Exhibit
10.1
PLACEMENT AGENCY
AGREEMENT
936A Beachland
Blvd., Suite 13
Wentworth II,
Inc., a Delaware corporation (the “ Company
”), hereby confirms its agreement (this “
Agreement ”) with XXX, a Delaware limited
liability company (the “ Placement
Agent ”) as follows:
1.
Offering . (a) The Company will offer for sale through the
Placement Agent, as exclusive agent for the Company, and its
selected dealers, if any, a minimum of 200,000 shares (the “
Shares ”) of its common stock, par value
$.01 per share (the “Common Stock” )
(the “ Minimum Offering ”) and a
maximum of 400,000 Shares (the “ Maximum
Offering ”) at a purchase price of $.50 per Share
(the “ Offering ”). The Shares shall
have the rights and privileges described in the Memorandum (as
defined below). Related persons and/or affiliates of the Placement
Agent and the Company may, but are not obligated to, participate in
the Offering, and any such investments will be counted to determine
whether the Minimum and Maximum Amounts, as applicable, have been
satisfied.
(b) Placement
of the Shares by the Placement Agent will be made on a “best
efforts” basis. The minimum subscription for Shares shall be
2,000 Shares; provided , however , that the Company
and the Placement Agent may, in their mutual discretion, offer a
lesser number of Shares. The Shares will be offered commencing on
the date of the Memorandum for a period of up to 60 days unless
extended by mutual agreement of the Placement Agent and the Company
for up to an additional 30 days, or terminated earlier as provided
herein (the “ Offering Period ”). The
date on which the Offering Period shall terminate shall be referred
to as the “ Termination Date .” A
Final Closing (as hereinafter defined) may be held up to ten days
after the Termination Date.
(c)
Subscriptions for the Shares will be accepted by the Company at a
price of $.50 per Share; provided , however , that
the Placement Agent shall not tender to the Company and the Company
shall not accept subscriptions from, or sell Shares to, any persons
or entities who do not qualify as “accredited
investors,” as such term is defined in Rule 501 of Regulation
D promulgated under Section 4(2) (“ Regulation
D ”) of the Securities Act of 1933, as amended (the
“ Securities Act ”).
(d) The
offering of the Shares will be made by the Placement Agent on
behalf of the Company solely pursuant to the Memorandum, which at
all times will be in form and substance acceptable to the Placement
Agent, the Company and their respective counsel, and shall contain
such legends and other information as the Placement Agent, the
Company and their respective counsel may, from time to time, deem
necessary and desirable to be set forth therein. The term “
Memorandum ” as used in this Agreement means
the Company’s Confidential Private Placement Memorandum dated
December 1, 2006, inclusive of all annexes, supplements and
appendices thereto, if any. Unless otherwise defined, each
capitalized term used in this Agreement has the same meaning
ascribed to it in the Memorandum.
2.
Representations, Warranties and Covenants of the Company .
The Company hereby represents, warrants and covenants to the
Placement Agent that:
(a) The
Memorandum has been diligently prepared by the Company, in
conformity with all applicable laws, and is in compliance with
Regulation D, the Securities Act and the requirements of all other
rules and regulations (the “ Regulations
”) of the Securities and Exchange Commission (the “
SEC ”) relating to offerings of the type
contemplated by the Offering, and the applicable securities laws
and the rules and regulations of those jurisdictions wherein the
Shares are to be offered and sold. The Shares will be offered and
sold pursuant to the registration exemption provided by Regulation
D and Section 4(2) of the Securities Act as a transaction not
involving a public offering and the requirements of any other
applicable state securities laws and the respective rules and
regulations thereunder in those United States jurisdictions in
which the Placement Agent notifies the Company that the Shares are
being offered for sale. The Memorandum describes all material
aspects, including attendant risks, of an investment in the
Company. The Company has not taken nor will it take any action that
conflicts with the conditions and requirements of, or that would
make unavailable with respect to the Offering, the exemption(s)
from registration available pursuant to Regulation D or Section
4(2) of the Securities Act, and knows of no reason why any such
exemption would be otherwise unavailable to it. None of the
Company, its predecessors or affiliates has been subject to any
order, judgment or decree of any court of competent jurisdiction
temporarily, preliminarily or permanently enjoining such person for
failing to comply with Section 503 of Regulation D.
(b) The
Memorandum does not include any untrue statement of a material fact
or omit to state any material fact required to be stated therein or
necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading:
provided , however , the foregoing does not apply to
any statements or omissions made solely in reliance on and in
conformity with written information furnished to the Company by the
Placement Agent specifically for use in the preparation thereof.
None of the statements, documents, certificates or other items
prepared or supplied by the Company with respect to the
transactions contemplated hereby contains an untrue statement of a
material fact or omits to state a material fact necessary to make
the statements contained therein not misleading in light of the
circumstances in which they were made. There is no fact which the
Company has not disclosed in the Memorandum and to the Placement
Agent and its counsel in writing and of which the Company is aware
that materially adversely affects or that could reasonably be
expected to have a material adverse effect on the prospects,
financial condition, operations or assets of the Company or any of
its subsidiaries.
(c) The Company
is a corporation duly organized, validly existing and in good
standing under the laws of the State of Delaware. The Company has
no subsidiaries and does not have an equity interest in any other
firm, partnership, association or other entity.
(d) The Company
has all corporate power and authority to conduct its business as
presently conducted and as proposed to be conducted (as described
in the Memorandum), to enter into and perform its obligations under
this Agreement, the Subscription Agreement substantially in the
form of Exhibit A to the Memorandum (the “
Subscription Agreement ”), the Registration
Rights Agreement substantially in the form of Exhibit B to the
Memorandum (the “ Registration Rights
Agreement ”), and the other agreements contemplated
hereby (this Agreement, the Subscription Agreement, the
Registration Rights Agreement and the other agreements contemplated
hereby are collectively referred to herein as the “
Transaction Documents ”) and to issue, sell
and deliver the Shares. Prior to the First Closing, as defined
herein, each of the Transaction Documents will have been duly
authorized. This Agreement has been duly authorized, executed and
delivered and constitutes, and each of the other Transaction
Documents, upon due execution and delivery, will constitute, valid
and binding obligations of the Company, enforceable against the
Company in accordance with their respective terms (i) except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter
in effect related to laws affecting creditors’ rights
generally, including the effect of statutory and other laws
regarding fraudulent conveyances and preferential transfers and
(ii) subject to the limitations imposed by general equitable
principles (regardless of whether such enforceability is considered
in a proceeding at law or in equity).
(e) None of the
execution and delivery of, or performance by the Company under this
Agreement or any of the other Transaction Documents or the
consummation of the transactions herein or therein contemplated
conflicts with or violates, or will result in the creation or
imposition of, any lien, charge or other encumbrance upon any of
the assets of the Company under any agreement or other instrument
to which the Company is a party or by which the Company or its
assets may be bound, or any term of the certificate of
incorporation or by-laws of the Company, or any license, permit,
judgment, decree, order, statute, rule or regulation applicable to
the Company or any of its assets.
(f) As of the
date of the First Closing (as defined in Section 5(c) hereof), the
Company will have the authorized and outstanding capital stock as
has been described in the SEC Filings (as hereinafter defined). All
outstanding shares of capital stock of the Company are duly
authorized, validly issued and outstanding, fully paid and
nonassessable. Except as described in the Memorandum, as of the
date of the First Closing: (i) there will be no outstanding
options, stock subscription agreements, warrants or other rights
permitting or requiring the Company or others to purchase or
acquire any shares of capital stock or other equity securities of
the Company or to pay any dividend or make any other distribution
in respect thereof; (ii) there will be no securities issued or
outstanding that are convertible into or exchangeable for any of
the foregoing and there are no contracts, commitments or
understandings, whether or not in writing, to issue or grant any
such option, warrant, right or convertible or exchangeable
security; (iii) no shares of stock or other securities of the
Company are reserved for issuance for any purpose; (iv) there will
be no voting trusts or other contracts, commitments,
understandings, arrangements or restrictions of any kind with
respect to the ownership, voting or transfer of shares of stock or
other securities of the Company, including without limitation, any
preemptive rights, rights of first refusal, proxies or similar
rights, and (v) no person holds a right to require the Company to
register any securities of the Company under the Securities Act or
to participate in any such registration. As of the date of the
First Closing, the issued and outstanding shares of capital stock
of the Company will conform to all statements in relation thereto
contained in the Memorandum, and the Memorandum describes all
material terms and conditions thereof.
(g) No consent,
authorization or filing of or with any court or governmental
authority is required in connection with the issuance or the
consummation of the transactions contemplated herein or in the
other Transaction Documents, except for required filings with the
SEC and the applicable state securities commissions relating
specifically to the Offering (all of which filings will be duly
made by, or on behalf of, the Company), other than those which are
required to be made after the First Closing (all of which will be
duly made on a timely basis).
(h) The
Company’s financial statements, together with the related
notes, if any, included in the Memorandum, present fairly the
financial position of the Company as of the dates specified and the
results of operations for the periods covered thereby. Such
financial statements and related notes were prepared in accordance
with United States generally accepted accounting principles applied
on a consistent basis throughout the periods indicated. The Company
has no known material liabilities of any kind, whether accrued,
absolute or contingent, or otherwise, and subsequent to the date of
the Memorandum it shall not enter into any material transactions or
commitments without promptly thereafter notifying the Placement
Agent in writing of any such material transaction or commitment.
The other financial and statistical information with respect to the
Company and any pro forma information and related notes included in
the Memorandum present fairly the information shown therein on a
basis consistent with the financial statements of the Company
included in the Memorandum. The Company
does not know of any facts, circumstances or conditions, which
could materially adversely affect its operations, earnings or
prospects that have not been fully disclosed in the
Memorandum .
(i) The conduct
of business by the Company as presently and proposed to be
conducted is not subject to continuing oversight, supervision,
regulation or examination by any governmental official or body of
the United States, or any other jurisdiction wherein the Company
conducts or proposes to conduct such business, except as described
in the Memorandum and except as such regulation is applicable to
commercial enterprises generally. The Company has obtained all
material licenses, permits and other governmental authorizations
necessary to conduct its business as presently
conducted.
(j) The Company
has no material agreements to which the Company is bound or by
which its assets are subject.
(k) There are
no actions, proceedings, claims or investigations, before or by any
court or governmental authority (or any state of facts which
management of the Company has concluded could give rise thereto)
pending or, to the best knowledge of the Company, threatened,
against the Company, or involving its assets or, to the best
knowledge of the Company, involving any of its officers or
directors that, if determined adversely to the Company or such
officer or director, could reasonably be expected to result in any
material adverse change in the condition (financial or otherwise)
or prospects of the Company or adversely affect the transactions
contemplated by this Agreement or the other Transaction Documents
or the enforceability hereof or thereof.
(l) The Company
is not in violation of: (i) its certificate of incorporation or
by-laws each as currently in effect; (ii) any indenture, mortgage,
deed of trust, note or other agreement or instrument to which the
Company is a party or by which it is or may be bound or to which
any of its assets may be subject; (iii) any statute, rule or
regulation currently applicable to the Company; or (iv) any
judgment, decree or order applicable to the Company, which
violation or violations individually, or in the aggregate, could
reasonably be expected to result in any material adverse change in
the condition (financial or otherwise) or prospects of the Company
or adversely affect the transactions contemplated by this Agreement
or the other Transaction Documents or the enforceability
thereof.
(m) The Company
does not own any real, personal, tangible or intangible property in
fee simple.
(n) Subsequent
to the respective dates as of which information is given in the
Memorandum, the Company has operated its business in the ordinary
course and, except as may otherwise be set forth in the Memorandum,
there has been no: (i) material adverse change in the condition
(financial or otherwise) of the Company; (ii) transaction
otherwise than in the ordinary course of business consistent with
past practice; (iii) issuance of any securities (debt or
equity) or any rights to acquire any such securities; (iv) damage,
loss or destruction, whether or not covered by insurance, with
respect to any asset or property of the Company; or (v) agreement
to permit any of the foregoing.
(o) The Company
has filed, on a timely basis, each federal, state, local and
foreign tax return that was required to be filed, or has requested
an extension therefor and has paid all taxes and all related
assessments, penalties and interest to the extent that the same
have become due.
(p) The Company
is not obligated to pay, and has not obligated the Placement Agent
to pay, a finder’s or origination fee in connection with the
Offering, and hereby agrees to indemnify the Placement Agent from
any such claim made by any other person as more fully set forth in
Section 8 hereof. The Company has not offered for sale or solicited
offers to purchase the Shares except for negotiations with the
Placement Agent. Except as set forth in the Memorandum, no other
person has any right to participate in any offer, sale or
distribution of the Company’s securities to which the
Placement Agent’s rights, described herein, shall
apply
(q) The Company
has no casualty or liability insurance coverage.
(r) Neither the
sale of the Shares by the Company nor its use of the proceeds
thereof will violate the Trading with the Enemy Act, as amended, or
any of the foreign assets control regulations of the United States
Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or
any enabling legislation or executive order relating thereto.
Without limiting the foregoing, the Company is not (a) a person
whose property or interests in property are blocked pursuant to
Section 1 of Executive Order 13224 of September 23, 2001 Blocking
Property and Prohibiting Transactions with Persons Who Commit,
Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079
(2001)) or (b) a person who engages in any dealings or
transactions, or be otherwise associated, with any such person. The
Company and its subsidiaries are in compliance, in all material
respects, with the USA Patriot Act of 2001 (signed into law October
26, 2001).
(s) The Company
has filed all reports required to be filed by it under the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”), including, without
limitation, pursuant to Section 13(a) and 15(d) thereof, (the
foregoing materials being collectively referred to herein as the
“ SEC Filings ”) on a timely basis or
has received a valid extension of such time of filing and has filed
any such SEC Filing prior to the expiration of any such extension.
As of their respective dates, the SEC Filings complied in all
material respects with the requirements of the Securities Act and
the Exchange Act and the rules and regulations of the SEC
promulgated thereunder, and none of the SEC Filings, when filed,
contained 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 light of the circumstances under
which they were made, not misleading. All material agreements to
which the Company is a party have been filed as exhibits to the SEC
Filings to the extent required. The financial statements of the
Company included in the SEC Filings comply in all material respects
with applicable accounting requirements and the rules and
regulations of the SEC with respect thereto as in effect at the
time of filing.
3. Placement
Agent Appointment and Compensation . (a) The Company hereby
appoints the Placement Agent and its selected dealers, if any, as
its exclusive agent in connection with the Offering. The Company
has not and will not make, or permit to be made, any offers or
sales of the Shares other than through the Placement Agent without
the Placement Agent’s prior written consent. The Placement
Agent has no obligation to purchase any of the Shares. The agency
of the Placement Agent hereunder shall continue until the later of
the Termination Date or the Final Closing.
(b) The Company
will cause to be delivered to the Placement Agent copies of the
Memorandum and has consented, and hereby consents, to the use of
such copies for the purposes permitted by the Securities Act and
applicable securities laws, and hereby authorizes the Placement
Agent and its agents, employees and selected dealers to use the
Memorandum in connection with the sale of the Shares until the
later of the Final Closing or the Termination Date, and no other
person or entity is or will be authorized to give any information
or make any representations other than those contained in the
Memorandum or to use any offering materials other than those
contained in the Memorandum in connection with the sale of the
Shares.
(c) The Company
will cooperate with the Placement Agent by making available to its
representatives such information as may be reasonably requested in
making a reasonable investigation of the Company and its affairs
and shall provide access to such employees as shall be reasonably
requested. Prior to the First Closing, if requested by the
Placement Agent, the Company shall provide, at its own expense,
credit or similar reports on such key management persons as the
Placement Agent shall reasonably request.
(d) The
Placement Agent shall provide such services as an accommodation to
the Company, whose principal stockholder, Timothy J. Keating, holds
approximately a YY% interest in XXX and whose President, Kevin R.
Keating, the father of Timothy J. Keating, serves as the ZZZ of XXX
and in consideration of the sum of One Hundred Dollars ($100.00)
and other good and valuable consideration received from the Company
(the “ Placement Agent’s Consideration
”).
4.
Representations, Warranties and Covenants of the Placement
Agent . The Placement Agent hereby represents, warrants and
covenants to the Company that it is a registered broker-dealer and
member in good standing of the NASD.
5.
Subscription and Closing Procedures . (a) Each prospective
purchaser will be required to complete and execute the Investor
Suitability Questionnaire, NASD Questionnaire, Investor
Acknowledgment and Agreement, Subscription Agreement, Registration
Rights Agreement, and Form W-9 or W-8BEN (together, the “
Subscription Documents ”) contained in the
subscription booklet (the “ Subscription
Booklet ”), along with the entire Subscription
Booklet itself, which will be forwarded or delivered to the
Placement Agent at the Placement Agent’s offices at the
address set forth in Section 12 hereof, together with the
investor’s good funds in the full amount of the Offering
Price for the number of Shares desired to be pur-chased.
(b) All funds
for subscriptions received from the Offering will be promptly
forwarded by the Placement Agent or the Company, if received by it,
to and deposited into a non-interest bearing escrow account (the
“ Escrow Account ”) established for
such purpose with Steele Street State Bank or Wells Fargo Bank,
N.A., as applicable, (each, an “ Escrow
Agent ”). All such funds for subscriptions will be
held in the Escrow Account pursuant to the terms of an escrow
agreement among the Company, the Placement Agent and the Escrow
Agent. The Company will pay all fees related to the establishment
and maintenance of the Escrow Account. Subject to the receipt of
subscriptions for the Minimum Offering, the Company will
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