Document:

Unassociated Document

 

Exhibit 10.44

 

AMENDMENT NO. 2

 

to

 

SECURITIES PURCHASE AGREEMENT

 

This AMENDMENT NO. 2 to Securities Purchase Agreement (the “Amendment”), dated as of November 14, 2011, is entered into by and between InspireMD, Inc., a Delaware corporation (the “Company”), and the purchasers (the “Purchasers”) identified on the signature pages to the Agreement (as defined below).

 

W I T N E S S E T H :

 

WHEREAS, the Company and the Purchasers have previously entered into that certain Securities Agreement, dated as of March 31, 2011 and amended by that certain Amendment No. 1 to Securities Purchase Agreement, dated as of June 21, 2011 (as further amended, modified and supplemented from time to time, the “Agreement”);

 

WHEREAS, the Agreement may be amended by a written instrument signed by the Company and the Purchasers holding at least fifty-one percent (51%) in interest of the Shares (as defined in the Agreement) outstanding; and

 

WHEREAS, the Company and the Purchasers desire to amend the Agreement as set forth below.

 

NOW, THEREFORE, in consideration of the premises and mutual covenants and obligations hereinafter set forth, the parties hereto, intending legally to be bound, hereby agree as follows:

 

1.           The definition of “Exempt Issuance” in Section 1.1 of the Agreement is hereby amended in its entirety to read as follows:

 

“ “Exempt Issuance” means the issuance of (a) shares of Common Stock or options to employees, officers, consultants or directors of the Company pursuant to the Stock Option Plan in an amount not to exceed 15,000,000 shares of Common Stock in the aggregate (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Closing Date), (b) securities upon the exercise or exchange of or conversion of any Securities issued hereunder, (c) securities exercisable or exchangeable for or convertible into shares of Common Stock issued and outstanding on the date of this Agreement and listed on Schedule 3.1(g), 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, (d) securities issued (other than for cash) in connection with a synergistic merger, acquisition, or consolidation of all or substantially all of the assets, securities or business division of another entity, (e) options to purchase up to an aggregate of 486,966 shares of Common Stock at an exercise price of $1.23 (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Closing Date) to David Ivry, Robert Fischell and Fellice Pelled (and the shares of Common Stock issuable upon exercise), which options shall be fully vested and shall expire on December 31, 2014, and (f) up to 5,800,000 shares of Common Stock or options to purchase up to 5,800,000 shares of Common Stock, or a combination thereof, for issuance as compensation to current and future members of the Board of Directors.”

 

  

  

  

 

2.           Section 4.9 of the Agreement is hereby amended in its entirety to read as follows:

 

“Listing of Common Stock. The Company hereby agrees to use best efforts to maintain the listing or quotation of the Common Stock on the Trading Market on which it is currently listed, and concurrently with the Closing, the Company shall apply to list or quote all of the Shares and Warrant Shares on such Trading Market and promptly secure the listing of all of the Shares and Warrant Shares on such Trading Market. The Company further agrees, if the Company applies to have the Common Stock traded on any other Trading Market, it will then include in such application all of the Shares and Warrant Shares, and will take such other action as is necessary to cause all of the Shares and Warrant Shares to be listed or quoted on such other Trading Market as promptly as possible.  The Company will then take all action necessary to continue the listing or quotation and trading of its Common Stock on a Trading Market until at least three years after the Closing Date and will comply in all respects with the Company’s reporting, filing and other obligations under the bylaws or rules of the Trading Market at least until three years after the Closing Date.  The Company undertakes to obtain a listing of the Common Stock on a Trading Market other than the OTC Bulletin Board on or before December 31, 2012. Upon the attainment of such listing, the OTC Bulletin Board shall not thereafter be a Trading Market. In the event the Company fails to obtain such listing on or before December 31, 2012 (a “Listing Default”), the Company shall promptly, but not later than January 10, 2013, issue and deliver to each Purchaser additional shares of Common Stock (“Additional Listing Shares”) in an amount equal to ten percent (10%) of the Shares acquired by each such Purchaser on the Closing Date. The Additional Listing Shares will be deemed issued pursuant to this Agreement and the holder of the Additional Listing Shares is granted all of the rights and benefits of the Holder of the Shares.”

 

3.           Section 4.10(b) of the Agreement is hereby amended in its entirety to read as follows:

 

“Until twelve (12) months after the Closing Date, the Company shall not increase the number of shares available for issue under the Stock Option Plan, amend the Stock Option Plan, reprice any outstanding stock options (except for appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Closing Date), nor issue any options or shares under the Stock Option Plan such that the aggregate number of shares to be purchased by options so issued or shares so issued shall not exceed 15,000,000 shares of Common Stock in the aggregate (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Closing Date) nor grant any options with an exercise price lower than the fair market value of the Common Stock on the date of grant, except with respect to (i) options that the Company or any of its Subsidiaries are contractually obligated to issue on the date hereof at a lower price, which are described on Schedule 4.10, (ii) up to 5,800,000 shares of Common Stock or options to purchase up to 5,800,000 shares of Common Stock, or a combination thereof, that the Company may issue or grant as compensation, at its discretion, to current and future members of the Board of Directors and (iii) options to purchase up to an aggregate of 486,966 shares of Common Stock at an exercise price of $1.23 (subject to appropriate adjustments for any stock dividend, stock split, stock combination, reclassification or similar transaction after the Closing Date) issued to David Ivry, Robert Fischell and Fellice Pelled (and the shares of Common Stock issuable upon exercise), which options shall be fully vested and shall expire on December 31, 2014.”

 

  

  

  

 

4.           Except as modified and amended herein, all of the terms and conditions of the Agreement shall remain in full force and effect.

 

5.           This Amendment shall be governed by and construed in accordance with the laws of the State of New York without application of the conflict of laws provisions thereof.

 

[Signature pages follow]

 

  

  

  

 

IN WITNESS WHEREOF, this Amendment is executed and entered into effective as of the date first written above.

 

	COMPANY:	 	 	 	 
	 	 	 	 	 	 
	INSPIREMD, INC.	 	 	 	 
	 	 	 	 	 	 
	By:	
/s/ Craig Shore

	 	 	
  

	 
	 	
Name: Craig Shore

	 	 	
  

	 
	 	
Title: Chief Financial Officer

	 	 	
  

	 

  

  

 

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

SIGNATURE PAGE FOR PURCHASER FOLLOWS]

 

 

 

 

 

[SIGNATURE PAGE TO AMENDMENT NO. 2 TO SECURITIES PURCHASE AGREEMENT]

 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	Harborview Value Master Fund LP
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Richard Rosenblum
	 	 
	Name of Authorized Signatory:	Richard Rosenblum
	 	 
	Title of Authorized Signatory:	Richard Rosenblum as General Partner of Harborview Advisors LLC
	 	 
	Number of Shares:	366,667
	 	 

 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	
The Corbran LLC

	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Richard Rosenblum
	 	 
	Name of Authorized Signatory:	Richard Rosenblum
	 	 
	Title of Authorized Signatory:	MP
	 	 
	Number of Shares:	166,667
	 	 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	David Stefansky
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ David Stefansky
	 	 
	Name of Authorized Signatory:	 
	 	 
	Title of Authorized Signatory:	 
	 	 
	Number of Shares:	166,667
	 	 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	Endicott Management Partners, LLC
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Kenneth L. Londoner
	 	 
	Name of Authorized Signatory:	Kenneth L. Londoner
	 	 
	Title of Authorized Signatory:	Managing Partner
	 	 
	Number of Shares:	167,666
	 	 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	Platinum Partners Value Arbitrage Fund L.P.
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Joan Janczewski
	 	 
	Name of Authorized Signatory:	Joan Janczewski
	 	 
	Title of Authorized Signatory:	COO
	 	 
	Number of Shares:	2,000,000
	 	 

  

  

  

 

[PURCHASER SIGNATURE PAGES TO AMENDMENT NO. 2]

 

	Name of Purchaser:	Osiris Investment Partners, LP
	 	 
	Signature of Authorized Signatory of Purchaser:	/s/ Paul Stuka
	 	 
	Name of Authorized Signatory:	Paul Stuka
	 	 
	Title of Authorized Signatory:	Principal and Managing Member
	 	 
	Number of Shares:	1,333,333ex10_1summary2012incentive - 01

Exhibit 10.1
Summary Description of The Dixie Group, Inc.
2012 Incentive Compensation Plan/Range of Incentives
as effective on March 12, 2012

The following is a description of the Company's 2012 Incentive Plan (“Plan”) for its executive officer as effective March 12, 2012.
Pursuant to the Plan, each executive officer will have the opportunity to earn a Cash Incentive Award, a Primary Long-Term Incentive Award of restricted stock, and an award of restricted stock denominated as “Career Shares.”   In order to receive any incentive award under the Plan, an executive officer must be actively employed by the Company at the time such award is paid.  The potential range of cash incentives and conditions to vesting awards of Primary Long Term Incentive Shares and Career Shares are described below.
Cash Incentive Awards
For the CEO and all executive officers whose responsibilities are primarily related to corporate-level administration, the Cash Incentive Award component provides each participant with the opportunity to earn a cash incentive ranging from 15% to 75% of such participant's base salary as of January 1, 2012.  For executive officers in this category, 40% of the amount of the Cash Incentive Award is determined based on the achievement of specified levels of the Company's annual Operating Income, as adjusted for unusual items, 40% of the amount is determined based on achievement of specified levels of the annual Operating Income of the Company's Residential Business Unit, as adjusted for unusual items, and 20% of the amount is determined based on achievement of specified levels of the Company's annual Contract Operating Income, as adjusted for unusual items.  The Compensation Committee may reduce the amount of any award by up to 30% of the amount otherwise earned based on the participant's failure to achieve individual performance goals set by the Compensation Committee.
For executive officers whose responsibilities are primarily related to one of the Company's business units, the Cash Incentive Award component provides each participant with the opportunity to earn a cash incentive ranging from 15% to 75% of such participant's base salary.  For executive officers in this category, 50% of the amount of the Cash Incentive Award is determined based on the achievement of specified levels of their annual business unit Operating Income, as adjusted for unusual items, 25% of the amount is determined based on the achievement of specified levels of the Company's annual consolidated Operating Income, as adjusted for unusual items, and 25% of the amount is determined based on the achievement of specified levels of the annual Operating Income of the Company's other business units, as adjusted for unusual terms.  The Compensation Committee may reduce the amount of any award by up to 30% of the amount otherwise earned based on the participant's failure to achieve individual performance goals set by the Compensation Committee.
Cash Incentive Awards earned under the Plan will be based on the participant's base salary as established by the Compensation Committee, and it is anticipated that such awards will be paid to participants in cash on or prior to March 10, 2013.

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Primary Long-Term Incentive Awards and Career Shares
A Primary Long-Term Incentive Award will be made in restricted shares to each executive officer, the value of which will be equal to 35% of the executive's base salary plus any Cash Incentive Award paid for such year.  Career Shares will be awarded to each executive officer as an award of restricted stock valued at 20% of such officer's base salary.  Such awards will be valued based on the market price of the Company's common stock at the time of grant of the award; provided, however, that, for calculation purposes, in no event shall the Company's common stock be valued at an amount less than $5.00 per share.
Primary Long-Term Incentive Awards will vest over 3 years, and Career Shares will vest when the participant becomes (i) qualified to retire from the Company and (ii) has retained the Career Shares for 24 months following the grant date, subject to accelerated vesting or forfeiture as described below.  For any participant who becomes age 60 (or any participant who is already age 60 at the time of an award) restricted shares will vest equally over the stated vesting or retention period (three years in the case of Primary Long-Term Incentive awards and two years in the case of Career Shares awards); provided, however, that in no case will such awards be issued later than two and one half months following the year in which such awards vest or are no longer subject to a substantial risk of forfeiture.
Special Conditions to Awards
The Primary Long-Term Incentive Awards will only be made if the Company achieves a minimum Operating Income performance level; Career Share Awards will only be made if the Company's results from continuing operations for fiscal 2012 show improvement over comparable results for fiscal 2011.  Death, disability or a change in control of the Company will cause immediate vesting of all restricted stock issued as Career Shares and as Primary Long-Term Incentive Share Awards.  Termination without cause will result in immediate vesting of all Career Share Awards, and acceleration of vesting of Primary Long-Term Incentive Share Awards to the extent such shares have been expensed by the Company.  Voluntary termination of employment prior to retirement, or termination of employment for cause will result in the immediate forfeiture of all unvested awards under the Plan.  Upon an executive's retirement, vesting will accelerate to the extent that the Company has recognized compensation expense related to the shares.  In the event the Plan does not have enough available shares of common stock to fulfill the stock awards portion of the Plan, any stock award granted will be subject to the approval of additional shares by the Company's shareholders.
Compensation Committee Oversight of Payments
The Compensation Committee has the authority to review and certify the achievement of the performance goals and to administer and interpret the Incentive Compensation Plan.  As set forth above, any award to a participant for 2012 may be reduced, but not increased, by the Compensation Committee in its sole discretion based on individual performance criteria.

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