REGISTRATION RIGHTS AND LOCK-UP AGREEMENT
Exhibit
7.2
THIS
REGISTRATION RIGHTS AND LOCK-UP AGREEMENT ("Agreement")
is
entered into by and between Xedar Corporation, a Colorado corporation (the
"Company"),
and
_________________________________ ("Stockholder").
1.
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Description
of Transaction; Issuance of
Stock
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(a) Effective
December 31, 2006, pursuant to the terms of that certain Agreement and Plan
of
Merger, dated December ____, 2006 (the "Merger
Agreement"),
by
and among Premier Data Services, Inc., a Delaware corporation ("PDS"),
the
Company, and PDS Acquisition Corp., a Colorado corporation ("Acquisition
Corp."),
and
wholly owned subsidiary of the Company, Acquisition Corp merged with and
into
PDS, with PDS being the surviving corporation (the "Merger").
(b) Pursuant
to the terms of the Merger Agreement, upon the effective date of the Merger
(the
"Effective
Date"),
each
share of common stock, $0.001 par value per share, of PDS (the "PDS
Common Stock"),
by
virtue of the Merger and without any action on the part of the holder thereof,
was converted into the number of shares of the common stock, no par value
per
share, of the Company (the "Company
Common Stock")
equal
to 0.78199 shares of Company Common Stock for each 1 share of PDS Common
Stock.
(c) Pursuant
to the terms of the Merger Agreement, upon the Effective Date, each share
of the
preferred stock, designated Series A, $0.001 par value per share, of PDS
(the
"PDS
Preferred Stock"),
by
virtue of the Merger and without any action on the part of the holder thereof,
was converted into the number of shares of Company Common Stock equal to
1.25922
shares of Company Common Stock for each (1) share of PDS Preferred
Stock.
(d) Prior
to
the Merger, Stockholder was a holder of PDS Common Stock and/or PDS Preferred
Stock. As a result of the Merger, Stockholder is now a holder of Company
Common
Stock. In accordance with the term of the Merger Agreement, Stockholder and
the
Company now desire to enter into this Agreement to provide for the registration
rights granted hereby in favor of Stockholder and the lock-up restrictions
granted hereby in favor of the Company as set forth below.
2.
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Registration
Rights
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The
Company covenants and agrees with the Stockholder as follows:
2.1
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Definitions
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For
purposes of this Agreement:
(a) The
term
"Act"
means
the Securities Act of 1933, as amended.
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(b) The
term
"Holder"
means
any person owning or having the right to acquire Registrable Securities or
any
assignee thereof in accordance with Section 2.8 hereof
(c) The
term
"1934
Act"
means
the Securities Exchange Act of 1934, as amended.
(d) The
term
"register,"
"registered,"
and
"registration"
refer
to a registration effected by preparing and filing a registration statement
or
similar document in compliance with the Act, and the declaration or ordering
of
effectiveness of such registration statement or document.
(e) The
term
"Registrable
Securities"
means
(i) the Company Common Stock issued or issuable pursuant to the terms of
the
Merger Agreement and (ii) any shares of the Company issued as (or issuable
upon the conversion or exercise of any warrant, right or other security that
is
issued as) a dividend or other distribution with respect to, or in exchange
for,
or in replacement of, the Company Common Stock referenced in (i)
above.
(f) The
number of shares of Registrable Securities outstanding shall be determined
by
the number of Registrable Shares outstanding that are, and the number of
Registrable Shares issuable pursuant to then exercisable or convertible
securities that are, Registrable Securities.
(g) The
term
"SEC"
shall
mean the U.S. Securities and Exchange Commission.
2.2
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Registration
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(a)
Within ninety (90) days of the Purchase Date, the Company shall (i) use all
reasonable efforts to prepare and file a registration statement under the
Act
with the SEC covering the Registrable Securities, and (ii) use all reasonable
efforts to cause such registration statement to become effective within one
hundred and eighty (180) days of the Purchase Date.
(b)
The
Company shall not be required to file a registration statement pursuant to
this
Section 2.2 if the Company shall furnish to Holders a certificate signed by
the Company’s Chief Executive Officer or Chairman of the Board stating that in
the good faith judgment of the Board of Directors of the Company, it would
be
seriously detrimental to the Company and its stockholders for such registration
statement to be filed at such time, in which event the Company shall have
the
right to defer such filing for a period of not more than thirty (30) days
after
delivery of the certificate.
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2.3 Obligations
of the
Company
Whenever
required under this Section 2 to effect the registration of any Registrable
Securities, the Company shall, as expeditiously as reasonably
possible:
(a) prepare
and file with the SEC a registration statement with respect to such Registrable
Securities and use all reasonable efforts to cause such registration statement
to become effective, and keep such registration statement effective for a
period
of three hundred sixty five (365) days or, if earlier, until the distribution
contemplated in the Registration Statement has been completed;
(b) prepare
and file with the SEC such amendments and supplements to such registration
statement and the prospectus used in connection with such registration statement
as may be necessary to comply with the provisions of the Act with respect
to the
disposition of all securities covered by such registration
statement;
(c) furnish
to the Holders such numbers of copies of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Act, and such other
documents as they may reasonably request in order to facilitate the disposition
of Registrable Securities owned by them;
(d) use
all
reasonable efforts to register and qualify the securities covered by such
registration statement under such other securities or Blue Sky laws of such
jurisdictions as shall be reasonably requested by the Holders, provided that
the
Company shall not be required in connection therewith or as a condition thereto
to qualify to do business or to file a general consent to service of process
in
any such states or jurisdictions;
(e) in
the
event of any underwritten public offering, enter into and perform its
obligations under an underwriting agreement, in usual and customary form,
with
the managing underwriter of such offering;
(f) notify
each Holder of Registrable Securities covered by such registration statement
at
any time when a prospectus relating thereto is required to be delivered under
the Act or the happening of any event as a result of which the prospectus
included in such registration statement, as then in effect, includes an untrue
statement of a material fact or omits to state a material fact required to
be
stated therein or necessary to make the statements therein not misleading
in the
light of the circumstances then existing;
and
(g) 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.
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2.4 Information
from Holder
It
shall
be a condition precedent to the obligations of the Company to take any action
pursuant to this Section 2 with respect to the Registrable Securities of
any
selling Holder, that such Holder shall furnish to the Company such information
regarding itself, the Registrable Securities held by it, and the intended
method
of disposition of such securities as shall be required to effect the
registration of such Holder's Registrable Securities.
2.5
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Expenses
of Registration
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All
expenses other than underwriting discounts and commissions incurred in
connection with registrations, filings or qualifications pursuant to this
Section 2, including (without limitation) all registration, filing and
qualification fees, printers' and accounting fees, fees and disbursements
of
counsel for the Company and the reasonable fees and disbursements of one
counsel
for the selling Holders shall be borne by the Company.
2.6
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Delay
of Registration
|
The
Company and each Holder shall not have any right to obtain or seek an injunction
restraining or otherwise delaying any such registration as the result of
any
controversy that might arise with respect to the interpretation or
implementation of this Section 2.
2.7
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Indemnification
|
In
the
event any Registrable Securities are included in a registration statement
under
this Section 2:
(a) To
the
extent permitted by law, the Company will indemnify and hold harmless each
Holder, the partners or officers, directors and shareholders of each Holder,
legal counsel and accountants for each Holder, any underwriter (as defined
in
the Act) for such Holder
and each person, if any, who controls such Holder or underwriter within the
meaning of the Act or the 1934 Act, against any losses, claims, damages or
liabilities (joint or several) to which they may become subject under the
Act,
the 1934 Act or any state securities laws, insofar as such losses, claims,
damages, or liabilities (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations
(collectively a "Violation"):
(i) any untrue statement or alleged untrue statement of a material fact
contained in such registration statement, including any preliminary prospectus
or final prospectus contained therein or any amendments or supplements thereto,
(ii) the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein
not
misleading, or (iii) any violation or alleged violation by the Company of
the Act, the 1934 Act, any state securities laws or any rule or regulation
promulgated under the Act, the 1934 Act or any state securities laws; and
the
Company will reimburse each such Holder, underwriter or controlling person
for
any legal or other expenses reasonably incurred by them in connection with
investigating or defending any such loss, claim, damage, liability or action;
provided, however, that the indemnity agreement contained
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in
this
Section 2.7(a) shall not apply to amounts paid in settlement of any such
loss,
claim, damage, liability or action if such settlement is effected without
the
consent of the Company (which consent shall not be unreasonably withheld),
nor
shall the Company be liable in any such case for any such loss, claim, damage,
liability or action to the extent that it arises out of or is based upon
a
Violation that occurs in reliance upon and in conformity with written
information furnished expressly for use in connection with such registration
by
any such Holder, underwriter or controlling person; provided further, however,
that the foregoing indemnity agreement with respect to any preliminary
prospectus shall not inure to the benefit of any Holder or underwriter, or
any
person controlling such Holder or underwriter, from whom the person asserting
any such losses, claims, damages or liabilities purchased shares in the
offering, if a copy of the prospectus (as then amended or supplemented if
the
Company shall have furnished any amendments or supplements thereto) was not
sent
or given by or on behalf of such Holder or underwriter to such person, if
required by law so to have been delivered, at or prior to the written
confirmation of the sale of the shares to such person, and if the prospectus
(as
so amended or supplemented) would have cured the defect giving rise to such
loss, claim, damage or liability.
(b) To
the
extent permitted by law, each selling Holder will indemnify and hold harmless
the Company, each of its directors, each of its officers who has signed the
registration statement, each person, if any, who controls the Company within
the
meaning of the Act, legal counsel and accountants for the Company, any
underwriter, any other Holder selling securities in such registration statement
and any controlling person of any such underwriter or other Holder, against
any
losses, claims, damages or liabilities (joint or several) to which any of
the
foregoing persons may become subject, under the Act, the 1934 Act or any
state
securities laws, insofar as such losses, claims, damages or liabilities (or
actions in respect thereto) arise out of or are based upon any Violation,
in
each case to the extent (and only to the extent) that such Violation occurs
in
reliance upon and in conformity with written information furnished by such
Holder expressly for use in connection with such registration; and each such
Holder will reimburse any person intended to be indemnified pursuant to this
Section 2.7(b), for any legal or other expenses reasonably incurred by such
person in connection with investigating or defending any such loss, claim,
damage, liability or action; provided, however, that the indemnity agreement
contained in this Section 2.7(b) shall not apply to amounts paid in settlement
of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of the Holder (which consent shall not be
unreasonably withheld), provided that in no event shall any indemnity under
this
Section 2.7(b) exceed the gross proceeds from the offering received by such
Holder.
(c) Promptly
after receipt by an indemnified party under this Section 2.7 of notice of
the
commencement of any action (including any governmental action), such indemnified
party will, if a claim in respect thereof is to be made against any indemnifying
party under this Section 2.7, deliver to the indemnifying party a written
notice
of the commencement thereof and the indemnifying party shall have the right
to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume the defense
thereof with counsel mutually satisfactory to the
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parties;
provided, however, that an indemnified party (together with all other
indemnified parties that may be represented without conflict by one counsel)
shall have the right to retain one separate counsel, with the fees and expenses
to be paid by the indemnifying party, if representation of such indemnified
party by the counsel retained by the indemnifying party would be inappropriate
due to actual or potential differing interests between such indemnified party
and any other party represented by such counsel in such proceeding. The failure
to deliver written notice to the indemnifying party within a reasonable time
of
the commencement of any such action, if prejudicial to its ability to defend
such action, shall relieve such indemnifying party of any liability to the
indemnified party under this Section 2.7, but the omission so to deliver
written
notice to the indemnifying party will not relieve it of any liability that
it
may have to any indemnified party otherwise than under this Section
2.7.
(d) If
the
indemnification provided for in this Section 2.7 is held by a court of competent
jurisdiction to be unavailable to an indemnified party with respect to any
loss,
liability, claim, damage or expense referred to herein, then the indemnifying
party, in lieu of indemnifying such indemnified party hereunder, shall
contribute to the amount paid or payable by such indemnified party as a result
of such loss, liability, claim, damage or expense in such proportion as is
appropriate to reflect the relative fault of the indemnifying party on the
one
hand and of the indemnified party on the other in connection with the statements
or omissions that resulted in such loss, liability, claim, damage or expense,
as
well as any other relevant equitable considerations. The relative fault of
the
indemnifying party and of the indemnified party shall be determined by reference
to, among other things, whether the untrue or alleged untrue statement of
a
material fact or the omission to state a material fact relates to information
supplied by the indemnifying party or by the indemnified party and the parties'
relative intent, knowledge, access to information, and opportunity to correct
or
prevent such statement or omission.
(e) Notwithstanding
the foregoing, to the extent that the provisions on indemnification and
contribution contained in the underwriting agreement entered into in connection
with the underwritten public offering are in conflict with the foregoing
provisions, the provisions in the underwriting agreement shall
control.
(f)
Notwithstanding the foregoing, no person or entity guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Act) shall
be
entitled to contribution from any person or entity who was not guilty of
such
fraudulent misrepresentation.
(g) The
obligations of the Company and Holders under this Section 2.7 shall survive
the
completion of any offering of Registrable Securities in a registration statement
under this Section 2, and otherwise.
2.8
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Assignment
of Registration Rights
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The
rights of the Holders of the Registrable Securities pursuant to this Section
2
may be assigned (but only with all related obligations) by a Holder to a
transferee or assignee of
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such
securities, subject to applicable securities laws, provided that: (i) the
Company is, within a reasonable time after such transfer, furnished with
written
notice of the name and address of such transferee or assignee and the
Registrable Securities with respect to which such registration rights have
been
assigned, (ii) such transferee or assignee agrees in writing to be bound
by and
subject to the terms and conditions of this Agreement, and (iii) such assignment
shall be effective only if such transfer complies with applicable terms of
the
Act.
3.
Lockup;
Restrictive Legends; Stop-Transfer Orders
3.1 Lockup
Agreement
Stockholder
and the Company agree that all Company Common Stock received by Stockholder
as a
result of the Merger shall be subject to the "Lockup
Agreement"
set
forth in this Section 3.1, and such shares of Company Common Stock shall
be
referred to herein as the "Lockup
Shares."
Stockholder hereby agrees that, without the prior written consent of the
Company
(which consent may be withheld at the sole discretion of the Company), during
the period commencing on the Effective Date and ending three hundred sixty
five
(365) days thereafter (“Lockup
Period”),
Stockholder will not: (i) offer, pledge, sell, contract to sell, sell any
option
or contract to purchase, purchase any option or contract to sell, grant any
option, right or warrant to purchase, or otherwise transfer or dispose of,
directly or indirectly, any of its Lockup Shares or any securities convertible
into or exercisable or exchangeable for any of its Lockup Shares; or (ii)
enter
into any swap or other arrangement that transfers to another, in whole or
in
part, any of the economic consequences of ownership of its Lockup Shares,
whether or not any such transaction described in clause (i) or (ii) above
is to
be settled by delivery of its Lockup Shares, in cash or otherwise.
3.2
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Legend
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The
certificate or certificates representing the Lockup Shares shall bear the
legends in substantially the form set forth below in this Section 3.2, and
any
legends required by applicable state securities laws:
"THESE
SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED
IN THE
ABSENCE OF A REGISTRATION STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES
UNDER SUCH ACT OR AN EXEMPTION FROM SUCH REGISTRATION
REQUIREMENTS."
“THE
SECURITIES EVIDENCED HEREBY ARE SUBJECT TO A LOCKUP AGREEMENT CONTAINING
RESTRICTIONS ON SALE AND TRANSFER. THE SECURITIES EVIDENCED HEREBY MAY NOT
BE
TRANSFERRED, EXCEPT IN ACCORDANCE WITH AND SUBJECT TO SUCH RESTRICTIONS ON
SALE
AND TRANSFER.
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NO
TRANSFER MADE IN VIOLATION OF SUCH RESTRICTIONS SHALL BE VALID”
3.3
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Stop-Transfer
Notices
|
Stockholder
agrees that, in order to ensure compliance with the restrictions referred
to
herein, the Company may issue appropriate "stop transfer" instructions to
its
transfer agent, if any, and that, if the Company records transfer of its
own
securities, it may make appropriate notations to the same effect in its own
records.
3.4
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Refusal
to Transfer
|
The
Company shall not be required (i) to transfer on its books any Lockup
Shares that have been sold or otherwise transferred in violation of any of
the
provisions of this Agreement or (ii) to treat as owner of such Lockup
Shares, or to accord the right to vote or pay dividends, to any purchaser
or
other transferee to whom such Lockup Shares shall have been so
transferred.
4.
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Miscellaneous
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4.1
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Governing
Law; Jurisdiction and
Venue
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This
Agreement and all acts and transactions pursuant hereto and the rights and
obligations of the parties hereto shall be governed, construed and interpreted
in accordance with the laws of the state of Colorado without giving effect
to
principles of conflicts of law. The parties irrevocably consent to the
jurisdiction and venue of the state and federal courts located in the city
and
county of Denver, Colorado, in connection with any action relating to this
Agreement.
4.2
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Entire
Agreement; Enforcement of
Rights
|
This
Agreement sets forth the entire agreement and understanding of the parties
relating to the subject matter herein and merges all prior discussions between
them. No modification of or amendment to this Agreement, nor any waiver of
any
rights under this Agreement, shall be effective unless in writing signed
by the
parties to this Agreement. The failure by either party to enforce any rights
under this Agreement shall not be construed as a waiver of any rights of
such
party.
4.3
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Severability
|
If
one or
more provisions of this Agreement are held to be unenforceable under applicable
law, such provision shall be excluded from this Agreement and the balance
of the
Agreement shall be interpreted as if such provision were so excluded and
shall
be enforceable in accordance with its terms.
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4.4 Titles;
Construction
The
titles and subtitles used in this Agreement are used for convenience only
and
are not to be considered in construing or interpreting this Agreement. This
Agreement is the result of negotiations between and has been reviewed by
each of
the parties hereto and their respective counsel, if any; accordingly, this
Agreement shall be deemed to be the product of all of the parties hereto,
and no
ambiguity shall be construed in favor of or against any one of the parties
hereto on account of the identity of the drafter.
4.5
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Notices
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Unless
otherwise provided, any notice required or permitted under this Agreement
shall
be given in writing and shall be deemed effectively given (i) upon personal
delivery to the party to be notified, (ii) one business day after deposit
with a
nationally recognized overnight courier service, prepaid for overnight delivery
and addressed to the party to be notified at the address indicated for such
party on the signature page hereto or at such other address as such party
may
designate pursuant to the notice provisions of this Section 4.5, or (iii)
three
days after deposit with the U.S. Postal Service, postage prepaid, registered
or
certified with return receipt requested and addressed to the party to be
notified at the address indicated for such party on the signature page hereto
or
at such other address as such party may designate pursuant to the notice
provisions of this Section 4.5.
4.6
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Counterparts
|
This
Agreement may be executed in two or more counterparts, each of which shall
be
deemed an original and all of which shall constitute one
instrument.
4.7
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Successors
and Assigns
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The
rights and benefits of this Agreement shall inure to the benefit of, shall
be
binding upon, and be enforceable by and against the Company and the Company’s
successors and assigns. The term “successor” shall include, but not be limited
to, any person, including an entity, which acquires or consolidates with
the
Company or a successor of the Company or which acquires the business of the
Company in any transaction, including a reorganization transaction, or in
a
series of transactions or reorganization transactions. The rights and
obligations of Stockholder under this Agreement may only be assigned with
the
prior written consent of the Company or as provided in this
Agreement.
4.8
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Expenses
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If
any
action at law or in equity is necessary to enforce or interpret the terms
of
this Agreement, the prevailing party shall be entitled to reasonable attorneys'
fees, costs and necessary disbursements in addition to any other relief to
which
such party may be entitled.
[Signature
Page Follows]
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IN
WITNESS WHEREOF, the parties hereto have executed this Agreement, intending
to
be legally bound, as of the date first set forth above:
Stockholder:
Company:
Xedar
Corporation, a Colorado corporation
By:
/s/ Xxxx X. Xxxxxxxxxx, III
Xxxx
X.
Xxxxxxxxxx, III
President
and CEO