SECURITIES PURCHASE AGREEMENT
EXHIBIT
99.5
This Securities Purchase Agreement (this “Agreement”) is dated as of June 30, 2006, among the
selling stockholders identified on the signature page hereto (each, a “Selling Stockholder,” and
collectively, the “Selling Stockholders”), Think Partnership Inc., a Nevada corporation (the
“Company”), and the investors identified on the signature pages hereto (each, an “Investor” and
collectively, the “Investors”).
WHEREAS, subject to the terms and conditions set forth in this Agreement and pursuant to
exemptions from registration under the Securities Act (as defined below), the Selling Stockholders
desire to offer and sell to each Investor, and each Investor, severally and not jointly, desires to
purchase from the Selling Stockholders, securities owned by the Selling Stockholders, as more fully
described in this Agreement.
WHEREAS, in connection with the offer and sale of the Selling Stockholders’ securities
contemplated hereunder, the Company has agreed to make certain representations and warranties to
the Investors and to permit the transfer of certain registration rights presently held by the
Selling Stockholders as to such securities and intended to be transferred to the Investors
concurrently with the sale of such securities.
NOW, THEREFORE, IN CONSIDERATION of the mutual covenants contained in this Agreement, and for
other good and valuable consideration the receipt and adequacy of which are hereby acknowledged,
the Company, the Selling Stockholders and the Investors agree as follows:
ARTICLE 1.
DEFINITIONS
DEFINITIONS
1.1. Definitions. In addition to the terms defined elsewhere in this Agreement, for
all purposes of this Agreement, the following terms shall have the meanings indicated in this
Section 1.1:
“Affiliate” means any Person that, directly or indirectly through one or more intermediaries,
controls or is controlled by or is under common control with a Person, as such terms are used in
and construed under Rule 144.
“Business Day” means any day except Saturday, Sunday and any day which is a federal legal
holiday or a day on which banking institutions in the State of New York or State of Illinois are
authorized or required by law or other governmental action to close.
“Closing” means the closing of the purchase and sale of the Selling Stockholder Shares and
Warrants pursuant to Article II.
“Closing Date” means the Business Day on which all of the conditions set forth in Sections 5.1
and 5.2 hereof are satisfied, or such other date as the parties may agree.
“Commission” means the Securities and Exchange Commission.
“Common Stock” means the common stock of the Company, par value $0.001 per share, and any
securities into which such common stock may hereafter be reclassified.
“Common Stock Equivalents” means any securities of the Company or any Subsidiary which entitle
the holder thereof to acquire Common Stock at any time, including without limitation, any debt,
preferred stock, rights, options, warrants or other instrument that is at any time convertible into
or exchangeable for, or otherwise entitles the holder thereof to receive, Common Stock or other
securities that entitle the holder to receive, directly or indirectly, Common Stock.
“Conversion Shares” means shares of Common Stock issuable upon exercise of the Warrants.
“Effective Date” means the date that the Registration Statement required by Section 2(a) of
the Registration Rights Agreement is first declared effective by the Commission.
“Escrow Agreement” means the Escrow Agreement, dated as of June 14, 2006, among the Company,
the Selling Stockholders and the Escrow Agent (as defined in the Escrow Agreement).
“Exchange Act” means the Securities Exchange Act of 1934, as amended.
“Investment Amount” means, with respect to each Investor, the Investment Amount indicated on
such Investor’s signature page to this Agreement.
“Investor Party” has the meaning set forth in Section 4.4.
“Lien” means any lien, charge, encumbrance, security interest, right of first refusal or other
restrictions of any kind.
“Losses” means any loss, liability, obligation, claim, contingency, damage, cost or expense,
including all judgments, amounts paid in settlements, court costs and reasonable attorneys’ fees
and costs of investigation related thereto.
“Material Adverse Effect” means any of (i) a material and adverse effect on the legality,
validity or enforceability of any Transaction Document, (ii) a material and adverse effect on the
operations (including results thereof), assets, liabilities, prospects, business or condition
(financial or otherwise) of the Company and the Subsidiaries, taken as a whole, or (iii) an adverse
impairment to the Company’s or a Selling Stockholders’ ability to perform on a timely basis its
obligations under any Transaction Document.
“Outside Date” means July 7, 2006.
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“Person” means an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability company, joint stock company,
government (or an agency or subdivision thereof) or other entity of any kind.
“Per Share Purchase Price” equals $1.43.
“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.
“Registration Rights Agreement” means the Registration Rights Agreement, dated as of the date
of this Agreement, among the Company and the Investors, in the form of Exhibit A hereto.
“Registration Statement” means a registration statement meeting the requirements set forth in
the Registration Rights Agreement and covering the resale by the Investors of the Selling
Stockholder Shares.
“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.
“SEC Reports” has the meaning set forth in Section 3.1(g).
“Securities Act” means the Securities Act of 1933, as amended.
“Selling Stockholder Shares” means the shares of Common Stock being offered and sold by the
Selling Stockholder to the Investors hereunder in such number as is set forth below the Selling
Stockholder’s signature to this Agreement.
“Short Sales” include, without limitation, all “short sales” as defined in Rule 200
promulgated under Regulation SHO under the Exchange Act and all types of direct and indirect stock
pledges, forward sale contracts, options, puts, calls, swaps and similar arrangements (including on
a total return basis), and sales and other transactions through non-US broker dealers or foreign
regulated brokers.
“Trading Day” means (i) a day on which the Common Stock is traded on a Trading Market (other
than the OTC Bulletin Board), or (ii) if the Common Stock is not listed on a Trading Market (other
than the OTC Bulletin Board), a day on which the Common Stock is traded in the over-the-counter
market, as reported by the OTC Bulletin Board, or (iii) if the Common Stock is not quoted on any
Trading Market, a day on which the Common Stock is quoted in the over-the-counter market as
reported by the Pink Sheets, LLC (or any similar organization or agency succeeding to its functions
of reporting prices); provided, that in the event that the Common Stock is not listed or quoted as
set forth in (i), (ii) and (iii) hereof, then Trading Day shall mean a Business Day.
“Trading Market” means whichever of the New York Stock Exchange, the American Stock Exchange,
the NASDAQ National Market, the NASDAQ Capital Market or
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OTC Bulletin Board on which the Common Stock is listed or quoted for trading on the date in
question.
“Transaction Documents” means this Agreement, the Registration Rights Agreement, the Escrow
Agreement and any other documents or agreements executed in connection with the transactions
contemplated hereunder.
“Warrants” means warrants to purchase Common Stock held by the Selling Stockholders which
shall be transferred to the Investors at the Closing and exercised into shares of Common Stock by
the Investors immediately following the Closing.
ARTICLE 2.
PURCHASE AND SALE
PURCHASE AND SALE
2.1. Purchase of Selling Stockholder Shares; Closing.
(a) Subject to the terms and conditions set forth in this Agreement, at the Closing the
Selling Stockholders shall sell to each Investor, and each Investor shall, severally and not
jointly, purchase from the Selling Stockholders, the Selling Stockholder Shares and Warrants in
such number as equals the quotient (rounded down to the nearest whole share) obtained by dividing
(1) such Investor’s Investment Amount by (2) the Per Share Purchase Price (provided that, in the
case of the Warrants, the exercise price of each such Warrant shall be credited toward the Per
Share Purchase Price of such Warrant).
(b) The Closing shall take place at the offices of Xxxxx Xxxx LLP, 0000 Xxxxxx xx xxx
Xxxxxxxx, Xxx Xxxx, XX 00000 or at such other location as the parties may agree.
(c) The Company and the Selling Stockholders will cooperate with one another, and will cause
the Selling Stockholder Shares and Conversion Shares to be re-issued to the Investors at Closing as
part of a single Common Stock certificate from the Company to each Investor that will include all
Selling Stockholder Shares and Conversion Shares being acquired by such Investor under this
Agreement. Each Selling Stockholder will deliver all documents and such other instruments,
directions and writings as may reasonably be required to timely effect the Closing as herein
contemplated, including causing to be issued and delivered to the Company for redelivery to the
Investors at closing the legal opinion contemplated by Section 2.2(b)(3).
2.2. Closing Deliveries. (a) At the Closing, the following will occur:
(a) Each Investor will deliver to the Company the Registration Rights Agreement, duly executed
by such Investor.
(b) The Company will cause to be issued and delivered to each Investor:
(1) the Registration Rights Agreement, duly executed by the Company and all parties thereto;
(2) the Escrow Agreement, duly executed by all parties thereto; and
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(3) the legal opinions of counsel to the Company and the Selling Stockholders, each in agreed
form, addressed to the Investors.
(c) Each Investor shall deliver or cause to be delivered (for further redistribution to the
Selling Stockholders to reflect the particular Selling Stockholder Shares and Warrants being hereby
offered and sold consistent with Section 2.1(a)) to the Escrow Agent, its Investment Amount, in
United States dollars and in immediately available funds, by wire transfer to an account designated
in writing by the Escrow Agent for such purpose.
(d) Upon joint written instructions from the Company and the placement agent set forth in
Schedule 3.3(f), the Escrow Agent will disburse the Investment Amount funded into Escrow by
the Investors pursuant to Section 2.2(c) to pay off the amount of the Liens contemplated by Section
5.2(e).
(e) The Company will cause to be issued and delivered to each Investor a certificate,
registered in the name of such Investor, representing that number of shares of Common Stock to be
issued and sold at Closing to such Investor, determined under Section 2.1(a), registered in the
name of such Investor.
(f) Upon joint written instructions from the Company and the placement agent set forth in
Schedule 3.3(f), the Escrow Agent will disburse the balance of the Investment Amounts
funded into Escrow by the Investors pursuant to Section 2.2(c) not used to fund payments in
accordance with Section 2.2(d) as follows:
(1) to pay any fees and amounts listed on Schedule 3.3(f) not already paid above, and
(2) to pay the Selling Stockholders for the Selling Stockholder Shares and Warrants.
ARTICLE 3.
REPRESENTATIONS AND WARRANTIES
REPRESENTATIONS AND WARRANTIES
3.1. Representations and Warranties of the Company. The Company hereby makes the
following representations and warranties to each Investor:
(a) Authorization; Enforcement. The Company has the requisite corporate power and
authority to enter into and to consummate the transactions contemplated by each of the Transaction
Documents and otherwise to carry out its obligations thereunder. The execution and delivery of
each of the Transaction Documents by the Company and the consummation by it of the transactions
contemplated thereby have been duly authorized by all necessary action on the part of the Company
and no further action is required by the Company in connection therewith. Each Transaction
Document has been (or upon delivery will have been) duly executed by the Company and, when
delivered in accordance with the terms hereof, will constitute the valid and binding obligation of
the Company enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or similar laws relating to, or
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affecting generally the enforcement of, creditors’ rights and remedies or by other equitable
principles of general application.
(b) No Conflicts. The execution, delivery and performance of the Transaction
Documents by the Company, the consummation by the Company of the transactions contemplated thereby
and the sale of the Selling Stockholder Shares and Warrants hereunder do not and will not (i)
conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles
of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or
constitute a default (or an event that with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or cancellation (with
or without notice, lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which
the Company or any Subsidiary is a party or by which any property or asset of the Company or any
Subsidiary is bound or affected, or (iii) result in a violation of any law, rule, regulation,
order, judgment, injunction, decree or other restriction of any court or governmental authority to
which the Company or a Subsidiary is subject (including federal and state securities laws and
regulations), or by which any property or asset of the Company or a Subsidiary is bound or
affected.
(c) Filings, Consents and Approvals. The Company is not required to obtain any
consent, waiver, authorization or order of, give any notice to, or make any filing or registration
with, any court or other federal, state, local or other governmental authority or other Person in
connection with the execution, delivery and performance by the Company of the Transaction Documents
or by reason of the sale of the Selling Stockholder Shares and Warrants hereunder, other than (i)
the filing with the Commission of one or more Registration Statements in accordance with the
requirements of the Registration Rights Agreement, (ii) the filings required in accordance with
Section 4.3 and (iii) those that have been made or obtained prior to the date of this Agreement.
(d) Issuance of the Shares. The Conversion Shares have been duly authorized and, when
issued and paid for in accordance with Section 2.2(b)(ii), will be duly and validly issued, fully
paid and nonassessable, free and clear of all Liens. The Company has reserved from its duly
authorized capital stock such shares of Common Stock. When issued, the Selling Stockholder Shares
and Warrants were duly authorized and were validly issued, fully paid and nonassessable. The
Selling Stockholders are the sole record owners of the Selling Stockholder Shares and Warrants to
be sold hereunder. The sale of the Selling Stockholder Shares and Warrants hereunder will not,
immediately or with the passage of time, obligate the Company to issue shares of Common Stock or
other securities to any Person (other than the Investors) and will not result in a right of any
holder of Company securities to adjust the exercise, conversion, exchange or reset price under such
securities, or under any other securities issued by the Company.
(e) Certain Registration Matters. Assuming the accuracy of the Investors’
representations and warranties set forth in Section 3.2(b)-(d), no registration under the
Securities Act is required for the offer and sale of the Selling Stockholder Shares and Warrants
and the offer of Conversion Shares by the Selling Stockholders to the Investors under the
Transaction
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Documents. The Company is eligible to register its Common Stock for resale by the Investors
under Form S-3 promulgated under the Securities Act.
(f) Listing and Maintenance Requirements. Except as specified in the SEC Reports, the
Company has not, in the two years preceding the date hereof, received notice from any Trading
Market to the effect that the Company is not in compliance with the listing or maintenance
requirements thereof. The Company is, and has no reason to believe that it will not in the
foreseeable future continue to be, in compliance with the listing and maintenance requirements for
continued listing of the Common Stock on the Trading Market on which the Common Stock is currently
listed or quoted. The sale of the Selling Stockholder Shares and Warrants does not contravene the
rules and regulations of the Trading Market on which the Common Stock is currently listed or
quoted, and no approval of the shareholders of the Company thereunder is required for any such
actions. The Selling Stockholder Shares and the Conversion Shares are listed on the Trading Market
on which the Common Stock is currently listed or quoted.
(g) SEC Reports; Financial Statements. The Company has filed all reports, schedules,
forms, statements and other documents required to be filed by it under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the
date hereof (or such shorter period as the Company was required by law to file such material) (the
foregoing materials, including the exhibits thereto and documents incorporated by reference
therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has
received a valid extension of such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. Except as set forth on Schedule 3.1(g), as of their
respective dates, the SEC Reports complied in all material respects with the requirements of the
Securities Act and the Exchange Act and the rules and regulations of the Commission promulgated
thereunder, and none of the SEC Reports, when filed, contained any untrue statement of a material
fact or omitted to state a material fact required to be stated therein or necessary in order to
make the statements therein, in light of the circumstances under which they were made, not
misleading. The financial statements of the Company included in the SEC Reports comply in all
material respects with applicable accounting requirements and the rules and regulations of the
Commission with respect thereto as in effect at the time of filing. Such financial statements have
been prepared in accordance with United States generally accepted accounting principles applied on
a consistent basis during the periods involved (“GAAP”), except as may be otherwise specified in
such financial statements or the notes thereto and except that unaudited financial statements may
not contain all footnotes required by GAAP, and fairly present in all material respects the
financial position of the Company and its consolidated subsidiaries as of and for the dates thereof
and the results of operations and cash flows for the periods then ended, subject, in the case of
unaudited statements, to normal, immaterial, year-end audit adjustments. No event, liability,
development or circumstance has occurred or exists, or is contemplated to occur, with respect to
the Company or any of its subsidiaries or their respective business, assets, properties, prospects,
operations (including results thereof), liabilities or condition (financial or otherwise), that
would be required to be disclosed by the Company under applicable securities laws on a registration
statement on Form S-1 filed with the Commission relating to an issuance and sale by the Company of
its Common Stock and which has not been publicly announced, other than the transaction contemplated
by this Agreement.
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(h) Disclosure. The Company confirms that, to the Company’s knowledge (and without
any obligation to inquire of any Person who is not an officer, director or employee of the
Company), neither it nor any other Person acting on its behalf has provided any of the Investors,
other than an Investor that is an officer or director of the Company, or their respective agents or
counsel with any information that constitutes or could reasonably be expected to constitute
material, nonpublic information. The Company understands and confirms that each of the Investors
will rely on the foregoing representations in effecting transactions in securities of the Company.
All disclosure provided to the Investors regarding the Company, its business and the transactions
contemplated hereby, including the Schedules to this Agreement, furnished by or on behalf of the
Company are true and correct and do not contain any untrue statement of a material fact or omit to
state any material fact necessary in order to make the statements made therein, in the light of the
circumstances under which they were made, not misleading. Each press release issued by the Company
during the twelve (12) months preceding the date of this Agreement did not at the time of release
contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, in the light of the
circumstances under which they are made, not misleading. No event or circumstance has occurred or
information exists with respect to the Company or any subsidiary or either of its or their
respective business, properties, prospects, operations or financial conditions, which, under
applicable law, rule or regulation, requires public disclosure or announcement by the Company but
which has not been so publicly announced or disclosed (assuming for this purpose that the Company’s
reports filed under the Exchange Act are being incorporated into an effective registration
statement filed by the Company under the Securities Act).
(i) Equity Capitalization. As of the date hereof and as of the Closing, the
authorized capital stock of the Company consists solely of (i) 200,000,000 shares of Common Stock,
of which 52,412,695 including 2,500,000 shares held in treasury are issued and 49,912,695 are
outstanding and 31,798,349 are reserved for issuance pursuant to securities exercisable or
exchangeable for, or convertible into, shares of Common Stock and (ii) 5,000,000 shares of
preferred stock, of which 26,500 are issued and outstanding.
(j) Limitation on Investors Representations. The Company acknowledges and agrees that
no Investor has made or makes any representations or warranties with respect to the transactions
contemplated hereby other than those specifically set forth in Section 3.2.
3.2. Representations and Warranties of the Investors. Each Investor hereby, for
itself and for no other Investor, represents and warrants to the Company and the Selling
Stockholders as follows:
(a) Organization; Authority. Such Investor is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its organization with the
requisite corporate or partnership power and authority to enter into and to consummate the
transactions contemplated by the Transaction Documents and otherwise to carry out its obligations
thereunder. The execution, delivery and performance by such Investor of the transactions
contemplated by the Transaction Documents have been duly authorized by all necessary corporate or,
if such Investor is not a corporation, such partnership, limited liability company or other
applicable like action, on the part of such Investor. Each of this Agreement
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and the Registration Rights Agreement has been duly executed by such Investor, and when
delivered by such Investor in accordance with the terms hereof, will constitute the valid and
legally binding obligation of such Investor, enforceable against it in accordance with its terms,
except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, liquidation or similar laws relating to, or affecting generally the enforcement of,
creditors’ rights and remedies or by other equitable principles of general application.
(b) Investment Intent. Such Investor is acquiring the Selling Stockholder Shares,
Warrants and Conversion Shares as principal for its own account for investment purposes only and
not with a view to or for distributing or reselling such Selling Stockholder Shares, Warrants and
Conversion Shares or any part thereof, without prejudice, however, to such Investor’s right at all
times to sell or otherwise dispose of all or any part of such securities in compliance with
applicable federal and state securities laws. Subject to the immediately preceding sentence,
nothing contained herein shall be deemed a representation or warranty by such Investor to hold the
Selling Stockholder Shares, Warrants and Conversion Shares for any period of time. Such Investor
is acquiring the Selling Stockholder Shares, Warrants and Conversion Shares hereunder in the
ordinary course of its business. Such Investor does not have any agreement or understanding,
directly or indirectly, with any Person to distribute any of the Selling Stockholder Shares.
(c) Investor Status. At the time such Investor was offered the Selling Stockholder
Shares and Warrants, it was, and at the date hereof it is, an “accredited investor” as defined in
Rule 501(a) under the Securities Act. Such Investor is not a registered broker-dealer under
Section 15 of the Exchange Act.
(d) General Solicitation. Such Investor is not purchasing the Selling Stockholder
Shares and Warrants as a result of any advertisement, article, notice or other communication
regarding the Selling Stockholder Shares and Warrants published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at any seminar or any other
general solicitation or general advertisement.
(e) Certain Trading Activities. Such Investor has not directly or indirectly, nor has
any Person acting on behalf of or pursuant to any understanding with such Investor, engaged in any
transactions in the securities of the Company (including, without limitations, any Short Sales
involving the Company’s securities) since the time that such Investor was first contacted by the
Company or Xxxx Capital Partners, LLC regarding the acquisition of Selling Stockholder Shares and
Warrants contemplated by this Agreement. Such Investor covenants that neither it nor any Person
acting on its behalf or pursuant to any understanding with it will engage in any transactions in
the securities of the Company (including Short Sales) prior to the time that the transactions
contemplated by this Agreement are publicly disclosed.
(f) Independent Investment Decision. Such Investor has independently evaluated the
merits of its decision to purchase the Selling Stockholder Shares and Warrants pursuant to the
Transaction Documents, and such Investor confirms that it has not relied on the advice of any other
Investor’s business and/or legal counsel in making such decision. Such Investor has not relied on
the business or legal advice of Xxxx Capital Partners, LLC or any of its
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agents, counsel or Affiliates in making its investment decision hereunder, and confirms that
none of such Persons has made any representations or warranties to such Investor in connection with
the transactions contemplated by the Transaction Documents.
3.3. Representations and Warranties of the Selling Stockholders. Each Selling
Stockholder for itself and no other Selling Stockholder hereby makes the following representations
and warranties to each Investor:
(a) Enforcement. This Agreement has been duly executed and delivered by such Selling
Stockholder and constitutes the valid and binding obligation of such Selling Stockholder,
enforceable against it in accordance with its terms except as such enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating
to, or affecting generally the enforcement of, creditors’ rights and remedies or by other equitable
principles of general application.
(b) No Consents. No consent, approval, authorization or order of, or any filing or
declaration with, any court or governmental agency or body, trustee or other Person is required in
connection with the consummation by such Selling Stockholder of the transactions on its part
contemplated by the Transaction Documents, except (i) filings as may be required under Sections
13(d) and 16(a) of the Exchange Act, and (ii) those that have been made or obtained prior to the
date of this Agreement.
(c) No Conflicts. The execution, delivery and performance by such Selling Stockholder
of the Transaction Documents to which it is a party and the consummation of the transactions
contemplated thereby do not and will not result in a breach or violation of, or constitute a
default under (with or without notice or lapse of time), any stockholders agreement, voting trust
agreement, trust or other fiduciary agreement, pledge agreement, registration rights agreement or
other agreement or instrument to which such Selling Stockholder or any of its properties are bound
or affected, and will not violate or conflict with any judgment, decree or order of any court or
other governmental agency or any law, rule or regulation applicable to such Selling Stockholder.
(d) Certain Registration Matters. Assuming the accuracy of the Investors’
representations and warranties set forth in Section 3.2(b)-(d), no registration under the
Securities Act is required for the offer and sale of the Selling Stockholder Shares and Warrants by
the Selling Stockholders to the Investors under the Transaction Documents.
(e) Good and Marketable Title. Except as set forth on Schedule 3.3(e), such
Selling Stockholder is the sole lawful record and sole beneficial owner of all of the Selling
Stockholder Shares and Warrants to be sold by it hereunder. Such Selling Stockholder has good and
marketable title to the Selling Stockholder Shares and Warrants to be sold by it hereunder, free
and clear of any Liens, except for restrictions on subsequent transfer imposed by the securities
laws. Upon consummation of the Closing, the Investors will have good and marketable title to the
Selling Stockholder Shares and Warrants purchased by them, free and clear of all Liens other than
any Liens created by or through such Investor.
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(f) Certain Fees. Except as described in Schedule 3.3(f), no brokerage or
finder’s fees or commissions are or will be payable by the Selling Stockholders to any broker,
financial advisor or consultant, finder, placement agent, investment banker, bank or other Person
with respect to the transactions contemplated by this Agreement. The Investors shall have no
obligation with respect to any fees or with respect to any claims (other than such fees or
commissions owed by an Investor pursuant to written agreements executed by such Investor which fees
or commissions shall be the sole responsibility of such Investor) made by or on behalf of other
Persons for fees of a type contemplated in this Section that may be due in connection with the
transactions contemplated by this Agreement.
(g) No Other Selling Stockholder Shares. Except as set forth on Schedule
3.3(g), such Selling Stockholder does not beneficially own any securities of the Company,
including, without limitation, any Common Stock Equivalents, other than the Selling Stockholder
Shares being offered and sold by it hereunder.
(h) No Additional Agreements. Such Selling Stockholder does not have any agreement or
understanding with any Investor or with the Company with respect to the transactions contemplated
by the Transaction Documents other than as specified in the Transaction Documents.
(i) Non-Public Information. Such Selling Stockholder does not possess any material,
non-public information concerning the Company.
(j) Certain Deliveries. Such Selling Stockholder has (i) delivered to the Company all
of the Selling Stockholder Shares and Warrants subject to this Agreement of which it will be
selling hereunder, together with such other documents as may be required to effect the transfer and
reissuance of such securities to the Investors at the Closing, including stock powers executed in
blank, exercise notices and directions for the Company to effect the transfer of such securities on
its books as of the Closing and (ii) instructed the Company to hold the Selling Stockholder Shares
and reissue the same at Closing to the Investors in accordance with Section 2.2.
(k) Limitation on Investors Representations. Such Selling Stockholder acknowledges
and agrees that no Investor has made or makes any representations or warranties with respect to the
transactions contemplated hereby other than those specifically set forth in Section 3.2.
ARTICLE 4.
OTHER AGREEMENTS OF THE PARTIES
OTHER AGREEMENTS OF THE PARTIES
4.1. (a) Selling Stockholder Shares and Conversion Shares may only be disposed of in
compliance with state and federal securities laws. In connection with any transfer of Selling
Stockholder Shares other than pursuant to an effective registration statement or Rule 144, to the
Company, to an Affiliate of an Investor or in connection with a pledge as contemplated in Section
4.1(b), the Company may require the transferor thereof to provide to the Company an opinion of
counsel selected by the transferor, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require
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registration of such transferred Selling Stockholder Shares and Conversion Shares under the
Securities Act.
(b) Certificates evidencing the Selling Stockholder Shares and Conversion Shares will contain
the following legend, until such time as they are not required under Section 4.1(c):
THESE SECURITIES HAVE NOT BEEN REGISTERED WITH THE SECURITIES AND
EXCHANGE COMMISSION OR THE SECURITIES COMMISSION OF ANY STATE IN
RELIANCE UPON AN EXEMPTION FROM REGISTRATION UNDER THE SECURITIES
ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND, ACCORDINGLY,
MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO (1) AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (2) RULE 144
PROMULGATED UNDER THE SECURITIES ACT OR (3) PURSUANT TO AN AVAILABLE
EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE
STATE SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO
THE TRANSFEROR TO SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE
REASONABLY ACCEPTABLE TO THE COMPANY. THESE SECURITIES MAY BE
PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT SECURED BY
SUCH SECURITIES.
The Company acknowledges and agrees that an Investor may from time to time pledge, and/or
grant a security interest in some or all of the Selling Stockholder Shares and Conversion Shares
pursuant to a bona fide margin agreement in connection with a bona fide margin account and, if
required under the terms of such agreement or account, such Investor may transfer pledged or
secured Selling Stockholder Shares and Conversion Shares to the pledgees or secured parties. Such
a pledge or transfer would not be subject to approval or consent of the Company and no legal
opinion of legal counsel to the pledgee, secured party or pledgor shall be required in connection
with the pledge, but such legal opinion may be required in connection with a subsequent transfer
following default by the Investor transferee of the pledge. No notice shall be required of such
pledge. At the appropriate Investor’s expense, the Company will execute and deliver such
reasonable documentation as a pledgee or secured party of Selling Stockholder Shares and Conversion
Shares may reasonably request in connection with a pledge or transfer of the Selling Stockholder
Shares and Conversion Shares including the preparation and filing of any required prospectus
supplement under Rule 424(b)(3) of the Securities Act or other applicable provision of the
Securities Act to appropriately amend the list of selling stockholders thereunder.
(c) Certificates evidencing Selling Stockholder Shares and Conversion Shares shall not contain
any legend (including the legend set forth in Section 4.1(b)): (i) while a
12
registration statement (including a Registration Statement) covering the resale of such
security is effective under the Securities Act, or (ii) following a sale or transfer of such
Selling Stockholder Shares and Conversion Shares pursuant to Rule 144 (assuming the transferee is
not an Affiliate of the Company), or (iii) while such Selling Stockholder Shares and Conversion
Shares are eligible for sale under Rule 144(k), or (iv) if such legend is not required under
applicable requirements of the Securities Act (including judicial interpretations and
pronouncements issued by the Staff of the Commission) and such lack of requirement is confirmed by
a legal opinion satisfactory to the Company. If, upon written request, the Company shall fail for
any reason or for no reason to issue to the holder of Selling Stockholder Shares or Conversion
Shares, within three (3) Trading Days after the occurrence of any of (i) through (iv) of the
immediately preceding sentence, a certificate representing such Selling Stockholder Shares and
Conversion Shares that is free from all restrictive or other legends, and if on or after such third
Trading Day such holder, or any third party on behalf of such holder, purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a sale by the
Investor of such Selling Stockholder Shares and Conversion Shares (a “Buy-In”), then the Company
shall, within three (3) Business Days after the holder’s request and in the holder’s discretion,
either (1) pay in cash to the holder (for costs incurred either directly by such holder or on
behalf of a third party) an amount equal to the holder’s total purchase price (including brokerage
commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), or (2)
promptly honor its obligation to deliver to the holder such unlegended shares of Common Stock as
provided above and pay cash to the holder in an amount equal to the excess (if any) of the Buy-In
Price over the product of (A) such number of shares of Common Stock and (B) the closing bid price
of the Common Stock on the date of exercise.
4.2. Furnishing of Information. As long as any Investor owns any Selling Stockholder
Shares and Conversion Shares, the Company covenants to timely file (or obtain extensions in respect
thereof and file within the applicable grace period) all reports required to be filed by the
Company after the date hereof pursuant to the Exchange Act. As long as any Investor owns any
Selling Stockholder Shares or Conversion Shares, if the Company is not required to file reports
pursuant to such laws, it will prepare and furnish to the Investors and make publicly available in
accordance with Rule 144(c) such information as is required for the Investors to sell the Selling
Stockholder Shares and Conversion Shares under Rule 144. The Company further covenants that it will
take such further action as any holder of any Selling Stockholder Shares or Conversion Shares may
reasonably request, all to the extent required from time to time to enable such Person to sell the
Selling Stockholder Shares and Conversion Shares without registration under the Securities Act
within the limitation of the exemptions provided by Rule 144.
4.3. Securities Laws Disclosure; Publicity. By 9:00 a.m. (New York time) on the
Trading Day following the execution of this Agreement, and by 9:00 a.m. (New York time) on the
Trading Day following the Closing Date, the Company shall issue press releases disclosing the
transactions contemplated hereby (including the material terms hereof) and the Closing. On the
Trading Day following the execution of this Agreement the Company will file a Current Report on
Form 8-K disclosing the material terms of the Transaction Documents (and attach as exhibits thereto
the Transaction Documents), and on the Trading Day following the Closing Date the Company will file
an additional Current Report on Form 8-K to disclose the Closing. In addition, the Company will
make such other filings and notices in the manner and time required by the Commission and the
Trading Market on which the Common Stock is listed.
13
Notwithstanding the foregoing, the Company shall not publicly disclose the name of any
Investor, or include the name of any Investor in any filing with the Commission (other than the
Registration Statement and any exhibits to filings made in respect of this transaction in
accordance with periodic filing requirements under the Exchange Act) or any regulatory agency or
Trading Market, without the prior written consent of such Investor, except to the extent such
disclosure is required by law or Trading Market regulations. From and after the filing of such
8-K, no Investor, other than an Investor which is an officer or director of the Company, shall be
in possession of any material, non-public information regarding the Company that is not disclosed
in such 8-K.
4.4. Indemnification of Investors. In addition to the indemnity provided in the
Registration Rights Agreement, the Company and each Selling Stockholder hereby agree to the
following indemnification of the Investors:
(a) The Company will indemnify and hold the Investors and their respective directors,
officers, shareholders, partners, employees and agents (each, an “Investor Party”) harmless from
any and all Losses that any such Investor Party may suffer or incur as a result of or relating to
any misrepresentation, breach or inaccuracy of any representation, warranty, covenant or agreement
made by the Company in any Transaction Document. In addition to the indemnity contained herein,
the Company will reimburse each Investor Party for its reasonable legal and other expenses
(including the cost of any investigation, preparation and travel in connection therewith) incurred
in connection therewith, as such expenses are incurred.
(b) Each Selling Stockholder will severally and jointly indemnify and hold each of the Company
and each Investor Party harmless from any and all Losses that the Company or any such Investor
Party may suffer or incur as a result of or relating to any misrepresentation, breach or inaccuracy
of any representation, warranty, covenant or agreement made by such Selling Stockholder in any
Transaction Document. In addition, such Selling Stockholder will severally and jointly reimburse
each of the Company and each Investor Party for its reasonable legal and other expenses (including
the cost of any investigation, preparation and travel in connection therewith) incurred in
connection therewith, as such expenses are incurred.
(c) Except as otherwise set forth herein, the mechanics and procedures with respect to the
rights and obligations under this Section 4.7 shall be the same as those set forth in Section 5 of
the Registration Rights Agreement.
4.5. Non-Public Information. Each of the Company and the Selling Stockholders
covenant and agree that neither they nor any other Person acting on their behalf will provide any
Investor, other than an Investor which is an officer or director of the Company, or its agents or
counsel with any information that the Company believes constitutes material non-public information,
unless prior thereto such Investor shall have executed a written agreement regarding the
confidentiality and use of such information. Each of the Company and the Selling Stockholders
understand and confirm that each Investor shall be relying on the foregoing representations in
effecting transactions in securities of the Company. In the event of a breach by the Company or
any Selling Stockholder of the covenant contained in the first sentence of this Section 4.5, in
addition to any other remedy provided herein or in the other Transaction
14
Documents, each Investor shall have the right to make a public disclosure, in the form of a
press release, public advertisement or otherwise, of such material, non-public information without
the prior approval by the Company, any Selling Stockholder, or any of its or their respective
officers, directors, employees or agents. No Investor shall have any liability to the Company, any
Selling Stockholder, or any of its or their respective officers, directors, employees, shareholders
or agents for any such disclosure.
4.6. Listing of Selling Stockholder Shares. The Company agrees, (i) if the Company
applies to have the Common Stock traded on any other Trading Market, it will include in such
application the Selling Stockholder Shares and Conversion Shares, and will take such other action
as is necessary or desirable to cause such Selling Stockholder Shares and Conversion Shares to be
listed on such other Trading Market as promptly as possible, and (ii) it will take all action
reasonably necessary to continue the listing and trading of its Common Stock on a Trading Market
and will comply in all material respects with the Company’s reporting, filing and other obligations
under the bylaws or rules of the Trading Market.
ARTICLE 5.
CONDITIONS PRECEDENT TO CLOSING
CONDITIONS PRECEDENT TO CLOSING
5.1. Conditions Precedent to the Obligations of the Investors to Purchase Selling
Stockholder Shares and Warrants. The obligation of each Investor to acquire Selling
Stockholder Shares and Warrants at the Closing is subject to the satisfaction or waiver by such
Investor, at or before the Closing, of each of the following conditions:
(a) Representations and Warranties. Each of the representations and warranties of the
Company and the Selling Stockholders contained herein shall be true and correct in all respects as
of the date when made and in all material respects as of the Closing as though made on and as of
such date;
(b) Performance. Each of the Company and the Selling Stockholders shall have
performed, satisfied and complied in all respects with all covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied with by them at or
prior to the Closing;
(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents;
(d) Adverse Changes. Since the date of execution of this Agreement, no event or
series of events shall have occurred that reasonably could have or result in a Material Adverse
Effect;
(e) No Suspensions of Trading in Common Stock; Listing. Trading in the Common Stock
shall not have been suspended by the Commission or any Trading Market (except for any suspensions
of trading of not more than one Trading Day solely to permit dissemination of material information
regarding the Company) at any time since the date of
15
execution of this Agreement, and the Common Stock shall have been at all times since such date
listed for trading on a Trading Market;
(f) Termination. This Agreement shall not have been terminated as to such Investor in
accordance with Section 6.5; and
(g) Liens. Any lienholder on the Selling Stockholder Shares and Warrants shall have
furnished the applicable Selling Stockholder to hold in escrow pending the Closing with executed
releases of all Liens held by such lienholder regarding the Selling Stockholder Shares and Warrants
subject thereto, copies of which shall have been provided to the Investors, together with all other
documentation reasonably requested by the Investors to cause the release of such Liens at Closing.
5.2. Conditions Precedent to the Obligations of the Company and the Selling Stockholders
to Sell Selling Stockholder Shares and Warrants. The obligation of the Company and each
Selling Stockholder to sell Selling Stockholder Shares and Warrants at the Closing is subject to
the satisfaction or waiver by the Company or the appropriate Selling Stockholder (as the case may
be), at or before the Closing, of each of the following conditions:
(a) Representations and Warranties. The representations and warranties of each
Investor contained herein shall be true and correct in all respects as of the date when made and in
all material respects as of the Closing Date as though made on and as of such date;
(b) Performance. Each Investor shall have performed, satisfied and complied in all
respects with all covenants, agreements and conditions required by the Transaction Documents to be
performed, satisfied or complied with by such Investor at or prior to the Closing;
(c) No Injunction. No statute, rule, regulation, executive order, decree, ruling or
injunction shall have been enacted, entered, promulgated or endorsed by any court or governmental
authority of competent jurisdiction that prohibits the consummation of any of the transactions
contemplated by the Transaction Documents;
(d) Termination. This Agreement shall not have been terminated as to such Investor in
accordance with Section 6.5; and
(e) Liens. Any lienholder on the Selling Stockholder Shares and Warrants shall have
furnished the applicable Selling Stockholder to hold in escrow pending the Closing with executed
releases of all Liens held by such lienholder regarding the Selling Stockholder Shares and Warrants
subject thereto, together with all other documentation reasonably requested by the Selling
Stockholders to cause the release of such Liens at Closing.
ARTICLE 6.
MISCELLANEOUS
MISCELLANEOUS
6.1. Fees and Expenses. Each party shall pay the fees and expenses of its advisers,
counsel, accountants and other experts, if any, and all other expenses incurred by such party
incident to the negotiation, preparation, execution, delivery and performance of the Transaction
16
Documents. The Company shall pay all stamp and other taxes and duties levied in connection
with (a) the issuance or transfer of the shares of Common Stock or Warrants to the Investors at
Closing or (b) the issuance of the Conversion Shares upon exercise of the Warrants.
6.2. Entire Agreement. The Transaction Documents, together with the Exhibits and
Schedules thereto, contain the entire understanding of the parties with respect to the subject
matter hereof and supersede all prior agreements, understandings, discussions and representations,
oral or written, with respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules.
6.3. 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 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 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 (provided next day delivery is specified), 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: | Think Partnership Inc. | |||
28050 XX 00 Xxxxx, Xxxxx 000 | ||||
Xxxxxxxxxx, Xxxxxxx 00000 | ||||
Facsimile: [ ] | ||||
Attention: President | ||||
With a copy to: | Xxxxxxx & Xxxxxxxx Ltd. | |||
000 Xxxx Xxxxxx Xxxxx, Xxxxx 0000 | ||||
Xxxxxxx, Xxxxxxxx 00000 | ||||
Facsimile: (000) 000-0000 | ||||
Attention: Xxxxxxx X. Xxxxxx, Esq. | ||||
If to a Selling Stockholder: | To the address set forth on its signature page hereof; | |||
If to an Investor: | To the address set forth under such Investor’s name on the signature pages hereof; |
or such other address as may be designated in writing hereafter, in the same manner, by such
Person.
6.4. Amendments; Waivers; No Additional Consideration. No provision of this Agreement
may be waived or amended except in a written instrument signed by the Company and the Investors
and, prior to Closing, the Selling Stockholders. In addition, Sections 3.3, 4.5(b) and Article VI
may not be waived or amended except in a written instrument signed by the
17
Investors, the Company and the Selling Stockholder. No waiver of any default with respect to
any provision, condition or requirement of this Agreement shall be deemed to be a continuing waiver
in the future or a waiver of any subsequent default or a waiver of any other provision, condition
or requirement hereof, nor shall any delay or omission of either party to exercise any right
hereunder in any manner impair the exercise of any such right. No consideration shall be offered
or paid to any Investor to amend or consent to a waiver or modification of any provision of any
Transaction Document unless the same consideration is also offered to all Investors who then hold
Selling Stockholder Shares and Conversion Shares.
6.5. Termination. This Agreement may be terminated prior to Closing:
(a) by written agreement of the Investors, the Company and the Selling Stockholders; and
(b) by an Investor (as to itself but no other Investor) upon written notice to the Selling
Stockholders and the Company, if the Closing shall not have taken place by 6:30 p.m. Eastern time
on the Outside Date; provided, that the right to terminate this Agreement under this
Section 6.5(b) shall not be available to any Person whose failure to comply with its obligations
under this Agreement has been the cause of or resulted in the failure of the Closing to occur on or
before such time. Upon a termination in accordance with this Section 6.5, the terminating
Investor(s), as applicable, shall not have any further obligation or liability (including as
arising from such termination) to any other party and no Investor will have any liability to any
other Investor under the Transaction Documents as a result therefrom. No termination hereunder
will affect the right of any party to xxx for any breach by the other party (or parties) hereunder.
6.6. Construction. The headings herein are for convenience only, do not constitute a
part of this Agreement and shall not be deemed to limit or affect any of the provisions hereof.
The language used in this Agreement will be deemed to be the language chosen by the parties to
express their mutual intent, and no rules of strict construction will be applied against any party.
This Agreement shall be construed as if drafted jointly by the parties, and no presumption or
burden of proof shall arise favoring or disfavoring any party by virtue of the authorship of any
provisions of this Agreement or any of the Transaction Documents.
6.7. Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties and their successors and permitted assigns. Neither the Company nor any
Selling Stockholder may assign this Agreement or any rights or obligations hereunder without the
prior written consent of the Investors. Any Investor may assign any or all of its rights under
this Agreement to any Person to whom such Investor assigns or transfers any Selling Stockholder
Shares and Conversion Shares, provided such transferee agrees in writing to be bound, with respect
to the transferred Selling Stockholder Shares and Conversion Shares, by the provisions hereof that
apply to the “Investors.”
6.8. No Third-Party Beneficiaries. This Agreement is intended for the benefit of the
parties hereto and their respective successors and permitted assigns and is not for the benefit of,
nor may any provision hereof be enforced by, any other Person, except as otherwise set forth in
Section 4.4 (as to each Investor Party).
18
6.9. Governing Law. 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 Illinois, without regard to the principles of conflicts of
law thereof. Each of the Company, the Investors and the Selling Stockholders agrees that all
Proceedings concerning the interpretations, enforcement and defense of the transactions
contemplated by this Agreement and any other Transaction Documents (whether brought against a party
hereto or its respective Affiliates, employees or agents) shall be commenced exclusively in the
Illinois Courts. Each of the Company, the Investors and the Selling Stockholders hereby
irrevocably submits to the exclusive jurisdiction of the Illinois Courts for the adjudication of
any dispute hereunder or in connection herewith or with any transaction contemplated hereby or
discussed herein (including with respect to the enforcement of the any of the Transaction
Documents), 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 such Illinois Court, or that such
Proceeding has been commenced in an improper or inconvenient forum. Each of the Company, the
Investors and the Selling Stockholders 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. Each of the Company,
the Investors and the Selling Stockholders hereby irrevocably waives, to the fullest extent
permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out
of or relating to this Agreement or the transactions contemplated hereby. If any party shall
commence a Proceeding to enforce any provisions of a Transaction Document, then the prevailing
party in such Proceeding shall be jointly and severally reimbursed by the adverse party for its
reasonable attorneys’ fees and other costs and expenses incurred with the investigation,
preparation and prosecution of such Proceeding.
6.10. Survival. The representations, warranties, agreements and covenants contained
herein shall survive the Closing and the delivery of the Selling Stockholder Shares and Conversion
Shares.
6.11. Execution. This Agreement may be executed in two or more counterparts, all of
which when taken together shall be considered one and the same agreement and shall become effective
when counterparts have been signed by each party and delivered to the other party, it being
understood that both parties need not sign the same counterpart. In the event that any signature
is delivered by facsimile transmission, such signature shall create a valid and binding obligation
of the party executing (or on whose behalf such signature is executed) with the same force and
effect as if such facsimile signature page were an original thereof.
6.12. Severability. If any provision of this Agreement is held to be invalid or
unenforceable in any respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the parties will attempt
to agree upon a valid and enforceable provision that is a reasonable substitute therefor, and upon
so agreeing, shall incorporate such substitute provision in this Agreement.
19
6.13. Rescission and Withdrawal Right. Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction Documents, whenever
any Investor exercises a right, election, demand or option under a Transaction Document and the
Company does not timely perform its related obligations within the periods therein provided, then
such Investor may rescind or withdraw, in its sole discretion from time to time upon written notice
to the Company, any relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights.
6.14. Remedies. In addition to being entitled to exercise all rights provided herein
or granted by law, including recovery of damages, each of the Investors, the Company and Selling
Stockholders will be entitled to specific performance (without posting a bond or other security)
under the Transaction Documents. The parties agree that monetary damages may not be adequate
compensation for any loss incurred by reason of any breach of obligations described in the
foregoing sentence and hereby agrees to waive in any action for specific performance of any such
obligation the defense that a remedy at law would be adequate.
6.15. Independent Nature of Investors’ Obligations and Rights. The obligations of
each Investor under any Transaction Document are several and not joint with the obligations of any
other Investor, and no Investor shall be responsible in any way for the performance of the
obligations of any other Investor under any Transaction Document. The decision of each Investor to
purchase Selling Stockholder Shares and Warrants pursuant to the Transaction Documents has been
made by such Investor independently of any other Investor. 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
group or entity, or create a presumption that the Investors are in any way acting in concert or as
a group with respect to such obligations or the transactions contemplated by the Transaction
Documents. Each Investor acknowledges that no other Investor has acted as agent for such Investor
in connection with making its investment hereunder and that no Investor will be acting as agent of
such Investor in connection with monitoring its investment in the Selling Stockholder Shares and
Warrants or enforcing its rights under the Transaction Documents. Each Investor shall be entitled
to independently protect and enforce its rights, including without limitation the rights arising
out of this Agreement or out of the other Transaction Documents, and it shall not be necessary for
any other Investor to be joined as an additional party in any proceeding for such purpose. Each of
the Company and each Selling Stockholder acknowledges that each of the Investors has been provided
with the same Transaction Documents for the convenience of the Company and the Selling Stockholders
for the purpose of closing a transaction with multiple Investors and not because it was required or
requested to do so by any Investor.
6.16. Limitation of Liability. Notwithstanding anything herein to the contrary, each
of the Company and each Selling Stockholder acknowledges and agrees that the liability of an
Investor arising directly or indirectly, under any Transaction Document of any and every nature
whatsoever shall be satisfied solely out of the assets of such Investor, and that no trustee,
officer, other investment vehicle or any other Affiliate of such Investor or any investor,
shareholder or holder of shares of beneficial interest of such a Investor shall be personally
liable for any liabilities of such Investor.
20
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SIGNATURE PAGES FOLLOW]
SIGNATURE PAGES FOLLOW]
21
IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above.
THINK PARTNERSHIP INC. |
||||
By: | /s/ Xxxxx X. Xxxxxxxx | |||
Name: | Xxxxx X. Xxxxxxxx | |||
Title: | President and CEO | |||
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SIGNATURE PAGES FOR INVESTORS FOLLOW]
SIGNATURE PAGES FOR INVESTORS FOLLOW]
22
IN WITNESS WHEREOF, the parties hereto have caused this Securities Purchase Agreement to be
duly executed by their respective authorized signatories as of the date first indicated above.
NAME OF INVESTOR | ||||
MAGNETAR CAPITAL MASTER FUND, LTD. | ||||
By: Magnetar Financial LLC | ||||
Its: Investment Manager | ||||
By: | /s/ Xxxxx Xxxxxxxx | |||
Name: Xxxxx Xxxxxxxx Title: CFO |
||||
Investment Amount: $6,006,000.00 | ||||
ADDRESS FOR NOTICE | ||||
c/o: Magnetar Financial LLC | ||||
Street: 0000 Xxxxxxxxx Xxxxxx | ||||
Xxxx/Xxxxx/Xxx: Xxxxxxxx, XX 00000 | ||||
Attention: Xxxx Xxxxxxxx, Counsel | ||||
Tel: 000-000-0000 | ||||
Fax: 000-000-0000 | ||||
Email: xxxx.xxxxxxxx@xxxxxxxx.xxx |
||||
xxxxxxx@xxxxxxxx.xxx | ||||
DELIVERY INSTRUCTIONS | ||||
Xxx Xxxxx | ||||
Credit Suisse Securities | ||||
00 Xxxxxxx Xxx, 0xx Xxxxx | ||||
Xxx Xxxx, XX 00000 | ||||
Tel: 000-000-0000 | ||||
With an email confirmation to: | ||||
Xxx Xxxxx, Operations, Magnetar Capital LLC | ||||
Xxx.Xxxxx@xxxxxxxx.xxx | ||||
Tel: 000-000-0000 |
23
[NAMES OF OTHER INVESTORS] | ||||||
By: | ||||||
Name: | ||||||
Title: | ||||||
Investment Amount: $ | ||||||
Tax ID No.: |
ADDRESS FOR NOTICE | ||||||
c/o: | ||||||
Street: | ||||||
City/State/Zip: | ||||||
Attention: | ||||||
Tel: | ||||||
Fax: | ||||||
DELIVERY INSTRUCTIONS |
||||||
(if different from above) | ||||||
c/o: | ||||||
Street: | ||||||
City/State/Zip: | ||||||
Attention: | ||||||
Tel: | ||||||
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SIGNATURE PAGES FOR SELLING STOCKHOLDERS FOLLOW]
SIGNATURE PAGES FOR SELLING STOCKHOLDERS FOLLOW]
24
IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the
date first written above.
NAME OF SELLING STOCKHOLDER | ||||
XXXXXXX XXXXXX FAMILY TRUST | ||||
By: | /s/ Xxxx X. Xxxxxxx | |||
|
||||
Name: | Xxxx X. Xxxxxxx, Trustee | |||
NUMBER OF SELLING STOCKHOLDER SHARES | ||||
COMMON STOCK: 3,229,726 | ||||
WARRANTS: 2,670,000 | ||||
ADDRESS FOR NOTICE | ||||
c/o: Xxxxxxx Xxxxxx Family Trust | ||||
Street: 00 X. Xxxxxxx Xxxx | ||||
Xxxx/Xxxxx/Xxx: Xxxx Xxxxxx, XX 00000 | ||||
Attention: Xxxx X. Xxxxxxx, Trustee | ||||
Tel: | ||||
Fax: | ||||
Email: | ||||
25
IN WITNESS WHEREOF, the parties have executed this Securities Purchase Agreement as of the
date first written above.
NAME OF SELLING STOCKHOLDER | ||||
/s/ T. Xxxxxxxx Xxxxxxxx | ||||
Name: | T. Xxxxxxxx Xxxxxxxx | |||
NUMBER OF SELLING STOCKHOLDER SHARES | ||||
COMMON STOCK: | ||||
WARRANTS: 460,000 | ||||
ADDRESS FOR NOTICE | ||||
c/o: T. Xxxxxxxx Xxxxxxxx | ||||
Street: 00 Xxxxxxx Xxxx | ||||
Xxxx/Xxxxx/Xxx: Xxxxxxxxxx, XX 00000 | ||||
Attention: | ||||
Tel: | ||||
Fax: | ||||
Email: xxxxxx@xxxxx.xxx |
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