Corporation is duly qualified to transact business,
and is in good standing, in each jurisdiction in which the failure
to so qualify would have a material adverse effect on its business.
The Corporation has all requisite power and authority to own, lease
and operate its assets and properties and to carry on its
business.
The authorized capital stock of the Corporation
consists of 45,000,000 shares of Common Stock, par value $0.01 per
share, of which 19,473,852 shares are issued and outstanding as of
the date hereof without taking into account the issuance of the
Shares hereunder and (ii) 5,000,000 shares of preferred stock, par
value $.01 per share, of which no shares are issued and outstanding
as of the date hereof.
The execution, delivery and performance of this
Agreement by the Corporation, the fulfillment of and compliance
with the respective terms and provisions hereof, and the due
consummation of the transactions contemplated hereby have been duly
and validly authorized by all necessary corporate action on the
part of the Corporation (none of which actions has been modified or
rescinded, and all of which actions are in full force and
effect).
This Agreement constitutes a valid and binding
obligation of the Corporation, enforceable in accordance with its
terms.
Upon payment by the Investor of the Purchase Price
and delivery by the Corporation to the Investor of a certificate
for the Shares, the Shares will be duly authorized, validly issued
and outstanding, fully paid and nonassessable, and the Investor
will acquire good, valid and marketable title thereto, free and
clear of all mortgages, liens, pledges, charges, claims, security
interests, agreements, encumbrances and equities whatsoever (other
than any created by the Investor).
The Corporation is not subject to any law,
ordinance, regulation, rule, order, judgment, injunction, decree,
charter, bylaw, contract, commitment, lease, agreement, instrument
or other restriction of any kind that would prevent the
Corporation’s consummation of this Agreement or any of the
transactions contemplated hereby without the consent of any third
party or that would result in any penalty, forfeiture or other
termination as a result of such consummation (except, in each case,
to the extent that consents or waivers have been
obtained).
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2.7.
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Absence
of
Violation
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Neither the execution or delivery of this Agreement
by the Corporation nor the consummation of the transactions
contemplated hereby by the Corporation constitutes a violation or
default under or conflicts with, or will result in the creation of
any encumbrance on any of the
2
assets owned by the Corporation under, any term or
provision of the Articles of Amendment and Restatement or Bylaws of
the Corporation, or any material contract, commitment, lease,
instrument, or agreement to which the Corporation is a party or by
which the Corporation is bound.
Since July 1, 2007, the Corporation has filed all
reports required to be filed by it under the Securities Act and the
Securities Exchange Act of 1934, as amended (the “
Exchange Act ”),
including pursuant to Section 13(a) or 15(d) thereof (the foregoing
materials being collectively referred to herein as the
“ SEC Reports ”). All such reports were filed on a timely basis
(including where applicable prior to expiration of a valid
extension of such time of filing). As of their respective dates,
the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the
rules and regulations of the Securities and Exchange Commission
(the “ Commission
”) promulgated thereunder, 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 stated
therein or necessary in order to make the statements therein, in
light of the circumstances under which they were made, not
misleading.
Subject to the accuracy of the representations and
warranties of the Investor contained herein, it is not necessary in
connection with the offer, sale and delivery of the Securities in
the manner contemplated by this Agreement to register the Shares
under the Securities Act.
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2.10.
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General Solicitation
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Within the preceding six months, other than pursuant
to an effective registration statement on Form S-8, neither the
Corporation, any affiliate of the Corporation nor any person acting
on its or their behalf has sold any shares of Common Stock by means
of any general solicitation or general advertising within the
meaning of Rule 502(c) under the Securities Act or offered or sold
any shares of Common Stock outside the United States to non-U.S.
persons (as defined in Rule 902 under the Securities
Act).
Within the preceding six months, neither the
Corporation nor any other person acting on behalf of the
Corporation has sold to any person any shares of Common Stock other
than the Shares offered or sold to the Investor hereunder other
than pursuant to an effective registration statement on Form S-8.
The Corporation will take reasonable precautions designed to ensure
that any offer or sale, direct or indirect, of any shares of Common
Stock or any substantially similar security issued by the
Corporation, within six months subsequent to the Closing, is made
under restrictions and other circumstances reasonably designed not
to affect the status of the offer and sale of the Shares
contemplated by this Agreement as transactions exempt from the
registration provisions of the Securities Act.
3
No broker, finder, commission agent or other person
is entitled to be paid by the Corporation any broker's fee or
commission in connection with the sale of the Shares and the
transactions contemplated by this Agreement.
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3.
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INVESTOR REPRESENTATIONS AND
WARRANTIES
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The Investor hereby represents and warrants to the
Corporation that:
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3.1.
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Organization and Standing; Legal
Capacity
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The Investor is duly organized, validly existing and
in good standing under the laws of the jurisdiction of its
formation and has all requisite power and authority to own, lease
and operate its assets, properties and business; to carry on its
business as now conducted; to execute and deliver this Agreement;
and to perform fully its obligations hereunder.
The execution, delivery and performance of this
Agreement by the Investor, the fulfillment of and the compliance
with the respective terms and provisions hereof, and the due
consummation of the transactions contemplated hereby have been duly
and validly authorized by all necessary limited liability company
action on the part of the Investor (none of which actions have been
modified or rescinded, and all of which actions are in full force
and effect).
This Agreement constitutes a valid and binding
obligation of the Investor, enforceable in accordance with its
terms.
The Investor is not subject to any law, ordinance,
regulation, rule, order, judgment, injunction, decree, charter,
bylaw, contract, commitment, lease, agreement, instrument or other
restriction of any kind that would prevent the Investor’s
consummation of this Agreement or any of the transactions
contemplated hereby without the consent of any third party, that
would require the consent of any third party to the consummation of
this Agreement or any of the transactions contemplated hereby, or
that would result in any penalty, forfeiture or other termination
as a result of such consummation (except, in each case, to the
extent that consents and/or waivers have been obtained).
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3.5.
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Absence
of
Violation
|
Neither the execution, delivery or performance of
this Agreement by the Investor nor the consummation by the Investor
of the transactions contemplated hereby constitutes or will
constitute a violation or default under or conflicts with or will
conflict with, or will result in the creation of any encumbrance on
any of the assets owned by the Investor under, any term or
provision of the organizational documents of the Investor, if the
Investor is an Entity, or any
4
material contract, commitment, lease, instrument, or
agreement to which the Investor is a party or by which the Investor
is bound.
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3.6.
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Purchase Entirely for Own Account
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The Shares will be acquired for the Investor’s
own account for investment purposes and not with a view to
distributing or reselling such Shares or any part thereof in
violation of applicable securities laws, without prejudice,
however, to the Investor’s right at all times to sell or
otherwise dispose of all or any part of the Shares in compliance
with applicable federal and state securities laws. Nothing
contained herein shall be deemed a representation or warranty by
such Investor to hold the Shares for any period of time. The
Investor understands that the Shares have not been registered under
the Securities Act, and therefore the Shares may not be sold,
assigned or transferred unless pursuant to (i) a registration
statement under the Securities Act is in effect with respect
thereto or (ii) an available exemption from the registration
requirements of the Securities Act.
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3.7.
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Investment Experience
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The Investor, either alone or together with its
representatives, has such knowledge, sophistication and experience
in business and financial matters so as to be capable of evaluating
the merits and risks of the prospective investment in the Shares,
and has so evaluated the merits and risks of such investment. The
Investor is able to bear the economic risk of an investment in the
Shares and, at the present time, is able to afford a complete loss
of such investment.
The Investor understands that the Shares are
characterized as “restricted securities” under the
federal securities laws inasmuch as they are being acquired from
the Corporation in a transaction not involving a public offering
and that under such laws and applicable regulations such securities
may not be resold without registration under the Act, except in
certain limited circumstances. The Investor is familiar with Rule
144 promulgated under the Act, as presently in effect, and
understands the resale limitations imposed thereby and by the
Act.
The Investor understands that the certificates
evidencing the Shares will bear the following, or a substantially
similar, legend:
5
“THESE SECURITIES HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933 OR ANY OTHER FEDERAL OR STATE
SECURITIES LAWS. THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR
HYPOTHECATED IN THE ABSENCE OF A REGISTRATION STATEMENT IN EFFECT
WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF
COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS
NOT REQUIRED.”
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3.10.
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Accredited Investor
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At the time the Investor was offered the Shares, it
was, and at the date hereof it is, an “accredited
investor” as defined in Rule 501(a) under the Securities Act.
The Investor is not a registered broker-dealer under Section 15 of
the Exchange Act.
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3.11.
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General Solicitation
|
The Investor is not purchasing the Shares as a
result of any advertisement, article, notice or other communication
regarding the Shares published in any newspaper, magazine or
similar media or broadcast over television or radio or presented at
any seminar or any other general solicitation or general
advertisement.
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3.12.
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Availability of Funds
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The Investor has adequate committed funds to satisfy
at Closing all of its obligations hereunder.
4.1.1. In the event the Merger
Agreement is terminated in accordance with its terms (such date of
termination, the “ Termination
Date ”), no later than 45 days
following the Termination Date (such 45 th day referred
to herein as the “ Filing
Date ”), the Corporation shall
prepare and file with the Commission a Registration Statement on an
appropriate form of registration statement covering the resale of
all Shares for an offering to be made on a continuous basis
pursuant to Rule 415. The Registration Statement shall contain
(except if otherwise directed by the Investor) the “
Plan of Distribution ,” substantially as attached hereto as
Exhibit A . In the
event Form S-3 is not available for the registration of the resale
of Shares hereunder, the Corporation shall (i) register the
resale of the Shares on another appropriate form in accordance
herewith and (ii) attempt to register the Shares on Form S-3 as
soon as such form is available, provided that the Corporation shall
maintain the effectiveness of the Registration Statement then in
effect until such time as a Registration Statement on Form S-3
covering the Shares has been declared effective by the
Commission.
6
4.1.2. The Corporation shall use
reasonable best efforts to cause the Registration Statement to be
declared effective by the Commission as promptly as possible after
the filing thereof (the date of such effectiveness, the
“ Effective Date
”) but in any event within 120 days following
the Termination Date (such 120 th day referred to herein
as the “ Required Effectiveness
Date ”), and shall use reasonable
best efforts to keep the Registration Statement continuously
effective under the Securities Act until the earlier of (i) the
fifth anniversary of the Effective Date, (ii) such time as all
Shares covered by the Registration Statement have been sold
publicly or (iii) such time as all of the Shares covered by the
Registration Statement may be sold pursuant to Rule 144 as
determined by counsel to the Corporation pursuant to a written
opinion letter to such effect (the A “Effectiveness Period” ).
4.1.3. The Corporation shall notify
the Investor in writing promptly after receiving notification from
the Commission that the Registration Statement has been declared
effective.
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4.2.
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Registration Procedures.
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In connection with the Corporation’s
registration obligations hereunder, the Corporation
shall:
4.2.1. Not less than six business
days prior to the filing of the Registration Statement or any
related prospectus (a “ Prospectus ”) or any amendment
or supplement thereto (including any document that would be
incorporated or deemed to be incorporated therein by reference),
furnish to the Investor copies of all such documents proposed to be
filed, which documents (other than those incorporated or deemed to
be incorporated by reference) will be subject to the review of the
Investor. The Corporation shall not file the Registration Statement
or any Prospectus or any amendments or supplements thereto to which
the Investor shall reasonably object.
4.2.2. (i) Prepare and file with
the Commission such amendments, including post-effective
amendments, to the Registration Statement and the Prospectus used
in connection therewith as may be necessary to keep the
Registration Statement continuously effective as to the applicable
Shares for the Effectiveness Period; (ii) cause any related
Prospectus to be amended or supplemented by any required Prospectus
supplement, and as so supplemented or amended to be filed pursuant
to Rule 424; (iii) respond as promptly as reasonably possible to
any comments received from the Commission with respect to the
Registration Statement or any amendment thereto and as promptly as
reasonably possible provide the Investor true and complete copies
of all correspondence from and to the Commission relating to the
Registration Statement; provided, however, the Corporation will not
be required to provide copies of any correspondence that would
result in the disclosure to the Investor of material and non-public
information concerning the Corporation unless the Investor has
executed a confidentiality agreement with the Corporation; and (iv)
comply in all material respects with the provisions of the
Securities Act and the Exchange Act, with respect to the
disposition of all Shares covered by the Registration Statement
during the applicable period in accordance with the intended
methods of disposition by the Investor set forth in the
Registration Statement as so amended or in such Prospectus as so
supplemented.
4.2.3. Notify the Investor as
promptly as reasonably possible of any of the following events: (i)
the Commission issues any stop order suspending the effectiveness
of the Registration Statement or initiates any proceedings for that
purpose; (ii) the Corporation receives notice of
7
any suspension of the qualification or exemption
from qualification of any Shares for sale in any jurisdiction, or
the initiation or threat of any proceeding for such purpose; or
(iii) the financial statements included or incorporated by
reference in the Registration Statement become ineligible for
inclusion or incorporation therein or any statement made in the
Registration Statement or Prospectus or any document incorporated
or deemed to be incorporated therein by reference is untrue in any
material respect or any revision to the Registration Statement,
Prospectus or other document is required so that it 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, in the light of the circumstances
under which they were made, not misleading.
4.2.4. Use reasonable best efforts
to avoid the issuance of or, if issued, obtain the withdrawal of
(i) any order suspending the effectiveness of the Registration
Statement, or (ii) any suspension of the qualification (or
exemption from qualification) of any of the Shares for sale in any
jurisdiction, as soon as practicable.
4.2.5. Furnish to the Investor,
without charge, at least one conformed copy of the Registration
Statement and each amendment thereto, including financial
statements and schedules, all documents incorporated or deemed to
be incorporated therein by reference, and all exhibits to the
extent requested by the Investor (including those previously
furnished or incorporated by reference) promptly after the filing
of such documents with the Commission.
4.2.6. Promptly deliver to the
Investor, without charge, as many copies of the Prospectus or
Prospectuses (including each form of prospectus) and each amendment
or supplement thereto as the Investor may reasonably request. The
Corporation hereby consents to the use of such Prospectus and each
amendment or supplement thereto by each of the selling Investor in
connection with the offering and sale of the Shares covered by such
Prospectus and any amendment or supplement thereto.
4.2.7. (i) If required, prepare and
timely file with any national securities exchange, market or
trading or quotation facility on which the Common Stock is then
listed or quoted (a “ Trading
Market ”) an additional shares
listing application covering all of the Shares; (ii) use reasonable
best efforts to cause such Shares to be approved for listing on
such Trading Market as soon as practicable thereafter; (iii)
provide to the Investor evidence of such listing; and (iv) use
reasonable best efforts to maintain the listing of such Shares on
such Trading Market.
4.2.8. Prior to any public offering
of Shares, use reasonable best efforts to register or qualify or
cooperate with the Investor in connection with the registration or
qualification (or exemption from such registration or
qualification) of such Share