Exhibit 10.1
SECURITIES PURCHASE
AGREEMENT
This Securities Purchase Agreement
(this “ Agreement ”) is dated as of
March 23, 2009, between Pharmathene, Inc., a Delaware
corporation (the “ Company ”), and each
purchaser identified on the signature pages hereto (each,
including its successors and assigns, a “ Purchaser
” and collectively the “ Purchasers
”).
WHEREAS, subject to the terms and
conditions set forth in this Agreement and pursuant to an effective
registration statement under the Securities Act of 1933, as amended
(the “ Securities Act ”), the Company desires to
issue and sell to each Purchaser, and each Purchaser, severally and
not jointly, desires to purchase from the Company, securities of
the Company as more fully described in this Agreement.
NOW, THEREFORE, IN CONSIDERATION of
the mutual covenants contained in this Agreement, and for other
good and valuable consideration the receipt and adequacy of which
are hereby acknowledged, the Company and each Purchaser agree as
follows:
ARTICLE I.
DEFINITIONS
1.1
Definitions
. In addition to the terms
defined elsewhere in this Agreement, for all purposes of this
Agreement, the following terms have the meanings set forth in this
Section 1.1:
“ Action ” shall
have the meaning ascribed to such term in
Section 3.1(j).
“ Affiliate ”
means any Person that, directly or indirectly through one or more
intermediaries, controls or is controlled by or is under common
control with a Person as such terms are used in and construed under
Rule 405 under the Securities Act.
“ Board of Directors
” means the board of directors of the Company.
“ Business Day ”
means any day except any Saturday, any Sunday, any day which is a
federal legal holiday in the United States or any day on which
banking institutions in the State of New York are authorized or
required by law or other governmental action to close.
“ Closing ” means
the closing of the purchase and sale of the Shares and
Warrants pursuant to Section 2.1.
“ Closing Date ”
means the Trading Day on which all of the Transaction Documents
have been executed and delivered by the applicable parties thereto,
and all conditions precedent to (i) the Purchasers’
obligations to pay the Subscription Amount and (ii) the
Company’s obligations to deliver the Shares and
Warrants, in each case, have been satisfied or waived.
“ Commission ”
means the United States Securities and Exchange
Commission.
“ Common Stock ”
means the common stock of the Company, no par value per share, and
any other class of securities into which such securities may
hereafter be reclassified or changed.
“ Common Stock
Equivalents ” means any securities of the Company or the
Subsidiaries which would entitle the holder thereof to acquire at
any time Common Stock, including, without limitation, any debt,
preferred stock, rights, options, warrants or other instrument that
is at any time convertible into or exercisable or exchangeable for,
or otherwise entitles the holder thereof to receive, Common
Stock.
“ Company Counsel
” means Sonnenschein Nath & Rosenthal,
LLP.
“ Evaluation Date
” shall have the meaning ascribed to such term in
Section 3.1(r).
“ Exchange Act ”
means the Securities Exchange Act of 1934, as amended, and the
rules and regulations promulgated thereunder.
“ Exempt Issuance
” means the issuance of (a) shares of Common Stock or
options to employees, officers or directors of (or, commencing 45
days after the Closing Date, consultants to) the Company pursuant
to any stock or option plan duly adopted for such purpose, by a
majority of the non-employee members of the Board of Directors or a
majority of the members of a committee of non-employee directors
established for such purpose, including, but not limited to, the
Company’s 2007 Long-Term Incentive Compensation Plan
(b) securities upon the exercise or exchange of or conversion
of any Securities issued hereunder and/or other securities issued
and outstanding on the date of this Agreement that are exercisable
or exchangeable for or convertible into shares of Common Stock,
provided that such securities have not been amended since the date
of this Agreement to increase the number of such securities or to
decrease the exercise price, exchange price or conversion price of
such securities, and (c) securities issued pursuant to
acquisitions or strategic transactions approved by a majority of
the disinterested directors of the Company, provided that any such
issuance shall only be to a Person (or to the equityholders of a
Person) which is, itself or through its subsidiaries, an operating
company or an asset in a business synergistic with the business of
the Company and shall provide to the Company additional benefits in
addition to the investment of funds, but shall not include a
transaction in which the Company is issuing securities primarily
for the purpose of raising capital or to an entity whose primary
business is investing in securities.
“ FWS ”
means Feldman Weinstein & Smith LLP with offices located
at 420 Lexington Avenue, Suite 2620, New York, New York
10170-0002.
“ GAAP ” shall
have the meaning ascribed to such term in
Section 3.1(h).
“ Indebtedness ”
shall have the meaning ascribed to such term in
Section 3.1(z).
“ Intellectual Property
Rights ” shall have the meaning ascribed to such term in
Section 3.1(o).
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“ Liens ” means a
lien, charge, security interest, encumbrance, right of first
refusal, preemptive right or other restriction.
“ Material Adverse
Effect ” shall have the meaning assigned to such term in
Section 3.1(b).
“ Material Permits
” shall have the meaning ascribed to such term in
Section 3.1(m).
“ Per Share Purchase
Price ” equals $2.60, subject to adjustment for reverse
and forward stock splits, stock dividends, stock combinations and
other similar transactions of the Common Stock that occur after the
date of this Agreement.
“ Person ” means
an individual or corporation, partnership, trust, incorporated or
unincorporated association, joint venture, limited liability
company, joint stock company, government (or an agency or
subdivision thereof) or other entity of any kind, including without
limitation, any Trading Market.
“ Proceeding ”
means an action, claim, suit, investigation or proceeding
(including, without limitation, an informal investigation or
partial proceeding, such as a deposition), whether commenced or
threatened.
“ Prospectus ”
means the prospectus filed with the Registration
Statement.
“ Prospectus Supplement
” means any preliminary prospectus supplement relating to the
offer and sale of the Shares, Warrants (and upon exercise of
any Warrant, the Warrant Shares), any free writing prospectus
complying with Rule 433 under the Securities Act that is filed
with the Commission and the final supplement to the Prospectus
complying with Rule 424(b) of the Securities Act that is
filed with the Commission and delivered by the Company to each
Purchaser at the Closing.
“ Purchaser Party
” shall have the meaning ascribed to such term in
Section 4.7.
“ Registration
Statement ” means the effective registration statement
with Commission file No. 333-156997 which registers the sale
of the Shares, the Warrants and the Warrant Shares to the
Purchasers.
“ Required Approvals
” shall have the meaning ascribed to such term in
Section 3.1(e).
“ Rule 144 ”
means Rule 144 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended from time to time,
or any similar rule or regulation hereafter adopted by the
Commission having substantially the same effect as such
Rule.
“ Rule 424 ”
means Rule 424 promulgated by the Commission pursuant to the
Securities Act, as such Rule may be amended or interpreted
from time to time, or any
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similar rule or regulation
hereafter adopted by the Commission having substantially the same
purpose and effect as such Rule.
“ SEC Reports ”
shall have the meaning ascribed to such term in
Section 3.1(h).
“ Securities ”
means the Shares, the Warrants and the Warrant Shares.
“ Securities Act
” means the Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder.
“ Shares ” means
the shares of Common Stock issued or issuable to each Purchaser
pursuant to this Agreement.
“ Short Sales ”
means all “short sales” as defined in Rule 200 of
Regulation SHO under the Exchange Act (but shall not be deemed to
include the location and/or reservation of borrowable shares of
Common Stock).
“ Subscription
Amount ” means, as to each Purchaser, the aggregate
amount to be paid for Shares and Warrants purchased hereunder as
specified below such Purchaser’s name on the signature
page of this Agreement and next to the heading
“Subscription Amount,” in United States dollars and in
immediately available funds.
“ Time of Sale
Prospectus ” means the Prospectus together with any
Prospectus Supplement that is filed with the Commission, and any
document incorporated by reference into the Prospectus and any
Prospectus Supplement, used in connection with the sale of the
Shares and Warrants.
“ Trading Day ”
means a day on which the principal Trading Market is open for
trading.
“ Trading Market
” means any of the following markets or exchanges on which
the Common Stock is listed or quoted for trading on the date in
question: the NYSE Amex, the Nasdaq Capital Market, the Nasdaq
Global Market, the Nasdaq Global Select Market, the New York Stock
Exchange or the OTC Bulletin Board (or any successors to any of the
foregoing).
“ Transaction Documents
” means this Agreement, the Warrants and any other documents
or agreements executed in connection with the transactions
contemplated hereunder.
“ Transfer Agent
” means Continental Stock Transfer & Trust Company,
the current transfer agent of the Company, with a mailing address
of 17 Battery Place, New York, NY 10004, and any successor transfer
agent of the Company.
“ Warrants ”
means, collectively, the Common Stock purchase warrants delivered
to the Purchasers at the Closing in accordance with
Section 2.2(a) hereof, which Warrants shall be
exercisable beginning six (6) months after the Closing Date
and have a term of exercise equal to five and one-half (5-1/2)
years, in the form of Exhibit A attached
hereto.
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“ Warrant Shares
” means the shares of Common Stock issuable upon exercise of
the Warrants.
ARTICLE II.
PURCHASE AND SALE
2.1
Closing . Upon the terms and subject to the
conditions set forth herein, the Company agrees to sell, and the
Purchasers, severally and not jointly, agree to purchase, on the
Closing Date, up to an aggregate of
[ ] Shares and
Warrants. Each Purchaser shall deliver to the Company, via
wire transfer or a certified check, immediately available funds
equal to such Purchaser’s Subscription Amount as set forth on
the signature page hereto executed by such Purchaser and the
Company shall deliver to each Purchaser its respective Shares and a
Warrant as determined pursuant to Section 2.2(a), and the Company
and each Purchaser shall deliver the other items set forth in
Section 2.2 deliverable at the Closing. Upon satisfaction of
the covenants and conditions set forth in Sections 2.2 and 2.3, the
Closing shall occur at the offices of FWS or such other location as
the parties shall mutually agree.
2.2
Deliveries
.
(a)
On or prior to the Closing Date, the
Company shall deliver or cause to be delivered to each Purchaser
the following:
(i)
a legal opinion
of Company Counsel, substantially in the form agreed to by the
parties;
(ii)
this Agreement
duly executed and delivered by the parties hereto;
(iii)
a copy of the
irrevocable instructions to the Company’s transfer agent,
duly executed and delivered by the Company, instructing the
transfer agent to deliver via the Depository Trust Company Deposit
Withdrawal Agent Commission System (“ DWAC ”)
Shares equal to such Purchaser’s Subscription Amount divided
by the Per Share Purchase Price, registered in the name of such
Purchaser;
(iv)
a Warrant, duly
executed by the Company, registered in the name of such Purchaser
to purchase up to a number of shares of Common Stock equal to
one-third (1/3) of the number of Shares purchased by such
Purchaser, with an exercise price equal to $3.00, subject to
adjustment therein (such Warrant certificate may be delivered
within three Trading Days of the Closing Date); and
(v)
the final
Prospectus Supplement (which may be delivered in accordance with
Rule 172 under the Securities Act) if required under the
Securities Act.
(b)
On or prior to
the Closing Date, each Purchaser shall deliver or cause to be
delivered to the Company the following:
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(i)
such
Purchaser’s Subscription Amount (less, in the case of Empery
Asset Master Ltd. (a Purchaser), the amount withheld pursuant to
Section 5.2) by wire transfer to the account as specified in
writing by the Company; and
2.3
Closing Conditions
.
(a)
The obligations of the Company
hereunder in connection with the Closing are subject to the
following conditions being met:
(i)
all obligations,
covenants and agreements of each Purchaser required to be performed
at or prior to the Closing Date shall have been performed;
and
(ii)
the delivery by
each Purchaser of the items set forth in
Section 2.2(b) of this Agreement.
(b)
The respective
obligations of the Purchasers hereunder in connection with the
Closing are subject to the following conditions being
met:
(i)
all obligations,
covenants and agreements of the Company required to be performed at
or prior to the Closing Date shall have been performed;
and
(ii)
the delivery by
the Company of the items set forth in Section 2.2(a) of
this Agreement.
ARTICLE III.
REPRESENTATIONS AND
WARRANTIES
3.1
Representations and Warranties of
the Company .
Except as set forth in the Registration Statement, the Prospectus,
the Prospectus Supplements or any documents incorporated by
reference therein, which such filings, writings and documents shall
qualify such representations and warranties to the extent of the
disclosures contained therein, the Company hereby makes the
following representations and warranties to each
Purchaser:
(a)
Subsidiaries
. The Company owns, directly
or indirectly, all of the capital stock or other equity interests
of each of its direct and indirect subsidiaries free and clear of
any Liens, and all of the issued and outstanding shares of capital
stock of each such subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights to
subscribe for or purchase securities, except as set forth on
Schedule 3.1(a) hereto. If the Company has no subsidiaries,
all other references to subsidiaries in the Transaction Documents
shall be disregarded.
(b)
Organization
and Qualification . The Company and each
of its subsidiaries is an entity duly incorporated or otherwise
organized, validly existing and in good standing under the laws of
the jurisdiction of its incorporation or organization, with the
requisite power and authority to own and use its properties and
assets and to carry on its business as currently conducted.
Neither the Company nor any subsidiary is in violation nor default
of any of the provisions of its respective certificate or articles
of
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incorporation,
bylaws or other organizational or charter documents. Each of
the Company and the Subsidiaries is duly qualified to conduct
business and is in good standing as a foreign corporation or other
entity in each jurisdiction in which the nature of the business
conducted or property owned by it makes such qualification
necessary, except where the failure to be so qualified or in good
standing, as the case may be, could not have or reasonably be
expected to result in: (i) a material adverse effect on the
legality, validity or enforceability of any Transaction Document,
(ii) a material adverse effect on the results of operations,
assets, business, prospects or condition (financial or otherwise)
of the Company and the Subsidiaries, taken as a whole, or
(iii) a material adverse effect on the Company’s ability
to perform in any material respect on a timely basis its
obligations under any Transaction Document (any of (i),
(ii) or (iii), a “ Material Adverse Effect
”) and no Proceeding has been instituted in any such
jurisdiction revoking, limiting or curtailing or seeking to revoke,
limit or curtail such power and authority or
qualification.
(c)
Authorization;
Enforcement . The Company has the
requisite corporate power and authority to enter into and to
consummate the transactions contemplated by each of the Transaction
Documents and otherwise to carry out its obligations hereunder and
thereunder. The execution and delivery of each of the
Transaction Documents by the Company and the consummation by it of
the transactions contemplated hereby and thereby have been duly
authorized by all necessary action on the part of the Company and
no further action is required by the Company, the Board of
Directors or the Company’s stockholders in connection
therewith other than in connection with the Required
Approvals. Each Transaction Document to which it is a party
has been (or upon delivery will have been) duly executed by the
Company and, when delivered in accordance with the terms hereof and
thereof, will constitute the valid and binding obligation of the
Company enforceable against the Company in accordance with its
terms, except (i) as limited by general equitable principles
and applicable bankruptcy, insolvency, reorganization, moratorium
and other laws of general application affecting enforcement of
creditors’ rights generally, (ii) as limited by laws
relating to the availability of specific performance, injunctive
relief or other equitable remedies and (iii) insofar as
indemnification and contribution provisions may be limited by
applicable law.
(d)
No
Conflicts . The execution,
delivery and performance by the Company of the Transaction
Documents, the issuance and sale of the Shares and Warrants
and the consummation by it of the transactions contemplated hereby
and thereby to which it is a party do not and will not
(i) conflict with or violate any provision of the
Company’s or any subsidiary’s certificate or articles
of incorporation, bylaws or other organizational or charter
documents, or (ii) result in the creation of any Lien upon any
of the properties or assets of the Company or any subsidiary, or
give to others any rights of termination, amendment, acceleration
or cancellation (with or without notice, lapse of time or both) of
or conflict with, or constitute a default (or an event that with
notice or lapse of time or both would become a default) under, any
agreement, credit facility, debt or other instrument (evidencing a
Company or subsidiary debt or otherwise) or other understanding to
which the Company or any subsidiary is a party or by which any
property or asset of the Company or any subsidiary is bound or
affected, or (iii) subject to the Required Approvals, conflict
with or result in a violation of any law, rule,
regulation,
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order, judgment,
injunction, decree or other restriction of any Trading Market,
court or governmental authority to which the Company or a
subsidiary is subject (including federal and state securities laws
and regulations and the regulations of any Trading Market), or by
which any property or asset of the Company or a subsidiary is bound
or affected; except in the case of each of clauses (ii) and
(iii), such as could not have or reasonably be expected to result
in a Material Adverse Effect.
(e)
Filings,
Consents and Approvals . The Company is not
required to obtain any consent, waiver, authorization or order of,
give any notice to, or make any filing or registration with, any
court or other federal, state, local or other governmental
authority or other Person in connection with the execution,
delivery and performance by the Company of the Transaction
Documents, other than: (i) the filings required pursuant to
Section 4.3 of this Agreement, (ii) the filing with the
Commission of the Prospectus Supplement,
(iii) application(s) to each applicable Trading Market
for the listing of the Shares for trading thereon in the time and
manner required thereby and (iv) such filings as are required
to be made under applicable state securities laws (collectively,
the “ Required Approvals ”).
(f)
Issuance of
the Securities; Registration . The Shares and
Warrants are duly authorized and, when issued and paid for in
accordance with the applicable Transaction Documents (i) the
Shares will be duly and validly issued, fully paid and
nonassessable, free and clear of all Liens imposed by the Company
and (ii) the Warrants will be duly and validly issued, free
and clear of all Liens imposed by the Company . The Warrant
Shares, when issued in accordance with the terms of the Warrants,
will be validly issued, fully paid and nonassessable, free and
clear of all Liens imposed by the Company. The Company has
reserved from its duly authorized capital stock the maximum number
of shares of Common Stock issuable pursuant to this Agreement and
the Warrants. The Company has prepared and filed the Registration
Statement in conformity with the requirements of the Securities
Act, which became effective on February 12, 2009 (the
“ Effective Date ”), including the Prospectus,
and such amendments and supplements thereto as may have been
required to the date of this Agreement. The Registration
Statement is effective under the Securities Act and no stop order
preventing or suspending the effectiveness of the Registration
Statement or suspending or preventing the use of the Prospectus has
been issued by the Commission and no proceedings for that purpose
have been instituted or, to the knowledge of the Company, are
threatened by the Commission. The Company, if required by the
rules and regulations of the Commission, proposes to file the
final Prospectus Supplement, with the Commission pursuant to
Rule 424(b). At the time the Registration Statement and
any amendments thereto became effective, at the date of this
Agreement and at the Closing Date, the Registration Statement and
any amendments thereto conformed and will conform in all material
respects to the requirements of the Securities Act and did not and
will not contain 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 not misleading; provided, however,
that this representation and warranty shall not apply to any
statements or omissions made in reliance upon information furnished
to the Company by the Purchasers; and the Prospectus and any
amendments or supplements thereto, at time the Prospectus or any
amendment or supplement thereto was issued and at the Closing Date,
conformed and
8
will conform in
all material respects to the requirements of the Securities Act and
did not and will not contain an untrue statement of a material fact
or omit to state a material fact necessary in order to make the
statements therein, in light of the circumstances under which they
were made, not misleading; provided, however, that this
representation and warranty shall not apply to any statements or
omissions made in reliance upon information furnished to the
Company by the Purchasers.
(g)
Capitalization
. The
Company has not issued any capital stock since its most recently
filed periodic report under the Exchange Act, other than pursuant
to the exercise of stock options under the Company’s stock
option plans, the issuance of shares of Common Stock to employees
pursuant to the Company’s employee stock purchase plans and
pursuant to the conversion and/or exercise of Common Stock
Equivalents outstanding as of the date of the most recently filed
periodic report under the Exchange Act. No Person has any
right of first refusal, preemptive right, right of participation,
or any similar right to participate in the transactions
contemplated by the Transaction Documents. Except as
described in the Company’s SEC Reports, there are no
outstanding options, warrants, scrip rights to subscribe to, calls
or commitments of any character whatsoever relating to, or
securities, rights or obligations convertible into or exercisable
or exchangeable for, or giving any Person any right to subscribe
for or acquire, any shares of Common Stock, or contracts,
commitments, understandings or arrangements by which the Company or
any subsidiary is or may become bound to issue additional shares of
Common Stock or Common Stock Equivalents, other than as a result of
the purchase and sale of the Shares and Warrants. The
issuance and sale of the Shares and Warrants, and the issuance of
Warrant Shares upon exercise of the Warrants, will not obligate the
Company to issue shares of Common Stock or other securities to any
Person (other than the Purchasers) and will not result in a right
of any holder of Company securities to adjust the exercise,
conversion, exchange or reset price under any of such securities.
All of the outstanding shares of capital stock of the Company are
validly issued, fully paid and nonassessable. No further
approval or authorization of any stockholder, the Board of
Directors or others is required for the issuance and sale of the
Securities. There are no stockholders agreements, voting
agreements or other similar agreements with respect to the
Company’s capital stock to which the Company is a party or,
to the knowledge of the Company, between or among any of the
Company’s stockholders that are not described in the SEC
Reports.
(h)
SEC Reports;
Financial Statements . The Company has filed
all reports, schedules, forms, statements and other documents
required to be filed by the Company under the Exchange Act,
including pursuant to Section 13(a) or
15(d) thereof, for the two years preceding the date hereof (or
such shorter period as the Company was required by law or
regulation to file such material) (the foregoing materials,
including the exhibits thereto and documents incorporated by
reference therein, together with the Prospectus and any Prospectus
Supplement, being collectively referred to herein as the “
SEC Reports ”) on a timely basis or has received a
valid extension of such time of filing and has filed any such SEC
Reports prior to the expiration of any such extension. As of
their respective dates, the SEC Reports complied in all material
respects with the requirements of the Exchange Act, as applicable,
and none of the SEC Reports, when filed, contained any untrue
statement of a material fact or omitted to state a material fact
required to be
9
stated therein or
necessary in order to make the statements therein, in the light of
the circumstances under which they were made, not misleading;
provided, however, that this representation and warranty shall not
apply to any statements or omissions made in reliance upon
information furnished to the Company by the Purchasers. The
financial statements of the Company included in the SEC Reports
comply in all material respects with applicable accounting
requirements and the rules and regulations of the Commission
with respect thereto as in effect at the time of filing. Such
financial statements have been prepared in accordance with United
States generally accepted accounting principles applied on a
consistent basis during the periods involved (“ GAAP
”), except as may be otherwise specified in such financial
statements or the notes thereto and except to the extent that
unaudited financial statements may not contain all footnotes
required by GAAP, and such statements fairly present in all
material respects the financial position of the Company and its
consolidated Subsidiaries as of and for the dates thereof and the
results of operations and cash flows for the periods then ended,
subject, in the case of unaudited statements, to normal,
immaterial, year-end audit adjustments.
(i)
Material
Changes; Undisclosed Events, Liabilities or Developments
. Since the
date of the latest audited financial statements included within the
SEC Reports, except as specifically disclosed in a subsequent SEC
Report filed prior to the date hereof, (i) there has been no
event, occurrence or development that has had or that could
reasonably be expected to result in a Material Adverse Effect,
(ii) the Company has not incurred any liabilities (contingent
or otherwise) other than (A) trade payables and accrued
expenses incurred in the ordinary course of business consistent
with past practice and (B) liabilities not required to be
reflected in the Company’s financial statements pursuant to
GAAP or disclosed in filings made with the Commission,
(iii) the Company has not altered its method of accounting,
(iv) the Company has not declared or made any dividend or
distribution of cash or other property to its stockholders or
purchased, redeemed or made any agreements to purchase or redeem
any shares of its capital stock and (v) the Company has not
issued any equity securities to any officer, director or Affiliate,
except pursuant to existing Company stock option plans. The
Company does not have pending before the Commission any request for
confidential treatment of information. Except for the
issuance of the Shares and Warrants contemplated by this
Agreement, no event, liability, fact, circumstance, occurrence or
development has occurred or exists or is reasonably expected to
occur or exist with respect to the Company or its Subsidiaries or
their respective business, prospects, properties, operations,
assets or financial condition that would be required to be
disclosed by the Company under applicable securities laws at the
time this representation is made or deemed made that has not been
publicly disclosed at least 1 Trading Day prior to the date that
this representation is made.
(j)
Litigation
. There is
no action, suit, inquiry, notice of violation, proceeding or
investigation pending or, to the knowledge of the Company,
threatened against or affecting the Company, any subsidiary or any
of their respective properties before or by any court, arbitrator,
governmental or administrative agency or regulatory authority
(federal, state, county, local or foreign) (collectively, an
“ Action ”) which (i) adversely affects or
challenges the legality, validity or enforceability of any of the
Transaction Documents or the Securities or (ii) could, if
there were an unfavorable decision, have or
10
reasonably be
expected to result in a Material Adverse Effect. Neither the
Company nor any subsidiary, nor any director or officer thereof, is
or has been the subject of any Action involving a claim of
violation of or liability under federal or state securities laws or
a claim of breach of fiduciary duty. There has not been, and
to the knowledge of the Company, there is not pending or
contemplated, any investigation by the Commission involving the
Company or any current or former director or officer of the
Company.
(k)
Labor
Relations . No material labor
dispute exists or, to the knowledge of the Company, is imminent
with respect to any of the employees of the Company that could
reasonably be expected to result in a Material Adverse
Effect. None of the Company’s or its
Subsidiaries’ employees is a member of a union that relates
to such employee’s relationship with the Company or such
subsidiary, and neither the Company nor any of its Subsidiaries is
a party to a collective bargaining agreement, and the Company and
its Subsidiaries believe that their relationships with their
employees are good. No executive officer, to the knowledge of
the Company, is, or is now expected to be, in violation of any
material term of any employment contract, confidentiality,
disclosure or proprietary information agreement or non-competition
agreement, or any other contract or agreement or any restrictive
covenant in favor of any third party, and the continued employment
of each such executive officer does not subject the Company or any
of its Subsidiaries to any liability with respect to any of the
foregoing matters. The Company and its Subsidiaries are in
compliance with all U.S. federal, state, local and foreign laws and
regulations relating to employment and employment practices, terms
and conditions of employment and wages and hours, except where the
failure to be in compliance could not, individually or in the
aggregate, reasonably be expected to have a Material Adverse
Effect.
(l)
Compliance
. Neither
the Company nor any subsidiary: (i) is in default under or in
violation of (and no event has occurred that has not been waived
that, with notice or lapse of time or both, would result in a
default by the Company or any subsidiary under), nor has the
Company or any subsidiary received notice of a claim that it is in
default under or that it is in violation of, any indenture, loan or
credit agreement or any other agreement or instrument to which it
is a party or by which it or any of its properties is bound
(whether or not such default or violation has been waived),
(ii) is in violation of any judgment, decree or order of any
court, arbitrator or governmental body or (iii) is or has been
in violation of any statute, rule, ordinance or regulation of any
governmental authority, including without limitation all foreign,
federal, state and local laws applicable to its business and all
such laws that affect the environment, except in each case as could
not reasonably be expected to result in a Material Adverse
Effect.
(m)
Regulatory
Permits . The Company and the
Subsidiaries possess all certificates, authorizations and permits
issued by the appropriate federal, state, local or foreign
regulatory authorities necessary to conduct their respective
businesses as described in the SEC Reports, except where the
failure to possess such permits could not reasonably be expected to
result in a Material Adverse Effect (“ Material
Permits ”), and neither the Company nor any subsidiary
has received any notice of proceedings relating to the revocation
or modification of any Material Permit.
11
(n)
Title to
Assets . The Company and the
Subsidiaries have good and marketable title in fee simple to all
real property owned by them and good and marketable title to all
person
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