Document ID: 13029

Text:
(d) Issuance of Securities; Registration Statement . The issuance of the Convertible Notes are duly authorized and, upon issuance in accordance with the terms of the Transaction Documents, shall be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, mortgages, defects, claims, liens, pledges, charges, taxes, rights of first refusal, encumbrances, security interests and other encumbrances (collectively Liens) with respect to the issuance thereof. As of the Closing, the Company shall have reserved from its duly authorized capital stock not less than 100% of the sum of (i) the maximum number of Conversion Shares issuable pursuant to the terms of the Convertible Notes, including, without limitation, upon conversion or otherwise (assuming for such purpose that (x) such Convertible Notes are convertible at the initial Conversion Price (as defined in the Convertible Notes), (y) dividends on the Convertible Notes shall accrue through the twelve month anniversary of the Closing Date and will be converted in shares of Common Stock at a dividend conversion price equal to the initial Conversion Price and (z) any such conversion shall not take into account any limitations on the conversion of the Convertible Notes set forth in the Convertible Notes) (the Required Reserve Amount). Common Stock means (i) the Companys shares of common stock, $0.001 par value per share, and (ii) any capital stock into which such common stock shall have been changed or any share capital resulting from a reclassification of such common stock. The issuance of the Conversion Shares are duly authorized, and upon issuance in accordance with the Convertible Notes, the Conversion Shares when issued, will be validly issued, fully paid and non-assessable and free from all preemptive or similar rights, taxes or Liens with respect to the issue thereof, with the holders being entitled to all rights accorded to a holder of Common Stock. The issuance by the Company of the Securities have been registered under the 1933 Act , the Securities are being issued pursuant to the Registration Statement and all of the Securities are freely transferable and freely tradable by each of the Buyers without restriction, whether by way of registration or some exemption therefrom. The Registration Statement is effective and available for the issuance of the Securities thereunder and the Company has not received any notice that the SEC has issued or intends to issue a stop-order with respect to the Registration Statement or that the SEC otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so. The Plan of Distribution section under the Registration Statement permits the issuance and sale of the Securities hereunder and as contemplated by the other Transaction Documents. Upon receipt of the Securities, each of the Buyers will have good and marketable title to the Securities. The Registration Statement and any prospectus included therein, including the Prospectus and the Prospectus Supplement, complied in all material respects with the requirements of the 1933 Act and the 1934 Act and the rules and regulations of the SEC promulgated thereunder and all other applicable laws and regulations. At the time the Registration Statement and any amendments thereto became effective, at the date of this Agreement and at each deemed effective date thereof pursuant to Rule 430B(f)(2) of the 1933 Act , the Registration Statement and any amendments thereto complied and will comply in all material respects with the requirements of the 1933 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. The Prospectus and any amendments or supplements thereto (including, without limitation the Prospectus Supplement), at the time the Prospectus or any amendment or supplement thereto was issued and at the Closing Date, complied, and will comply, in all material respects with the requirements of the 1933 Act and did not, and will not, contain any 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. The Company meets all of the requirements for the use of Form S-3 under the 1933 Act for the offering and sale of the Securities contemplated by this Agreement and the other Transaction Documents, and the SEC has not notified the Company of any objection to the use of the form of the Registration Statement pursuant to Rule 401(g)(1) under the 1933 Act . The Registration Statement meets the requirements set forth in Rule 415(a)(1)(x) under the 1933 Act . At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2) under the 1933 Act ) relating to any of the Securities, the Company was not and is not an Ineligible Issuer (as defined in Rule 405 under the 1933 Act ). The Company (i) has not distributed any offering material in connection with the offer or sale of any of the Securities and (ii) until no Buyer holds any of the Securities, shall not distribute any offering material in connection with the offer or sale of any of the Securities to, or by, any of the Buyers (if required), in each case, other than the Registration Statement, the Prospectus or the Prospectus Supplement. The offering of the Securities have been registered with the SEC on Form S-3 under the 1933 Act , and the Securities are being offered pursuant to Rule 415 promulgated under the 1933 Act .&lt; br/&gt;

Named Entities:
7
8
Title
14
15
Shares
107
108
Percentage
256
259
Price
377
378
Act
568
569
Act
616
623
Regulation
845
852
Regulation
867
877
Regulation
911
918
Regulation
945
946
Regulation

Tokenized Text:
(
d
)
Issuance
of
Securities
;
Registration
Statement
.
The
issuance
of
the
Convertible
Notes
are
duly
authorized
and
,
upon
issuance
in
accordance
with
the
terms
of
the
Transaction
Documents
,
shall
be
validly
issued
,
fully
paid
and
non-assessable
and
free
from
all
preemptive
or
similar
rights
,
mortgages
,
defects
,
claims
,
liens
,
pledges
,
charges
,
taxes
,
rights
of
first
refusal
,
encumbrances
,
security
interests
and
other
encumbrances
(
collectively
Liens
)
with
respect
to
the
issuance
thereof
.
As
of
the
Closing
,
the
Company
shall
have
reserved
from
its
duly
authorized
capital
stock
not
less
than
100
%
of
the
sum
of
(
i
)
the
maximum
number
of
Conversion
Shares
issuable
pursuant
to
the
terms
of
the
Convertible
Notes
,
including
,
without
limitation
,
upon
conversion
or
otherwise
(
assuming
for
such
purpose
that
(
x
)
such
Convertible
Notes
are
convertible
at
the
initial
Conversion
Price
(
as
defined
in
the
Convertible
Notes
)
,
(
y
)
dividends
on
the
Convertible
Notes
shall
accrue
through
the
twelve
month
anniversary
of
the
Closing
Date
and
will
be
converted
in
shares
of
Common
Stock
at
a
dividend
conversion
price
equal
to
the
initial
Conversion
Price
and
(
z
)
any
such
conversion
shall
not
take
into
account
any
limitations
on
the
conversion
of
the
Convertible
Notes
set
forth
in
the
Convertible
Notes
)
(
the
Required
Reserve
Amount
)
.
Common
Stock
means
(
i
)
the
Companys
shares
of
common
stock
,
$
0
.
001
par
value
per
share
,
and
(
ii
)
any
capital
stock
into
which
such
common
stock
shall
have
been
changed
or
any
share
capital
resulting
from
a
reclassification
of
such
common
stock
.
The
issuance
of
the
Conversion
Shares
are
duly
authorized
,
and
upon
issuance
in
accordance
with
the
Convertible
Notes
,
the
Conversion
Shares
when
issued
,
will
be
validly
issued
,
fully
paid
and
non-assessable
and
free
from
all
preemptive
or
similar
rights
,
taxes
or
Liens
with
respect
to
the
issue
thereof
,
with
the
holders
being
entitled
to
all
rights
accorded
to
a
holder
of
Common
Stock
.
The
issuance
by
the
Company
of
the
Securities
have
been
registered
under
the
1933
Act
,
the
Securities
are
being
issued
pursuant
to
the
Registration
Statement
and
all
of
the
Securities
are
freely
transferable
and
freely
tradable
by
each
of
the
Buyers
without
restriction
,
whether
by
way
of
registration
or
some
exemption
therefrom
.
The
Registration
Statement
is
effective
and
available
for
the
issuance
of
the
Securities
thereunder
and
the
Company
has
not
received
any
notice
that
the
SEC
has
issued
or
intends
to
issue
a
stop-order
with
respect
to
the
Registration
Statement
or
that
the
SEC
otherwise
has
suspended
or
withdrawn
the
effectiveness
of
the
Registration
Statement
,
either
temporarily
or
permanently
,
or
intends
or
has
threatened
in
writing
to
do
so
.
The
Plan
of
Distribution
section
under
the
Registration
Statement
permits
the
issuance
and
sale
of
the
Securities
hereunder
and
as
contemplated
by
the
other
Transaction
Documents
.
Upon
receipt
of
the
Securities
,
each
of
the
Buyers
will
have
good
and
marketable
title
to
the
Securities
.
The
Registration
Statement
and
any
prospectus
included
therein
,
including
the
Prospectus
and
the
Prospectus
Supplement
,
complied
in
all
material
respects
with
the
requirements
of
the
1933
Act
and
the
1934
Act
and
the
rules
and
regulations
of
the
SEC
promulgated
thereunder
and
all
other
applicable
laws
and
regulations
.
At
the
time
the
Registration
Statement
and
any
amendments
thereto
became
effective
,
at
the
date
of
this
Agreement
and
at
each
deemed
effective
date
thereof
pursuant
to
Rule
430B
(
f
)
(
2
)
of
the
1933
Act
,
the
Registration
Statement
and
any
amendments
thereto
complied
and
will
comply
in
all
material
respects
with
the
requirements
of
the
1933
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
.
The
Prospectus
and
any
amendments
or
supplements
thereto
(
including
,
without
limitation
the
Prospectus
Supplement
)
,
at
the
time
the
Prospectus
or
any
amendment
or
supplement
thereto
was
issued
and
at
the
Closing
Date
,
complied
,
and
will
comply
,
in
all
material
respects
with
the
requirements
of
the
1933
Act
and
did
not
,
and
will
not
,
contain
any
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
.
The
Company
meets
all
of
the
requirements
for
the
use
of
Form
S-3
under
the
1933
Act
for
the
offering
and
sale
of
the
Securities
contemplated
by
this
Agreement
and
the
other
Transaction
Documents
,
and
the
SEC
has
not
notified
the
Company
of
any
objection
to
the
use
of
the
form
of
the
Registration
Statement
pursuant
to
Rule
401
(
g
)
(
1
)
under
the
1933
Act
.
The
Registration
Statement
meets
the
requirements
set
forth
in
Rule
415
(
a
)
(
1
)
(
x
)
under
the
1933
Act
.
At
the
earliest
time
after
the
filing
of
the
Registration
Statement
that
the
Company
or
another
offering
participant
made
a
bona
fide
offer
(
within
the
meaning
of
Rule
164
(
h
)
(
2
)
under
the
1933
Act
)
relating
to
any
of
the
Securities
,
the
Company
was
not
and
is
not
an
Ineligible
Issuer
(
as
defined
in
Rule
405
under
the
1933
Act
)
.
The
Company
(
i
)
has
not
distributed
any
offering
material
in
connection
with
the
offer
or
sale
of
any
of
the
Securities
and
(
ii
)
until
no
Buyer
holds
any
of
the
Securities
,
shall
not
distribute
any
offering
material
in
connection
with
the
offer
or
sale
of
any
of
the
Securities
to
,
or
by
,
any
of
the
Buyers
(
if
required
)
,
in
each
case
,
other
than
the
Registration
Statement
,
the
Prospectus
or
the
Prospectus
Supplement
.
The
offering
of
the
Securities
have
been
registered
with
the
SEC
on
Form
S-3
under
the
1933
Act
,
and
the
Securities
are
being
offered
pursuant
to
Rule
415
promulgated
under
the
1933
Act
.
&
lt
;
br
/
&
gt
;