS IRREVOCABLE, MEANING THAT IT
MAY
NOT BE MODIFIED EITHER ORALLY OR IN WRITING, AND THIS WAIVER WILL APPLY TO
ANY
SUBSEQUENT AMENDMENTS, SUPPLEMENTS OR MODIFICATIONS TO (OR ASSIGNMENTS OF)
THIS
AGREEMENT. IN THE EVENT OF LITIGATION, THIS AGREEMENT MAY BE FILED AS A WRITTEN
CONSENT TO A TRIAL (WITHOUT A JURY) BY THE COURT.
(n) Cumulative
Remedies.
The
remedies provided herein are cumulative and not exclusive of any remedies
provided by law.
(o) Severability.
If any
term, provision, covenant or restriction of this Agreement is held by a court
of
competent jurisdiction to be invalid, illegal, void or unenforceable, the
remainder of the terms, provisions, covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected, impaired
or invalidated, and the parties hereto shall use their reasonable efforts to
find and employ an alternative means to achieve the same or substantially the
same result as that contemplated by such term, provision, covenant or
restriction. It is hereby stipulated and declared to be the intention of the
parties that they would have executed the remaining terms, provisions, covenants
and restrictions without including any of such that may be hereafter declared
invalid, illegal, void or unenforceable.
(p) Headings.
The
headings in this Agreement are for convenience of reference only and shall
not
limit or otherwise affect the meaning hereof.
19
(q) Independent
Nature of Investors’ Obligations and Rights.
The
obligations of each Investor under this Agreement are several and not joint
with
the obligations of each other Investor, and no Investor shall be responsible
in
any way for the performance of the obligations of any other Investor under
this
Agreement. 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 this Agreement or any other Transaction Document. Each Investor
acknowledges that no other Investor will be acting as agent of such Investor
in
enforcing its rights under this Agreement. Each Investor shall be entitled
to
independently protect and enforce its rights, including without limitation
the
rights arising out of this Agreement, and it shall not be necessary for any
other Investor to be joined as an additional party in any Proceeding for such
purpose.
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE
PAGES TO FOLLOW]
20
IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as
of the date first written above.
By:
|
/s/ Xxxxxxx Xxx | |
Name:
Xxxxxxx Xxx
|
||
Title:
Chief Executive Officer
|
[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK
SIGNATURE
PAGES OF INVESTORS TO FOLLOW]
21
IN
WITNESS WHEREOF, the parties have executed this Registration Rights Agreement
as
of the date first written above.
NAME
OF INVESTING ENTITY
|
||
SAIF
PARTNERS III L.P.
|
||
By:
|
/s/
Xxxxxx X. Xxx
|
|
Name:
Xxxxxx X. Xxx,
|
||
|
Title:
Authorized Signatory
|
ADDRESS
FOR NOTICE
|
||
Company:
|
SAIF
PARTNERS III L.P.
|
|
Address:
|
Suite
2115-2118, Two Pacific Place
|
|
00
Xxxxxxxxx
|
||
Xxxxxxxxx,
Xxxx Xxxx
|
||
Tel:
|
x000-0000-0000
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|
Fax:
|
x000-0000-0000
|
|
Attention:
Xxxxxxx Xx-Xxxx Xxx
|
22
Annex
A
Plan
of
Distribution
The
Selling Stockholders and any of their pledgees, donees, transferees, assignees
and successors-in-interest may, from time to time, sell any or all of their
shares of Common Stock on any stock exchange, market or trading facility on
which the shares are traded or quoted or in private transactions. These sales
may be at fixed or negotiated prices. The Selling Stockholders may use any
one
or more of the following methods when selling shares:
·
|
ordinary
brokerage transactions and transactions in which the broker-dealer
solicits Investors;
|
·
|
block
trades in which the broker-dealer will attempt to sell the shares
as agent
but may position and resell a portion of the block as principal to
facilitate the transaction;
|
·
|
purchases
by a broker-dealer as principal and resale by the broker-dealer for
its
account;
|
·
|
an
exchange distribution in accordance with the rules of the applicable
exchange;
|
·
|
privately
negotiated transactions;
|
·
|
to
cover short sales made after the date that this Registration Statement
is
declared effective by the Commission;
|
·
|
broker-dealers
may agree with the Selling Stockholders to sell a specified number
of such
shares at a stipulated price per
share;
|
·
|
a
combination of any such methods of sale;
and
|
·
|
any
other method permitted pursuant to applicable
law.
|
The
Selling Stockholders may also sell shares under Rule 144 under the Securities
Act, if available, rather than under this prospectus.
Broker-dealers
engaged by the Selling Stockholders may arrange for other brokers-dealers to
participate in sales. Broker-dealers may receive commissions or discounts from
the Selling Stockholders (or, if any broker-dealer acts as agent for the
purchaser of shares, from the purchaser) in amounts to be negotiated. The
Selling Stockholders do not expect these commissions and discounts to exceed
what is customary in the types of transactions involved.
The
Selling Stockholders may from time to time pledge or grant a security interest
in some or all of the Shares owned by them and, if they default in the
performance of their secured obligations, the pledgees or secured parties may
offer and sell shares of Common Stock from time to time under this prospectus,
or under an amendment to this prospectus under Rule 424(b)(3) or other
applicable provision of the Securities Act of 1933 amending the list of selling
stockholders to include the pledgee, transferee or other successors in interest
as selling stockholders under this prospectus.
23
Upon
the
Company being notified in writing by a Selling Stockholder that any material
arrangement has been entered into with a broker-dealer for the sale of Common
Stock through a block trade, special offering, exchange distribution or
secondary distribution or a purchase by a broker or dealer, a supplement to
this
prospectus will be filed, if required, pursuant to Rule 424(b) under the
Securities Act, disclosing (i) the name of each such Selling Stockholder and
of
the participating broker-dealer(s), (ii) the number of shares involved, (iii)
the price at which such shares of Common Stock were sold, (iv) the commissions
paid or discounts or concessions allowed to such broker-dealer(s), where
applicable, (v) that such broker-dealer(s) did not conduct any investigation
to
verify the information set out or incorporated by reference in this prospectus,
and (vi) other facts material to the transaction. In addition, upon the Company
being notified in writing by a Selling Stockholder that a donee or pledgee
intends to sell more than 500 shares of Common Stock, a supplement to this
prospectus will be filed if then required in accordance with applicable
securities law.
The
Selling Stockholders also may transfer the shares of Common Stock in other
circumstances, in which case the transferees, pledgees or other successors
in
interest will be the selling beneficial owners for purposes of this
prospectus.
The
Selling Stockholders and any broker-dealers or agents that are involved in
selling the shares may be deemed to be “underwriters” within the meaning of the
Securities Act in connection with such sales. In such event, any commissions
received by such broker-dealers or agents and any profit on the resale of the
shares purchased by them may be deemed to be underwriting commissions or
discounts under the Securities Act. Discounts, concessions, commissions and
similar selling expenses, if any, that can be attributed to the sale of
Securities will be paid by the Selling Stockholder and/or the purchasers. Each
Selling Stockholder has represented and warranted to the Company that it
acquired the securities subject to this Registration Statement in the ordinary
course of such Selling Stockholder’s business and, at the time of its purchase
of such securities such Selling Stockholder had no agreements or understandings,
directly or indirectly, with any person to distribute any such securities.
NASD
Rule
2710 requires FINRA members firms (unless an exemption applies) to satisfy
the
filing requirements of Rule 2710 in connection with the resale, on behalf of
selling shareholders, of the securities on a principal or agency basis. NASD
Notice to Members 88-101 states that in the event a selling shareholder intends
to sell any of the shares registered for resale in this prospectus through
a
member of the FINRA participating in a distribution of our securities, such
member is responsible for insuring that a timely filing, if required, is first
made with the Corporate Finance Department of FINRA and disclosing to FINRA
the
following:
·
|
it
intends to take possession of the registered securities or to facilitate
the transfer of such certificates;
|
·
|
the
complete details of how the selling shareholders’ shares are and will be
held, including location of the particular
accounts;
|
·
|
whether
the member firm or any direct or indirect affiliates thereof have
entered
into, will facilitate or otherwise participate in any type of payment
transaction with the selling shareholders, including details regarding
any
such transactions; and
|
24
·
|
in
the event any of the securities offered by the selling shareholders
are
sold, transferred, assigned or hypothecated by any selling shareholder
in
a transaction that directly or indirectly involves a member firm
of the
NASD or any affiliates thereof, that prior to or at the time of said
transaction the member firm will timely file all relevant documents
with
respect to such transaction(s) with the Corporate Finance Department
of
the NASD for review.
|
No
FINRA
member firm may receive compensation in excess of that allowable under FINRA
rules, including Rule 2710, in connection with the resale of the securities
by
the selling shareholders, which total compensation may not exceed
8%.
The
Company has advised each Selling Stockholder that it is the view of the
Commission that it may not use shares registered on this Registration Statement
to cover short sales of Common Stock made prior to the date on which this
Registration Statement shall have been declared effective by the Commission.
If
a Selling Stockholder uses this prospectus for any sale of the Common Stock,
it
will be subject to the prospectus delivery requirements of the Securities Act.
The Selling Stockholders will be responsible to comply with the applicable
provisions of the Securities Act and Exchange Act, and the rules and regulations
thereunder promulgated, including, without limitation, Regulation M, as
applicable to such Selling Stockholders in connection with resales of their
respective shares under this Registration Statement.
The
Company is required to pay all fees and expenses incident to the registration
of
the shares, but the Company will not receive any proceeds from the sale of
the
Common Stock. The Company has agreed to indemnify the Selling Stockholders
against certain losses, claims, damages and liabilities, including liabilities
under the Securities Act.
25
Annex
B
Selling
Securityholder Notice and Questionnaire
The
undersigned beneficial owner of common stock (the “Common
Stock”),
of
China TransInfo Technology Corp., a Nevada corporation (the “Company”),
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the “Commission”)
a
Registration Statement for the registration and resale of the Registrable
Securities, in accordance with the terms of the Registration Rights Agreement,
dated as of July __, 2008 (the “Registration
Rights Agreement”),
among
the Company and the Investors named therein. A copy of the Registration Rights
Agreement is available from the Company upon request at the address set forth
below. All capitalized terms used and not otherwise defined herein shall have
the meanings ascribed thereto in the Registration Rights Agreement.
The
undersigned hereby provides the following information to the Company and
represents and warrants that such information is accurate:
QUESTIONNAIRE
1. Name.
(a)
|
Full
Legal Name of Selling Securityholder
|
|
; | ||
(b)
|
Full
Legal Name of Registered Holder (if not the same as (a) above)
through
which Registrable Securities Listed in Item 3 below are
held:
|
|
; | ||
(c)
|
Full
Legal Name of Natural Control Person (which means a natural person
who
directly or indirectly alone or with others has power to vote or
dispose
of the securities covered by the questionnaire):
|
|
; |
2.
Address for Notices to Selling Securityholder:
Telephone:
|
Fax:
|
Contact
Person:
|
26
3.
Beneficial Ownership of Registrable Securities:
Type
and Principal Amount of Registrable Securities beneficially
owned:
|
|
4.
Broker-Dealer Status:
(a)
|
Are
you a broker-dealer?
|
Yes
¨
No
¨
Note:
|
If
yes, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration
Statement.
|
(b)
|
Are
you an affiliate of a
broker-dealer?
|
Yes
¨
No
¨
(c)
|
If
you are an affiliate of a broker-dealer, do you certify that you
bought
the Registrable Securities in the ordinary course of business, and
at the
time of the purchase of the Registrable Securities to be resold,
you had
no agreements or understandings, directly or indirectly, with any person
to distribute the Registrable
Securities?
|
Yes
¨
No
¨
Note:
|
If
no, the Commission’s staff has indicated that you should be identified as
an underwriter in the Registration
Statement.
|
5.
Beneficial Ownership of Other Securities of the Company Owned by the Selling
Securityholder.
Except
as set forth below in this Item 5, the undersigned is not the beneficial or
registered owner of any securities of the Company other than the Registrable
Securities listed above in Item 3.
Type
and Amount of Other Securities beneficially owned by the Selling
Securityholder:
|
|
27
6.
Relationships with the Company:
Except
as set forth below, neither the undersigned nor any of its affiliates, officers,
directors or principal equity holders (owners of 5% of more of the equity
securities of the undersigned) has held any position or office or has had any
other material relationship with the Company (or its predecessors or affiliates)
during the past three years.
State
any
exceptions here:
7.
The
Company has advised each Selling Stockholder that it is the view of the
Commission that it may not use shares registered on the Registration Statement
to cover short sales of Common Stock made prior to the date on which the
Registration Statement is declared effective by the Commission, in accordance
with 1997 Securities and Exchange Commission Manual of Publicly Available
Telephone Interpretations Section A.65. If a Selling Stockholder uses the
prospectus for any sale of the Common Stock, it will be subject to the
prospectus delivery requirements of the Securities Act. The Selling Stockholders
will be responsible to comply with the applicable provisions of the Securities
Act and Exchange Act, and the rules and regulations thereunder promulgated,
including, without limitation, Regulation M, as applicable to such Selling
Stockholders in connection with resales of their respective shares under the
Registration Statement.
The
undersigned agrees to promptly notify the Company of any inaccuracies or changes
in the information provided herein that may occur subsequent to the date hereof
and prior to the Effective Date for the Registration Statement.
Certain
legal consequences arise from being named as a Selling Securityholder in the
Registration Statement and related prospectus. Accordingly, the undersigned
is
advised to consult their own securities law counsel regarding the consequence
of
being named or not being named as a Selling Securityholder in the Registration
Statement and the related prospectus.
By
signing below, the undersigned consents to the disclosure of the information
contained herein in its answers to Items 1 through 6 and the inclusion of such
information in the Registration Statement and the related prospectus. The
undersigned understands that such information will be relied upon by the Company
in connection with the preparation or amendment of the Registration Statement
and the related prospectus. The undersigned hereby elects to include the
Registrable Securities owned by it and listed above in Item 3 (unless otherwise
specified in Item 3) in the Registration Statement.
28
IN
WITNESS WHEREOF the undersigned, by authority duly given, has caused this Notice
and Questionnaire to be executed and delivered either in person or by its duly
authorized agent.
Dated:
|
Beneficial Owner:
|
|
By:
|
||
Name:
|
||
Title:
|
PLEASE
FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND QUESTIONNAIRE, AND RETURN
THE ORIGINAL BY OVERNIGHT MAIL, TO:
Xxxxxx
Xxxx Xxxxx Raysman & Xxxxxxx LLP
000
0xx
Xxxxxx
XX
Xxxxxxxxxx,
X.X. 00000
Facsimile:
(000) 000-0000
Attn.:
Xxxxx X. Xxxxxxxxxx, Esq.
29