Document:

Exhibit 10.8 -Equiptment and Ground Sublease Amendment dated November 22, 2006

    
      

      

    

    

     

    

       

      EQUIPMENT
        AND GROUND SUBLEASE AMENDMENT NO. 3

       

      THIS
        EQUIPMENT AND GROUND SUBLEASE AMENDMENT NO. 3
        entered
        into this 22nd
        day of
        November, 2006 by and between EmTech Biotechnology Development, Inc.
        (“Landlord”) and GeoVax, Inc. (“Tenant”).

       

      WITNESSETH:

       

      WHEREAS,
        Landlord
        and Tenant entered into an Equipment and Ground Sublease agreement dated
        December 1, 2001 (hereinafter the “Sublease Agreement”) per which Landlord
        leased to Tenant certain space at 1256 Briarcliff Road, Atlanta, GA 30322,
        as
        described in said Sublease Agreement; and subsequent Equipment and Ground
        Sublease amendments, and

       

      WHEREAS,
        the
        parties hereby desire to amend said Sublease Agreement in order to increase
        the
        amount of space subleased to Tenant and the amount of rent paid
        therefore.

       

      NOW,
        THEREFORE,
        in
        consideration of the premises set forth herein, TEN DOLLARS ($10.00) in hand
        paid and other good and valuable consideration the receipt and sufficiency
        of
        which have been acknowledged and agreed to by both parties, Landlord and
        Tenant
        agree as follows:

       

      
        	 	
                1.

              	
                The
                  aforesaid recitals are deemed restated here and made a part of
                  this
                  agreement by reference.

              

      

       

      
        	 	
                2.

              	
                The
                  Sublease Agreement is hereby amended to increase the amount of
                  space
                  leased by Landlord to Tenant to include an EmTech Bio Module #6
                  in its
                  entirety effective as of February 2,
                  2007.

              

      

       

      
        	 	
                3.

              	
                The
                  total amount of rent to be paid each month by Tenant to Landlord
                  shall be
                  increased to $3,920.10 per month plus expenses, which expenses
                  will now
                  include 50% of the electrical charges for Module #6 in addition
                  to 50% of
                  electrical charges for module #4 and #5 and 24% of electrical charges
                  for
                  Module #2. Beginning February 1, 2007, the rental rate will be
                  increased
                  to $3,920.10 per month plus expenses as stated
                  above.

              

      

       

      
        	 	
                4.

              	
                Except
                  as expressly added to or modified herein, all other terms and conditions
                  of the Sublease Agreement shall remain unchanged and in
                  effect.

              

      

       

       

      [Signatures
        appear on next page.]

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      EMTECH
        BIOTECHNOLOGY, INC. AND GEOVAX, INC.

       

      EQUIPMENT
        AND GROUND SUBLEASE AMENDMENT NO. 3

       

       

      IN
        WITNESS WHEREOF,
        the
        parties have hereunto set their hands and seals the date above first
        written.

       

      
        	
                 

                LANDLORD:
                  Emtech Biotechnology, Inc.

                 

              	
                 

                TENANT:
                  GeoVax, Inc.

                 

              
	
                 

                By:
                  /s/
                  Connie
                  Snipes                                 
                  

              	
                 

                By:
                  /s/
                  Donald G.
                  Hildebrand                 
                  

              
	
                 

                 

                Title:
                  Facilities
                  Manager                              
                  

              	
                 

                 

                Title:
                  CEO
                  &
                  President                          
                  

              
	
                 

                 

                Date:
                  22
                  November
                  2006                          
                  

              	
                 

                 

                Date:
                  22
                  November
                  2006                      
                  

              

      

       

      
 

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      2
        of 2Exhibit 10.1

 

SECURITIES PURCHASE
AGREEMENT

 

This SECURITIES PURCHASE
AGREEMENT (the “Agreement”),
is dated as of March 28, 2007, by and among Vyyo Inc., a Delaware
corporation (the “Company”), and
the investors listed on the Schedule of Investors attached hereto as Exhibit A
(individually, an “Investor” and
collectively, the “Investors”).

WHEREAS:

A.            The Company and each Investor is
executing and delivering this Agreement in reliance upon the exemption from
securities registration afforded by Section 4(2) of the Securities Act of
1933, as amended (the “Securities Act”),
and Rule 506 of Regulation D (“Regulation
D”) as promulgated by the United States Securities and Exchange
Commission (the “SEC”) under the
Securities Act.

B.            Each Investor, severally and not
jointly, wishes to purchase, and the Company wishes to sell, upon the terms and
conditions stated in this Agreement that aggregate principal amount of
Convertible Notes, in substantially the form attached hereto as Exhibit B
(the “Convertible Notes”), set
forth opposite such Investor’s name on the Schedule of Investors (as converted,
collectively, the “Conversion Shares”).

C.            The holder of all of the Company’s
outstanding Senior Secured Note, dated March 23, 2006, in the aggregate
principal amount of $7,500,000 (the “2006 Senior Secured Note”)
wishes to amend and restate such 2006 Senior Secured Note in the form attached
hereto as Exhibit C hereto.

D.            The Convertible Notes and the
Conversion Shares issued pursuant to this Agreement are collectively referred
to herein as the “Securities.”

E.             Contemporaneously with the
execution and delivery of this Agreement, the parties hereto are executing and
delivering an Amended and Restated Registration Rights Agreement, substantially
in the form attached hereto as Exhibit D (collectively with the
Registration Rights Agreement dated March 23, 2006 by and among the Company and
the party thereto, the “Registration Rights
Agreement”), pursuant to which the Company has agreed to provide
certain registration rights with respect to the Conversion Shares under the
Securities Act and the rules and regulations promulgated thereunder, and
applicable state securities laws.

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 the Investors agree as follows:

 

ARTICLE I

DEFINITIONS

 

1.1 Definitions.  In addition to the terms defined elsewhere in
this Agreement, the following terms have the meanings indicated:

 

 

“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 144 under the Securities Act.

 

“Business Day” means any day other than
Saturday, Sunday or other day on which commercial banks in The City of New York
are authorized or required by law to remain closed.

“Closing” means the closing of the purchase
and sale of the Securities pursuant to Section 2.1.

“Closing Date” means the date and time of
the Closing and shall be 10:00 a.m., New York City time, on March 28, 2007 (or
such other date and time as is mutually agreed to by the Company and each
Investor).

“Common Stock” means shares of the Company’s
common stock, par value $0.0001 per share.

“Convertible Notes” has the meaning set
forth in the Preamble.

“Conversion Shares” has the meaning set
forth in the Preamble.

“Eligible Market” means any of the New York
Stock Exchange, the American Stock Exchange, the Nasdaq Global Select Market,
the Nasdaq Global Market or Nasdaq Capital Market.

“Insignificant Subsidiaries” means Vyyo
Brasil Ltd. and SHDIP Ltd.

“Intellectual Property Rights” has the
meaning set forth in Section 3.1(j).

“Investor Counsel” means Thelen Reid Brown
Raysman & Steiner LLP, counsel to the Investors.

“Knowledge,”
including the phrase “to the Company’s
knowledge,” and words
of similar import shall mean that which Davidi Gilo, Arik Levi, Avner Kol, and
Tashia Rivard know or should have known using the exercise of reasonable due
diligence.

“Lien” means any lien, charge, claim,
security interest, encumbrance, right of first refusal or other restriction.

“Material Adverse Effect” has the meaning
set forth in Section 3.1(a).

“Material Permits” has the meaning set forth
in Section 3.1(z).

“Person” means any individual or
corporation, partnership, trust, incorporated or unincorporated association,
joint venture, limited liability company, or joint stock company.

 2
 

 

“Proceeding” means an action, claim, suit,
investigation or proceeding (including, without limitation, an investigation or
partial proceeding, such as a deposition), whether commenced or threatened in
writing.

 

“Registration Rights Agreement” has the
meaning set forth in the Preamble.

“Rule 144,” “Rule 415,” and “Rule 424”
means Rule 144, Rule 415 and Rule 424, respectively, promulgated
by the SEC pursuant to the Securities Act, as such Rules may be amended from
time to time, or any similar rule or regulation hereafter adopted by the SEC
having substantially the same effect as such Rule.

“SEC” has the meaning set forth in the
Preamble.

“SEC Reports” has the meaning set forth in Section 3.1(h).

“Securities” has the meaning set forth in
the Preamble.

“Significant Subsidiary” has the meaning
assigned thereto in Rule 1-02(w) of Regulation S-X, including, but not
limited to Vyyo Ltd., a corporation duly incorporated and existing under the
laws of the state of Israel,  Xtend
Networks Ltd., a corporation duly incorporated and existing under the laws of
the state of Israel and Xtend Networks, Inc., a Delaware corporation.

“Subsidiary” means any Person in which the
Company, directly or indirectly, owns capital stock or holds an equity or
similar interest.

“Trading Day” means (a) any day on
which the Common Stock is listed or quoted and traded on its primary Trading
Market, (b) if the Common Stock is not then listed or quoted and traded on
any Eligible Market, then a day on which trading occurs on the Nasdaq Global Market
(or any successor thereto), or (c) if trading ceases to occur on the
Nasdaq Global Market (or any successor thereto), any Business Day.

“Trading Market” means the Nasdaq Global
Market or any other Eligible Market, or any national securities exchange,
market or trading or quotation facility on which the Common Stock is then
listed or quoted.

“Transaction” means the transaction
contemplated by the Transaction Documents.

“Transaction Documents” means this
Agreement, the schedules and exhibits attached hereto,  the Convertible Notes and the Registration
Rights Agreement.

ARTICLE II

PURCHASE AND SALE

2.1 Closing.

 3
 

 

(a)   Subject to the terms and
conditions set forth in Sections 5.1(a) and 5.2 herein, at the
Closing the Company shall issue and sell to each Investor, and each Investor
shall, severally and not jointly, purchase from the Company, such number of
Convertible Notes set forth opposite such Investor’s name on Exhibit A
hereto under the heading “Convertible Notes.” 
The date and time of the Closing and shall be 10:00 a.m., New York City
time, on the Closing Date.  The Closing
shall take place at the offices of Investor Counsel.

(b)   At the Closing, each
Investor shall deliver or cause to be delivered to the Company the purchase
price set forth opposite such Investor’s name on Exhibit A hereto
under the heading “Purchase Price” in United States dollars and in immediately
available funds, by wire transfer to an account designated in writing to such
Investor by the Company for such purpose.

 

ARTICLE III

REPRESENTATIONS AND WARRANTIES

 

3.1   Representations
and Warranties of the Company.  The
Company hereby represents and warrants to each Investor that, except as set
forth in the SEC Reports (as hereinafter defined) or in the Schedule of
Exceptions attached as Exhibit G to this Agreement, which exceptions
shall be deemed to be part of the representations and warranties made
hereunder, the following representations are true and complete as of the date
hereof.  The Schedule of Exceptions shall
be arranged in sections corresponding to the numbered and lettered sections and
subsections contained in this Section 3, and the disclosures in any section or
subsection of the Schedule of Exceptions shall qualify other sections and
subsections in this Section 2 only to the extent it is reasonably apparent from
a reading of the disclosure that such disclosure is applicable to such other
sections and subsections:

(a)   Organization
and Qualification.  Each of the
Company and the Significant Subsidiaries is an entity duly organized, validly
existing and in good standing under the laws of the jurisdiction of its
incorporation or organization (as applicable), with the requisite legal
authority to own and use its properties and assets and to carry on its business
as currently conducted.  Neither the
Company nor any Significant Subsidiary is in violation of any of the provisions
of its respective certificate or articles of incorporation, bylaws or other
organizational or charter documents. 
Each of the Company and the Significant Subsidiaries is duly qualified
to do 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, would not reasonably be
expected to individually or in the aggregate, (i) materially and adversely
affect the legality, validity or enforceability of any Transaction Document,
(ii) have or result in a material adverse effect on the results of
operations, assets, business or financial condition of the Company and the
Significant Subsidiaries, taken as a whole on a consolidated basis or
(iii) materially and adversely impair the Company’s ability to perform
fully on a timely basis its obligations under any of the Transaction Documents
(any of (i), (ii) or (iii), a “Material
Adverse Effect”).

(b)   Subsidiaries.  The Company has no direct or indirect
Subsidiaries.  The Company owns, directly
or indirectly, all of the capital stock or comparable equity interests of each
Subsidiary

 4
 

 

free and clear
of any Lien and all the issued and outstanding shares of capital stock or
comparable equity interest of each Subsidiary are validly issued and are fully
paid, non-assessable and free of preemptive and similar rights.  None of the Insignificant Subsidiaries (i)
carries on any substantive business operations or activities or (ii) has assets
or liabilities in excess of $50,000.

 

(c)   Authorization;
Enforcement.  The Company has the
requisite corporate authority to enter into and to consummate the transactions
contemplated by each of the Transaction Documents to which it is a party and
otherwise to carry out its obligations hereunder and thereunder.  The execution and delivery of each of the
Transaction Documents to which it is a party 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 consent or action is required by the Company, its Board of Directors or
its stockholders.  Each of the
Transaction Documents to which it is a party has been (or upon delivery will
be) duly executed by the Company and is, or when delivered in accordance with
the terms hereof, will constitute, the valid and binding obligation of the
Company enforceable against the Company in accordance with its terms, except as
may be limited by (i) applicable bankruptcy, insolvency, reorganization or
other laws of general application relating to or affecting the enforcement of
creditors rights generally, and (ii) the effect of rules of law governing
the availability of specific performance and other equitable remedies.

(d)   No
Conflicts.  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
do not, and will not, (i) conflict with or violate any provision of the
Company’s or any Significant Subsidiary’s certificate or articles of
incorporation, bylaws or other organizational or charter documents,
(ii) conflict with, or constitute a default (or an event that 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 (with or without
notice, lapse of time or both) of, any agreement, credit facility, debt or
other instrument (evidencing a Company or Significant Subsidiary debt or
otherwise) or other understanding to which the Company or any Significant
Subsidiary is a party or by which any property or asset of the Company or any
Significant Subsidiary is bound, or affected, except to the extent that such
conflict, default, termination, amendment, acceleration or cancellation right
would not reasonably be expected to have a Material Adverse Effect or
(iii) result in a violation of any law, rule, regulation, order, judgment,
injunction, decree or other restriction of any court or governmental authority
to which the Company or a Significant Subsidiary is subject (including federal
and state securities laws and regulations and the rules and regulations of any
self-regulatory organization to which the Company or its securities are
subject), or by which any property or asset of the Company or a Significant
Subsidiary is bound or affected, except to the extent that such violation would
not reasonably be expected to have a Material Adverse Effect.

(e)   Authorization
of Securities.  The Securities are
duly authorized and, when issued and paid for in accordance with the
Transaction Documents, will be duly and validly issued, fully paid and
nonassessable, free and clear of all Liens and shall not be subject to
preemptive or similar rights of stockholders. 
Upon issuance or conversion in accordance with the Convertible Notes,
the Conversion Shares will be validly issued, fully paid and nonassessable and
free from all preemptive

 5
 

 

or similar
rights, taxes, liens and charges with respect to the issue thereof, with the
holders being entitled to all rights accorded to a holder of Conversion
Shares.  As of the Closing, the Company
shall have reserved from its duly authorized capital stock the number of
Conversion Shares issuable upon conversion of the Convertible Notes (without
taking into account any limitations on the conversion, or redemption of the
Convertible Notes set forth in the Convertible Notes).

 

(f)    Capitalization.  The aggregate number of shares and type of
all authorized, issued and outstanding classes of capital stock, options and
other securities of the Company (whether or not presently convertible into or
exercisable or exchangeable for shares of capital stock of the Company) is set
forth in Schedule 3.1(f) hereto. 
All outstanding shares of capital stock are duly authorized, validly
issued, fully paid and nonassessable and have been issued in compliance with
Section 5 of the Securities Act. 
The Company has not issued any other options, warrants, script 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 entered into any agreement giving any Person any right to
subscribe for or acquire, any shares of Common Stock, or securities or rights
convertible or exchangeable into shares of Common Stock.  Except for customary adjustments as a result
of stock dividends, stock splits, combinations of shares, reorganizations,
recapitalizations, reclassifications or other similar events, there are no anti-dilution
or price adjustment provisions contained in any security issued by the Company
(or in any agreement providing rights to security holders) and the issuance and
sale of the Securities will not obligate the Company to issue shares of Common
Stock or other securities to any Person (other than the Investors) and will not
result in a right of any holder of securities to adjust the exercise,
conversion, exchange or reset price under such securities.  To the knowledge of the Company, no Person or
group of related Persons beneficially owns (as determined pursuant to Rule
13d-3 under the Exchange Act), or has the right to acquire, by agreement with
or by obligation binding upon the Company, beneficial ownership of in excess of
5% of the outstanding Common Stock, ignoring for such purposes any limitation
on the number of shares of Common Stock that may be owned at any single time.

(g)   Consents.  None of the Company nor any of its
Significant Subsidiaries is required to obtain any consent, authorization or
order of, or make any filing or registration with, any court, governmental
agency or any regulatory or self-regulatory agency or any other Person in order
for it to execute, deliver or perform any of its obligations under or
contemplated by the Transaction Documents, in each case in accordance with the
terms hereof or thereof.  All consents,
authorizations, orders, filings and registrations (which the Company is
required to obtain pursuant to the preceding sentence) have been obtained or
effected, or will have been obtained or effected, on or prior to the Closing
Date, except to the extent that failure to obtain such consent would not be
expected to result in a Material Adverse Effect, and the Company and its
Significant Subsidiaries are unaware of any facts or circumstances that might
prevent the Company from obtaining or effecting any of the registration,
application or filings pursuant to the preceding sentence.  The Company is not in violation of the
listing requirements of the Trading Market.

(h)   SEC
Reports; Financial Statements.  The
Company has filed all reports required to be filed by it under the Exchange
Act, including pursuant to Section 13(a) or 15(d) thereof, for the twelve
months preceding the date hereof (the foregoing materials (together with any
materials filed by the Company under the Exchange Act, whether or not required)
being collectively referred to

 6
 

 

herein as the “SEC Reports” and, together with this
Agreement and the Schedules to this Agreement, the “Disclosure Materials”) on a timely basis.  As of the date hereof, the Company is not
aware of any event occurring on or prior to the Closing Date (other than the
transactions contemplated by the Transaction Documents) that requires the
filing of a Form 8-K after the Closing. 
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 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 the light of the circumstances
under which they were made, not misleading. 
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
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 except as may
be indicated in the notes thereto and except, in the case of interim statements,
for the absence of footnotes and as permitted by Form 10-Q, subject, in the
case of unaudited statements, to normal, year-end audit adjustments.  To the Company’s knowledge, the financial
statements in the Company’s Annual Report on Form 10-K for the year ended
December 31, 2006, shall be prepared assuming the Company will continue as a
going concern and shall not include a “going concern” qualification in the
opinion issued by the Company’s accountants.

(i)    No
Adverse Changes.  Since the date of the
latest unaudited financial statements for the quarter ended September 30, 2006,
(i) there has been no event, occurrence or development that, individually
or in the aggregate, has had or that would reasonably be expected to result in
a Material Adverse Effect, (ii) the Company has not incurred any material
liabilities 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 required to be disclosed in filings made with
the SEC, (iii) the Company has not altered its method of accounting or the
identity of its auditors, (iv) the Company has not declared or made any
dividend or distribution of cash or other property to its stockholders, in
their capacities as such, or purchased, redeemed or made any agreements to
purchase or redeem any shares of its capital stock (except for repurchases by
the Company of shares of capital stock held by employees, officers, directors,
or consultants pursuant to an option of the Company to repurchase such shares
upon the termination of employment or services) and (v) the Company has
not issued any equity securities to any officer, director or Affiliate, except
pursuant to existing Company stock-based plans.

(j)    Intellectual
Property.  To the Company’s
knowledge, the Company and the Subsidiaries own, possess, license or have other
rights to use all foreign and domestic patents, patent applications, reexams,
reissues, divisional continuations, or any patent or application claiming
priority therefrom, including any patent that may be issued as a result of an
interference action, trade and service marks, trade and service mark
registrations, trade names, copyrights, licenses,

 7
 

 

inventions,
trade secrets, technology, Internet domain names, know-how and other
intellectual property (collectively, the “Intellectual
Property Rights”) necessary for the conduct of their respective
businesses described in the SEC Reports, except where such violations or
infringements would not reasonably be expected to result in a Material Adverse
Effect, (a) there are no rights of third parties to any such Intellectual
Property Rights; (b) to the Company’s knowledge, there is no infringement by
third parties of any such Intellectual Property Rights; (c) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by
others challenging the Company’s and its Significant Subsidiaries’ rights in or
to any such Intellectual Property Rights, and the Company is unaware of any
facts which would form a reasonable basis for any such claim; (d) there is
no pending or, to the Company’s knowledge, threatened action, suit, proceeding
or claim by others challenging the validity or scope of any such Intellectual
Property Rights and (e) there is no pending or, to the Company’s knowledge,
threatened action, suit, proceeding or claim by others that the Company and its
subsidiaries infringe or otherwise violate any patent, trademark, copyright,
trade secret or other proprietary rights of others, and the Company is unaware
of any other fact which would form a reasonable basis for any such claim.  All of the licenses and sublicenses and consent,
royalty or other agreements concerning Intellectual Property Rights which are
necessary for the conduct of the Company’s business as currently conducted to
which the Company or the Significant Subsidiary is a party or by which any of
their respective assets are bound (other than generally commercially available,
non-custom, off the shelf software application programs having a retail
acquisition price of less than $25,000 per license) (collectively, “License Agreements”) are valid and binding
obligations of the Company or the Significant Subsidiaries, as the case may be
and, to the Company’s knowledge, the other parties thereto, enforceable in
accordance with their respective terms, except to the extent that enforcement
thereof may be limited by applicable bankruptcy, insolvency, reorganization,
moratorium, fraudulent conveyance or other similar laws affecting the
enforcement of creditors’ rights generally, and there exists no event or
condition which will result in a material violation or breach of or constitute
(with or without due notice or lapse of time or both) a default by the Company
under such License Agreements.

(k)   Tax
Matters.  The Company and each
Significant Subsidiary (i) has timely prepared and filed all foreign,
federal and state income and all other tax returns, reports and declarations
required by any jurisdiction to which it is subject, (ii) has paid all
material taxes and other governmental assessments and charges that are material
in amount, shown or determined to be due on such returns, reports and
declarations, except those being contested in good faith, with respect to which
adequate reserves have been set aside on the books of the Company and
(iii) has set aside on its books provision reasonably adequate for the
payment of all taxes for periods subsequent to the periods to which such
returns, reports or declarations apply. 
To the Company’s knowledge, there are no unpaid taxes in any material
amount claimed to be past due by the taxing authority of any jurisdiction, and
the Company knows of no basis for such claim. 
The Company has not waived or extended any statute of limitations at the
request of any taxing authority.  There
are no outstanding tax sharing agreements or other such arrangements between
the Company and any other corporation or entity and the Company is not presently
undergoing any audit by a taxing authority.

(l)    Absence
of Litigation.  Except as disclosed
in the Company’s SEC Reports, there is no action, suit, claim, or proceeding,
or, to the Company’s knowledge, inquiry or investigation, before or by any court,
public board, government agency, self-regulatory organization or body

 8
 

 

pending or, to
the knowledge of the Company, threatened against or affecting the Company or
any of its Significant Subsidiaries that would reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

 

(m)  Environmental
Matters.  To the Company’s knowledge,
the Company and each Significant Subsidiary (i) is not in violation of any
statute, rule, regulation, decision or order of any governmental agency or body
or any court, domestic or foreign, relating to the use, disposal or release of
hazardous or toxic substances or relating to the protection or restoration of
the environment or human exposure to hazardous or toxic substances
(collectively, “Environmental Laws”),
(ii) does not own or operate any real property contaminated with any substance
in violation of any Environmental Laws, (iii) is not liable for any off-site
disposal or contamination pursuant to any Environmental Laws and (iv) is not
subject to any claim relating to any Environmental Laws; which violation,
contamination, liability or claim has had or would reasonably be expected to
have a Material Adverse Effect, individually or in the aggregate; and there is
no pending or, to the Company’s knowledge, threatened investigation that might
lead to such a claim.

(n)   Compliance.  None of the Company nor any Significant
Subsidiary, except in each case as would not, individually or in the aggregate,
reasonably be expected to have or result in a Material Adverse Effect,
(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 Significant Subsidiary under), nor has the
Company or any Significant Subsidiary received written 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 order of any
court, arbitrator or governmental body or (iii) is or has been in
violation of any statute, rule or regulation of any governmental authority.

(o)   Title
to Assets.  The Company and the
Significant Subsidiaries have good and marketable title in fee simple to all
real property owned by them that is material to the business of the Company and
the Significant Subsidiaries and good and marketable title in all personal
property owned by them that is material to the business of the Company and the
Significant Subsidiaries, in each case free and clear of all Liens, except for
Liens that do not, individually or in the aggregate, have or would reasonably
be expected to result in a Material Adverse Effect.  Any real property and facilities held under
lease by the Company and the Significant Subsidiaries are held by them under
valid, subsisting and enforceable leases of which the Company and the Significant
Subsidiaries are in material compliance.

(p)   No
General Solicitation; Placement Agent’s Fees.  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) in connection with the offer or sale of the Securities.  The Company shall be responsible for the
payment of any placement agent’s fees, financial advisory fees, or brokers’
commissions (other than for persons engaged by any Investor or its investment
advisor) relating to or arising out of the issuance of the Securities pursuant
to this Agreement.  The Company shall
pay, and hold each Investor harmless against, any liability, loss or expense
(including, without limitation, reasonable attorney’s fees and out-of-pocket
expenses) arising in connection with any such claim for fees arising out of the
issuance of the Securities pursuant to this Agreement.

 

 9

 

(q)   Private Placement.  None of the Company, its Subsidiaries, any of
their Affiliates, or any Person acting on their behalf has, directly or
indirectly, at any time within the past six months, made any offer or sale of
any security or solicitation of any offer to buy any security under
circumstances that would (i) eliminate the availability of the exemption
from registration under Regulation D under the Securities Act in
connection with the offer and sale by the Company of the Securities as contemplated
hereby or (ii) cause the offering of the Securities pursuant to the
Transaction Documents to be integrated with prior offerings by the Company for
purposes of any applicable law, regulation or stockholder approval provisions,
including, without limitation, under the rules and regulations of any Trading
Market.  The Company is not required to
be registered as, a United States real property holding corporation within the
meaning of the Foreign Investment in Real Property Tax Act of 1980.

(r)    Form
S-3 Eligibility.  The Company is
eligible to register the Conversion Shares for resale by the Investors using
Form S-3 promulgated under the Securities Act.

(s)   Listing
and Maintenance Requirements.  The
Company has not, in the twelve months preceding the date hereof, received
notice (written or oral) from any Trading Market on which the Common Stock is
or has been listed or quoted to the effect that the Company is not in
compliance with the listing or maintenance requirements of such Trading Market.  The Company is in compliance with all such
listing and maintenance requirements.

(t)    Registration
Rights.  The Company has not granted
or agreed to grant to any Person any rights (including “piggy-back”
registration rights) to have any securities of the Company registered with the
SEC or any other governmental authority that have not been satisfied or waived.

(u)   Application
of Takeover Protections.  There is no
control share acquisition, business combination, poison pill (including any
distribution under a rights agreement) or other similar anti-takeover provision
under the Company’s charter documents or the laws of its state of incorporation
that is or would become applicable to any of the Investors as a result of the
Investors and the Company fulfilling their obligations or exercising their
rights under the Transaction Documents, including, without limitation, as a
result of the Company’s issuance of the Securities and the Investors’ ownership
of the Securities.

(v)   Disclosure.  Neither this Agreement, nor any of the Transaction
Documents, certificates or other documents made or delivered at the Closing,
contains any untrue statement of a material fact or omits to state a material
fact necessary to make the statements herein or therein not misleading.

(w)  Acknowledgment
Regarding Investors’ Purchase of Securities.  Based upon the assumption that the
transactions contemplated by this Agreement are consummated in all material
respects in conformity with the Transaction Documents, the Company acknowledges
and agrees that each of the Investors is acting solely in the capacity of an
arm’s length purchaser with respect to the

 10
 

 

Transaction
Documents and the transactions contemplated hereby and thereby.  The Company further acknowledges that no
Investor is acting as a financial advisor or fiduciary of the Company (or in
any similar capacity) with respect to this Agreement and the transactions
contemplated hereby and any advice given by any Investor or any of their
respective representatives or agents in connection with the Transaction
Documents and the transactions contemplated hereby and thereby is merely
incidental to the Investors’ purchase of the Securities.  The Company further represents to each
Investor that the Company’s decision to enter into this Agreement has been
based solely on the independent evaluation of the transactions contemplated
hereby by the Company and its representatives.

 

(x)    Insurance.  The Company and the Significant Subsidiaries
are insured by insurers of recognized financial responsibility against such
losses and risks and in such amounts as are prudent and customary in the
businesses and location in which the Company and the Significant Subsidiaries
are engaged.  Neither the Company nor any
Significant Subsidiary has any knowledge that it will not be able to renew its
existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its
business without a significant increase in cost.

(y)   ERISA.  As of the Closing Date, neither the Company
nor any of its Significant Subsidiaries has any obligation or any liability in
respect of any employee pension benefit plan subject to the provisions of Title
IV of ERISA or Section 412 of the Internal Revenue Code of 1986 or Section 302
of ERISA, and in respect of which the Company or any Significant Subsidiary
(or, if such plan were terminated, would under Section 4069 of ERISA be deemed
to be) an “employer” as defined in Section 3(5) of ERISA or any multiemployer
plan as defined in Section 4001(a)(3) of ERISA.

(z)    Regulatory
Permits.  The Company and the
Significant 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 does not,
individually or in the aggregate, have or result in a Material Adverse Effect
(“Material Permits”),
and neither the Company nor any Significant Subsidiary has received any written
notice of proceedings relating to the revocation or modification of any
Material Permit.

(aa) Transactions
With Affiliates and Employees. 
Except as set forth in the SEC Reports made on or prior to the date
hereof, none of the officers or directors of the Company and, to the Company’s
knowledge, none of the employees of the Company is presently a party to any
transaction with the Company or any Significant Subsidiary or to a presently
contemplated transaction (other than for ordinary course services as employees,
officers and directors) that would be required to be disclosed pursuant to Item
404 of Regulation S-K promulgated under the Securities Act.

(bb) Questionable
Payments.  Neither the Company nor
any Significant Subsidiary, nor, to the Company’s knowledge, directors,
officers, employees, agents or other Persons acting on behalf of the Company or
any Significant Subsidiary has, in the course of its actions for, or on behalf

 11
 

 

of, the Company:  (i) used
any corporate funds for unlawful contributions, gifts, entertainment or other
unlawful expenses relating to foreign or domestic political activity;
(ii) made any direct or indirect unlawful payments to any foreign or
domestic governmental officials or employees from corporate funds;
(iii) violated in any respect any provision of the Foreign Corrupt
Practices Act of 1977, as amended or (iv) made any other unlawful bribe,
rebate, payoff, influence payment, kickback or other unlawful payment to any
foreign or domestic government official or employee which, in the aggregate of
clauses (i) through (iv) would have a Material Adverse Effect.

(cc) Internal
Accounting Controls.  The Company and
the Significant Subsidiaries maintain a system of internal accounting controls
sufficient to provide reasonable assurance that (i) transactions are
executed in accordance with management’s general or specific authorizations,
(ii) transactions are recorded as necessary to permit preparation of
financial statements in conformity with generally accepted accounting
principles and to maintain asset accountability, (iii) access to assets is
permitted only in accordance with management’s general or specific
authorization and (iv) the recorded accountability for assets is compared
with the existing assets at reasonable intervals and appropriate action is
taken with respect to any differences.

(dd) Sarbanes-Oxley
Act.  The Company is in compliance
with applicable requirements of the Sarbanes-Oxley Act of 2002 and applicable
rules and regulations promulgated by the SEC thereunder, except where such
noncompliance would not have, individually or in the aggregate, a Material
Adverse Effect.

(ee) Investment
Company.  Neither the Company nor any
of its Significant Subsidiaries is (i) an “investment company” as defined
in, or subject to regulation under, the Investment Company Act of 1940 or (ii)
a “holding company” as defined in, or subject to regulation under, the Public
Utility Holding Company Act of 1935.

(ff)           Margin Stock.  Neither the Company nor any of the Significant
Subsidiaries is engaged principally, or as one of their important activities,
in the business of extending credit for the purpose of buying or carrying
Margin Stock (as such term is defined in Regulation U).  Immediately before and after giving effect to
the sale of the Convertible Notes, Margin Stock will constitute less than 25%
of the Company’s assets as determined in accordance with Regulation U.  No part of the proceeds of the Convertible
Notes will be used, whether directly or indirectly, and whether immediately,
incidentally or ultimately, to purchase, acquire or carry any Margin Stock or
for any purpose that entails a violation of, or that is inconsistent with, the
provisions of the regulations of the Board of Governors of the Federal Reserve
System of the United States of America, including Regulation T, U or X.

3.2   Representations
and Warranties of the Investors. 
Each Investor hereby, as to itself only and for no other Investor,
represents and warrants to the Company as follows:

(a)   Organization;
Authority.  Such Investor is an
entity duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization with the requisite corporate or
partnership power and authority to enter into and to consummate the transactions
contemplated by the Transaction Documents and otherwise to carry out its
obligations hereunder and

 12
 

 

thereunder.  The purchase by such Investor of the
Securities hereunder has been duly authorized by all necessary action on the
part of such Investor.  This Agreement
has been duly executed and delivered by such Investor and constitutes the valid
and binding obligation of such Investor, enforceable against it in accordance
with its terms, except as may be limited by (i) applicable bankruptcy, insolvency,
reorganization or other laws of general application relating to or affecting
the enforcement of creditors rights generally and (ii) the effect of rules
of law governing the availability of specific performance and other equitable
remedies.

 

(b)   No
Public Sale or Distribution; Investment Intent.  Such Investor is acquiring the Securities in
the ordinary course of business for its own account and not with a view
towards, or for resale in connection with, the public sale or distribution
thereof, and such Investor does not have a present arrangement to effect any
distribution of the Securities to or through any person or entity.

(c)   Investor
Status.  At the time such Investor
was offered the Securities, it was, and at the date hereof it is, an “accredited
investor” as defined in Rule 501(a) under the Securities Act.

ARTICLE IV

OTHER AGREEMENTS OF THE PARTIES

4.1   Transfer
Restrictions.

(a)   The
Investors covenant that the Securities will only be disposed of pursuant to an
effective registration statement under, and in compliance with the requirements
of, the Securities Act or pursuant to an available exemption from the
registration requirements of the Securities Act, and in compliance with any
applicable state securities laws.  In
connection with any transfer of Securities other than pursuant to an effective
registration statement or to the Company, the Company may require the
transferor to provide to the Company an opinion of counsel selected by the
transferor, the form and substance of which opinion shall be reasonably
satisfactory to the Company, to the effect that such transfer does not require
registration under the Securities Act. 
Notwithstanding the foregoing, the Company hereby consents to and agrees
to register on the books of the Company and with its transfer agent, without
any such legal opinion, except to the extent that the transfer agent requests
such legal opinion, any transfer of Securities by an Investor to an Affiliate
of such Investor, provided that the transferee makes customary representations
to Company and certifies to the Company that it is an “accredited investor” as
defined in Rule 501(a) under the Securities Act and provided that such
Affiliate does not request any removal of any existing legends on any
certificate evidencing the Securities.

(b)   Such
Investor understands that the instruments representing the Convertible Notes
and the stock certificates representing the Conversion Shares until such time
as the resale of the Conversion Shares have been registered and sold under the
Securities Act, shall bear any legend as required by the “blue sky” laws of any
state and a restrictive legend in substantially the following form (and a
stop-transfer order may be placed against transfer of such stock certificates):

NEITHER THE ISSUANCE AND
SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE NOR THE SECURITIES INTO
WHICH THESE SECURITIES ARE

 13
 

 

CONVERTIBLE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED, OR APPLICABLE STATE SECURITIES LAWS. 
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR
ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”),
OR (B) IF REASONABLY REQUESTED BY THE COMPANY, AN OPINION OF COUNSEL REASONABLY
ACCEPTABLE TO THE COMPANY THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT.

 

The legend set forth
above shall be removed and the Company shall issue a certificate without such
legend to the holder of the Securities upon which it is stamped, if, unless
otherwise required by state securities laws, (i) such Securities have been
registered and sold pursuant to an effective registration statement under the
Securities Act or (ii) in connection with a sale, assignment or other transfer,
the Company reasonably requests that such holder provide the Company with
opinion of counsel reasonably acceptable to the Company that the sale,
assignment or transfer of the Securities may be made without registration under
the applicable requirements of the Securities Act.

4.2   Furnishing
of Information.  So long as any
Investor owns any Securities, the Company covenants to use commercially
reasonable efforts to timely file (or obtain extensions in respect thereof and
file within the applicable grace period) all reports required to be filed by
the Company after the date hereof pursuant to the Exchange Act.  Upon the reasonable request of any Investor,
the Company shall deliver to such Investor a written certification of a duly authorized
officer as to whether it has complied with the preceding sentence.  The Company further covenants that it will
take such further action as any holder of Securities may reasonably request to
satisfy the provisions of this Section 4.2.

4.3   Integration.  The Company shall not, and shall use its
commercially reasonable efforts to ensure that no Affiliate thereof shall,
sell, offer for sale or solicit offers to buy or otherwise negotiate in respect
of any security (as defined in Section 2 of the Securities Act) that would
be integrated with the offer or sale of the Securities in a manner that would
require the registration under the Securities Act of the sale of the Securities
to the Investors or that would be integrated with the offer or sale of the
Securities for purposes of the rules and regulations of any Trading Market.

4.4   Reservation
of Securities.  The Company shall
maintain a reserve from its duly authorized shares of Common Stock for issuance
pursuant to the Transaction Documents in such amount as may be required to
fulfill its obligations in full under the Transaction Documents.  In the event that at any time the then
authorized shares of Common Stock are insufficient for the Company to satisfy
its obligations in full under the Transaction Documents, the Company shall
promptly take such actions as may be required to increase the number of
authorized shares.

4.5   Securities
Laws Disclosure; Publicity.  The
Company shall, on or before 8:30 a.m., New York time, on the first Trading Day
following execution of this Agreement, issue a press release acceptable to the
Investors disclosing all material terms of the transactions contemplated
hereby.  The Company shall file a Current
Report on Form 8-K with the SEC (the “8-K
Filing”) within four (4) Business Days of execution of this
Agreement describing the terms of the transactions

 14
 

 

contemplated
by the Transaction Documents and including as exhibits to such Current Report
on Form 8-K this Agreement in the form required by the Exchange Act.  Thereafter, the Company shall timely file any
filings and notices required by the SEC or applicable law with respect to the
transactions contemplated hereby and provide copies thereof to the Investors
promptly after filing.  Investors Company
shall, at least two Trading Days prior to the filing or dissemination of any
disclosure required by this paragraph, provide a copy thereof to the Investors
for their review.  The Company and the
Investors shall consult with each other in issuing any press releases or
otherwise making public statements or filings and other communications with the
SEC or any regulatory agency or Trading Market with respect to the transactions
contemplated hereby, and neither party shall issue any such press release or
otherwise make any such public statement, filing or other communication without
the prior consent of the other, except if such disclosure is required by law,
in which case the disclosing party shall promptly provide the other party with
prior notice of such public statement, filing or other communication.  Notwithstanding the foregoing, the Company
shall not publicly disclose the name of any Investor, or include the name of
any Investor in any press release without the prior written consent of such
Investor.  Except as required under the
Transaction Documents, the Company shall not, and shall cause each of its
Subsidiaries and its and each of their respective officers, directors,
employees and agents not to, provide any Investor with any material nonpublic
information regarding the Company or any of its Subsidiaries from and after the
issuance of the above referenced press release without the express written
consent of such Investor.

4.6   Use
of Proceeds.  Within two Business
Days of the Closing, the Company shall use the net proceeds from the sale of
the Securities to redeem the outstanding principal amount, plus all accrued and
unpaid interest on such principal amount (the “Redemption”), under (A) the 2006 Senior Secured Note and (B)
that certain Promissory Note, dated March 23, 2006, as amended on March 27,
2007 and attached hereto as Exhibit E (the “2006 Promissory Note”, and together with
the 2006 Senior Secured Note, the “2006 Notes”).  The Company shall use the remaining net
proceeds from the sale of the Securities for working capital and general
corporate purposes.  Pending use for
working capital and general corporate purposes, the Company intends to invest
the net proceeds from this offering in short-term, interest-bearing,
investment-grade securities, or as otherwise pursuant to the Company’s
customary investment policies.

4.7   .  Short Sales.  The Investor represents, warrants and agrees
that, since the date on which any of the Company or first contacted the
Investor about the potential sale of the Securities, it has not engaged in any
transactions in the securities of the Company (including, without limitation,
any Short Sales involving the Company’s securities).  Such Investor covenants that it will not
engage in any transactions in the securities of the Company (including Short
Sales) prior to the time that the transactions contemplated by this Agreement
are publicly disclosed.  Such Investor
further covenants that it will not engage in any Short Sales in the Company’s
securities for a period of 180 days from the Closing Date.  For purposes hereof, “Short Sales” include,
without limitation, all “short sales” as defined in Rule 3b-3 of the Exchange
Act and Rule 200 promulgated under Regulation SHO under the Exchange Act,
whether or not against the box, and all types of direct and indirect stock
pledges, forward sales contracts, options, puts, calls, short sales, swaps,
“put equivalent positions” (as defined in Rule 16a-1(h) under the Exchange Act)
and similar arrangements (including on a total return basis), and sales and
other transactions through non-US broker dealers or foreign regulated brokers.

 15
 

 

4.8   . Waiver;
Termination of Liens.  Upon
Redemption, each holder of the 2006 Notes irrevocably waives any default or
breach arising from or related to the 2006 Notes and the transactions
contemplated thereby, including, without exception, the Registration Rights
Agreement dated March 23, 2006, the Warrant and the 2006 Notes.  Upon Redemption, each Investor previously
holding 2006 Notes shall take all action reasonably necessary to terminate any
Liens arising from or relating to the 2006 Notes.

ARTICLE
V

CONDITIONS

5.1   Conditions
Precedent to each Investor’s Obligation to Purchase.  The obligation of each Investor to purchase
the Securities at the Closing is subject to the satisfaction or waiver by such
Investor, at or before the Closing, of each of the following conditions:

(a)           The Company shall have duly executed and delivered to
each Investor:

(i)   
one or more Convertible Notes with an aggregate principal amount as is set
forth opposite such Investor’s name on the Schedule of Investors; and

(ii)   the Registration Rights Agreement.

(b)           Such
Investor shall have received the opinion from the Company’s General Counsel,
dated as of the Closing Date, in substantially the form of Exhibit F
attached hereto.

(c)           The
Company shall have delivered a certificate, executed on behalf of the Company
by its Secretary, dated as of the Closing Date, certifying the resolutions
adopted by the Board of Directors of the Company approving the transactions
contemplated by the Transaction Documents and the issuance of the Securities,
certifying the current versions of the Certificate and Bylaws of the Company
and certifying as to the signatures and authority of persons signing this
Agreement and related documents on behalf of the Company.

(d)           The
representations and warranties of the Company shall be true and correct in all
material respects (except for those representations and warranties that are
qualified by materiality or Material Adverse Effect, which shall be true and
correct in all respects) as of the date when made and as of the Closing Date as
though made at that time (except for representations and warranties that speak
as of a specific date) and the Company shall have performed, satisfied and
complied in all material respects with the covenants, agreements and conditions
required by the Transaction Documents to be performed, satisfied or complied
with by the Company at or prior to the Closing Date.  Such Investor shall have received a
certificate, executed by the Chief Executive Officer of the Company, dated as
of the Closing Date, to the foregoing effect and as to such other matters as
may be reasonably requested by such Investor.

 16
 

 

(e)   The
Common Stock (i) shall be authorized for quotation on the Nasdaq
Global Market (ii) shall not have been
suspended, as of the Closing Date, by the SEC or the Nasdaq Global Market from
trading on the Nasdaq Global Market nor
shall suspension by the SEC or the Nasdaq Global Market have been threatened, as of the Closing Date, either
(A) in writing by the SEC or the Nasdaq Global Market or (B) by falling below the minimum listing
maintenance requirements of the Nasdaq Global Market.

 

(f)    The Company shall have obtained all governmental,
regulatory or third party consents and approvals, if any, necessary for the
sale of the Securities, except for those consents and approvals set forth in
Sections 3.1(d), 3.1(g) and 3.1(i) to the Schedule of Exceptions.

(g)   The Investors shall have received all fees and other
amounts due and payable on or prior to the Closing Date pursuant to Section
6.2 hereof.

(h)   The Company shall have delivered to such Investor
such other documents relating to the transactions contemplated by this
Agreement as such Investor or its counsel may reasonably request.

5.2   Conditions
Precedent to the Obligations of the Company.  The Company’s obligation to sell and issue
the Securities at the Closing is, at the option of the Company, subject to the
fulfillment or waiver of the following conditions:

(a)   The
Investors shall have delivered payment of the purchase price to the Company for
the Securities.

(b)   Any
authorization, approval, or permit of any governmental authority or regulatory
body  required to be obtained by the
Company or any of the Investors in connection with the issuance of and sale of
the Securities and the performance of the obligations in this Agreement shall
have been obtained and effective as of the Closing Date.

(c)   The
representations and warranties made by the Investors in Section 3.2
hereof qualified as to materiality shall be true and correct at all times prior
to and on the Closing Date as if made on and as of the Closing Date, except to
the extent any such representation or warranty expressly speaks as of an
earlier date, in which case such representation or warranty shall be true and
correct as of such earlier date; and the representations and warranties made by
the Investors in Section 3.2 hereof not qualified as to materiality
shall be true and correct in all material respects at all times prior to and on
the Closing Date as if made on and as of the Closing Date, except to the extent
any such representation or warranty expressly speaks as of an earlier date, in
which case such representation or warranty shall be true and correct in all
material respects as of such earlier date.

(d)   All
covenants, agreements and conditions contained in this Agreement to be
performed, satisfied or complied with by the Investors on or prior to the
Closing Date shall have been performed, satisfied or complied with in all
material respects.

 

 

 

 17

ARTICLE
VI

MISCELLANEOUS

6.1   Termination.  This Agreement may be terminated by the
Company or any Investor, by written notice to the other parties, if the Closing
has not been consummated by the third Business Day following the date of this
Agreement; provided that no such termination will affect the right of any party
to sue for any breach by the other party (or parties).

6.2   Fees
and Expenses.  At the Closing, the
Company shall pay to the Investor Counsel an aggregate of up to $25,000  for the legal fees and expenses incurred
or to be incurred in connection with its due diligence and the preparation and
negotiation of the Transaction Documents. 
The Company further agrees it shall pay to the Investor Counsel an
aggregate of up to $50,000  for the
legal fees and expenses incurred or to be incurred in connection and the
registration of the Securities under the Registration Rights Agreement upon the
effectiveness of such registration statement. 
In lieu of the foregoing payment, the Investor may retain such amount at
the Closing or require the Company to pay such amount directly to Investor
Counsel.  Except as expressly set forth
in the Transaction Documents to the contrary, each party shall pay the fees and
expenses of its advisers, counsel, accountants and other experts, if any, and
all other expenses incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement.  The Company shall pay all transfer agent
fees, stamp taxes and other taxes and duties levied in connection with the
initial sale and issuance of their applicable Securities to the Investors,
including the conversion of the Convertible Notes.

6.3   Entire
Agreement.  The Transaction
Documents, together with the Exhibits and Schedules thereto, contain the entire
understanding of the parties with respect to the subject matter hereof and
supersede all prior agreements and understandings, oral or written, with
respect to such matters, which the parties acknowledge have been merged into
such documents, exhibits and schedules. 
At or after the Closing, and without further consideration, the Company
and the Investors will execute and deliver such further documents as may be
reasonably requested in order to give practical effect to the intention of the
parties under the Transaction Documents.

6.4   Notices.  Any and all notices or other communications
or deliveries required or permitted to be provided hereunder shall be in
writing and shall be deemed given and effective on the earliest of (a) the
date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section  prior to 6:30
p.m. (New York City time) on a Trading Day, (b) the next Trading Day after
the date of transmission, if such notice or communication is delivered via
facsimile at the facsimile number specified in this Section on a day that is
not a Trading Day or later than 6:30 p.m. (New York City time) on any Trading
Day, (c) the Trading Day following the date of deposit with a nationally
recognized overnight courier service, or (d) upon actual receipt by the
party to whom such notice is required to be given.  The addresses and facsimile numbers for such
notices and communications are those set forth on the signature pages hereof,
or such other address or facsimile number as may be designated in writing
hereafter, in the same manner, by any such Person.

 18
 

6.5   Amendments;
Waivers.  Any term of this Agreement
may be amended and the observance of any term of this Agreement may be waived
(either generally or in a particular instance and either retroactively or
prospectively), with the written consent of the Company and the Investors
holding a majority of the principal amount of the Convertible Notes.  Subject to the preceding sentence, any
amendment or waiver effected in accordance with this Section shall be binding
upon all parties to this Agreement, including, without limitation, any
Investors who may not have executed such amendment or waiver.

6.6   Construction.  The headings herein are for convenience only,
do not constitute a part of this Agreement and shall not be deemed to limit or
affect any of the provisions hereof.  The
language used in this Agreement will be deemed to be the language chosen by the
parties to express their mutual intent, and no rules of strict construction
will be applied against any party.

6.7   Successors
and Assigns.  This Agreement shall be
binding upon and inure to the benefit of the parties and their successors and
permitted assigns.  The Company may not
assign this Agreement or any rights or obligations hereunder without the prior
written consent of the Investors.  Any
Investor may assign its rights under this Agreement to any Person to whom such
Investor assigns or transfers any Securities, provided such transferee agrees in
writing to be bound, with respect to the transferred Securities, by the
provisions hereof that apply to the “Investors.”

6.8  
Governing Law; Venue; Waiver of Jury Trial.  THE CORPORATE LAWS OF THE STATE OF NEW
YORK SHALL GOVERN ALL ISSUES CONCERNING THE RELATIVE
RIGHTS OF THE COMPANY AND ITS STOCKHOLDERS. 
ALL QUESTIONS CONCERNING THE CONSTRUCTION, VALIDITY, ENFORCEMENT AND
INTERPRETATION OF THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED AND
ENFORCED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.  THE COMPANY AND INVESTORS HEREBY IRREVOCABLY
SUBMIT TO THE EXCLUSIVE JURISDICTION OF THE STATE AND FEDERAL COURTS SITTING IN
THE CITY OF NEW YORK, BOROUGH OF MANHATTAN FOR THE ADJUDICATION OF ANY DISPUTE
BROUGHT BY THE COMPANY OR ANY INVESTOR HEREUNDER, IN CONNECTION HEREWITH OR
WITH ANY TRANSACTION CONTEMPLATED HEREBY OR DISCUSSED HEREIN (INCLUDING WITH
RESPECT TO THE ENFORCEMENT OF ANY OF THE TRANSACTION DOCUMENTS), AND HEREBY
IRREVOCABLY WAIVE, AND AGREE NOT TO ASSERT IN ANY SUIT, ACTION OR PROCEEDING
BROUGHT BY THE COMPANY OR ANY INVESTOR, ANY CLAIM THAT IT IS NOT PERSONALLY
SUBJECT TO THE JURISDICTION OF ANY SUCH COURT, OR THAT SUCH SUIT, ACTION OR
PROCEEDING IS IMPROPER.  EACH PARTY
HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE OF PROCESS AND CONSENTS TO PROCESS
BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY MAILING A COPY THEREOF
VIA REGISTERED OR CERTIFIED MAIL OR OVERNIGHT DELIVERY (WITH EVIDENCE OF
DELIVERY) TO SUCH PARTY AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS
AGREEMENT AND AGREES THAT SUCH SERVICE SHALL CONSTITUTE GOOD AND SUFFICIENT
SERVICE OF PROCESS AND NOTICE THEREOF. 
NOTHING CONTAINED HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT
TO SERVE PROCESS IN ANY MANNER PERMITTED BY LAW.  THE COMPANY AND INVESTORS HEREBY WAIVE ALL
RIGHTS TO A TRIAL BY JURY.

 19
 

6.9   Survival.  The representations and warranties,
agreements and covenants contained herein shall survive the Closing.

6.10 Execution.  This
Agreement may be executed in two or more counterparts, all of which when taken
together shall be considered one and the same agreement and shall become
effective when counterparts have been signed by each party and delivered to the
other party, it being understood that both parties need not sign the same
counterpart.  In the event that any
signature is delivered by facsimile transmission, such signature shall create a
valid and binding obligation of the party executing (or on whose behalf such
signature is executed) with the same force and effect as if such facsimile
signature page were an original thereof.

6.11 Severability.  If any
provision of this Agreement is held to be invalid or unenforceable in any
respect, the validity and enforceability of the remaining terms and provisions
of this Agreement shall not in any way be affected or impaired thereby and the
parties will attempt to agree upon a valid and enforceable provision that is a
reasonable substitute therefor, and upon so agreeing, shall incorporate such
substitute provision in this Agreement.

6.12 Rescission and Withdrawal Right.  Notwithstanding anything to the contrary
contained in (and without limiting any similar provisions of) the Transaction
Documents, whenever any Investor exercises a right, election, demand or option
owed to such Investor by the Company under a Transaction Document and the
Company does not timely perform its related obligations within the periods
therein provided, then, prior to the performance by the Company of the
Company’s related obligation, such Investor may rescind or withdraw, in its
sole discretion from time to time upon written notice to the Company, any
relevant notice, demand or election in whole or in part without prejudice to
its future actions and rights.

6.13 Replacement of Securities.  If any certificate or instrument evidencing
any Securities is mutilated, lost, stolen or destroyed, the Company shall issue
or cause to be issued in exchange and substitution for and upon cancellation
thereof, or in lieu of and substitution therefor, a new certificate or
instrument, but only upon receipt of evidence reasonably satisfactory to the
Company of such loss, theft or destruction and the execution by the holder
thereof of a customary lost certificate affidavit of that fact and an agreement
to indemnify and hold harmless the Company for any losses in connection
therewith.  The applicants for a new
certificate or instrument under such circumstances shall also pay any
reasonable third-party costs associated with the issuance of such replacement
Securities.

6.14 Other Engagements and Activities.  The investment in the Company made by
Goldman, Sachs & Co. (“Goldman Sachs”
and, together with any other affiliate of Goldman Sachs, the “GS Entities” or the “GS Entity”)
pursuant to this Agreement, and any subsequent investments in the Company by
any GS Entity after the date hereof, is made notwithstanding any engagement,
prior to or subsequent to the date hereof, by the Company, of any GS Entity as
financial advisor, agent or underwriter to the Company.  Notwithstanding anything in the Transaction
Documents to

 20
 

the contrary, no GS Entity shall be restricted in any
way from engaging in any brokerage, investment advisory, financial advisory,
financing, asset management, trading, market making, arbitrage and other
similar activities conducted in the ordinary course of Goldman Sachs’
business.  Further, neither the Company
nor any Subsidiary shall have any right, by virtue of any of the Transaction
Documents to, in or to such other ventures or activities of any GS Entity, or
to the income or proceeds derived therefrom, and the pursuit of such ventures,
even if competitive with the business of the Company, shall not be deemed
wrongful or improper.  Any GS Entity
shall have the right to take for its own account or to recommend to others, any
investment opportunity including investment opportunities that may be
competitive with or involve the same line of business as that conducted or
proposed to be conducted from time to time by the Company.

6.15 No Promotion. 
Except as otherwise required by law and as provided in Section 4.5
herein, the Company agrees that it will not, without the prior written consent
of Goldman Sachs in each instance, (i) use in advertising, publicity, or
otherwise the name of any GS Entity, or any partner or employee of any GS
Entity, nor any trade name, trademark, trade device, service mark, symbol or
any abbreviation, contraction or simulation thereof owned by any GS Entity or
(ii) represent, directly or indirectly, that any product or any service
provided by the Company has been approved or endorsed by any GS Entity.  This provision shall survive termination of
the Transaction Documents.

[SIGNATURE PAGES TO FOLLOW]

 21
 

IN WITNESS WHEREOF, the parties
hereto have caused this Securities Purchase Agreement to be duly executed by
their respective authorized signatories as of the date first indicated above.

	
  

  	
   

  	
  VYYO INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Wayne H. Davis

  
	
   

  	
   

  	
  Name: Wayne H. Davis

  
	
   

  	
   

  	
  Title: CEO

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notice:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  6625 The Corners Parkway

  Suite 100

  Norcross, Georgia 30092

  Telephone:  (678) 282-8000
 Facsimile:  (770) 446-1110

  Attention:  General Counsel

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Skadden,
  Arps, Slate, Meagher & Flom LLP

  525 University Avenue

  Palo Alto, CA 94301

  Telephone:  (650) 470-4500

  Facsimile:  (650) 470-4570

  Attention:  Gregory Smith, Esq.

  
							

 

 22
 

Investor Signature Page

 

By its execution and delivery of this signature page,
the undersigned Investor hereby joins in and agrees to be bound by the terms
and conditions of the Securities Purchase Agreement dated as of March 28, 2007
(the “Purchase Agreement”) by and among Vyyo
Inc. and the Investors (as defined therein), as to the number of shares of
Convertible Notes set forth below, and authorizes this signature page to be
attached to the Purchase Agreement or counterparts thereof.

	
  

  	
   

  	
  GOLDMAN, SACHS & CO.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  	
  /s/ Nick Advani

  
	
   

  	
   

  	
   

  	
   

  	
  Name:  Nick
  Advani

  
	
   

  	
   

  	
   

  	
   

  	
  Title: 
  Managing Director

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notice:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Goldman, Sachs & Co.

  One New York Plaza

  New York, NY  10004

  Telephone:  (212) 902-4934

  Facsimile:  (212) 346-3124

  Attention:  Nick Advani

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  with a copy to:

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Goldman, Sachs & Co.

  One New York Plaza

  New York, NY  10004

  Facsimile:  (212) 256-4104

  Telephone:  (212) 902-7952

  Attention:  Connie J. Shoemaker

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  and

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Thelen Reid Brown Raysman & Steiner LLP

  875 Third Avenue

  New York, NY  10022

  Facsimile:  (212) 603-2001

  Telephone:  (212) 603-2108

  Attention:  Stuart Bressman, Esq.

  

 

 23
 

 

	
  Exhibits:

  
	
  A

  	
   

  	
  Schedule of Investors

  
	
   

  	
   

  	
   

  
	
  B

  	
   

  	
  Form of Convertible Note

  
	
   

  	
   

  	
   

  
	
  C

  	
   

  	
  Form of Amended and Restated Senior Secured Note

  
	
   

  	
   

  	
   

  
	
  D

  	
   

  	
  Form of Registration Rights Agreement

  
	
   

  	
   

  	
   

  
	
  E

  	
   

  	
  Promissory Note, dated March 23, 2006, as amended on
  March 27, 2007

  
	
   

  	
   

  	
   

  
	
  F

  	
   

  	
  Form of Opinion of Company’s General Counsel

  
	
   

  	
   

  	
   

  
	
  G

  	
   

  	
  Schedule of Exceptions

  

 

 24

Exhibit A

Schedule
of Investors

 

	
  Investor

  	
   

  	
  Convertible Note Purchase Price

  	
   

  
	
  Goldman, Sachs &
  Co.

  	
   

  	
  $

  	
  35,000,000

  	
   

  
	
  TOTAL

  	
   

  	
  $

  	
  35,000,000

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]