EXHIBIT 10.35
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AMENDED AND RESTATED STANDBY EQUITY DISTRIBUTION AGREEMENT
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THIS AMENDED AND RESTATED AGREEMENT dated as of the 12th day of
December 2005 (the "Agreement") between CORNELL CAPITAL PARTNERS,
LP, a Delaware
limited partnership (the "Investor"), and IVOICE TECHNOLOGY, INC.,
a corporation
organized and existing under the laws of the State of New Jersey
(the
"Company").
WHEREAS, on September 22, 2005, the parties hereto entered into
a
Standby Equity Distribution Agreement. This Agreement shall amend
and restate
the Standby Equity Distribution Agreement dated September 22, 2005
(the
"Original Agreement");
WHEREAS, any and all agreements, documents and instruments in
connection with the Standby Equity Distribution Agreement dated
September 22,
2005, including without limitation the Registration Rights
Agreement and
Placement Agent Agreement, shall be superseded by this Agreement,
the
Registration Rights Agreement and Placement Agreement, each of even
date
herewith;
WHEREAS, the Escrow Agreement dated September 22, 2005 has been
terminated;
WHEREAS, the parties desire that, upon the terms and subject to
the
conditions contained herein, the Company shall issue and sell to
the Investor,
from time to time as provided herein, and the Investor shall
purchase from the
Company up to Ten Million Dollars ($10,000,000) of the Company's
Class A common
stock, no par value per share (the "Common Stock");
WHEREAS, such investments will be made in reliance upon the
provisions
of Regulation D ("Regulation D") of the Securities Act of 1933, as
amended, and
the regulations promulgated thereunder (the "Securities Act"), and
or upon such
other exemption from the registration requirements of the
Securities Act as may
be available with respect to any or all of the investments to be
made hereunder;
and
WHEREAS, the Company has engaged Monitor Capital, Inc. (the
"Placement
Agent"), to act as the Company's exclusive placement agent in
connection with
the sale of the Company's Common Stock to the Investor hereunder
pursuant to the
Placement Agent Agreement dated the date hereof by and among the
Company, the
Placement Agent and the Investor (the "Placement Agent
Agreement").
NOW, THEREFORE, the parties hereto agree as follows:
ARTICLE I.
CERTAIN DEFINITIONS
Section 1.1. "Advance" shall mean the portion of the Commitment
Amount
requested by the Company in the Advance Notice.
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Section 1.2. "Advance Date" shall mean the first (1st) Trading
Day
after expiration of the applicable Pricing Period for each
Advance.
Section 1.3. "Advance Notice" shall mean a written notice in the
form
of Exhibit A attached hereto to the Investor executed by an officer
of the
Company and setting forth the Advance amount that the Company
requests from the
Investor.
Section 1.4. "Advance Notice Date" shall mean each date the
Company
delivers to the Investor an Advance Notice requiring the Investor
to advance
funds to the Company, subject to the terms of this Agreement. No
Advance Notice
Date shall be less than five (5) Trading Days after the prior
Advance Notice
Date.
Section 1.5. "Bid Price" shall mean, on any date, the closing bid
price
(as reported by Bloomberg L.P.) of the Common Stock on the
Principal Market or
if the Common Stock is not traded on a Principal Market, the
highest reported
bid price for the Common Stock, as furnished by the National
Association of
Securities Dealers, Inc.
Section 1.6. "Closing" shall mean one of the closings of a purchase
and
sale of Common Stock pursuant to Section 2.3.
Section 1.7. "Commitment Amount" shall mean the aggregate amount of
up
to Ten Million Dollars ($10,000,000) which the Investor has agreed
to provide to
the Company in order to purchase the Company's Common Stock
pursuant to the
terms and conditions of this Agreement.
Section 1.8. "Commitment Period" shall mean the period commencing
on
the earlier to occur of (i) the Effective Date, or (ii) such
earlier date as the
Company and the Investor may mutually agree in writing, and
expiring on the
earliest to occur of (x) the date on which the Investor shall have
made payment
of Advances pursuant to this Agreement in the aggregate amount of
Ten Million
Dollars ($10,000,000), (y) the date this Agreement is terminated
pursuant to
Section 2.4, or (z) the date occurring twenty-four (24) months
after the
Effective Date.
Section 1.9. "Common Stock" shall mean the Company's Class A
common
stock, no par value per share.
Section 1.10. "Condition Satisfaction Date" shall have the meaning
set
forth in Section 7.2.
Section 1.11. "Damages" shall mean any loss, claim, damage,
liability,
costs and expenses (including, without limitation, reasonable
attorney's fees
and disbursements and costs and expenses of expert witnesses and
investigation).
Section 1.12. "Effective Date" shall mean the date on which the
SEC
first declares effective a Registration Statement registering the
resale of the
Registrable Securities as set forth in Section 7.2(a).
Section 1.13. INTENTIONALLY
OMITTED.
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Section 1.14. "Exchange Act" shall mean the Securities Exchange Act
of
1934, as amended, and the rules and regulations promulgated
thereunder.
Section 1.15. "Material Adverse Effect" shall mean any
condition,
circumstance, or situation that would prohibit or otherwise
materially interfere
with the ability of the Company to enter into and perform any of
its obligations
under this Agreement or the Registration Rights Agreement in any
material
respect.
Section 1.16. "Market Price" shall mean the lowest closing Bid
Price of
the Common Stock during the Pricing Period.
Section 1.17. "Maximum
Advance Amount" shall
be Six Hundred Thousand
Dollars ($600,000) per Advance Notice.
Section 1.18. "NASD" shall mean the National Association of
Securities
Dealers, Inc.
Section 1.19. "Person" shall mean an individual, a corporation,
a
partnership, an association, a trust or other entity or
organization, including
a government or political subdivision or an agency or
instrumentality thereof.
Section 1.20. "Placement Agent" shall mean Monitor Capital, Inc.,
a
registered broker-dealer.
Section 1.21. "Pricing Period" shall mean the five (5)
consecutive
Trading Days after the Advance Notice Date.
Section 1.22. "Principal Market" shall mean the Nasdaq National
Market,
the Nasdaq SmallCap Market, the American Stock Exchange, the OTC
Bulletin Board
or the New York Stock Exchange, whichever is at the time the
principal trading
exchange or market for the Common Stock.
Section 1.23. "Purchase Price" shall be set at ninety five
percent
(95%) of the Market Price during the Pricing Period.
Section 1.24. "Registrable Securities" shall mean the shares of
Common
Stock to be issued hereunder (i) in respect of which the
Registration Statement
has not been declared effective by the SEC, (ii) which have not
been sold under
circumstances meeting all of the applicable conditions of Rule 144
(or any
similar provision then in force) under the Securities Act ("Rule
144") or (iii)
which have not been otherwise transferred to a holder who may trade
such shares
without restriction under the Securities Act, and the Company has
delivered a
new certificate or other evidence of ownership for such securities
not bearing a
restrictive legend.
Section 1.25. "Registration Rights Agreement" shall mean the
Registration Rights Agreement dated the date hereof, regarding the
filing of the
Registration Statement for the resale of the Registrable
Securities, entered
into between the Company and the Investor.
Section 1.26. "Registration Statement" shall mean a
registration
statement on Form S-1 or SB-2 (if use of such form is then
available to the
Company pursuant to the rules of the SEC
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and, if not, on such other form promulgated by the SEC for which
the Company
then qualifies and which counsel for the Company shall deem
appropriate, and
which form shall be available for the resale of the Registrable
Securities to be
registered thereunder in accordance with the provisions of this
Agreement and
the Registration Rights Agreement, and in accordance with the
intended method of
distribution of such securities), for the registration of the
resale by the
Investor of the Registrable Securities under the Securities
Act.
Section 1.27. "Regulation D" shall have the meaning set forth in
the
recitals of this Agreement.
Section 1.28. "SEC" shall mean the Securities and Exchange
Commission.
Section 1.29. "Securities Act" shall have the meaning set forth in
the
recitals of this Agreement.
Section 1.30. "SEC Documents" shall mean Annual Reports on Form
10-KSB,
Quarterly Reports on Form 10-QSB, Current Reports on Form 8-K and
Proxy
Statements of the Company as supplemented to the date hereof, filed
by the
Company for a period of at least twelve (12) months immediately
preceding the
date hereof or the Advance Date, as the case may be, until such
time as the
Company no longer has an obligation to maintain the effectiveness
of a
Registration Statement as set forth in the Registration Rights
Agreement.
Section 1.31. "Trading Day" shall mean any day during which the
New
York Stock Exchange shall be open for business.
Section 1.32. "VWAP" shall mean the volume weighted average price
of
the Company's Common Stock as quoted by Bloomberg, LP.
ARTICLE II.
ADVANCES
Section 2.1. Advances.
Upon the terms and conditions set forth herein (including,
without limitation, the provisions of Article VII hereof), the
Company may
request an Advance by the Investor by the delivery of an Advance
Notice. The
number of shares of Common Stock that the Investor shall purchase
pursuant to
each Advance shall be determined by dividing the amount of the
Advance by the
Purchase Price. No fractional shares shall be issued. Fractional
shares shall be
rounded to the next higher whole number of shares. The aggregate
maximum amount
of all Advances that the Investor shall be obligated to make under
this
Agreement shall not exceed the Commitment Amount.
Section 2.2. Mechanics.
(a) Advance Notice. At any time during the Commitment Period,
the Company may deliver an Advance Notice to the Investor, subject
to the
conditions set forth in Section 7.2; provided, however, the amount
for each
Advance as designated by the Company in the applicable Advance
Notice, shall not
be more than the Maximum Advance Amount. The
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aggregate amount of the Advances pursuant to this Agreement shall
not exceed the
Commitment Amount. The Company acknowledges that the Investor may
sell shares of
the Company's Common Stock corresponding with a particular Advance
Notice after
the Advance Notice is received by the Investor. There shall be a
minimum of five
(5) Trading Days between each Advance Notice Date.
(b) Date of Delivery of Advance Notice. An Advance Notice
shall be deemed delivered on (i) the Trading Day it is received by
facsimile or
otherwise by the Investor if such notice is received prior to 12:00
noon Eastern
Time, or (ii) the immediately succeeding Trading Day if it is
received by
facsimile or otherwise after 12:00 noon Eastern Time on a Trading
Day or at any
time on a day which is not a Trading Day. No Advance Notice may be
deemed
delivered on a day that is not a Trading Day.
Section 2.3. Closings. On each Advance Date (i) the Company
shall
deliver to the Investor shares of the Company's Common Stock,
representing the
amount of the Advance specified in such Advance Notice pursuant to
Section 2.1
herein, registered in the name of the Investor and (ii)
simultaneously, the
Investor shall deliver to the Company the amount of the Advance
specified in the
Advance Notice by wire transfer of immediately available funds. In
addition, on
or prior to the Advance Date, each of the Company and the Investor
shall deliver
to the other all documents, instruments and writings required to be
delivered by
either of them pursuant to this Agreement in order to implement and
effect the
transactions contemplated herein. The extent the Company has not
paid the fees,
expenses, and disbursements of the Investor or the Company's
counsel in
accordance with Section 12.4, the amount of such fees, expenses,
and
disbursements may be deducted by the Investor (and shall be paid to
the relevant
party) directly out of the proceeds of the Advance with no
reduction in the
amount of shares of the Company's Common Stock to be delivered on
such Advance
Date.
Section 2.4. Termination of Investment. The obligation of the
Investor
to make an Advance to the Company pursuant to this Agreement shall
terminate
permanently (including with respect to an Advance Date that has not
yet
occurred) in the event that (i) there shall occur any stop order or
suspension
of the effectiveness of the Registration Statement for an aggregate
of fifty
(50) Trading Days, other than due to the acts of the Investor,
during the
Commitment Period, or (ii) the Company shall at any time fail
materially to
comply with the requirements of Article VI and such failure is not
cured within
thirty (30) days after receipt of written notice from the Investor,
provided,
however, that this termination provision shall not apply to any
period
commencing upon the filing of a post-effective amendment to such
Registration
Statement and ending upon the date on which such post effective
amendment is
declared effective by the SEC.
Section 2.5. Agreement to Advance Funds. The Investor agrees to
advance
the amount specified in the Advance Notice to the Company after the
completion
of each of the following conditions and the other conditions set
forth in this
Agreement:
(a) the execution and delivery by the Company, and the
Investor, of this Agreement and the Exhibits hereto;
(b) The Investor shall have received the shares of Common
Stock applicable to the Advance in accordance with Section 2.3.
Such shares
shall be free of restrictive legends.
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(c) the Company's Registration Statement with respect to the
resale of the Registrable Securities in accordance with the terms
of the
Registration Rights Agreement shall have been declared effective by
the SEC;
(d) the Company shall have obtained all material permits and
qualifications required by any applicable state for the offer and
sale of the
Registrable Securities, or shall have the availability of
exemptions therefrom.
The sale and issuance of the Registrable Securities shall be
legally permitted
by all laws and regulations to which the Company is subject;
(e) the Company shall have filed with the Commission in a
timely manner all reports, notices and other documents required of
a "reporting
company" under the Exchange Act and applicable Commission
regulations;
(f) the fees as set forth in Section 12.4 below shall have
been paid or can be withheld as provided in Section 2.3; and
(g) the conditions set forth in Section 7.2 shall have been
satisfied.
(h) the Company shall have provided to the Investor an
acknowledgement, from the Company's independent certified public
accountants as
to its ability to provide all consents required in order to file a
registration
statement in connection with this transaction;
(i) The Company's transfer agent shall be DWAC eligible.
Section 2.6. Lock Up Period. On the date hereof, the Company
shall
obtain from each officer and director a lock-up agreement, as
defined below, in
the form annexed hereto as Schedule 2.6 agreeing to only sell in
compliance with
the volume limitation of Rule 144.
Section 2.7. Hardship. In the event the Investor sells shares of
the
Company's Common Stock after receipt of an Advance Notice and the
Company fails
to perform its obligations as mandated in Section 2.3, and
specifically the
Company fails to deliver to the Investor on the Advance Date the
shares of
Common Stock corresponding to the applicable Advance, the Company
acknowledges
that the Investor shall suffer financial hardship and therefore
shall be liable
for any and all losses, commissions, fees, or financial hardship
caused to the
Investor.
ARTICLE III.
REPRESENTATIONS AND WARRANTIES OF INVESTOR
Investor hereby represents and warrants to, and agrees with,
the
Company that the following are true and correct as of the date
hereof and as of
each Advance Date:
Section 3.1. Organization and Authorization. The Investor is
duly
incorporated or organized and validly existing in the jurisdiction
of its
incorporation or organization and has all requisite power and
authority to
purchase and hold the securities issuable hereunder. The decision
to invest and
the execution and delivery of this Agreement by such Investor, the
performance
by such Investor of its obligations hereunder and the consummation
by such
Investor of the transactions contemplated hereby have been duly
authorized and
requires no other
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proceedings on the part of the Investor. The undersigned has the
right, power
and authority to execute and deliver this Agreement and all other
instruments
(including, without limitations, the Registration Rights
Agreement), on behalf
of the Investor. This Agreement has been duly executed and
delivered by the
Investor and, assuming the execution and delivery hereof and
acceptance thereof
by the Company, will constitute the legal, valid and binding
obligations of the
Investor, enforceable against the Investor in accordance with its
terms.
Section 3.2. Evaluation of Risks. The Investor has such knowledge
and
experience in financial, tax and business matters as to be capable
of evaluating
the merits and risks of, and bearing the economic risks entailed
by, an
investment in the Company and of protecting its interests in
connection with
this transaction. It recognizes that its investment in the Company
involves a
high degree of risk.
Section 3.3. No Legal Advice From the Company. The Investor
acknowledges that it had the opportunity to review this Agreement
and the
transactions contemplated by this Agreement with his or its own
legal counsel
and investment and tax advisors. The Investor is relying solely on
such counsel
and advisors and not on any statements or representations of the
Company or any
of its representatives or agents for legal, tax or investment
advice with
respect to this investment, the transactions contemplated by this
Agreement or
the securities laws of any jurisdiction.
Section 3.4. Investment Purpose. The securities are being purchased
by
the Investor for its own account, and for investment purposes. The
Investor
agrees not to assign or in any way transfer the Investor's rights
to the
securities or any interest therein and acknowledges that the
Company will not
recognize any purported assignment or transfer except in accordance
with
applicable Federal and state securities laws. No other person has
or will have a
direct or indirect beneficial interest in the securities. The
Investor agrees
not to sell, hypothecate or otherwise transfer the Investor's
securities unless
the securities are registered under Federal and applicable state
securities laws
or unless, in the opinion of counsel satisfactory to the Company,
an exemption
from such laws is available.
Section 3.5. Accredited Investor. The Investor is an
"Accredited
Investor" as that term is defined in Rule 501(a)(3) of Regulation D
of the
Securities Act.
Section 3.6. Information. The Investor and its advisors (and
its
counsel), if any, have been furnished with all materials relating
to the
business, finances and operations of the Company and information it
deemed
material to making an informed investment decision. The Investor
and its
advisors, if any, have been afforded the opportunity to ask
questions of the
Company and its management. Neither such inquiries nor any other
due diligence
investigations conducted by such Investor or its advisors, if any,
or its
representatives shall modify, amend or affect the Investor's right
to rely on
the Company's representations and warranties contained in this
Agreement. The
Investor understands that its investment involves a high degree of
risk. The
Investor is in a position regarding the Company, which, based upon
employment,
family relationship or economic bargaining power, enabled and
enables such
Investor to obtain information from the Company in order to
evaluate the merits
and risks of this investment. The Investor has sought such
accounting, legal and
tax advice, as it has considered necessary to make an informed
investment
decision with respect to this transaction.
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Section 3.7. Receipt of Documents. The Investor and its counsel
have
received and read in their entirety: (i) this Agreement and the
Exhibits annexed
hereto; (ii) all due diligence and other information necessary to
verify the
accuracy and completeness of such representations, warranties and
covenants; and
(iii) answers to all questions the Investor submitted to the
Company regarding
an investment in the Company; and the Investor has relied on the
information
contained therein and has not been furnished any other documents,
literature,
memorandum or prospectus.
Section 3.8. Registration Rights Agreement. The parties have
entered
into the Registration Rights Agreement dated the date hereof.
Section 3.9. No General Solicitation. Neither the Company, nor any
of
its affiliates, nor any person acting on its or their behalf, has
engaged in any
form of general solicitation or general advertising (within the
meaning of
Regulation D under the Securities Act) in connection with the offer
or sale of
the shares of Common Stock offered hereby.
Section 3.10. Not an Affiliate. The Investor is not an officer,
director or a person that directly, or indirectly through one or
more
intermediaries, controls or is controlled by, or is under common
control with
the Company or any "Affiliate" of the Company (as that term is
defined in Rule
405 of the Securities Act).
Section 3.11. Trading Activities. The Investor's trading
activities
with respect to the Company's Common Stock shall be in compliance
with all
applicable federal and state securities laws, rules and regulations
and the
rules and regulations of the Principal Market on which the
Company's Common
Stock is listed or traded. Neither the Investor nor its affiliates
has an open
short position in the Common Stock of the Company, the Investor
agrees that it
shall not, and that it will cause its affiliates not to, engage in
any short
sales of or hedging transactions with respect to the Common Stock,
PROVIDED that
the Company acknowledges and agrees that upon receipt of an Advance
Notice the
Investor has the right to sell the shares to be issued to the
Investor pursuant
to the Advance Notice during the applicable Pricing Period.
ARTICLE IV.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
Except as stated below, on the disclosure schedules (the
"Disclosure
Schedules") attached hereto as Exhibit "B," the Company hereby
represents and
warrants to, and covenants with, the Investor that the following
are true and
correct as of the date hereof:
Section 4.1. Organization and Qualification. The Company is
duly
incorporated or organized and validly existing in the jurisdiction
of its
incorporation or organization and has all requisite corporate power
to own its
properties and to carry on its business as now being conducted.
Each of the
Company and its subsidiaries is duly qualified as a foreign
corporation to do
business and is in good standing in every jurisdiction in which the
nature of
the business conducted by it makes such qualification necessary,
except to the
extent that the failure to be so qualified or be in good standing
would not have
a Material Adverse Effect on the Company and its subsidiaries taken
as a whole.
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Section 4.2. Authorization, Enforcement, Compliance with Other
Instruments. (i) The Company has the requisite corporate power and
authority to
enter into and perform this Agreement, the Registration Rights
Agreement, the
Placement Agent Agreement and any related agreements, in accordance
with the
terms hereof and thereof, (ii) the execution and delivery of this
Agreement, the
Registration Rights Agreement, the Placement Agent Agreement and
any related
agreements by the Company and the consummation by it of the
transactions
contemplated hereby and thereby, have been duly authorized by the
Company's
Board of Directors and no further consent or authorization is
required by the
Company, its Board of Directors or its stockholders, (iii) this
Agreement, the
Registration Rights Agreement, the Placement Agent Agreement and
any related
agreements have been duly executed and delivered by the Company,
(iv) this
Agreement, the Registration Rights Agreement, the Placement Agent
Agreement and
assuming the execution and delivery thereof and acceptance by the
Investor and
any related agreements constitute the valid and binding obligations
of the
Company enforceable against the Company in accordance with their
terms, except
as such enforceability may be limited by general principles of
equity or
applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation or
similar laws relating to, or affecting generally, the enforcement
of creditors'
rights and remedies.
Section 4.3. Capitalization. As of the date hereof, the
authorized
capital stock of the Company consists of 10,000,000,000 shares of
Class A Common
Stock, no par value per share, 50,000,000 shares of Class B Common
Stock, par
value $0.01 per share, 20,000,000 shares of Class C Common Stock,
par value $.01
per share and 1,000,000 shares of Preferred Stock, par value $1.00
per share
("Preferred Stock"), of which 10,050,000 shares of Class A Common
Stock and no
shares of Class B Common Stock, Class C Common Stock or Preferred
Stock were
issued and outstanding. All of such outstanding shares have been
validly issued
and are fully paid and nonassessable. Except as disclosed in the
Disclosure
Schedules, no shares of Common Stock are subject to preemptive
rights or any
other similar rights or any liens or encumbrances suffered or
permitted by the
Company. Except as disclosed in the Disclosure Schedules, as of the
date hereof,
(i) there are no outstanding options, warrants, scrip, rights to
subscribe to,
calls or commitments of any character whatsoever relating to, or
securities or
rights convertible into, any shares of capital stock of the Company
or any of
its subsidiaries, or contracts, commitments, understandings or
arrangements by
which the Company or any of its subsidiaries is or may become bound
to issue
additional shares of capital stock of the Company or any of its
subsidiaries or
options, warrants, scrip, rights to subscribe to, calls or
commitments of any
character whatsoever relating to, or securities or rights
convertible into, any
shares of capital stock of the Company or any of its subsidiaries,
(ii) there
are no outstanding debt securities (iii) there are no outstanding
registration
statements other than on Form SB-2 and (iv) there are no agreements
or
arrangements under which the Company or any of its subsidiaries is
obligated to
register the sale of any of their securities under the Securities
Act (except
pursuant to the Registration Rights Agreement). There are no
securities or
instruments containing anti-dilution or similar provisions that
will be
triggered by this Agreement or any related agreement or the
consummation of the
transactions described herein or therein. The Company has furnished
to the
Investor true and correct copies of the Company's Certificate of
Incorporation,
as amended and as in effect on the date hereof (the "Certificate
of
Incorporation"), and the Company's By-laws, as in effect on the
date hereof (the
"By-laws"), and the terms of all securities convertible into or
exercisable for
Common Stock and the material rights of the holders thereof in
respect thereto.
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Section 4.4. No Conflict. The execution, delivery and performance
of
this Agreement by the Company and the consummation by the Company
of the
transactions contemplated hereby will not (i) result in a violation
of the
Certificate of Incorporation, any certificate of designations of
any outstanding
series of preferred stock of the Company or By-laws or (ii)
conflict with or
constitute a default (or an event which 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 of, any agreement,
indenture or
instrument to which the Company or any of its subsidiaries is a
party, or result
in a violation of any law, rule, regulation, order, judgment or
decree
(including federal and state securities laws and regulations and
the rules and
regulations of the Principal Market on which the Common Stock is
quoted)
applicable to the Company or any of its subsidiaries or by which
any material
property or asset of the Company or any of its subsidiaries is
bound or affected
and which would cause a Material Adverse Effect. Except as
disclosed in the
Disclosure Schedules, neither the Company nor its subsidiaries is
in violation
of any term of or in default under its Articles of Incorporation or
By-laws or
their organizational charter or by-laws, respectively, or any
material contract,
agreement, mortgage, indebtedness, indenture, instrument, judgment,
decree or
order or any statute, rule or regulation applicable to the Company
or its
subsidiaries. The business of the Company and its subsidiaries is
not being
conducted in violation of any material law, ordinance, regulation
of any
governmental entity. Except as specifically contemplated by this
Agreement and
as required under the Securities Act and any applicable state
securities laws,
the Company is not required to obtain any consent, authorization or
order of, or
make any filing or registration with, any court or governmental
agency in order
for it to execute, deliver or perform any of its obligations under
or
contemplated by this Agreement or the Registration Rights Agreement
in
accordance with the terms hereof or thereof. All consents,
authorizations,
orders, filings and registrations which the Company is required to
obtain
pursuant to the preceding sentence have been obtained or effected
on or prior to
the date hereof. The Company and its subsidiaries are unaware o