EXHIBIT 10.41
AMENDED AND RESTATED STANDBY EQUITY DISTRIBUTION AGREEMENT
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THIS AGREEMENT
dated as of the 18th day of October 2005 (the "Agreement")
between CORNELL CAPITAL PARTNERS, LP, a
Delaware limited partnership (the
"Investor"), and STARTECH ENVIRONMENTAL
CORPORATION, a corporation organized and
existing under the laws of the State of
Colorado (the "Company").
WHEREAS, on
September 15, 2005, the parties hereto entered into a Standby
Equity Distribution Agreement. This
Agreement shall amend and restate the
Standby Equity Distribution Agreement dated
September 15, 2005;
WHEREAS, any and
all agreements, documents and instruments in connection
with the Standby Equity Distribution
Agreement dated September 15, 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Agent Agreement, shall be superseded by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 (the Escrow
Agreement dated September 15, 2005 is
hereby 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 Twenty Million Dollars
($20,000,000) of the Company's common
stock, no par value per share (the "Common
Stock"); and
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.
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.
Section 1.2.
"Advance Date" shall mean the first (1st) Trading Day after
expiration of the applicable Pricing Period
for each Advance.
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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
Twenty Million Dollars ($20,000,000) 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 Twenty Million
Dollars ($20,000,000), (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 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.
Section 1.14.
"Exchange Act" shall mean the Securities Exchange Act of
1934, as amended, and the rules and
regulations promulgated thereunder.
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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 the lesser of Two Million
Dollars ($2,000,000) per Advance Notice or
remaining balance of the Commitment
Amount.
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 six percent (96%) 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.
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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
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
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 day the Advance Notice
is received by the Investor. There shall be
a minimum of five (5) Trading Days
between each Advance Notice Date.
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(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) upon receipt of such shares, 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
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requires no other 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;
(iii) the Company's Form 10-KSB for the
year ended October 31, 2004 and Form
10-QSB for the period ended April 30, 2005;
and (iv) 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 attached hereto or in
the SEC Documents (as defined herein), the
Company hereby represents and
warrants to 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 subsidiary 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 subsidiary 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
800,000,000 shares of Common Stock, no par
value per share and 10,000,000 shares of
Preferred Stock, no par value per share
("Preferred Stock"), of which 23,077,136
shares of Common Stock and no shares of
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 SEC Documents, 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 SEC
Documents, 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 subsidiary, or contracts, commitments,
understandings or arrangements by
which the Company or any of its subsidiary
is or may become bound to issue
additional shares of capital stock of the
Company or any of its subsidiary 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 subsidiary, (ii) there are
no outstanding debt securities (iii) there
are no outstanding registration
statements other than on Form S-8 and (iv)
there are no agreements or
arrangements under which the Company or any
of its subsidiary 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.
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
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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 subsidiary 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 subsidiary or by which any material
property or asset of the Company or any
of its subsidiary is bound or affected and
which would cause a Material Adverse
Effect. Except as disclosed in the SEC
Documents, neither the Company nor its
subsidiary 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
subsidiary. The business of the
Company and its subsidiary 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 subsidiary are unaware of any
fact or circumstance which might give rise
to any of the foregoing.
Section 4.5. SEC
Documents; Financial Statements. Since January 1, 2003,
the Company has filed all reports,
schedules, forms, statements and other
documents required to be filed by it with
the SEC under the Exchange Act. The
Company has delivered to the Investor or
its representatives, or made available
through the SEC's website at
http://www.sec.gov, true and complete copies of the
SEC Documents. As of their respective
dates, the financial statements of the
Company disclosed in the SEC Documents (the
"Financial Statements") complied as
to form in all material respects with
applicable accounting requirements and the
published rules and regulations of the SEC
with respect thereto. Such financial
statements have been prepared in accordance
with generally accepted accounting
principles, consistently applied, during
the periods involved (except (i) as may
be otherwise indicated in such financial
statements or the notes thereto, or
(ii) in the case of unaudited interim
statements, to the extent they may exclude
footnotes or may be condensed or summary
statements) and, fairly present in all
material respects the financial position of
the Company as of the dates thereof
and the results of its operations and cash
flows for the periods the
