FORM 8-K EXHIBIT 10.10
COMMON STOCK PURCHASE AGREEMENT
COMMON STOCK PURCHASE
AGREEMENT (the “Agreement”), dated as of
May 8, 2008, by and between GEOVAX LABS, INC. , an
Illinois corporation (the “Company,” as further defined
in Section 10), and FUSION CAPITAL FUND II, LLC , an
Illinois limited liability company (the “Buyer”).
Capitalized terms used herein and not otherwise defined herein are
defined in Section 10 hereof.
WHEREAS:
Subject to the terms and conditions
set forth in this Agreement, the Company wishes to sell to the
Buyer, and the Buyer wishes to buy from the Company, up to Ten
Million Dollars ($10,000,000.00) of the Company’s common
stock, par value $0.001 per share (the “Common Stock”).
The shares of Common Stock to be purchased hereunder are referred
to herein as the “Purchase Shares.”
NOW THEREFORE , the Company
and the Buyer hereby agree as follows:
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PURCHASE OF COMMON STOCK. |
Subject to the terms and conditions
set forth in this Agreement, the Company has the right to sell to
the Buyer, and the Buyer has the obligation to purchase from the
Company, Purchase Shares as follows:
(a) Commencement of
Purchases of Common Stock . The purchase and sale of Purchase
Shares hereunder shall occur from time to time upon written notices
by the Company to the Buyer on the terms and conditions as set
forth herein following the satisfaction of the conditions (the
“Commencement”) as set forth in Sections 6 and 7
below (the date of satisfaction of such conditions, the
“Commencement Date”).
(b) The Company’s
Right to Require Purchases . Any time on or after the
Commencement Date, the Company shall have the right but not the
obligation to direct the Buyer by its delivery to the Buyer of Base
Purchase Notices from time to time to buy Purchase Shares (each
such purchase a “Base Purchase”) in any amount up to
Eighty Thousand Dollars ($80,000.00) per Base Purchase Notice (the
“Base Purchase Amount”) at the Purchase Price on the
Purchase Date. The Company may deliver multiple Base Purchase
Notices to the Buyer so long as at least four (4) Business
Days have passed since the most recent Base Purchase was completed.
Notwithstanding the forgoing, any time on or after the Commencement
Date, the Company shall also have the right but not the obligation
by its delivery to the Buyer of Block Purchase Notices from time to
time to direct the Buyer to buy Purchase Shares (each such purchase
a “Block Purchase”) in any amount up to One Million
Dollars ($1,000,000.00) per Block Purchase Notice at the Block
Purchase Price on the Purchase Date as provided herein. For a Block
Purchase Notice to be valid the following conditions must be met:
(1) the Block Purchase Amount shall not exceed One Hundred Thousand
Dollars ($100,000.00) per Block Purchase Notice, (2) the
Company must deliver the Purchase Shares before 11:00 a.m.
eastern time on the Purchase Date and (3) the Sale Price of
the Common Stock must not be below $0.11 (subject to equitable
adjustment for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction) during the
Purchase Date, the date of the delivery of the Block Purchase
Notice and during the Business Day prior to the delivery of the
Block Purchase Notice. The Block Purchase Amount may be increased
to up to Two Hundred Fifty Thousand Dollars ($250,000.00) per Block
Purchase Notice if the Sale Price of the Common Stock is not below
$0.20 (subject to equitable adjustment for any
reorganization,
recapitalization, non-cash dividend, stock split or other similar
transaction) during the Purchase Date, the date of the delivery of
the Block Purchase Notice and during the Business Day prior to the
delivery of the Block Purchase Notice. The Block Purchase Amount
may be increased to up to Five Hundred Thousand Dollars
($500,000.00) per Block Purchase Notice if the Sale Price of the
Common Stock is not below $0.40 (subject to equitable adjustment
for any reorganization, recapitalization, non-cash dividend, stock
split or other similar transaction) during the Purchase Date, the
date of the delivery of the Block Purchase Notice and during the
Business Day prior to the delivery of the Block Purchase Notice.
The Block Purchase Amount may be increased to up to One Million
Dollars ($1,000,000.00) per Block Purchase Notice if the Sale Price
of the Common Stock is not below $0.80 (subject to equitable
adjustment for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction) during the
Purchase Date, the date of the delivery of the Block Purchase
Notice and during the Business Day prior to the delivery of the
Block Purchase Notice. As used herein, the term “Block
Purchase Price” shall mean the lesser of (i) the lowest
Sale Price of the Common Stock on the Purchase Date or
(ii) the lowest Purchase Price during the previous ten (10)
Business Days prior to the date that the valid Block Purchase
Notice was received by the Buyer. However, if at any time during
the Purchase Date, the date of the delivery of the Block Purchase
Notice or during the Business Day prior to the delivery of the
Block Purchase Notice, the Sale Price of the Common Stock is below
the applicable Block Purchase threshold price, such Block Purchase
shall be void and the Buyer’s obligations to buy Purchase
Shares in respect of that Block Purchase Notice shall be
terminated. Thereafter, the Company shall again have the right to
submit a Block Purchase Notice as set forth herein by delivery of a
new Block Purchase Notice only if the Sale Price of the Common
Stock is above the applicable Block Purchase threshold price during
the date of the delivery of the Block Purchase Notice and during
the Business Day prior to the delivery of the Block Purchase
Notice. The Company may deliver multiple Block Purchase Notices to
the Buyer so long as at least three (3) Business Days have
passed since the most recent Block Purchase was completed.
(c) Payment for Purchase
Shares . The Buyer shall pay to the Company an amount equal to
the Purchase Amount with respect to such Purchase Shares as full
payment for such Purchase Shares via wire transfer of immediately
available funds on the same Business Day that the Buyer receives
such Purchase Shares if they are received by the Buyer before
11:00 a.m. eastern time or if received by the Buyer after
11:00 a.m. eastern time, the next Business Day. The Company
shall not issue any fraction of a share of Common Stock upon any
purchase. If the issuance would result in the issuance of a
fraction of a share of Common Stock, the Company shall round such
fraction of a share of Common Stock up or down to the nearest whole
share. All payments made under this Agreement shall be made in
lawful money of the United States of America or wire transfer of
immediately available funds to such account as the Company may from
time to time designate by written notice in accordance with the
provisions of this Agreement. Whenever any amount expressed to be
due by the terms of this Agreement is due on any day that is not a
Business Day, the same shall instead be due on the next succeeding
day that is a Business Day.
(d) Purchase Price Floor
. The Company and the Buyer shall not effect any sales under this
Agreement on any Purchase Date where the Purchase Price for any
purchases of Purchase Shares would be less than the Floor Price.
“Floor Price” means $0.05, which shall be appropriately
adjusted for any reorganization, recapitalization, non-cash
dividend, stock split or other similar transaction.
(e) Records of Purchases
. The Buyer and the Company shall each maintain records showing the
remaining Available Amount at any give time and the dates and
Purchase Amounts for each purchase or shall use such other method,
reasonably satisfactory to the Buyer and the Company.
(f) Taxes . The Company
shall pay any and all transfer, stamp or similar taxes that may be
payable with respect to the issuance and delivery of any shares of
Common Stock to the Buyer made under this Agreement.
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BUYER’S REPRESENTATIONS AND WARRANTIES. |
The Buyer represents and warrants to
the Company that as of the date hereof and as of the Commencement
Date:
(a) Investment Purpose .
The Buyer is entering into this Agreement and acquiring the
Commitment Shares, (as defined in Section 4(e) hereof), the Signing
Shares (as defined in Section 5 hereof), and the Purchase
Shares (all collectively referred to herein as the
“Securities”), for its own account for investment only
and not with a view towards, or for resale in connection with, the
public sale or distribution thereof; provided however, by making
the representations herein, the Buyer does not agree to hold any of
the Securities for any minimum or other specific term other than as
set forth in Section 4(e) with respect to the Commitment
Shares.
(b) Accredited Investor
Status . The Buyer is an “accredited investor” as
that term is defined in Rule 501(a)(3) of
Regulation D.
(c) Reliance on
Exemptions . The Buyer understands that the Securities are
being offered and sold to it in reliance on specific exemptions
from the registration requirements of United States federal and
state securities laws and that the Company is relying in part upon
the truth and accuracy of, and the Buyer’s compliance with,
the representations, warranties, agreements, acknowledgments and
understandings of the Buyer set forth herein in order to determine
the availability of such exemptions and the eligibility of the
Buyer to acquire the Securities.
(d) Information . The
Buyer has been furnished with all materials relating to the
business, finances and operations of the Company and materials
relating to the offer and sale of the Securities that have been
reasonably requested by the Buyer, including, without limitation,
the SEC Documents (as defined in Section 3(f) hereof). The Buyer
understands that its investment in the Securities involves a high
degree of risk. The Buyer (i) is able to bear the economic
risk of an investment in the Securities including a total loss,
(ii) has such knowledge and experience in financial and
business matters that it is capable of evaluating the merits and
risks of the proposed investment in the Securities and
(iii) has had an opportunity to ask questions of and receive
answers from the officers of the Company concerning the financial
condition and business of the Company and others matters related to
an investment in the Securities. Neither such inquiries nor any
other due diligence investigations conducted by the Buyer or its
representatives shall modify, amend or affect the Buyer’s
right to rely on the Company’s representations and warranties
contained in Section 3 below. The Buyer has sought such
accounting, legal and tax advice as it has considered necessary to
make an informed investment decision with respect to its
acquisition of the Securities.
(e) No Governmental
Review . The Buyer understands that no United States federal or
state agency or any other government or governmental agency has
passed on or made any recommendation or endorsement of the
Securities or the fairness or suitability of the investment in the
Securities nor have such authorities passed upon or endorsed the
merits of the offering of the Securities.
(f) Transfer or Sale .
The Buyer understands that except as provided in the Registration
Rights Agreement (as defined in Section 4(a) hereof): (i) the
Securities have not been and are not being registered under the
1933 Act or any state securities laws, and may not be offered for
sale, sold, assigned or transferred unless (A) subsequently
registered thereunder or (B) an exemption exists permitting
such Securities to be sold, assigned or transferred without such
registration; (ii) any sale of the Securities made in reliance
on Rule 144 may be made only in accordance with the terms of
Rule 144 and further, if Rule 144 is not applicable, any
resale of the Securities under circumstances in which the seller
(or the person through whom the sale is made) may be deemed to be
an underwriter (as that term is defined in the 1933 Act) may
require compliance with some other exemption under the 1933 Act or
the rules and regulations
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of the
SEC thereunder; and (iii) neither the Company nor any other
person is under any obligation to register the Securities under the
1933 Act or any state securities laws or to comply with the terms
and conditions of any exemption thereunder.
(g) Validity;
Enforcement . This Agreement has been duly and validly
authorized, executed and delivered on behalf of the Buyer and is a
valid and binding agreement of the Buyer enforceable against the
Buyer in accordance with its terms, subject as to enforceability to
general principles of equity and to applicable bankruptcy,
insolvency, reorganization, moratorium, liquidation and other
similar laws relating to, or affecting generally, the enforcement
of applicable creditors’ rights and remedies.
(h) Residency . The
Buyer is a resident of the State of Illinois.
(i) No Prior Short
Selling . The Buyer represents and warrants to the Company that
at no time prior to the date of this Agreement has any of the
Buyer, its agents, representatives or affiliates engaged in or
effected, in any manner whatsoever, directly or indirectly, any (i)
“short sale” (as such term is defined in
Section 242.200 of Regulation SHO of the Securities
Exchange Act of 1934, as amended (the “1934 Act”)) of
the Common Stock or (ii) hedging transaction, which
establishes a net short position with respect to the Common
Stock.
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REPRESENTATIONS AND WARRANTIES OF THE COMPANY. |
The Company represents and warrants
to the Buyer that as of the date hereof and as of the Commencement
Date:
(a) Organization and
Qualification . The Company and its “Subsidiaries”
(which for purposes of this Agreement means any entity in which the
Company, directly or indirectly, owns 50% or more of the voting
stock or capital stock or other similar equity interests) are
corporations duly organized and validly existing in good standing
under the laws of the jurisdiction in which they are incorporated,
and have the requisite corporate power and authority to own their
properties and to carry on their 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 its ownership of property or 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 could not reasonably be expected to have a Material
Adverse Effect. As used in this Agreement, “Material Adverse
Effect” means any material adverse effect on any of:
(i) the business, properties, assets, operations, results of
operations or financial condition of the Company and its
Subsidiaries, if any, taken as a whole, or (ii) the authority
or ability of the Company to perform its obligations under the
Transaction Documents (as defined in Section 3(b) hereof). The
Company has no Subsidiaries except as set forth on
Schedule 3(a).
(b) Authorization;
Enforcement; Validity . (i) The Company has the requisite
corporate power and authority to enter into and perform its
obligations under this Agreement, the Registration Rights Agreement
and each of the other agreements entered into by the parties on the
Commencement Date and attached hereto as exhibits to this Agreement
(collectively, the “Transaction Documents”), and to
issue the Securities in accordance with the terms hereof and
thereof, (ii) the execution and delivery of the Transaction
Documents by the Company and the consummation by it of the
transactions contemplated hereby and thereby, including without
limitation, the issuance of the Commitment Shares and the
reservation for issuance and the issuance of the Purchase Shares
issuable under this Agreement, 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 shareholders, (iii) this Agreement has been, and each
other Transaction Document shall be on the Commencement Date, duly
executed and delivered by the Company and (iv) this Agreement
constitutes, and each other Transaction Document upon its
execution
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on
behalf of the Company, shall 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. The Board of Directors of the
Company has approved the resolutions (the “Signing
Resolutions”) substantially in the form as set forth as
Exhibit C-1 attached hereto to authorize this Agreement
and the transactions contemplated hereby. The Signing Resolutions
are valid, in full force and effect and have not been modified or
supplemented in any respect other than by the resolutions set forth
in Exhibit C-2 attached hereto regarding the registration
statement referred to in Section 4 hereof. The Company has
delivered to the Buyer a true and correct copy of a unanimous
written consent adopting the Signing Resolutions executed by all of
the members of the Board of Directors of the Company. No other
approvals or consents of the Company’s Board of Directors
and/or shareholders is necessary under applicable laws and the
Company’s Certificate of Incorporation and/or Bylaws to
authorize the execution and delivery of this Agreement or any of
the transactions contemplated hereby, including, but not limited
to, the issuance of the Commitment Shares and the issuance of the
Purchase Shares.
(c) Capitalization . As
of the date hereof, the authorized capital stock of the Company
consists of (i) 900,000,000 shares of Common Stock, of which
as of the date hereof, 739,285,855 shares are issued and
outstanding, none are held as treasury shares, 51,000,000 shares
are reserved for issuance pursuant to the Company’s stock
option plans of which only approximately 11,148,693 shares remain
available for future grants and 59,623,278 shares are issuable and
reserved for issuance pursuant to securities (other than stock
options issued pursuant to the Company’s stock option plans)
exercisable or exchangeable for, or convertible into, shares of
Common Stock and (ii) 10,000,000 shares of Preferred Stock,
$0.01 par value of which as of the date hereof no shares are issued
and outstanding. All of such outstanding shares have been, or upon
issuance will be, validly issued and are fully paid and
nonassessable. Except as disclosed in Schedule 3(c),
(i) no shares of the Company’s capital stock are subject
to preemptive rights or any other similar rights or any liens or
encumbrances suffered or permitted by the Company, (ii) there
are no outstanding debt securities, (iii) 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, (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 1933 Act (except the Registration Rights
Agreement), (v) there are no outstanding securities or
instruments of the Company or any of its Subsidiaries which contain
any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or
any of its Subsidiaries is or may become bound to redeem a security
of the Company or any of its Subsidiaries, (vi) there are no
securities or instruments containing anti-dilution or similar
provisions that will be triggered by the issuance of the Securities
as described in this Agreement and (vii) the Company does not
have any stock appreciation rights or “phantom stock”
plans or agreements or any similar plan or agreement. The Company
has furnished to the Buyer 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 amended
and as in effect on the date hereof (the “By- laws”),
and summaries of the terms of all securities convertible into or
exercisable for Common Stock, if any, and copies of any documents
containing the material rights of the holders thereof in respect
thereto.
(d) Issuance of
Securities . The Commitment Shares have been duly authorized
and, upon issuance in accordance with the terms hereof, the
Commitment Shares shall be (i) validly issued, fully paid and
non-assessable and (ii) free from all taxes, liens and charges
with respect to the issue thereof.
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35,000,000 shares of Common Stock have been duly authorized and
reserved for issuance upon purchase under this Agreement. 2,480,510
shares of Common Stock (subject to equitable adjustment for any
reorganization, recapitalization, non-cash dividend, stock split or
other similar transaction) have been duly authorized and reserved
for issuance as Additional Commitment Shares in accordance with
Section 4(e) this Agreement. Upon issuance and payment therefor in
accordance with the terms and conditions of this Agreement, the
Purchase Shares shall be validly issued, fully paid and
nonassessable and free from all taxes, liens and charges with
respect to the issue thereof, with the holders being entitled to
all rights accorded to a holder of Common Stock.
(e) No Conflicts .
Except as disclosed in Schedule 3(e), the execution, delivery
and performance of the Transaction Documents by the Company and the
consummation by the Company of the transactions contemplated hereby
and thereby (including, without limitation, the reservation for
issuance and issuance of the Purchase Shares) will not
(i) result in a violation of the Certificate of Incorporation,
any Certificate of Designations, Preferences and Rights of any
outstanding series of preferred stock of the Company or the 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 applicable to the Company or any of its Subsidiaries) or by
which any property or asset of the Company or any of its
Subsidiaries is bound or affected, except in the case of conflicts,
defaults, terminations, amendments, accelerations, cancellations
and violations under clause (ii), which could not reasonably be
expected to result in a Material Adverse Effect. Except as
disclosed in Schedule 3(e), neither the Company nor its
Subsidiaries is in violation of any term of or in default under its
Certificate of Incorporation, any Certificate of Designation,
Preferences and Rights of any outstanding series of preferred stock
of the Company or By-laws or their organizational charter or
by-laws, respectively. Except as disclosed in Schedule 3(e),
neither the Company nor any of its Subsidiaries is in violation of
any term of or is in default under 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, except for possible conflicts,
defaults, terminations or amendments which could not reasonably be
expected to have a Material Adverse Effect. The business of the
Company and its Subsidiaries is not being conducted, and shall not
be conducted, in violation of any law, ordinance, regulation of any
governmental entity, except for possible violations, the sanctions
for which either individually or in the aggregate could not
reasonably be expected to have a Material Adverse Effect. Except as
specifically contemplated by this Agreement and as required under
the 1933 Act or 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 or any regulatory or self-regulatory agency in order for it
to execute, deliver or perform any of its obligations under or
contemplated by the Transaction Documents in accordance with the
terms hereof or thereof. Except as disclosed in Schedule 3(e),
all consents, authorizations, orders, filings and registrations
which the Company is required to obtain pursuant to the preceding
sentence shall be obtained or effected on or prior to the
Commencement Date. Except as listed in Schedule 3(e), since
January 1, 2007, the Company has not received nor delivered
any notices or correspondence from or to the Principal Market. The
Principal Market has not commenced any delisting proceedings
against the Company.
(f) SEC Documents; Financial
Statements . Except as disclosed in Schedule 3(f), since
January 1, 2007, the Company has timely filed all reports,
schedules, forms, statements and other documents required to be
filed by it with the SEC pursuant to the reporting requirements of
the 1934 Act (all of the foregoing filed prior to the date hereof
and all exhibits included therein and financial statements and
schedules thereto and documents incorporated by reference therein
being hereinafter referred to as the “SEC Documents”).
As of their respective dates (except as they have been correctly
amended), the SEC Documents complied in all material respects with
the requirements of the 1934 Act and the rules and
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regulations of the SEC promulgated thereunder applicable to the SEC
Documents, and none of the SEC Documents, at the time they were
filed with the SEC (except as they may have been properly amended),
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. As of their respective
dates (except as they have been properly amended), the financial
statements of the Company included in the SEC Documents 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 then ended (subject, in the case of unaudited statements,
to normal year-end audit adjustments). Except as listed in
Schedule 3(f), the Company has received no notices or
correspondence from the SEC since January 1, 2007. The SEC has
not commenced any enforcement proceedings against the Company or
any of its subsidiaries.
(g) Absence of Certain
Changes . Except as disclosed in Schedule 3(g), since
January 1, 2008, there has been no material adverse change in the
business, properties, operations, financial condition or results of
operations of the Company or its Subsidiaries. The Company has not
taken any steps, and does not currently expect to take any steps,
to seek protection pursuant to any Bankruptcy Law nor does the
Company or any of its Subsidiaries have any knowledge or reason to
believe that its creditors intend to initiate involuntary
bankruptcy or insolvency proceedings. The Company is financially
solvent and is generally able to pay its debts as they become due
.
(h) Absence of
Litigation . Except as disclosed on Schedule 3(h), there
is no action, suit, proceeding, inquiry or investigation before or
by any court, public board, government agency, self-regulatory
organization or body pending or, to the knowledge of the Company or
any of its Subsidiaries, threatened against or affecting the
Company, the Common Stock or any of the Company’s
Subsidiaries or any of the Company’s or the Company’s
Subsidiaries’ officers or directors in their capacities as
such, which could reasonably be expected to have a Material Adverse
Effect. A description of each action, suit, proceeding, inquiry or
investigation before or by any court, public board, government
agency, self-regulatory organization or body which, as of the date
of this Agreement, is pending or threatened in writing against or
affecting the Company, the Common Stock or any of the
Company’s Subsidiaries or any of the Company’s or the
Company’s Subsidiaries’ officers or directors in their
capacities as such, is set forth in Schedule 3(h).
(i) Acknowledgment Regarding
Buyer’s Status . The Company acknowledges and agrees that
the Buyer is acting solely in the capacity of arm’s length
purchaser with respect to the Transaction Documents and the
transactions contemplated hereby and thereby. The Company further
acknowledges that the Buyer is not acting as a financial advisor or
fiduciary of the Company (or in any similar capacity) with respect
to the Transaction Documents and the transactions contemplated
hereby and thereby and any advice given by the Buyer or any of its
representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is
merely incidental to the Buyer’s purchase of the Securities.
The Company further represents to the Buyer that the
Company’s decision to enter into the Transaction Documents
has been based solely on the independent evaluation by the Company
and its representatives and advisors.
(j) 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 1933 Act) in connection with
the offer or sale of the Securities.
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(k) Intellectual Property
Rights . The Company and its Subsidiaries own or possess
adequate rights or licenses to use all material trademarks, trade
names, service marks, service mark registrations, service names,
patents, patent rights, copyrights, inventions, licenses,
approvals, governmental authorizations, trade secrets and rights
necessary to conduct their respective businesses as now conducted.
Except as set forth on Schedule 3(k), none of the
Company’s material trademarks, trade names, service marks,
service mark registrations, service names, patents, patent rights,
copyrights, inventions, licenses, approvals, government
authorizations, trade secrets or other intellectual property rights
have expired or terminated, or, by the terms and conditions
thereof, could expire or terminate within two years from the date
of this Agreement. The Company and its Subsidiaries do not have any
knowledge of any infringement by the Company or its Subsidiaries of
any material trademark, trade name rights, patents, patent rights,
copyrights, inventions, licenses, service names, service marks,
service mark registrations, trade secret or other similar rights of
others, or of any such development of similar or identical trade
secrets or technical information by others and, except as set forth
on Schedule 3(k), there is no claim, action or proceeding
being made or brought against, or to the Company’s knowledge,
being threatened against, the Company or its Subsidiaries regarding
trademark, trade name, patents, patent rights, invention,
copyright, license, service names, service marks, service mark
registrations, trade secret or other infringement, which could
reasonably be expected to have a Material Adverse Effect.
(l) Environmental Laws .
The Company and its Subsidiaries (i) are in compliance with
any and all applicable foreign, federal, state and local laws and
regulations relating to the protection of human health and safety,
the environment or hazardous or toxic substances or wastes,
pollutants or contaminants (“Environmental Laws”),
(ii) have received all permits, licenses or other approvals
required of them under applicable Environmental Laws to conduct
their respective businesses and (iii) are in complianc
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