Document:

Exhibit 10.1

 

ASSET PURCHASE AGREEMENT

 

THIS, ASSET PURCHASE AGREEMENT, (the “Agreement”)
dated September 28, 2018, among Point Capital, Inc., a Delaware corporation (the “Buyer”) and Blind Faith Concepts,
Inc. a New York corporation (the “Seller”).

 

The Buyer wishes to purchase from the Seller,
and the Seller wishes to sell to the Buyer, certain assets, identified herein, relating to the design and development of footwear,
subject to certain liabilities, upon the terms and conditions of this Agreement.

 

Accordingly, the parties agree as follows:

 

ARTICLE I

 

SALE OF ASSETS

 

SECTION
1.1 ASSETS TO BE SOLD. Except as otherwise provided in Section 1.2, at the Closing provided for in Article 4, the Seller
shall sell, assign, transfer and deliver to the Buyer all of the assets, properties, and rights of the Seller of every type and
description, real, personal and mixed, tangible and intangible, wherever located and whether or not reflected on the books and
records of the Seller relating to or used or employed in connection with those assets described on Schedule 1.1, attached hereto
(all of such assets, properties, rights and business being hereinafter sometimes collectively called the “Purchased Assets”)

 

SECTION 1.2 RESERVED.

 

ARTICLE II

 

ASSUMPTION OF LIABILITIES

 

SECTION
2.1 LIABILITIES ASSUMED BY BUYER. In partial payment of the Purchase Price (as defined in Section 3.1), the Buyer shall
assume only liabilities and obligations under contracts and other agreements to which the Seller is a party and relating to the
Purchased Assets only, to the extent existing on the Effective Date. The specific liabilities to be assumed by the Buyer pursuant
to this Agreement are hereinafter sometimes collectively referred to as the “Assumed Liabilities.”

 

SECTION
2.2 LIABILITIES NOT ASSUMED BY BUYER. Anything in this Agreement to the contrary notwithstanding, the Seller shall be
responsible for all of its liabilities and obligations not hereby expressly assumed by the Buyer and the Buyer shall not assume,
or in any way be liable or responsible for, any liabilities or obligations of the Seller, including, without limitation, (1) liabilities
not relating to the Assets; and (2) tax liabilities, including, without limitation, income, excise, sales, use, gross receipts,
franchise, employment, payroll or property relating to the Purchased Assets for any period ending on or before the Closing Date
or arising out of the transactions contemplated by this Agreement.

 

ARTICLE III

 

CONSIDERATION AND PAYMENT

 

SECTION
3.1 PURCHASE PRICE. The aggregate purchase price for the Purchased Assets (the “Purchase Price”) shall be
an amount equal to the sum of two million (2,000,000) restricted shares of common capital stock of the Buyer and the Assumed Liabilities.

 

SECTION
3.2 PAYMENT OF PURCHASE PRICE. The Buyer shall pay the Purchase Price on the Closing Date as defined in Article 4 by
(1) delivering to Seller, by either physical certificate representing the shares or confirmation from the transfer agent of the
Buyer, Manhattan Transfer Registrar Co (the “Transfer Agent”) that the shares have been issued in book entry on the
records held by the Transfer Agent. and (2) assuming the Assumed Liabilities.

 

SECTION 3.3 RESERVED

 

    	 	1	 

     

    

 

ARTICLE IV

 

CLOSING; CLOSING DATE

 

The Closing of the sale and purchase of
the Purchased Assets contemplated hereby shall take place at Buyer's offices at such other time or date as the parties may mutually
agree in writing. The time and date upon which the Closing occurs is herein called the “Closing Date.”

 

ARTICLE V

 

REPRESENTATIONS AND WARRANTIES OF
SELLER

 

The Seller represent and warrant to the
Buyer as follows:

 

SECTION
5.1 DUE INCORPORATION AND QUALIFICATION. Seller is a business entities duly organized, validly existing and is in good
standing under the corporate laws of the State of New York and has the corporate power and lawful authority to own, lease and operate
its assets, properties and business and to carry on its business as now conducted.

 

SECTION
5.2 AUTHORITY TO EXECUTE AND PERFORM AGREEMENTS. The Seller has the full legal right and power and all authority and
approval required to enter into, execute and deliver this Agreement and to perform fully the Seller's respective obligations hereunder.
This Agreement has been duly executed and delivered and is the valid and binding obligation of the Seller enforceable in accordance
with its terms, except as may be limited by bankruptcy, moratorium, reorganization, insolvency or other similar laws now or hereafter
in effect generally affecting the enforcement of creditors’ rights. No approval or consent of any foreign, federal, state,
county, local or other governmental or regulatory body, and (except as otherwise specified in this Agreement or any Schedule hereto)
no approval or consent of any other person is required in connection with the execution and delivery by the respective Seller of
this Agreement and the consummation and performance by the Seller of the transactions contemplated herein.

 

The execution, delivery and performance
of this Agreement and the consummation of the transactions contemplated hereby will not violate, conflict with or otherwise result
in the breach or violation of any of the terms and conditions of, or constitute (or with notice or lapse of time or both would
constitute) a default under (1) the Articles of Incorporation, operating agreement or bylaws of the Seller; (2) any material
instrument, contract or other agreement to which the Seller is a party or by or to which it or any of its or their material assets
or properties is bound or subject; or (3) any statute or any regulation, order, judgment, injunction, award or decree of any court,
arbitrator or governmental or regulatory body against or binding upon or applicable to the Seller or upon the securities, properties
or business of the Seller.

 

SECTION
5.3 LITIGATION. Except as set forth on Schedule 5.3, there are no outstanding orders, judgments, injunctions, awards
or decrees of any court, arbitrator, governmental or regulatory body against the Seller which relate in any way, directly or indirectly,
to the Assets or the transactions contemplated herein. Seller is not a party to, or, to the knowledge of the Seller, threatened
with, any litigation or judicial, administrative or arbitration proceeding relating to the Business which if decided adversely
to the Seller could delay the consummation of the transactions contemplated hereby or upon the Seller’s material assets,
properties, business, operations or condition (financial or otherwise), or which could create a material liability of the individual
Seller.

 

SECTION
5.4 AGREEMENTS. All contracts, agreements, and rights and obligations derived otherwise relating the Purchased Assets
have been made available to the Buyer and are valid, subsisting agreements, in full force and effect and binding upon the parties
thereto in accordance with their terms, and the Seller is not in default under any of them, nor is any other party to any such
contract or other agreement in default thereunder, nor does any condition exist which with notice or lapse of time or both would
constitute a default thereunder. Except as set forth in Schedule 5.4, no approval or consent of any person is needed in order that
the contracts or other agreements set forth in on Schedule 1.1 attached hereto continue in full force and effect with the Buyer
following the consummation of the transactions contemplated by this Agreement. For purposes of closing the transaction described
herein, said approvals not be required to be met prior to Closing.

 

    	 	2	 

     

    

 

SECTION 5.5 RESERVED.

 

SECTION 5.6 RESERVED.

 

SECTION
5.7 LIENS. The Seller own outright and has good and marketable title to the Purchased Assets, free and clear of any
lien or other encumbrance.

 

SECTION
5.8 LIABILITIES. Except as set forth on Schedule 5.8, the Seller does not have any direct or indirect indebtedness,
liability, claim, loss, damage, deficiency, obligation or responsibility, known or unknown, fixed or unfixed, choate or inchoate,
liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise, relating to the Assets, including,
but not limited to, liabilities on account of taxes, other governmental charges or lawsuits brought, whether or not of a kind required
by generally accepted accounting principles to be set forth on a financial statement (“Liabilities”), which have not
been fully disclosed to the Buyer.

 

SECTION 5.9 RESERVED.

 

SECTION 5.10 RESERVED.

 

SECTION
5.11 NO MATERIAL ADVERSE CHANGE. Since September 1, 2018, there has been no material adverse change in the assets (and
the respective values thereof), properties, business, operations, liabilities or condition of the Purchased Assets and neither
of the Seller knows of any such change which is threatened, nor has there been any damage, destruction or loss materially affecting
the assets, properties, business, operations or condition of the Purchased Assets, whether or not covered by insurance.

 

SECTION
5.12 OPERATIONS OF SELLER. From September 1, 2018 through the date hereof, Seller has not:

 

		a.	Amended, or agreed to amend, its Articles of Incorporation (or similar charter documents) or
bylaws; or merged with or into or consolidated with, or agreed to merge with or into or consolidate with, any other person; or
changed, or agreed to change, in any manner the character of the Purchased Assets;

 

		b.	Waived, or agreed to waive, any right of material value to the Purchased Assets;

 

		c.	Materially changed, or agreed to materially change, any of its business policies or practices relating
to or affecting the Business, including, without limitation, production, advertising, marketing, pricing, purchasing, accounting,
sales, returns, budget or product acquisition policies or practices;

 

		d.	Except in the ordinary course of business relating to the Purchased Assets, other than for fair
market value, sold, abandoned or made, or agreed to sell, abandon or make, any other disposition of any of its assets or properties;
or granted or suffered, or agreed to grant or suffer, any lien or other encumbrance on any of its assets or properties;

 

		e.	Except for inventory or equipment acquired in the ordinary course of business relating to the Purchased
Assets, made any acquisition of all or any part of the assets, properties, capital stock or business of any other persons or made
any commitments to do any of the foregoing relating to the Purchased Assets;

 

		f.	Suffered or incurred any damage, destruction or loss (whether or not covered by insurance) materially
adversely affecting the assets, properties, business, operations or conditions of the Seller relating to the Purchased Assets;
or

 

		g.	Entered into, or agreed to enter into, any other material contract or other agreement or other
material transaction relating to the Purchased Assets.

 

SECTION
5.13 COMPLIANCE WITH LAWS. The Seller has complied with all federal, state, county, local and foreign laws, ordinances,
regulations, orders, judgments, injunctions, awards or decrees applicable to the Purchased Assets and has not received any notice
of violation of any of the foregoing.

 

    	 	3	 

     

    

 

SECTION
5.14 INVENTORY VALUATION. The inventory of the Seller relating to the Purchased Assets, as the same exists on the date
of this Agreement, is in usable and salable condition in the ordinary course of business at the amounts carried on the books and
records of the Seller. The materials, supplies and work-in-progress, and additions thereto, included in such inventory are of at
least the standard quality for such items in the publishing industry; are suitable for the printing, manufacture and distribution
of the Publications; and are not in excess of the normal purchasing patterns of the Seller.

 

SECTION
5.15 TAX MATTERS. The Buyer will not assume or otherwise become liable for any income, excise, sales, use, gross receipts,
franchise, employment, payroll related, property or any other tax of any sort relating to the assets, business or property of the
Seller with respect to any period commenced prior to the Closing Date or arising out of the transactions contemplated hereby (except
any use tax, if any, imposed upon Buyer). The Seller has filed all income tax, excise tax, sales tax, use tax, gross receipts tax,
franchise tax, employment and payroll related tax, property tax, and all other tax returns which the Seller is required to file
and has paid or provided for all taxes shown on such returns, and all deficiencies or other assessments of tax, interest or penalties
owed by Seller.

 

SECTION
5.16 FULL DISCLOSURE. All documents and other papers delivered by or on behalf of the respective Seller in connection
with this Agreement and the transactions contemplated hereby are true, complete and correct. The information furnished by or on
behalf of the Seller to the Buyer in connection with this Agreement and the transactions contemplated hereby does not contain any
untrue statement of a material fact and does not omit to state any material fact necessary to make the statements made, in the
context in which made, not false or misleading.

 

SECTION
5.17 NO BROKER. No broker, finder, agent or similar intermediary has acted for or on behalf of the Seller in connection
with this Agreement or the transactions contemplated hereby, and no broker, finder, agent or similar intermediary is entitled to
any broker’s, finder’s or similar fee or other commission in connection therewith based on any agreement, arrangement
or understanding with the Seller or any action taken by the Seller.

 

ARTICLE VI

 

REPRESENTATIONS AND WARRANTIES OF
BUYER

 

The Buyer represents and warrants to the
Seller as follows:

 

SECTION
6.1 DUE INCORPORATION. The Buyer is a corporation duly organized, validly existing and in good standing under the laws
of the State of Delaware and has the corporate power and lawful authority to own its assets and properties and to carry on its
business as now conducted.

 

SECTION
6.2 CORPORATE POWER OF BUYER. The Buyer has the full legal right and power and all authority and approval required to
enter into, execute and deliver this Agreement, and to perform fully its obligations under this Agreement. This Agreement has been
duly executed and delivered and is the valid and binding obligation of the Buyer enforceable in accordance with its terms, except
as may be limited by bankruptcy, moratorium, reorganization, insolvency or other similar laws now or hereafter in effect generally
affecting the enforcement of creditors' rights. No approval or consent of any foreign, federal, state, county, local or other governmental
or regulatory body, and (except as otherwise specified in this Agreement or any Schedule hereto) no approval or consent of any
other person is required in connection with the execution and delivery by the Buyer of this Agreement and the consummation and
performance by the Buyer of the transactions contemplated hereby.

 

SECTION
6.3 NO BROKER. No broker, finder, agent or similar intermediary has acted for or on behalf of the Buyer in connection
with this Agreement or the transactions contemplated hereby, and no broker, finder, agent or similar intermediary is entitled to
any broker's, finder's or similar fee or other commission in connection therewith based on any agreement, arrangement or understanding
with the Buyer or any action taken by the Buyer.

 

    	 	4	 

     

    

 

ARTICLE VII

 

COVENANTS AND AGREEMENTS

 

The parties covenant and agree as follows:

 

SECTION
7.1 EXPENSES OF SALE. The parties to this Agreement shall bear their respective direct and indirect expenses incurred
in connection with the negotiation, preparation, execution and performance of this Agreement and the transactions contemplated
hereby, whether or not the transactions contemplated hereby are consummated, including, but not limited to, all fees and expenses
of agents, representatives, counsel and accountants. Any and all taxes resulting from the sale, assignment, transfer and delivery
hereunder of the Purchased Assets shall be paid by the Seller.

 

SECTION
7.2 FORWARDING INQUIRIES. For a period of one (1) year from the Closing Date, the Seller shall forward to the Buyer
any mail or telephone inquiries relating to the Purchased Assets and shall promptly after the Closing Date file complete and adequate
forwarding notices with the postal officials and appropriate telephone utilities provided by the Buyer for the forwarding to the
Buyer of all mail and telephone calls relating to the Purchased Assets or the Publications.

 

SECTION 7.3 COVENANTS AGAINST COMPETITION.

 

7.3.1
NON-COMPETE. From the date hereof and for a period of three (3) years thereafter (the “Restricted Period”),
Seller, and/or their affiliates shall not, in the United States, directly or indirectly:

 

		a.	Engage in the manufacturing and/or distribution of a product which directly competes with the Assets
(the “Restricted Activity”);

 

		b.	Assist any person in conducting the Restricted Activity; provided, however, that this is not intended
to restrict Seller's ownership of up to five percent (5%) of the securities of a person who engages in the Restricted Activity;
or

 

		c.	For the purpose of conducting the Restricted Activity, interfere with business relationships (whether
formed heretofore or hereafter) between Buyer and customers of or suppliers.

 

Seller agrees that, in the event
of a breach or threatened breach by Seller of this subsection, Buyer shall be entitled to seek injunctive relief restraining the
breaching party from engaging in the Restricted Activity. Nothing hereunder, however, shall be construed as prohibiting Buyer from
pursuing any other remedies available to it in law or in equity.

 

7.3.2
CONFIDENTIAL INFORMATION. During and after the Restricted Period, the Seller shall keep secret and retain in strictest
confidence, and shall not use for the benefit of themselves or others except in connection with the business and affairs of the
Buyer and its affiliates, all confidential matters relating to the Purchased Assets and to the Buyer and its affiliates, including,
but not limited to, trade secrets, customer lists, subscription lists, details of author or consultant contracts, pricing policies,
operational methods, marketing plans or strategies, product development techniques or plans, business acquisition plans, technical
processes, designs and design projects, inventions and research projects and other business affairs relating to the Purchased Assets
and the business of Buyer and shall not disclose them to anyone outside of the Buyer and its affiliates, provided, however, this
covenant shall not apply to any information which is or becomes generally available to the public other than as a result of disclosure
by the Seller.

 

SECTION
7.4 FURTHER ASSURANCES. Each of the parties shall execute such documents and other papers and perform such further acts
as may be reasonably required or desirable to carry out the provisions hereof and the transactions contemplated hereby, including
without limitation, copyright and trademark assignments.

 

SECTION 7.5 RESERVED.

 

    	 	5	 

     

    

 

SECTION
7.6 CORPORATE EXAMINATIONS AND INVESTIGATIONS. Prior to the Closing Date, the Buyer shall be entitled, through its employees
and representatives, to make such investigations of the Purchased Assets and the Assumed Liabilities and such examination of the
books, records and financial condition of the Seller’s business as the Buyer reasonably considers necessary. Any such investigation
and examination shall be conducted at reasonable times and under reasonable circumstances and the Seller shall cooperate fully
therein. No investigation by the Buyer shall, however, diminish or obviate in any way any of the representations, warranties, covenants
or agreements of the Seller under this Agreement. If this Agreement terminates, the Buyer and its affiliates shall return to the
Seller all copies of documents obtained during the course of such investigation or prior thereto and shall keep confidential and
shall not disclose to others or use in any manner any information obtained during the course of such investigation or prior thereto,
unless readily ascertainable from public or published information, or trade sources, or already known or subsequently developed
by the Buyer independently of any investigation of the Assets, or received from a third party not known to the Buyer to be under
an obligation to the Seller to keep such information confidential. Promptly after the Closing or the termination of this Agreement,
the Buyer and its affiliates shall return to the Seller all copies of documents, if any, obtained during the course of such investigation
or prior thereto which do not relate to the Purchased Assets and shall keep confidential and shall not disclose to others or use
in any manner any information which does not relate to the Purchased Assets, unless readily ascertainable from public or published
information or trade sources, or already known or subsequently developed by the Buyer independently of any investigation pursuant
to this Section 7.6, or received from a third party not known to the Buyer to be under an obligation to the Seller to keep such
information confidential.

 

SECTION
7.7 CONSENT TO JURISDICTION AND SERVICE OF PROCESS. Any and all service of process and any other notice in any legal
action, suit or proceeding arising out of or relating to this Agreement or the transactions contemplated hereby shall be effective
against any party if given by registered or certified mail, return receipt requested, or by any other means of mail which requires
a signed receipt, postage prepaid, mailed to such party as herein provided. Nothing herein contained shall be deemed to affect
the right of any party to serve process in any manner permitted by law. Any legal action, suit or proceeding arising out of or
relating to this Agreement or the transactions contemplated hereby may be instituted in any state or federal court in the State
of Delaware and each party agrees not to assert, by way of motion, as a defense, or otherwise, in any suit or proceeding, any claims
that it is not subject personally to the jurisdiction of such court, that the action, suit or proceeding is brought in an inconvenient
forum, that the venue of the action, suit or proceeding is improper or that this Agreement or the subject matter hereof may not
be enforced in or by such court. Each party further irrevocably submits to the jurisdiction of any such court in any such action,
suit or proceeding.

 

SECTION
7.8 CONTINUED EFFECTIVENESS OF REPRESENTATIONS AND WARRANTIES OF SELLER. From the date hereof through the Closing Date,
the Seller shall maintain the Purchased Assets in such a manner so that the representations and warranties contained in Article
5 shall continue to be true and correct on and as of the Closing Date as if made on and as of the Closing Date, and the Buyer shall
promptly be given notice of any event, condition or circumstance occurring from the date hereof through the Closing Date which
would constitute a violation or breach of this Agreement.

 

ARTICLE VIII

 

CONDITIONS PRECEDENT TO OBLIGATIONS
OF BUYER

 

The obligations of the Buyer to complete
the Closing are subject to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which
may be waived by it:

 

SECTION
8.1 REPRESENTATIONS AND COVENANTS. The representations and warranties of the Seller contained in this Agreement shall
be true in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing
Date. The Seller shall have performed and complied with all covenants or agreements required by this Agreement to be performed
or complied with by the Seller on or prior to the Closing Date.

 

SECTION
8.2 NO MATERIAL ADVERSE CHANGE. Since September 1, 2018 there shall have been no material adverse change in the Purchased
Assets taken as a whole, and Seller shall not know of any such change which is threatened, nor shall there have been any damage,
destruction or loss materially adversely affecting the Purchased Assets taken as a whole, whether or not covered by insurance.

 

    	 	6	 

     

    

 

SECTION
8.3 CORPORATE EXAMINATIONS. The Buyer shall be satisfied with the results of the corporate examinations and investigations
made pursuant to Section 7.6 hereof.

 

ARTICLE IX

 

CONDITIONS PRECEDENT TO OBLIGATIONS
OF SELLER

 

The obligations of the Seller to complete
the Closing are subject to the fulfillment on or prior to the Closing Date of the following conditions, any one or more of which
may be waived by the Seller:

 

SECTION
9.1 REPRESENTATIONS AND COVENANTS. The representations and warranties of the Buyer contained in this Agreement shall
be true in all material respects on and as of the Closing Date with the same force and effect as though made on and as of the Closing
Date. The Buyer shall have performed and complied with all covenants and agreements required by this Agreement to be performed
or complied with by the Buyer on or prior to the Closing Date.

 

ARTICLE X

 

SURVIVAL OF REPRESENTATIONS AND
WARRANTIES OF SELLER

 

Notwithstanding any right of the Buyer
fully to investigate the affairs of the Seller and notwithstanding any knowledge of facts determined or determinable by the Buyer
pursuant to such investigation or right of investigation, the Buyer has the right to rely fully upon the representations, warranties,
covenants and agreements of the Seller contained in this Agreement or in any document delivered to the Buyer by the Seller or any
of their representatives in connection with the transactions contemplated by this Agreement. All such representations and warranties
shall survive the execution and delivery hereof and the Closing hereunder, and shall thereafter terminate and expire with respect
to any theretofore unasserted (1) General Claim or Publisher's Liability Claim (as herein defined), on that date being exactly
three (3) months from the execution of this Agreement, and (2) any Tax Claim when the liability to which such Tax Claim may relate
is barred by all applicable statutes of limitations. As used in this Agreement, the following terms have the following meanings:

 

		a.	“General Claim” means any claim arising out of or otherwise in respect of any
inaccuracy in or any breach of any representation, warranty, covenant or agreement of the Seller contained in this Agreement that
is not a Tax Claim or Publisher's Liability Claim.

 

		b.	“Tax Claim” means any claim arising out of or otherwise in respect of any inaccuracy
in or any breach of any representation, warranty, covenant or agreement of the Seller contained in this Agreement related to federal,
state, county, local or foreign taxes.

 

		c.	“Publisher's Liability Claim” means any claim arising pursuant to paragraph
(c) of Section 11.1.

 

ARTICLE XI

 

INDEMNIFICATION

 

SECTION
11.1 OBLIGATION OF SELLER TO INDEMNIFY. Subject to the limitations contained in Article 10, the Seller, shall indemnify,
defend and hold harmless the Buyer and its directors, officers, employees, affiliates and assigns from and against any losses,
liabilities, damages, deficiencies, costs or expenses (including interest, penalties and reasonable attorneys’ fees and disbursements)
(“Losses”) based upon, arising out of or otherwise due to:

 

		a.	Any inaccuracy in or any breach of any representation, warranty, covenant or agreement of the Seller
contained in this Agreement or in any document or other writing delivered pursuant hereto;

 

		b.	Any liability or obligation not assumed by the Buyer pursuant to Section 2.1, including, without
limitation, any liability to which it may become subject as a result of the fact that the transactions contemplated by this Agreement
are being effected without compliance with the provisions of any Bulk Sales Act or any similar statute as enacted in any jurisdiction,
domestic or foreign; and

 

    	 	7	 

     

    

 

SECTION
11.2 OBLIGATION OF BUYER TO INDEMNIFY. The Buyer shall indemnify, defend and hold harmless the Seller from and against
any Losses arising out of or due to:

 

		a.	Any inaccuracy in or any breach of any representation, warranty, covenant or agreement of the Buyer
contained in this Agreement or in any document or other writing delivered pursuant hereto;

 

		b.	Any liability or obligation assumed by the Buyer pursuant to Section 2.1; and

 

SECTION
11.3 NOTICE TO INDEMNIFYING PARTY. If any party (the “Indemnitee”) receives notice of any claim or the commencement
of any action or proceeding with respect to which any other party (or parties) is obligated to provide indemnification (the
“Indemnifying Party”) pursuant to Section 11.1 or 11.2, the Indemnitee shall promptly give the Indemnifying Party notice
thereof. Such notice shall be a condition precedent to any liability of the Indemnifying Party under the provisions for indemnification
contained in this Agreement and shall describe the claim in reasonable detail and shall indicate the amount (estimated if necessary)
of the Loss that has been or may be sustained by the Indemnitee. The Indemnifying Party may elect to compromise or defend, at such
Indemnifying Party’s own expense and by such Indemnifying Party’s own counsel, any such matter involving the asserted
liability of the Indemnitee. If the Indemnifying Party elects to compromise or defend such asserted liability, it shall within
fifteen (15) days (or sooner, if the nature of the asserted liability so requires) notify the Indemnitee of its intent to
do so, and the Indemnitee shall cooperate, at the expense of the Indemnifying Party, in the compromise of, or defense against,
any such asserted liability. (In such case the Indemnitee may participate, at its own expense, in such defense.) If the Indemnifying
Party elects not to compromise or defend against the asserted liability, or fails to notify the Indemnitee of its election as herein
provided, the Indemnitee may at the Indemnifying Party's expense, pay, compromise or defend such asserted liability. Notwithstanding
the foregoing, neither the Indemnifying Party nor the Indemnitee may settle or compromise any claim over the objection of the other;
provided, however, that consent to settlement or compromise shall not be unreasonably withheld. If the Indemnifying Party chooses
to defend any claim, the Indemnitee shall make available to the Indemnifying Party any books, records or other documents within
its control that are necessary or appropriate for such defense.

 

ARTICLE XII

 

RESERVED

 

ARTICLE XIII

 

TERMINATION OF AGREEMENT

 

This Agreement may be terminated on or
prior to the Closing as follows:

 

		a.	At the election of the Seller, if any one or more of the conditions set forth in Article 9 has
not been fulfilled as of the scheduled Closing Date;

 

		b.	At the election of the Buyer, if any one or more of the conditions set forth in Article 8 has not
been fulfilled as of the scheduled Closing Date;

 

		c.	At any time on or prior to the Closing Date, by mutual written consent of the Seller and the Buyer.

 

If this Agreement so terminates, it shall
become null and void and have no further force or effect, except that any such termination shall be without prejudice to the rights
of any party on account of the nonsatisfaction of the conditions set forth in Articles 8 and 9 resulting from the intentional or
willful breach or violation of the representations, warranties, covenants or agreements of another party under this Agreement.
Notwithstanding anything in this Agreement to the contrary, Sections 7.1 and 14.1 and the last two (2) sentences of Section 7.6
hereof shall survive any termination of this Agreement.

 

    	 	8	 

     

    

 

ARTICLE XIV

 

MISCELLANEOUS

 

SECTION
14.1 CONFIDENTIALITY. The Seller and the Buyer agree to keep the terms and conditions of this Agreement confidential
except insofar as disclosure may be required by law or regulation or legal process and in such event the party so required to disclose
shall provide the other party with prompt notice to enable it to seek a protective order or other appropriate remedy preventing
disclosure.

 

SECTION
14.2 NOTICES. Any notice or other communication required or which may be given hereunder shall be in writing and shall
be delivered personally, telegraphed, telexed, sent by facsimile transmission or sent by certified, registered or express mail,
postage prepaid, and shall be deemed given when so delivered personally, telegraphed, telexed, or sent by facsimile transmission
or if mailed, five (5) days after the date of mailing, as follows:

 

	If to Blind Faith Concepts, Inc.:	
        Address:

         

         

	 	Facsimile: 
	 	E-mail: 
	 	Attention:
	 	 
	with a copy to:	 
	 	Facsimile: 
	 	E-mail: 
	 	Attention: 
	 	 
	If to the Buyer:	
        Address:

         

         

	 	Facsimile:
	 	E-mail: 
	 	Attention: 
	 	 
	with a copy to:	
        Name:

        Address:

         

         

	 	Facsimile:
	 	E-mail: 
	 	Attention:

 

Any party may, by notice given in accordance
with this Section to the other party, designate another address or person for receipt of notices hereunder.

 

SECTION
14.3 ENTIRE AGREEMENT. This Agreement (including the Exhibits and Schedules hereto) and the collateral agreements executed
in connection with the consummation of the transactions contemplated herein contain the entire agreement among the parties with
respect to the purchase of the Purchased Assets and related transactions and supersede all prior agreements, written or oral, with
respect thereto.

 

    	 	9	 

     

    

 

SECTION
14.4 WAIVERS AND AMENDMENTS. This Agreement may be amended, modified, superseded, canceled, renewed or extended, and
the terms and conditions hereof may be waived, only by a written instrument signed by the parties hereto or, in the case of a waiver,
by the party waiving compliance. No delay on the part of any party in exercising any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any waiver on the part of any party of any right, power or privilege hereunder, nor any
single or partial exercise of any right, power or privilege hereunder, preclude any other or further exercise thereof or the exercise
of any other right, power or privilege hereunder. The rights and remedies herein provided are cumulative and are not exclusive
of any rights or remedies which any party may otherwise have at law or in equity.

 

SECTION
14.5 EXHIBITS AND SCHEDULES. The Exhibits and Schedules to this Agreement are a part of this Agreement as if set forth
in full herein.

 

SECTION
14.6 HEADINGS. The headings in this Agreement are for reference purposes only and shall not in any way affect the meaning
or interpretation of this Agreement.

 

SECTION
14.7 COUNTERPARTS. This Agreement may be executed in one or more counterparts, all of which together shall constitute
a single document.

 

SECTION
14.8 GOVERNING LAW. This Agreement shall be governed and construed in accordance with the laws of the State of Delaware
applicable to agreements made and to be performed within such State.

 

SECTION
14.9 BULK SALES. Buyer hereby waives compliance by Seller with any applicable laws relating to bulk transfers in connection
with the sale of the Purchased Assets. Seller agrees to indemnify Buyer with respect to any failure to comply with such bulk transfer
laws pursuant to the provisions of Paragraph (b) of Section 11.1.

 

    	 	10	 

     

    

 

THIS PAGE INTENTIONALLY LEFT BLANK

 

SIGNATURE PAGE TO FOLLOW

 

    	 	11	 

     

    

 

IN WITNESS WHEREOF, the parties have executed
this Agreement on the date first above written.

 

	 	“Seller”	 
	 	 	 
	 	Blind Faith Concepts, Inc.	 
	 	 	 
	By:	/s/ Karen Berend	 
	Name:	Karen Berend	 
	Title:	President	 

 

	 	“Seller”	 
	 	 	 
	 	Blind Faith Concepts, Inc.	 
	 	 	 
	By:	/s/ David Berend	 
	Name:	David Berend	 
	Title:	President	 
	 	 	 
	 	“Buyer”	 
	 	 	 
	 	Point Capital, Inc.	 
	 	 	 
	By:	/s/ Erc Weisblum	 
	Name:	Eric Weisblum	 
	Title:	Chief Executive Officer	 

 

    	 	12	 

     

    

 

SCHEDULE 1.1

Asset List for Blind Faith Concepts, Inc.

 

	Asset	 	Description
	Trademark Name	 	
        -    NFID (Standard Characters,
        mark.jpg).

        -    Serial # 87939331

	Trademark Logo	 	
        -    NFID L4L (stylized and/or
        with design, MRK6911715126-180157156_._NFID_Drawing.jpg)

        -    Serial # '87933752

	Trademark Name, backwards D	 	
        -    NFID (stylized and/or
        with design, MRK6911715126-132340649_._Drawing_846x302_NFID_logo.jpg)

        -    Serial # 87939273

	Domain Name	 	-    http://www.nfid.com
	Artist Agreement	 	-    Brand Ambassador Agreement with Maxwell George Schneider dated July 2018

 

    	 	13	 

     

    

 

SCHEDULE 5.3

Litigation Related to the Assets

 

None.

 

    	 	14	 

     

    

 

SCHEDULE 5.4

Approvals of Assignments

 

 

 

	Asset	 	Description
	Trademark Name	 	-    USPTO Approval
	Trademark  Logo	 	-    USPTO Approval
	Trademark Name, backwards D	 	-    USPTO Approval
	Domain Name	 	-    Approval of website registrar
	Artist Agreement	 	-    None

 

    	 	15	 

     

    

 

SCHEDULE 5.8

Exempt Liabilities Related to the Assets

 

None.

 

    	 	16ex_124811.htm

 

Exhibit 10.1

 

AT THE MARKET OFFERING AGREEMENT

 

 

 

October 1, 2018

 

The Benchmark Company, LLC

150 East 58th Street, 17th Floor

New York, New York 10155

 

ViewTrade Securities, Inc.

7280 W Palmetto Park Rd. #310,

Boca Raton, FL 33433

 

Ladies and Gentlemen:

 

India Globalization Capital, Inc., a corporation organized under the laws of Maryland (the “Company”), confirms its agreement (this “Agreement”) with The Benchmark Company, LLC (the “Manager”) and ViewTrade Securities, Inc. (the “Co-Manager” and collectively with the Manager, the “Managers”) as follows:

 

1.     Definitions. The terms that follow, when used in this Agreement and any Terms Agreement, shall have the meanings indicated.

 

“Accountants” shall have the meaning ascribed to such term in Section 4(m).

 

“Action” shall have the meaning ascribed to such term in Section 3(s).

 

“Affiliate” shall have the meaning ascribed to such term in Section 3(r).

 

“Applicable Time” shall mean, with respect to any Shares, the time of sale of such Shares pursuant to this Agreement or any relevant Terms Agreement.

 

“Board” shall have the meaning ascribed to such term in Section 2(b)(iii).

 

“Broker Fee” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Business Day” shall mean any day other than a Saturday, a Sunday or a legal holiday or a day on which banking institutions or trust companies are authorized or obligated by law to close in New York City.

 

“Commission” shall mean the Securities and Exchange Commission.

 

“Common Stock” shall have the meaning ascribed to such term in Section 2.

 

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“Common Stock Equivalents” shall have the meaning ascribed to such term in Section 3(h).

 

“Company Counsel” shall have the meaning ascribed to such term in Section 4(l).

 

“DTC” shall have the meaning ascribed to such term in Section 2(b)(vii).

 

“EDGAR” shall have the meaning ascribed to such term in Section 2.

 

“Effective Date” shall mean each date and time that the Registration Statement and any post-effective amendment or amendments thereto became or becomes effective.

 

“Electronic Notice” shall have the meaning ascribed to such term in Section 10.

 

“Evaluation Date” shall have the meaning ascribed to such term in Section 3(ee).

 

“Exchange Act” shall have the meaning ascribed to such term in Section 2.

 

“Execution Time” shall mean the date and time that this Agreement is executed and delivered by the parties hereto.

 

“FDA” shall have the meaning ascribed to such term in Section 3(v).

 

“Filing Date” shall have the meaning ascribed to such term in Section 4(w).

 

“FINRA” shall have the meaning ascribed to such term in Section 3(f).

 

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“Forward Looking Statements” shall have the meaning ascribed to such term in Section 3(rr).

 

“Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405.

 

“Incorporated Documents” shall mean the documents or portions thereof filed with the Commission on or before the Effective Date that are incorporated by reference in the Registration Statement or the Prospectus and any documents or portions thereof filed with the Commission after the Effective Date that are deemed to be incorporated by reference in the Registration Statement or the Prospectus.

 

“Indebtedness” shall have the meaning ascribed to such term in Section 3(ll).

 

“Intellectual Property” shall have the meaning ascribed to such term in Section 3(aa).

 

“Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined in Rule 433.

 

“Liens” shall have the meaning ascribed to such term in Section 3(a).

 

“Losses” shall have the meaning ascribed to such term in Section 7(d).

 

“Material Adverse Effect” shall have the meaning ascribed to such term in Section 3(b).

 

“Material Permits” shall have the meaning ascribed to such term in Section 3(t).

 

“Maximum Amount” shall have the meaning ascribed to such term in Section 2.

 

“Money Laundering Laws” shall have the meaning ascribed to such term in Section 3(oo).

 

“Net Proceeds” shall have the meaning ascribed to such term in Section 2(b)(v).

 

“Nonelection Notice” shall have the meaning ascribed to such term in Section 10.

 

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“Off-Balance Sheet Transaction” shall have the meaning ascribed to such term in Section 3(rr).

 

“Permitted Free Writing Prospectus” shall have the meaning ascribed to such term in Section 4(g).

 

“Person” shall have the meaning ascribed to such term in Section 3(f).

 

“Placement” shall have the meaning ascribed to such term in Section 2(c).

 

“Proceeding” shall have the meaning ascribed to such term in Section 3(b).

 

“Prospectus” shall have the meaning ascribed to such term in Section 2.

 

“Prospectus Supplement” shall have the meaning ascribed to such term in Section 2.

 

“Registration Statement” shall have the meaning ascribed to such term in Section 2.

 

“Representation Date” shall have the meaning ascribed to such term in Section 4(k).

 

“Required Approvals” shall have the meaning ascribed to such term in Section 3(f).

 

“Rule 158”, “Rule 163”, “Rule 164”, “Rule 172”, “Rule 173”, “Rule 405”, “Rule 415”, “Rule 424”, “Rule 430B” and “Rule 433” refer to such rules under the Securities Act.

 

“Sales Notice” shall have the meaning ascribed to such term in Section 2(b)(i).

 

“Sanctions” shall have the meaning ascribed to such term in Section 3(pp).

 

“Sanction Countries” shall have the meaning ascribed to such term in Section 3(pp).

 

“Sanction Persons” shall have the meaning ascribed to such term in Section 3(pp).

 

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“Sarbanes Oxley Act” shall have the meaning ascribed to such term in Section 3(q).

 

“SEC Reports” shall have the meaning ascribed to such term in Section 3(m).

 

“Securities Act” shall have the meaning ascribed to such term in Section 2.

 

“Securities Act Regulations” shall have the meaning ascribed to such term in Section 2.

 

“Settlement Date” shall have the meaning ascribed to such term in Section 2(b)(vii).

 

“Subsidiary” shall have the meaning ascribed to such term in Section 3(a).

 

“Terms Agreement” shall have the meaning ascribed to such term in Section 2(a).

 

“Time of Delivery” shall have the meaning ascribed to such term in Section 2(c).

 

“Trading Market” means any of the following exchanges or markets on which the Common Stock is listed or quoted for trading on the date in question: the NYSE American, the Nasdaq Capital Market, the Nasdaq Global Market, the Nasdaq Global Select Market, the New York Stock Exchange, the OTC Bulletin Board or the OTCQX or OTCQB marketplaces operated by the OTC Markets Group, Inc. (or any successors to any of the foregoing).

 

2.     Sale and Delivery of Shares. The Company proposes to issue and sell through or to the Managers, as sales agents and/or principals, up to $15,000,000 of shares (the “Shares”) of the Company’s common stock, $0.0001 par value per share (“Common Shares”), from time to time during the term of this Agreement and on the terms set forth herein; provided, however, that in no event shall the Company issue or sell through the Managers such number of Shares that (a) exceeds the number or dollar amount of Common Stock registered on the Registration Statement, (b) exceeds the number of authorized but unissued shares of Common Stock or (c) would cause the Company or the offering of the Shares to not satisfy the eligibility and transaction requirements for use of Form S-3 (including, if applicable, General Instruction I.B.6 of Registration Statement on Form S-3) (the lesser of (a), (b) or (c), the “Maximum Amount”). Notwithstanding anything to the contrary contained herein, the parties hereto agree that compliance with the limitations set forth in this Section 2 on the number and aggregate sales price of Shares issued and sold under this Agreement shall be the sole responsibility of the Company and that Managers shall have no obligation in connection with such compliance.

 

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The Company has filed, in accordance with the provisions of the Securities Act of 1933, as amended (the “Securities Act”) and the rules and regulations thereunder (the “Securities Act Regulations”), with the Commission a registration statement on Form S-3 (File No. 333-224082), including a base prospectus, relating to certain securities, including the Shares to be issued from time to time by the Company, and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and the rules and regulations thereunder. The Company has prepared a prospectus supplement specifically relating to the Shares (the “Prospectus Supplement”) to the base prospectus included as part of such registration statement. The Company will furnish to the Managers, for use by the Managers, copies of the prospectus included as part of such registration statement, as supplemented by the Prospectus Supplement, relating to the Shares. Except where the context otherwise requires, such registration statement, including all documents filed as part thereof or incorporated by reference therein, and including any information contained in a Prospectus (as defined below) subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act Regulations or deemed to be a part of such registration statement pursuant to Rule 430B of the Securities Act Regulations, is herein called the “Registration Statement.” Any reference herein to the Registration Statement, any Prospectus Supplement, Prospectus or any Issuer Free Writing Prospectus (defined below) shall be deemed to refer to and include the Incorporated Documents, including, unless the context otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, any Prospectus Supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any document under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the Prospectus Supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference. For purposes of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval System, or if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).

 

(a)     Appointment of Managers as Selling Agent; Terms Agreement. For purposes of selling the Shares through the Managers, the Company hereby appoints the Managers as non-exclusive agents of the Company for the purpose of soliciting purchases of the Shares from the Company pursuant to this Agreement and the Managers agree to use their commercially reasonable efforts to sell, as sales agents for the Company, the Shares on the terms and subject to the conditions stated herein. The Company reserves the right to engage other sales agents/managers and the Managers agree to allow the Company to engage other sales agents/managers under this prospectus. The Company agrees that, whenever it determines to sell the Shares directly to the Managers as principals, it will enter into a separate agreement (each, a “Terms Agreement”) in substantially the form

 

-6-

 

 

of Annex I hereto, relating to such sale in accordance with Section 2 of this Agreement.

 

(b)     Agent Sales. Subject to the terms and conditions and in reliance upon the representations and warranties herein set forth, the Company will issue and agrees to sell Shares from time to time through the Managers, acting as sales agents, and the Managers agree to use their commercially reasonable efforts to sell, as sales agents for the Company, the Shares on the following terms:

 

(i)     The Shares are to be sold on a daily basis or otherwise as shall be agreed to by the Company and the Managers on any day that (A) is a trading day for the Trading Market, (B) the Company has instructed the Managers by telephone (confirmed promptly by electronic mail) to make such sales (“Sales Notice”) and (C) the Company has satisfied its obligations under Section 6 of this Agreement, provided that the deliveries required under Section 6 shall only be required to be made on the Execution Time and on a Representation Date on which a material amendment to the Registration Statement or Prospectus is made or the Company files its Annual Report on Form 10-K or a material amendment thereto under the Exchange Act. The Company will designate the maximum amount of the Shares to be sold by the Managers daily (subject to the limitations set forth in Section 2(d)) and the minimum price per Share at which such Shares may be sold, provided that the Sales Notice may specify an amount of Shares to be sold on each of several successive days. Subject to the terms and conditions hereof, the Managers shall use their commercially reasonable efforts to sell on a particular day all of the Shares designated for the sale by the Company on such day. The gross sales price of the Shares sold under this Section 2(b) shall be the market price for shares of the Common Stock sold by the Managers under this Section 2(b) on the Trading Market at the time of sale of such Shares. Notwithstanding the foregoing, if the current Trading Market is not a national securities exchange, the Company shall not deliver a Sales Notice hereunder, except for a sale of Shares in a privately negotiated transaction that is eligible for an exemption from registration under the applicable state securities laws.

 

(ii)     The Company acknowledges and agrees that (A) there can be no assurance that the Managers will be successful in selling the Shares, (B) the Managers will incur no liability or obligation to the Company or any other person or entity if it does not sell the Shares for any reason other than a failure by the Managers to use their commercially reasonable efforts consistent with its normal trading and sales practices and applicable law and regulations to sell such Shares as required under this Agreement, and (C) the Managers shall be under no obligation to purchase Shares on a principal basis pursuant to this Agreement, except as otherwise

 

-7-

 

 

specifically agreed by the Managers and the Company pursuant to a Terms Agreement.

 

(iii)     The Company shall not authorize the issuance and sale of, and the Managers shall not be obligated to use their commercially reasonable efforts to sell, any Share at a price lower than the minimum price therefor designated from time to time by the Company’s Board of Directors (the “Board”), or a duly authorized committee thereof, or such duly authorized officers of the Company, and notified to the Managers in writing. The Company or the Managers may, upon notice to the other party hereto by telephone (confirmed promptly by electronic mail), suspend the offering of the Shares for any reason and at any time; provided, however, that such suspension or termination shall not affect or impair the parties’ respective obligations with respect to the Shares sold hereunder prior to the giving of such notice.

 

(iv)     The Managers may sell Shares by any method permitted by law deemed to be an “at the market offering” as defined in Rule 415 under the Securities Act, including without limitation sales made directly on the Trading Market, on any other existing trading market for the Common Stock or to or through a market maker. The Managers may also sell Shares in privately negotiated transactions, provided that, if required by the Trading Market, the Managers receive the Company’s prior written approval for any sales in privately negotiated transactions.

 

(v)     The compensation to the Managers for sales of the Shares under this Section 2(b) shall be a placement fee of

 

(vi)     5% of the gross sales price of the Shares sold pursuant to this Section 2(b) (“Broker Fee”). The foregoing rate of compensation shall not apply when the Managers act as principal, in which case the Company may sell Shares to the Managers as principals at a price agreed upon at the relevant Applicable Time pursuant to a Terms Agreement. The remaining proceeds, after deduction of the Broker Fee and deduction for any transaction fees imposed by any governmental or self-regulatory organization in respect of such sales, shall constitute the net proceeds to the Company for such Shares (the “Net Proceeds”).

 

(vii)     The Managers shall provide written confirmation (which may be by facsimile or electronic mail) to the Company following the close of trading on the Trading Market each day in which the Shares are sold under this Section 2(b) setting forth the number of the Shares sold on such day, the aggregate gross sales proceeds and the Net Proceeds to the Company, and the compensation payable by the Company to the Managers with respect to such sales.

 

-8-

 

 

(viii)     Upon delivery of a Sales Notice, the Company shall issue and deliver the maximum number of Shares to be sold pursuant to the Sales Notice to the applicable Manager’s account at The Depository Trust Company (“DTC”) via the DWAC system, which Shares shall be deposited by the applicable Manager’s in the Company’s account with such Manager. The Managers shall have no obligation to attempt to sell the Shares until the Company has delivered the Shares to the Managers. Settlement for sales of the Shares pursuant to this Section 2(b) will occur at 10:00 a.m. (New York City time), or at such time as the Company and the Managers may mutually agree, on the second Business Day following delivery of the Shares issued pursuant to the Sale Notice (each such day, a “Settlement Date”). On each Settlement Date, the Managers shall deliver the Net Proceeds from the sale of the Shares to the Company. If, on any Settlement Date, not all Shares were sold as issued pursuant to the Sales Notice, then, at the election of and upon notice from the Company, the Shares shall be applied to a future Settlement Date or returned to the Company.

 

(ix)     At each Applicable Time, Settlement Date, Representation Date and Filing Date, the Company shall be deemed to have affirmed each representation and warranty contained in this Agreement as if such representation and warranty were made as of such date, modified as necessary to relate to the Registration Statement and the Prospectus as amended as of such date. Any obligation of the Managers to use their commercially reasonable efforts to sell the Shares on behalf of the Company shall be subject to the continuing accuracy of the representations and warranties of the Company herein, to the performance by the Company of its obligations hereunder and to the continuing satisfaction of the additional conditions specified in Section 6 of this Agreement.

 

(c)     Term Sales. If the Company wishes to sell the Shares pursuant to this Agreement but other than as set forth in Section 2(b) of this Agreement (each, a “Placement”), the Company will notify the Managers of the proposed terms of such Placement. If the Managers, acting as principals, wish to accept such proposed terms (which it may decline to do for any reason in its sole discretion) or, following discussions with the Company, the Managers wish to accept amended terms, the Managers and the Company will enter into a Terms Agreement setting forth the terms of such Placement. The terms set forth in a Terms Agreement will not be binding on the Company or the Managers unless and until the Company and the Managers have each executed such Terms Agreement accepting all of the terms of such Terms Agreement. In the event of a conflict between the terms of this Agreement and the terms of a Terms Agreement, the terms of such Terms Agreement will control. A Terms Agreement may also specify certain provisions relating to the reoffering of such Shares by the Manager. The commitment of the Managers to purchase the Shares pursuant to any Terms Agreement shall be deemed to have been made on the

 

-9-

 

 

basis of the representations and warranties of the Company herein contained and shall be subject to the terms and conditions herein set forth. Each Terms Agreement shall specify the number of Shares to be purchased by the Managers pursuant thereto, the price to be paid to the Company for such Shares, any provisions relating to rights of, and default by, underwriters acting together with the Managers in the reoffering of the Shares, and the time and date (each such time and date being referred to herein as a “Time of Delivery”) and place of delivery of and payment for such Shares. Such Terms Agreement shall also specify any requirements for opinions of counsel, accountants’ letters and officers’ certificates pursuant to Section 6 of this Agreement and any other information or documents required by the Managers.

 

(d)     Maximum Number of Shares. Under no circumstances shall the Company cause or request the offer or sale of any Shares if, after giving effect to the sale of such Shares, the aggregate amount of Shares sold pursuant to this Agreement would exceed the lesser of (A) together with all sales of Shares under this Agreement, the Maximum Amount, (B) the amount available for offer and sale under the currently effective Registration Statement and (C) the amount authorized from time to time to be issued and sold under this Agreement by the Board, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Managers in writing. Under no circumstances shall the Company cause or request the offer or sale of any Shares pursuant to this Agreement at a price lower than the minimum price authorized from time to time by the Board, a duly authorized committee thereof or a duly authorized executive committee, and notified to the Managers in writing. Further, under no circumstances shall the Company cause or permit the aggregate offering amount of Shares sold pursuant to this Agreement to exceed the Maximum Amount.

 

(e)     Regulation M Notice. Unless the exceptive provisions set forth in Rule 101(c)(1) of Regulation M under the Exchange Act are satisfied with respect to the Shares, the Company shall give the Managers at least one Business Day’s prior notice of its intent to sell any Shares in order to allow the Managers time to comply with Regulation M.

 

3.     Representations and Warranties. The Company represents and warrants to, and agrees with, the Managers at the Execution Time and on each such time the following representations and warranties are repeated or deemed to be made pursuant to this Agreement, as set forth below or in the Registration Statement, the Prospectus or the Incorporated Documents.

 

(a)     Subsidiaries. All of the direct and indirect subsidiaries (individually, a “Subsidiary”) of the Company are set forth on Exhibit 21 to the Company’s most recent Annual Report on Form 10-K filed with the Commission. The Company owns, directly or indirectly, all of the capital stock or other equity interests of each Subsidiary free and clear of any “Liens” (which for purposes of this Agreement shall mean a lien, charge, security interest, encumbrance, right of

 

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first refusal, preemptive right or other restriction), and all the issued and outstanding shares of capital stock of each Subsidiary are validly issued and are fully paid, non-assessable and free of preemptive and similar rights to subscribe for or purchase securities.

 

(b)     Organization and Qualification. The Company and each of the Subsidiaries is an entity duly incorporated or otherwise organized, validly existing and in good standing under the laws of the jurisdiction of its incorporation or organization (as applicable), with the requisite power and authority to own and use its properties and assets and to carry on its business as currently conducted. Neither the Company nor any Subsidiary is in violation or default 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 Subsidiaries is duly qualified to conduct business and is in good standing as a foreign corporation or other entity in each jurisdiction in which the nature of the business conducted or property owned by it makes such qualification necessary, except where the failure to be so qualified or in good standing, as the case may be, could not reasonably be expected to result in (i) a material adverse effect on the legality, validity or enforceability of this Agreement, (ii) a material adverse change in the results of operations, assets, business, prospects or condition (financial or otherwise) of the Company and the Subsidiaries, taken as a whole, from that set forth in the Registration Statement, the Base Prospectus, any Prospectus Supplement, the Prospectus or the Incorporated Documents, or (iii) a material adverse effect on the Company’s ability to perform in any material respect on a timely basis its obligations under this Agreement (any of (i), (ii) or (iii), a “Material Adverse Effect”) and no “Proceeding” (which for purposes of this Agreement shall mean any action, claim, suit, investigation or proceeding (including, without limitation, an investigation or partial proceeding, such as a deposition), has been instituted or, to the knowledge of the Company, threatened in any such jurisdiction revoking, limiting or curtailing or seeking to revoke, limit or curtail such power and authority or qualification.

 

(c)     Authorization and Enforcement. The Company has the requisite corporate power and authority to enter into and to consummate the transactions contemplated by this Agreement and otherwise to carry out its obligations hereunder. The execution and delivery of this Agreement by the Company and the consummation by it of the transactions contemplated hereby have been duly authorized by all necessary action on the part of the Company and no further action is required by the Company, the Board or its stockholders in connection herewith other than in connection with the Required Approvals. This Agreement has been duly executed and delivered by the Company and constitutes the valid and binding obligation of the Company enforceable against the Company in accordance with its terms except (i) as limited by general equitable principles and applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors’ rights generally, (ii) as limited by laws relating to the availability of specific performance, injunctive relief or other equitable remedies and (iii) insofar as indemnification and contribution provisions may be limited by applicable law.

 

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(d)     No Conflicts. The execution, delivery and performance of this Agreement by the Company, the issuance and sale of the Shares and the consummation by the Company of the other transactions contemplated herein do not and will not (i) conflict with or violate any provision of the Company’s or any Subsidiary’s certificate or articles of incorporation, bylaws or other organizational or charter documents, or (ii) conflict with, or constitute a default (or an event that with notice or lapse of time or both would become a default) under, result in the creation of any Lien upon any of the properties or assets of the Company or any Subsidiary, or give to others any rights of termination, amendment, acceleration or cancellation (with or without notice, lapse of time or both) of, any agreement, credit facility, debt or other instrument (evidencing a Company or Subsidiary debt or otherwise) or other understanding to which the Company or any Subsidiary is a party or by which any property or asset of the Company or any Subsidiary is bound or affected, or (iii) subject to the Required Approvals, conflict with or result in a violation of any law, rule, regulation, order, judgment, injunction, decree or other restriction of any court or governmental authority to which the Company or a Subsidiary is subject (including federal and state securities laws and regulations), or by which any property or asset of the Company or a Subsidiary is bound or affected, except in the case of each of clauses (ii) and (iii), such as could not reasonably be expected to result in a Material Adverse Effect.

 

(e)     No Violation or Default under Incorporated Documents. All Incorporated Documents between the Company and third parties expressly referenced in the Prospectus are legal, valid and binding obligations of the Company enforceable in accordance with their respective terms, except to the extent that (i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general equitable principles and (ii) the indemnification provisions of certain agreements may be limited by federal or state securities laws or public policy considerations in respect thereof. Neither the Company nor any of its Subsidiaries is in default (or with the giving of notice or lapse of time would be in default) under any Incorporated Document to which any of them is a party or by which any of them is bound or to which any of the properties of any of them is subject, except such defaults that would not, individually or in the aggregate, have a Material Adverse Effect.

 

(f)     Filings, Consents and Approvals. The Company is not required to obtain any consent, waiver, authorization or order of, give any notice to, or make any filing or registration with, any court or other federal, state, local or other governmental authority or other “Person” (defined as an individual or corporation, partnership, trust, incorporated or unincorporated association, joint venture, limited liability company, joint stock company, government (or an agency or subdivision thereof) or other entity of any kind, including the Trading Market) in

 

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connection with the execution, delivery and performance by the Company of this Agreement, other than (i) the filings required by this Agreement, (ii) the filing with the Commission of the Prospectus Supplement, (iii) the filing of application(s) to and approval by the Trading Market for the listing of the Shares for trading thereon in the time and manner required thereby, and (iv) such filings as are required to be made under applicable state securities laws and the rules and regulations of the Financial Industry Regulatory Authority, Inc. (“FINRA”) (collectively, the “Required Approvals”).

 

(g)     Issuance of Shares. The Shares are duly authorized and, when issued and paid for in accordance with this Agreement, will be duly and validly issued, fully paid and nonassessable, free and clear of all Liens imposed by the Company. The Company has reserved from its duly authorized capital stock the maximum number of shares of Common Stock issuable pursuant to this Agreement. The issuance by the Company of the Shares has been registered under the Securities Act and all of the Shares are freely transferable and tradable by the purchasers thereof without restriction (other than any restrictions arising solely from an act or omission of such a purchaser). The Shares are being issued pursuant to the Registration Statement and the issuance of the Shares has been registered by the Company under the Securities Act. The Shares, when issued, will conform in all material respects to the description thereof set forth in or incorporated into the Prospectus. The “Plan of Distribution” section within the Registration Statement permits the issuance and sale of the Shares as contemplated by this Agreement. Upon receipt of the Shares, the purchasers of such Shares will have good and marketable title to such Shares and the Shares will be freely tradable on the Trading Market.

 

(h)     Capitalization. The capitalization of the Company is as set forth in the Registration Statement, the Prospectus Supplement and the Prospectus as of the dates reflected therein. Except as set forth in the SEC Reports, the Company has not issued any capital stock since its most recently filed periodic report under the Exchange Act, other than pursuant to the exercise of employee stock options under the Company’s stock option plans, the issuance of shares of Common Stock to employees or directors pursuant to the Company’s employee stock purchase plan and pursuant to the conversion or exercise of securities exercisable, exchangeable or convertible into Common Stock (“Common Stock Equivalents”). No Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated by this Agreement. Except (i) pursuant to the Company’s stock option plans and (ii) pursuant to agreements or instruments filed as exhibits to Incorporated Documents, there are no outstanding 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 giving any Person any right to subscribe for or acquire, any shares of Common Stock, or contracts, commitments, understandings or arrangements by which the Company or any Subsidiary is or may become bound to issue additional shares of Common

 

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Stock or Common Stock Equivalents. The issuance and sale of the Shares will not obligate the Company to issue shares of Common Stock or other securities to any Person and will not result in a right of any holder of Company securities to adjust the exercise, conversion, exchange or reset price under such securities. All of the outstanding shares of capital stock of the Company are validly issued, fully paid and nonassessable, have been issued in compliance with all federal and state securities laws, and none of such outstanding shares was issued in violation of any preemptive rights or similar rights to subscribe for or purchase securities. There are no stockholders agreements, voting agreements or other similar agreements with respect to the Company’s capital stock to which the Company is a party or, to the knowledge of the Company, between or among any of the Company’s stockholders.

 

(i)     Registration Statement. The Company meets the requirements for use of Form S-3 under the Securities Act and has prepared and filed with the Commission the Registration Statement, including a related Base Prospectus, for registration under the Securities Act of the offering and sale of the Shares. The Registration Statement, the Prospectus, any Issuer Free Writing Prospectus or any amendment or supplement thereto, and the documents incorporated by reference in the Registration Statement, the Prospectus or any amendment or supplement thereto, when such documents were or are filed with the Commission under the Securities Act or the Exchange Act or became or become effective under the Securities Act, as the case may be, conformed or will conform in all material respects with the requirements of the Securities Act and the Exchange Act, as applicable. Such Registration Statement is effective and available for the offer and sale of the Shares as of the date hereof. As filed, the Prospectus contains all information required by the Securities Act and the rules thereunder, and, except to the extent the Managers shall agree in writing to a modification, shall be in all substantive respects in the form furnished to the Managers prior to the Execution Time or prior to any such time this representation is repeated or deemed to be made. The Registration Statement, at the Execution Time, each such time this representation is repeated or deemed to be made, and at all times during which a prospectus is required by the Securities Act to be delivered (whether physically or through compliance with Rule 172, 173 or any similar rule) in connection with any offer or sale of the Shares, meets the requirements set forth in Rule 415(a)(1)(x). The initial Effective Date of the Registration Statement was not earlier than the date three years before the Execution Time. The Company has not distributed and, prior to the later to occur of each Settlement Date and completion of the distribution of the Shares, will not distribute any offering material in connection with the offering or sale of the Shares other than the Registration Statement and the Prospectus and any Issuer Free Writing Prospectus (as defined below) to which Managers have consented.

 

(j)     No Misstatement or Omission. The Registration Statement, when it became or becomes effective, and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus or amendment or supplement,

 

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conformed and will conform in all material respects with the requirements of the Securities Act. At each Settlement Date, the Registration Statement and the Prospectus, as of such date, will conform in all material respects with the requirements of the Securities Act. The Registration Statement, when it became or becomes effective, did not, and will not, contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein not misleading. The Prospectus and any amendment and supplement thereto, on the date thereof and at each Applicable Time, did not or will not include an untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. None of the Incorporated Documents, when they were filed with the Commission, contained any untrue statement of a material fact or omitted to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made not misleading; and any further documents so filed and incorporated by reference in the Registration Statement, the Base Prospectus, the Prospectus Supplement or the Prospectus, when such documents are filed with the Commission, will conform in all material respects to the requirements of the Exchange Act and the rules thereunder, as applicable, and will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. The foregoing shall not apply to statements in, or omissions from, any such document made in reliance upon, and in conformity with, information furnished to the Company by the Managers specifically for use in the preparation thereof.

 

(k)     Market Capitalization. At the time the Registration Statement was originally declared effective, and at the time the Company’s most recent Annual Report on Form 10-K was filed with the Commission, the Company met the then applicable requirements for the use of Form S-3 under the Securities Act, including, but not limited to, Instruction I.B.1 of Form S-3. The Company is not a shell company (as defined in Rule 405 under the Securities Act) and has not been a shell company for at least 12 calendar months previously and if it has been a shell company at any time previously, has filed current Form 10 information (as defined in Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously reflecting its status as an entity that is not a shell company.

 

(l)     Ineligible Issuer. (i) At the earliest time after the filing of the Registration Statement that the Company or another offering participant made a bona fide offer (within the meaning of Rule 164(h)(2)) of the Shares and (ii) as of the Execution Time and on each such time this representation is repeated or deemed to be made (with such date being used as the determination date for purposes of this clause (ii)), the Company was not and is not an Ineligible Issuer (as defined in Rule 405), without taking account of any determination by the

 

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Commission pursuant to Rule 405 that it is not necessary that the Company be considered an Ineligible Issuer.

 

(m)     Free Writing Prospectus. The Company is eligible to use Issuer Free Writing Prospectuses. Each Issuer Free Writing Prospectus does not include any information the substance of which conflicts with the information contained in the Registration Statement, including any Incorporated Documents and any prospectus supplement deemed to be a part thereof that has not been superseded or modified; and each Issuer Free Writing Prospectus does not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading. The foregoing sentence does not apply to statements in or omissions from any Issuer Free Writing Prospectus based upon and in conformity with written information furnished to the Company by the Managers specifically for use therein. Any Issuer Free Writing Prospectus that the Company is required to file pursuant to Rule 433(d) has been, or will be, filed with the Commission in accordance with the requirements of the Securities Act and the rules thereunder. Each Issuer Free Writing Prospectus that the Company has filed, or is required to file, pursuant to Rule 433(d) or that was prepared by or behalf of or used by the Company complies or will comply in all material respects with the requirements of the Securities Act and the rules thereunder. The Company will not, without the prior consent of the Managers, prepare, use or refer to, any Issuer Free Writing Prospectuses.

 

(n)     Proceedings Related to Registration Statement. The Registration Statement is not the subject of a pending proceeding or examination under Section 8(d) or 8(e) of the Securities Act, and the Company is not the subject of a pending proceeding under Section 8A of the Securities Act in connection with the offering of the Shares. The Company has not received any notice that the Commission has issued or intends to issue a stop-order with respect to the Registration Statement or that the Commission otherwise has suspended or withdrawn the effectiveness of the Registration Statement, either temporarily or permanently, or intends or has threatened in writing to do so.

 

(o)     SEC Reports. The Company has complied in all material respects with requirements to file all reports, schedules, forms, statements and other documents required to be filed by it under the Securities Act and the Exchange Act, including pursuant to Section 13(a) or 15(d) thereof, for the two years preceding the date hereof (or such shorter period as the Company was required by law to file such material) (the foregoing materials, including the exhibits thereto and documents incorporated by reference therein, being collectively referred to herein as the “SEC Reports”) on a timely basis or has received a valid extension of such time of filing and has filed any such SEC Reports prior to the expiration of any such extension. As of their respective dates, the SEC Reports complied in all material respects with the requirements of the Exchange Act and the rules and regulations of the SEC promulgated thereunder, and none of the SEC Reports,

 

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when filed, contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(p)     Financial Statements. The consolidated financial statements incorporated by reference in the Registration Statement, the Prospectus or the Incorporated Documents and any amendments thereof or supplements thereto 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 or as amended or corrected in a subsequent filing. Such financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) applied on a consistent basis during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto and except that unaudited financial statements may not contain all footnotes required by GAAP, 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, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments. All disclosures contained or incorporated by reference in the Registration Statement, the Prospectus and the Issuer Free Writing Prospectuses, if any, regarding “non-GAAP financial measures” (as such term is defined by the rules and regulations of the Commission) comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities Act, to the extent applicable.

 

(q)     Accountants. The Company’s current accountants are Manohar Chowdhry & Associates, Chartered Accountants. To the knowledge of the Company, such accountants, who the Company expects will express their opinion with respect to the financial statements to be included in the Company’s next Annual Report on Form 10-K, are a registered public accounting firm as required by the Securities Act and is not in violation of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley Act”) with respect to the Company.

 

(r)     Material Adverse Events. Since the date of the latest audited financial statements included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report or Prospectus Supplement filed prior to the date hereof, (i) there has been no event, occurrence or development that has had or that could reasonably be expected to result in a Material Adverse Effect, (ii) the Company has not incurred any liabilities (contingent or otherwise) other than (A) trade payables and accrued expenses incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements pursuant to GAAP or required to be disclosed in filings made with the Commission, (iii) the Company has not altered its method of accounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed

 

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or made any agreements to purchase or redeem any shares of its capital stock and (v) the Company has not issued any equity securities to any officer, director or “Affiliate” (defined as 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), except pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. No event, liability or development has occurred or exists with respect to the Company or its Subsidiaries or their respective business, properties, operations or financial condition, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is deemed made that has not been publicly disclosed at least 1 Business Day prior to the date that this representation is deemed made.

 

(s)     Litigation. There is no action, suit, inquiry, notice of violation, Proceeding or investigation pending or, to the knowledge of the Company, threatened against or affecting the Company, any Subsidiary or any of their respective properties before or by any court, arbitrator, governmental or administrative agency or regulatory authority (federal, state, county, local or foreign) (collectively, an “Action”) which (i) adversely affects or challenges the legality, validity or enforceability of this Agreement or the Shares or (ii) could, if there were an unfavorable decision, reasonably be expected to result in a Material Adverse Effect. Neither the Company nor any Subsidiary, nor, to the knowledge of the Company, any director or officer thereof, is or has been the subject of any Action involving a claim of violation of or liability under federal or state securities laws or a claim of breach of fiduciary duty. There has not been, and to the knowledge of the Company, there is not pending or contemplated, any investigation by the Commission involving the Company or any current or former director or officer of the Company. The Commission has not issued any stop order or other order suspending the effectiveness of any registration statement filed by the Company or any Subsidiary under the Exchange Act or the Securities Act.

 

(t)     Labor Relations. No material labor dispute exists or, to the knowledge of the Company, is imminent with respect to any of the employees of the Company which could reasonably be expected to result in a Material Adverse Effect. None of the Company’s or its Subsidiaries’ employees is a member of a union that relates to such employee’s relationship with the Company, and neither the Company nor any of its Subsidiaries is a party to a collective bargaining agreement, and the Company and its Subsidiaries believe that their relationships with their employees are good. No executive officer, to the knowledge of the Company, is, or is now expected to be, in violation of any material term of any employment contract, confidentiality, disclosure or proprietary information agreement or non-competition agreement, or any other contract or agreement or any restrictive covenant, and the continued employment of each such executive officer does not subject the Company or any of its Subsidiaries to any liability

 

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with respect to any of the foregoing matters. The Company and its Subsidiaries are in compliance with all U.S. federal, state, local and foreign laws and regulations relating to employment and employment practices, terms and conditions of employment and wages and hours, except where the failure to be in compliance could not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.

 

(u)     No Existing Defaults. Neither the Company nor any Subsidiary (i) is in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company or any Subsidiary under), nor has the Company or any Subsidiary received notice of a claim that it is in default under or that it is in violation of, any indenture, loan or credit agreement or any other agreement or instrument to which it is a party or by which it or any of its properties is bound (whether or not such default or violation has been waived), (ii) is in violation of any 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, including without limitation all foreign, federal, state and local laws relating to taxes, environmental protection, occupational health and safety, product quality and safety and employment and labor matters, except in each case as could not reasonably be expected to result in a Material Adverse Effect. The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange Act since the filing of its last Annual Report on Form 10-K, indicating that it (i) has failed to pay any dividend or sinking fund installment on preferred stock or (ii) has defaulted on any installment on indebtedness for borrowed money or on any rental on one or more long-term leases, which defaults, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect

 

(v)     Regulatory Permits. Except as disclosed in the Registration Statement and the Prospectus, the Company and its Subsidiaries have made all filings, applications and submissions required by, possesses and is operating in compliance with, all approvals, licenses, certificates, certifications, clearances, consents, grants, exemptions, marks, notifications, orders, permits and other authorizations issued by, the appropriate federal, state or foreign governmental or regulatory authorities (including, without limitation, the United States Food and Drug Administration (the “FDA”), the United States Drug Enforcement Administration or any other foreign, federal, state, provincial, court or local government or regulatory authorities including self-regulatory organizations engaged in the regulation of clinical trials, pharmaceuticals, biologics or biohazardous substances or materials) necessary for the ownership or lease of their respective properties or to conduct its businesses as described in the Registration Statement and the Prospectuses (collectively, “Material Permits”), except for such Permits the failure of which to possess, obtain or make the same would not reasonably be expected to have a Material Adverse Effect; the Company is in compliance with the terms and conditions of all such Permits, except where the failure to be in compliance would not reasonably be expected to

 

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have a Material Adverse Effect; all of the Permits are valid and in full force and effect, except where any invalidity, individually or in the aggregate, would be reasonably expected to have a Material Adverse Effect; and neither the Company nor any of its Subsidiaries has received any written notice of proceedings relating to the limitation, revocation, cancellation, suspension, modification or non- renewal of any such Permit which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a Material Adverse Effect, and has any reason to believe that any such license, certificate, permit or authorization will not be renewed in the ordinary course. To the extent required by applicable laws and regulations of the FDA, the Company has submitted to the FDA an Investigational New Drug Application or amendment or supplement thereto for each clinical trial it has conducted or sponsored or is conducting or sponsoring; all such submissions were in material compliance with applicable laws and rules and regulations when submitted and no material deficiencies have been asserted by the FDA with respect to any such submissions.

 

(w)     Regulatory Filings. Except as disclosed in the Registration Statement and the Prospectus, neither the Company nor any of its Subsidiaries has failed to file with the applicable regulatory authorities (including, without limitation, the FDA, or any foreign, federal, state, provincial or local governmental or regulatory authority performing functions similar to those performed by the FDA) any required filing, declaration, listing, registration, report or submission, except for such failures that, individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect; except as disclosed in the Registration Statement and the Prospectuses, all such filings, declarations, listings, registrations, reports or submissions were in compliance with applicable laws when filed and no deficiencies have been asserted by any applicable regulatory authority with respect to any such filings, declarations, listings, registrations, reports or submissions, except for any deficiencies that, individually or in the aggregate, would not have a Material Adverse Effect. The Company has operated and currently is, in all material respects, in compliance with the United States Federal Food, Drug, and Cosmetic Act, all applicable rules and regulations of the FDA and other federal, state, local and foreign governmental bodies exercising comparable authority. The Company has no knowledge of any studies, tests or trials not described in the Prospectus the results of which reasonably call into question in any material respect the results of the studies, tests and trials described in the Prospectus.

 

(x)     Clinical Studies. To the Company’s knowledge, the preclinical studies and tests and clinical trials described in the Prospectus were, and, if still pending, are being, to the Company’s knowledge, conducted in all material respects in accordance with the experimental protocols, procedures and controls pursuant to, where applicable, accepted professional and scientific standards for products or product candidates comparable to those being developed by the Company; the descriptions of such studies, tests and trials, and the results thereof, contained in the Prospectus are accurate and complete in all material respects; the

 

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Company is not aware of any tests, studies or trials not described in the Prospectus, the results of which reasonably call into question the results of the tests, studies and trials described in the Prospectus; and the Company has not received any written notice or correspondence from the FDA or any foreign, state or local governmental body exercising comparable authority or any institutional review board or comparable authority requiring the termination, suspension, clinical hold or material modification of any tests, studies or trials.

 

(y)     Intentionally Omitted.

 

(z)     Title to Assets. The Company and the 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 Subsidiaries and good and marketable title in all personal property owned by them that is material to the business of the Company and the Subsidiaries, in each case free and clear of all Liens, except for Liens as do not materially affect the value of such property and do not materially interfere with the use made and proposed to be made of such property by the Company and the Subsidiaries and Liens for the payment of federal, state or other taxes, the payment of which is neither delinquent nor subject to penalties. Any real property and facilities held under lease by the Company and the Subsidiaries are held by them under valid, subsisting and enforceable leases of which the Company and the Subsidiaries are in compliance, except where such non- compliance would not reasonably be expected to have a Material Adverse Effect.

 

(aa) Intellectual Property. Except as disclosed in the Registration Statement and the Prospectus, the Company and its Subsidiaries own, possess, license or have other rights to use all foreign and domestic patents, patent applications, trade and service marks, trade and service mark registrations, trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain names, know-how and other intellectual property (collectively, the “Intellectual Property”), necessary for the conduct of their respective businesses as now conducted except to the extent that the failure to own, possess, license or otherwise hold adequate rights to use such Intellectual Property would not, individually or in the aggregate, have a Material Adverse Effect. Except as disclosed in the Registration Statement and the Prospectus (a) there are no rights of third parties to any such Intellectual Property owned by the Company and its Subsidiaries; (b) to the Company’s knowledge, there is no infringement by third parties of any such Intellectual Property; (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 Subsidiaries’ rights in or to any such Intellectual Property, and the Company is unaware of any facts which could form a reasonable basis for any such action, suit, proceeding or 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; (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

 

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other proprietary rights of others; (f) to the Company’s knowledge, there is no third-party U.S. patent or published U.S. patent application which contains claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135) has been commenced against any patent or patent application described in the Prospectus as being owned by or licensed to the Company; and (g) the Company and its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual Property has been licensed to the Company or such Subsidiary, and all such agreements are in full force and effect, except, in the case of any of clauses (a)-(g) above, for any such infringement by third parties or any such pending or threatened suit, action, proceeding or claim as would not, individually or in the aggregate, reasonably be expected to result in a Material Adverse Effect.

 

(bb) Insurance. The Company and the Subsidiaries are insured by insurers of recognized financial responsibility against such losses and risks and in such amounts as are prudent and customary for companies of similar size as the Company in the businesses in which the Company and the Subsidiaries are engaged, including, but not limited to, directors and officers insurance coverage. To the knowledge of the Company, such insurance contracts and policies are accurate and complete. Neither the Company nor any Subsidiary has any reason to believe 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.

 

(cc) Affiliate Transactions. Except as set forth in the Registration Statement, the Base Prospectus, any Prospectus Supplement or the Prospectus, none of the officers or directors of the Company and, to the knowledge of the Company, none of the employees of the Company is presently a party to any transaction with the Company or any Subsidiary (other than for services as employees, officers and directors), including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from, or otherwise requiring payments to or from any officer, director or such employee or, to the knowledge of the Company, any entity in which any officer, director, or any such employee has a substantial interest or is an officer, director, trustee or partner, in each case in excess of

$120,000, other than (i) for payment of salary or consulting fees for services rendered, (ii) reimbursement for expenses incurred on behalf of the Company and

(iii) for other employee benefits, including stock option agreements under any stock option plan of the Company.

 

(dd) Sarbanes Oxley Compliance. Except as disclosed in the Registration Statement, any Prospectus Supplement or the Prospectus, the Company is in material compliance with all provisions of the Sarbanes-Oxley Act which are applicable to it as of the Effective Date.

 

(ee) Disclosure Controls. The Company and each of its Subsidiaries maintain systems of internal accounting controls sufficient to provide reasonable assurance that (i) transactions are executed in accordance with management’s

 

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general or specific authorizations; (ii) transactions are recorded as necessary to permit preparation of financial statements in conformity with GAAP 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. The Company’s internal control over financial reporting is effective and the Company is not aware of any material weaknesses in its internal control over financial reporting (other than as set forth in the Prospectus). Since the date of the latest audited financial statements of the Company included in the Prospectus, there has been no change in the Company’s internal control over financial reporting that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting (other than as set forth in the Prospectus). The Company has established disclosure controls and procedures (as defined in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls and procedures to ensure that material information relating to the Company and each of its Subsidiaries is made known to the certifying officers by others within those entities, particularly during the period in which the Company’s Annual Report on Form 10-K or any Current Report on Form 8-K which contains the Company’s quarterly financial statements, as the case may be, is being prepared. The Company’s certifying officers have evaluated the effectiveness of the Company’s controls and procedures as of a date within 120 days prior to the filing date of the Form 10-K for the fiscal year most recently ended (such date, the “Evaluation Date”). The Company presented in its Form 10-K for the fiscal year most recently ended the conclusions of the certifying officers about the effectiveness of the disclosure controls and procedures based on their evaluations as of the Evaluation Date and the disclosure controls and procedures are effective. Since the Evaluation Date, there have been no significant changes in the Company’s internal controls (as such term is defined in Item 307(b) of Regulation S-K under the Securities Act) or, to the Company’s knowledge, in other factors that are reasonably likely to significantly affect the Company’s internal controls.

 

(ff) Finder’s Fees. Other than payments to be made to the Managers, no brokerage or finder’s fees or commissions are or will be payable by the Company to any broker, financial advisor or consultant, finder, placement agent, investment banker, bank or other Person with respect to the transactions contemplated by this Agreement. The Managers shall have no obligation with respect to any fees or with respect to any claims made by or on behalf of other Persons for fees of a type contemplated in this Section that may be due in connection with the transactions contemplated by this Agreement.

 

(gg) No Other Sales Agency Agreement. The Company has not entered into any other sales agency agreements or other similar arrangements with any agent or any other representative in respect of at the market offerings of the Shares.

 

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(hh) Regulation M Compliance. The Company has not, and to its knowledge no one acting on its behalf has, (i) taken, directly or indirectly, any action designed to cause or to result in the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of any of the Shares, (ii) sold, bid for, purchased, or paid any compensation for soliciting purchases of, any of the Shares or (iii) paid or agreed to pay to any person any compensation for soliciting another to purchase any other securities of the Company, other than, in the case of clauses (ii) and (iii), compensation paid to the Managers in connection with the sales of the Shares.

 

(ii) Listing and Maintenance Requirements. The issuance and sale of the Shares as contemplated in this Agreement does not contravene the rules and regulations of the Trading Market. The Common Stock registered pursuant to Section 12(b) or 12(g) of the Exchange Act, and the Company has taken no action designed to, or which to its knowledge is likely to have the effect of, terminating the registration of the Common Stock under the Exchange Act nor has the Company received any notification that the Commission is contemplating terminating such registration. Except as disclosed in the Registration Statement, any Prospectus Supplement or the Prospectus, the Company has not, in the 12 months preceding the date hereof, received notice 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 has no reason to reasonably believe that it will not in the foreseeable future continue to be in compliance with all such listing and maintenance requirements.

 

(jj) Application of Takeover Protections. Except as set forth in the Registration Statement, any Prospectus Supplement or the Prospectus, the Company and its Board have taken all necessary action, if any, in order to render inapplicable any control share acquisition, business combination, poison pill (including any distribution under a rights agreement) or other similar anti-takeover provision under the Company’s Articles of Incorporation (or similar charter documents) or the laws of its state of incorporation that is or could become applicable to the purchasers of the Shares.

 

(kk) Investment Company. The Company is not, and is not an Affiliate of, and immediately after receipt of payment for the Shares, will not be or be an Affiliate of, an “investment company” within the meaning of the Investment Company Act of 1940, as amended. The Company currently intends to conduct its business in a manner so that it will not become subject to the Investment Company Act of 1940, as amended.

 

(ll) Solvency. Based on the financial condition of the Company as of the Effective Date, (i) the Company’s fair saleable value of its assets exceeds the amount that will be required to be paid on or in respect of the Company’s existing

 

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debts and other liabilities (including known contingent liabilities) as they mature and (ii) the current cash flow of the Company, together with the proceeds the Company would receive, were it to liquidate all of its assets, after taking into account all anticipated uses of the cash, would be sufficient to pay all amounts on or in respect of its debt when such amounts are required to be paid. Within one year of the Effective Date, the Company does not intend to incur debts beyond its ability to pay such debts as they mature (taking into account the timing and amounts of cash to be payable on or in respect of its debt). The SEC Reports set forth as of the dates thereof all outstanding secured and unsecured Indebtedness of the Company or any Subsidiary, or for which the Company or any Subsidiary has commitments. For the purposes of this Agreement, “Indebtedness” shall mean (a) any liabilities for borrowed money or amounts owed in excess of $50,000 (other than accrued liabilities and trade accounts payable incurred in the ordinary course of business), (b) all guaranties, endorsements and other contingent obligations in respect of indebtedness of others, whether or not the same are or should be reflected in the Company’s balance sheet (or the notes thereto), except guaranties by endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business; and (c) the present value of any lease payments in excess of $50,000 due under leases required to be capitalized in accordance with GAAP. Neither the Company nor any Subsidiary is in default with respect to any Indebtedness.

 

(mm) Tax Status. Except for matters that would not, individually or in the aggregate, have or reasonably be expected to result in a Material Adverse Effect, the Company and each Subsidiary have filed all necessary federal, state and foreign income and franchise tax returns and have paid or accrued all taxes shown as due thereon, and the Company has no knowledge of a tax deficiency which has been asserted or threatened against the Company or any Subsidiary.

 

(nn) No Reliance. The Company has not relied upon the Managers or legal counsel for the Managers for any legal, tax or accounting advice in connection with the offering and sale of the Shares.

 

(oo) Foreign Corrupt Practices. Neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is aware of or has taken any action, directly or indirectly, that could result in a violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder or the U.K. Bribery Act 2010 or similar law of any other relevant jurisdiction; and neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any Subsidiary is aware of or has taken any action, directly or indirectly, that could result in a sanction for violation by such persons of the Foreign Corrupt Practices Act of 1977, as amended, and the rules and regulations thereunder or the U.K. Bribery Act 2010 or similar law of any other relevant jurisdiction; and prohibition of noncompliance therewith is covered by the codes

 

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of conduct or other procedures instituted and maintained by the Company and the Subsidiaries.

 

(pp) AML Compliance. The operations of the Company and its Subsidiaries are and have been conducted at all times in compliance with applicable financial record keeping and reporting requirements of the Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules and regulations thereunder and any related or similar rules, regulations or guidelines, issued, administered or enforced by any governmental agency (collectively, the “Money Laundering Laws”), except as would not reasonably be expected to result in a Material Adverse Effect; and no action, suit or proceeding by or before any court or governmental agency, authority or body or any arbitrator involving the Company or any of its Subsidiaries with respect to the Money Laundering Laws is pending or, to the knowledge of the Company, threatened.

 

(qq) Office of Foreign Assets Control. Neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any Subsidiary (i) is currently subject to any sanctions administered or imposed by the United States (including any administered or enforced by the Office of Foreign Assets Control of the U.S. Treasury Department, the U.S. Department of State, or the Bureau of Industry and Security of the U.S. Department of Commerce), the United Nations Security Council, the European Union, or the United Kingdom (including sanctions administered or controlled by Her Majesty’s Treasury) (collectively, “Sanctions” and such persons, “Sanction Persons”) or (ii) will, directly or indirectly, use the proceeds of this offering, or lend, contribute or otherwise make available such proceeds to any subsidiary, joint venture partner or other person in any manner that will result in a violation of any economic Sanctions by, or could result in the imposition of Sanctions against, any person (including any person participating in the offering, whether as underwriter, advisor, investor or otherwise). Neither the Company nor any Subsidiary nor, to the knowledge of the Company, any director, officer, agent, employee or affiliate of the Company or any of the Subsidiaries, is a person that is, or is 50% or more owned or otherwise controlled by a person that is: (i) the subject of any Sanctions; or (ii) located, organized or resident in a country or territory that is, or whose government is, the subject of Sanctions that broadly prohibit dealings with that country or territory (currently, Cuba, Iran, North Korea, Sudan, and Syria) (collectively, “Sanctioned Countries” and each, a “Sanctioned Country”). Except as has been disclosed to the Managers or is not material to the analysis under any Sanctions, neither the Company nor any Subsidiary has engaged in any dealings or transactions with or for the benefit of a Sanctioned Person, or with or in a Sanctioned Country, in the preceding 3 years, nor does the Company or any Subsidiary have any plans to increase its dealings or transactions with Sanctioned Persons, or with or in Sanctioned Countries

 

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(rr) Off-Balance Sheet Arrangements. There are no transactions, arrangements and other relationships between and/or among the Company, and/or, to the knowledge of the Company, any of its affiliates and any unconsolidated entity, including, but not limited to, any structural finance, special purpose or limited purpose entity (each, an “Off Balance Sheet Transaction”) that could reasonably be expected to affect materially the Company’s liquidity or the availability of or requirements for its capital resources, including those Off Balance Sheet Transactions described in the Commission’s Statement about Management’s Discussion and Analysis of Financial Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to be described in the Prospectus which have not been described as required.

 

(ss) Forward Looking Statements. No forward-looking statements (within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act) (a “Forward Looking Statement”) contained in the Registration Statement and the Prospectus has been made or reaffirmed without a reasonable basis or has been disclosed other than in good faith. The Forward Looking Statements incorporated by reference in the Registration Statement and the Prospectus from the Company’s Annual Report on Form 10-K for the fiscal year most recently ended (i) are within the coverage of the safe harbor for forward looking statements set forth in Section 27A of the Securities Act, Rule 175(b) under the Securities Act or Rule 3b-6 under the Exchange Act, as applicable,

(ii) were made by the Company with a reasonable basis and in good faith and reflect the Company’s good faith commercially reasonable best estimate of the matters described therein, and (iii) have been prepared in accordance with Item 10 of Regulation S-K under the Securities Act.

 

(tt) Statistical and Market-Related Data. Any third-party statistical and market-related data included or incorporated by reference in a Registration Statement, the Prospectus or any Prospectus Supplement are based on or derived from sources that the Company believes to be reliable and accurate.

 

(uu) FINRA Member Shareholders. There are no affiliations with any FINRA member firm among the Company’s officers, directors or, to the knowledge of the Company, any five percent (5%) or greater stockholder of the Company, except as set forth in the Registration Statement, the Base Prospectus, any Prospectus Supplement or the Prospectus.

 

(vv) DTC Eligibility. The Company, through its transfer agent, currently participates in the DTC Fast Automated Securities Transfer (FAST) Program and the Shares can be transferred electronically to third parties via the DTC Fast Automated Securities Transfer (FAST) Program.

 

4.     Agreements. The Company agrees with the Managers that:

 

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(a)     Right to Review Amendments and Supplements to Registration Statement and Prospectus. During any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under the Securities Act in connection with the offering or the sale of Shares, the Company will not file any amendment to the Registration Statement or supplement (including any Prospectus Supplement) to the Base Prospectus unless the Company has furnished to the Managers a copy for its review prior to filing and will not file any such proposed amendment or supplement to which the Managers reasonably object. The Company has properly completed the Prospectus, in a form approved by the Managers, and filed such Prospectus, as amended at the Execution Time, with the Commission pursuant to the applicable paragraph of Rule 424(b) by the Execution Time and will cause any supplement to the Prospectus to be properly completed, in a form approved by the Managers, and will file such supplement with the Commission pursuant to the applicable paragraph of Rule 424(b) within the time period prescribed thereby and will provide evidence reasonably satisfactory to the Managers of such timely filing. The Company will promptly advise the Managers (i) when the Prospectus, and any supplement thereto, shall have been filed (if required) with the Commission pursuant to Rule 424(b), (ii) when, during any period when the delivery of a prospectus (whether physically or through compliance with Rule 172, 173 or any similar rule) is required under the Securities Act in connection with the offering or sale of the Shares, any amendment to the Registration Statement shall have been filed or become effective (other than any annual report of the Company filed pursuant to Section 13(a) or 15(d) of the Exchange Act), (iii) of any request by the Commission or its staff for any amendment of the Registration Statement, or any Rule 462(b) Registration Statement, or for any supplement to the Prospectus or for any additional information, (iv) of the issuance by the Commission of any stop order suspending the effectiveness of the Registration Statement or of any notice objecting to its use or the institution or threatening of any proceeding for that purpose and (v) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Shares for sale in any jurisdiction or the institution or threatening of any proceeding for such purpose. The Company will use its best efforts to prevent the issuance of any such stop order or the occurrence of any such suspension or objection to the use of the Registration Statement and, upon such issuance, occurrence or notice of objection, to obtain as soon as possible the withdrawal of such stop order or relief from such occurrence or objection, including, if necessary, by filing an amendment to the Registration Statement or a new registration statement and using its best efforts to have such amendment or new registration statement declared effective as soon as practicable.

 

(b)     Subsequent Events. If, at any time on or after an Applicable Time but prior to the related Settlement Date, any event occurs as a result of which the Registration Statement or Prospectus would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements

 

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therein in the light of the circumstances under which they were made or the circumstances then prevailing not misleading, the Company will (i) notify promptly the Managers so that any use of the Registration Statement or Prospectus may cease until such are amended or supplemented; (ii) amend or supplement the Registration Statement or Prospectus to correct such statement or omission; and (iii) supply any amendment or supplement to the Managers in such quantities as the Managers may reasonably request.

 

(c)     Notification of Subsequent Filings. During any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under the Securities Act, any event occurs as a result of which the Prospectus as then supplemented would include any untrue statement of a material fact or omit to state any material fact necessary to make the statements therein in the light of the circumstances under which they were made at such time not misleading, or if it shall be necessary to amend the Registration Statement, file a new registration statement or supplement the Prospectus to comply with the Securities Act or the Exchange Act or the respective rules thereunder, including in connection with use or delivery of the Prospectus, the Company promptly will (i) notify the Managers of any such event,

(ii) subject to Section 4(a), prepare and file with the Commission an amendment or supplement or new registration statement which will correct such statement or omission or effect such compliance, (iii) use its best efforts to have any amendment to the Registration Statement or new registration statement declared effective as soon as practicable in order to avoid any disruption in use of the Prospectus and (iv) supply any supplemented Prospectus to the Managers in such quantities as the Managers may reasonably request.

 

(d)     Earnings Statements. As soon as practicable, the Company will make generally available to its security holders and to the Managers an earnings statement or statements of the Company and its Subsidiaries which will satisfy the provisions of Section 11(a) of the Securities Act and Rule 158.

 

(e)     Delivery of Registration Statement. Upon the request of the Managers, the Company will furnish to the Managers and counsel for the Managers, without charge, signed copies of the Registration Statement (including exhibits thereto) and, so long as delivery of a prospectus by the Managers or dealer may be required by the Securities Act (including in circumstances where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule), as many copies of the Prospectus and each Issuer Free Writing Prospectus and any supplement thereto as the Managers may reasonably request. The Company will pay the expenses of printing or other production of all documents relating to the offering.

 

(f)     Qualification of Shares. The Company will arrange, if necessary, for the qualification of the Shares for sale under the laws of such jurisdictions as

 

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the Managers may reasonably designate and will maintain such qualifications in effect so long as required for the distribution of the Shares; provided that in no event shall the Company be obligated to qualify to do business in any jurisdiction where it is not now so qualified or to take any action that would subject it to service of process in suits, other than those arising out of the offering or sale of the Shares, in any jurisdiction where it is not now so subject.

 

(g)     Free Writing Prospectus. The Company agrees that, unless it has or shall have obtained the prior written consent of the Managers, and the Managers agree with the Company that, unless they have or shall have obtained, as the case may be, the prior written consent of the Company, they have not made and will not make any offer relating to the Shares that would constitute an Issuer Free Writing Prospectus or that would otherwise constitute a “free writing prospectus” (as defined in Rule 405) required to be filed by the Company with the Commission or retained by the Company under Rule 433. Any such free writing prospectus consented to by the Managers or the Company is hereinafter referred to as a “Permitted Free Writing Prospectus.” The Company agrees that (i) it has treated and will treat, as the case may be, each Permitted Free Writing Prospectus as an Issuer Free Writing Prospectus and (ii) it has complied and will comply, as the case may be, with the requirements of Rules 164 and 433 applicable to any Permitted Free Writing Prospectus, including in respect of timely filing with the Commission, legending and record keeping.

 

(h)     Subsequent Equity Issuances. Neither the Company nor any Subsidiary will offer, sell, issue, contract to sell, contract to issue or otherwise dispose of, directly or indirectly, any other shares of Common Stock or any Common Stock Equivalents (other than the Shares) during the term of this Agreement while any Sales Notice is outstanding and unfulfilled without the prior written consent of the Managers; provided, however, that the Company may issue and sell Common Stock pursuant to any employee stock option plan, stock ownership plan or dividend reinvestment plan of the Company in effect at the Execution Time and, with as much notice as reasonably practicable, the Company may issue Common Stock issuable upon the conversion or exercise of Common Stock Equivalents outstanding at the Execution Time.

 

(i)     Market Manipulation. Until the termination of this Agreement, the Company will not take, directly or indirectly, any action designed to or that would constitute or that might reasonably be expected to cause or result in, under the Exchange Act or otherwise, stabilization or manipulation in violation of the Securities Act, Exchange Act or the rules and regulations thereunder of the price of any security of the Company to facilitate the sale or resale of the Shares or otherwise violate any provision of Regulation M under the Exchange Act.

 

(j)     Notification of Incorrect Certificate. The Company will, at any time during the term of this Agreement, as supplemented from time to time, advise the Managers immediately after it shall have received notice or obtained

 

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knowledge thereof, of any information or fact that would alter or affect any opinion, certificate, letter and other document provided to the Managers pursuant to Section 6 herein.

 

(k)     Certification of Accuracy of Disclosure. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement of the offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than 30 trading days), and each time that (i) the Registration Statement or Prospectus shall be amended or supplemented, other than by means of Incorporated Documents, (ii) the Company files its Annual Report on Form 10-K under the Exchange Act, (iii) the Company files its quarterly reports on Form 10-Q under the Exchange Act (iv) the Company files a Current Report on Form 8-K containing amended financial information (other than information that is furnished and not filed), if the Managers reasonably determine that the information in such Form 8-K is material, or (v) the Shares are delivered to the Managers as principals at the Time of Delivery pursuant to a Terms Agreement (such commencement or recommencement date and each such date referred to in (i), (ii), (iii), (iv) and (v) above, a “Representation Date”), unless waived by the Managers, the Company shall furnish or cause to be furnished to the Managers forthwith a certificate dated and delivered on the Representation Date, in form reasonably satisfactory to the Managers to the effect that the statements contained in the certificate referred to in Section 6(c) of this Agreement which were last furnished to the Managers are true and correct at the Representation Date, as though made at and as of such date (except that such statements shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented to such date) or, in lieu of such certificate, a certificate of the same tenor as the certificate referred to in said Section 6(c), modified as necessary to relate to the Registration Statement and the Prospectus as amended and supplemented to the date of delivery of such certificate.

 

(l)     Bring Down Opinions; Negative Assurance. At each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(k) above, unless waived by the Managers, the Company shall furnish or cause to be furnished forthwith to the Managers a written opinion of counsel to the Company (“Company Counsel”) addressed to the Managers and dated and delivered on such Representation Date, in form and substance reasonably satisfactory to the Managers, including a negative assurance representation.

 

(m)      Accountants’ Bring Down “Comfort” Letter. At each Representation Date with respect to which the Company is obligated to deliver a certificate pursuant to Section 4(k) above, unless waived by the Managers, the Company shall cause (1) the Company’s auditors (the “Accountants”), or other independent accountants satisfactory to the Managers forthwith to furnish the Managers a letter, and (2) the Chief Financial Officer of the Company forthwith

 

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to furnish the Managers a certificate, in each case dated on such Representation Date, in form satisfactory to the Managers, of the same tenor as the letters and certificate referred to in Section 6 of this Agreement but modified to relate to the Registration Statement and the Prospectus, as amended and supplemented to the date of such letters and certificate; provided, however, that the Company will not be required to cause the Accountants to furnish such letters to the Managers in connection with the filing of a Current Report on Form 8-K unless (i) such Current Report on Form 8-K is filed at any time during which a prospectus relating to the Shares is required to be delivered under the Securities Act and

(ii) the Managers has requested such letter based upon the event or events reported in such Current Report on Form 8-K.

 

(n)     Due Diligence Session. Upon commencement of the offering of the Shares under this Agreement (and upon the recommencement of the offering of the Shares under this Agreement following the termination of a suspension of sales hereunder lasting more than 30 trading days), and at each Representation Date, the Company will conduct a due diligence session, in form and substance, reasonably satisfactory to the Managers, which shall include representatives of management and Accountants. The Company shall cooperate timely with any reasonable due diligence request from or review conducted by the Managers or their agents from time to time in connection with the transactions contemplated by this Agreement, including, without limitation, providing information and available documents and access to appropriate corporate officers and the Company’s agents during regular business hours and at the Company’s principal offices, and timely furnishing or causing to be furnished such certificates, letters and opinions from the Company, its officers and its agents, as the Managers may reasonably request.

 

(o)     Change of Circumstances. The Company will, at any time during the pendency of a Sales Notice, advise the Managers promptly after it shall have received notice or obtained knowledge thereof, of any information or fact that would reasonably likely alter or affect in any material respect any opinion, certificate, letter or other document required to be provided to the Managers pursuant to this Agreement.

 

(p)     Acknowledgment of Trading. The Company consents to the Managers trading in the Common Stock for the Managers’ own accounts and for the accounts of their clients at the same time as sales of the Shares occur pursuant to this Agreement or pursuant to a Terms Agreement.

 

(q)     Disclosure of Shares Sold. The Company will disclose in its Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as applicable, the number of Shares sold through the Managers under this Agreement, the Net Proceeds to the Company and the compensation paid by the Company with respect to sales of Shares pursuant to this Agreement during the relevant quarter.

 

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(r)     Rescission Right. If, to the knowledge of the Company, the conditions set forth in Section 6 shall not have been satisfied as of the applicable Settlement Date, the Company will, upon request of the Managers prior to the Settlement Date, offer to any person who has agreed to purchase Shares from the Company as the result of an offer to purchase solicited by the Managers the right to refuse to purchase and pay for such Shares.

 

(s)     Bring Down of Representations and Warranties. Each acceptance by the Company of an offer to purchase the Shares hereunder, and each execution and delivery by the Company of a Terms Agreement, shall be deemed to be an affirmation to the Managers that the representations and warranties of the Company contained in or made pursuant to this Agreement are true and correct as of the date of such acceptance or of such Terms Agreement as though made at and as of such date, and an undertaking that such representations and warranties will be true and correct as of the Settlement Date for the Shares relating to such acceptance or as of the Time of Delivery relating to such sale, as the case may be, as though made at and as of such date (except that such representations and warranties shall be deemed to relate to the Registration Statement and the Prospectus as amended and supplemented relating to such Shares).

 

(t)     Reservation of Shares. The Company shall ensure that there are at all times sufficient shares of Common Stock to provide for the issuance, free of any preemptive rights, out of its authorized but unissued shares of Common Stock or shares of Common Stock held in treasury, of the maximum aggregate number of Shares authorized for issuance by the Board pursuant to the terms of this Agreement. The Company will use its commercially reasonable efforts to cause the Shares to be listed for trading on the Trading Market and to maintain such listing.

 

(u)     Obligation under Exchange Act. During any period when the delivery of a prospectus relating to the Shares is required (including in circumstances where such requirement may be satisfied pursuant to Rule 172, 173 or any similar rule) to be delivered under the Securities Act, the Company will file all documents required to be filed with the Commission pursuant to the Exchange Act within the time periods required by the Exchange Act and the regulations thereunder.

 

(v)     Use of Proceeds. The Company will apply the Net Proceeds from the sale of the Shares in the manner set forth in the Prospectus.

 

(w)     Filing of Prospectus Supplement.   On or prior to the earlier of (i) the date on which the Company shall file a Quarterly Report on Form 10-Q or an Annual Report on Form 10-K in respect of any fiscal quarter in which sales of Shares were made by the Managers pursuant to Section 2(b) of this Agreement and (ii) the date on which the Company shall be obligated to file such document

 

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referred to in clause (i) in respect of such quarter (each such date, and any date on which an amendment to any such document is filed, a “Filing Date”), the Company will file a prospectus supplement with the Commission under the applicable paragraph of Rule 424(b), which prospectus supplement will set forth, with regard to such quarter, the number of the Shares sold through the Managers as agent pursuant to Section 2(b) of this Agreement, the Net Proceeds to the Company and the compensation paid by the Company with respect to such sales of the Shares pursuant to Section 2(b) of this Agreement and deliver such number of copies of each such prospectus supplement to the Trading Market as are required by such exchange.

 

(x)     Additional Registration Statement. To the extent that the Registration Statement is not available for the sales of the Shares as contemplated by this Agreement, the Company shall file a new registration statement with respect to any additional shares of Common Stock necessary to complete such sales of the Shares and use commercially reasonable efforts to cause such registration statement to become effective as promptly as practicable. After the effectiveness of any such registration statement, all references to “Registration Statement” included in this Agreement shall be deemed to include such new registration statement, including all documents incorporated by reference therein pursuant to Item 12 of Form S-3.

 

(y)     Market Activities. The Company will not, directly or indirectly, (i) take any action designed to cause or result in, or that constitutes or might reasonably be expected to constitute, the stabilization or manipulation of the price of any security of the Company to facilitate the sale or resale of shares of Common Stock or (ii) sell, bid for, or purchase shares of Common Stock, or pay anyone any compensation for soliciting purchases of the Shares other than the Managers.

 

(z)     Investment Company Act. The Company will conduct its affairs in such a manner so as to reasonably ensure that neither it nor any of its Subsidiaries will be or become, at any time prior to the termination of this Agreement, an “investment company,” as such term is defined in the Investment Company Act of 1940, as amended.

 

(aa) Blue Sky and Other Qualifications. The Company will use its commercially reasonable efforts, in cooperation with the Managers, to qualify the Shares for offering and sale, or to obtain an exemption for the Shares to be offered and sold, under the applicable securities laws of such states and other jurisdictions (domestic or foreign) as the Managers may designate and to maintain such qualifications and exemptions in effect for so long as required for the distribution of the Shares (but in no event for less than one year from the date of this Agreement); provided, however, that the Company shall not be obligated to file any general consent to service of process or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in which it is not so qualified or to

 

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subject itself to taxation in respect of doing business in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which the Shares have been so qualified or exempt, the Company will file such statements and reports as may be required by the laws of such jurisdiction to continue such qualification or exemption, as the case may be, in effect for so long as required for the distribution of the Shares (but in no event for less than one year from the date of this Agreement).

 

5.     Payment of Expenses. The Company agrees to pay the costs and expenses incident to the performance of its obligations under this Agreement, whether or not the transactions contemplated hereby are consummated, including without limitation: (i) the preparation, printing or reproduction and filing with the Commission of the Registration Statement (including financial statements and exhibits thereto), the Prospectus and each Issuer Free Writing Prospectus, and each amendment or supplement to any of them; (ii) the printing (or reproduction) and delivery (including postage, air freight charges and charges for counting and packaging) of such copies of the Registration Statement, the Prospectus, and each Issuer Free Writing Prospectus, and all amendments or supplements to any of them, as may, in each case, be reasonably requested for use in connection with the offering and sale of the Shares; (iii) the preparation, printing, authentication, issuance and delivery of certificates for the Shares, including any stamp or transfer taxes in connection with the original issuance and sale of the Shares; (iv) the printing (or reproduction) and delivery of this Agreement, any blue sky memorandum and all other agreements or documents printed (or reproduced) and delivered in connection with the offering of the Shares; (v) the registration of the Shares under the Exchange Act, if applicable, and the listing of the Shares on the Trading Market; (vi) any registration or qualification of the Shares for offer and sale under the securities or blue sky laws of the several states (including filing fees and the reasonable fees and expenses of counsel for the Managers relating to such registration and qualification); (vii) the fees and expenses of the Company’s accountants and the fees and expenses of counsel (including local and special counsel) for the Company; (viii) the filing fee under FINRA Rule 5110; (ix) the reasonable fees and expenses of the Managers’ counsel, not to exceed $16,500; and (x) all other costs and expenses incident to the performance by the Company of its obligations hereunder.

 

6.     Conditions to the Obligations of the Managers. The obligations of the Managers under this Agreement and any Terms Agreement shall be subject to (i) the accuracy of the representations and warranties on the part of the Company contained herein as of the Execution Time, each Representation Date, and as of each Applicable Time, Settlement Date and Time of Delivery, (ii) to the performance by the Company of its obligations hereunder and (iii) the following additional conditions:

 

(a)     Filing of Prospectus Supplement. The Prospectus, and any supplement thereto, required by Rule 424 to be filed with the Commission have been filed in the manner and within the time period required by Rule 424(b) with respect to any sale of Shares; each Prospectus Supplement shall have been filed in

 

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the manner required by Rule 424(b) within the time period required hereunder and under the Securities Act; any other material required to be filed by the Company pursuant to Rule 433(d) under the Securities Act, shall have been filed with the Commission within the applicable time periods prescribed for such filings by Rule 433; and no stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use shall have been issued and no proceedings for that purpose shall have been instituted or threatened.

 

(b)     Delivery of Opinion. The Company shall have caused the Company Counsel to furnish to the Managers, as required by Section 4(l) and upon reasonable advance notice in connection with any offering of the Shares, its opinion and negative assurance statement, dated as of such date and addressed to the Managers in form and substance acceptable to the Managers.

 

(c)      Delivery of Officer’s Certificate. The Company shall have furnished or caused to be furnished to the Managers, to the extent requested by the Managers and upon reasonable advance notice in connection with any offering of the Shares, a certificate of the Company signed by the Chief Executive Officer or the President and the principal financial or accounting officer of the Company, dated as of such date, to the effect that the signers of such certificate have carefully examined the Registration Statement, the Prospectus, any Prospectus Supplement and any documents incorporated by reference therein and any supplements or amendments thereto and this Agreement and that:

 

(i)     the representations and warranties of the Company in this Agreement are true and correct on and as of such date with the same effect as if made on such date and the Company has complied with all the agreements and satisfied all the conditions on its part to be performed or satisfied at or prior to such date;

 

(ii)     no stop order suspending the effectiveness of the Registration Statement or any notice objecting to its use has been issued and no proceedings for that purpose have been instituted or, to the Company’s knowledge, threatened; and

 

(iii)     since the date of the most recent financial statements included in the Registration Statement, the Prospectus and the Incorporated Documents, there has been no Material Adverse Effect on the condition (financial or otherwise), earnings, business or properties of the Company and its subsidiaries, taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated in the Registration Statement and the Prospectus.

 

(d)      Delivery of Accountants’ “Comfort” Letter. The Company shall have requested and caused the Accountants to have furnished to the Managers, as required by Section 4(m) and upon reasonable advance notice in connection with

 

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any offering of the Shares, letters (which may refer to letters previously delivered to the Managers), dated as of such date, in form and substance satisfactory to the Managers, confirming that they are independent accountants within the meaning of the Securities Act and the Exchange Act and the respective applicable rules and regulations adopted by the Commission thereunder and that they have performed a review of any unaudited interim financial information of the Company included or incorporated by reference in the Registration Statement and the Prospectus and provide customary “comfort” as to such review in form and substance satisfactory to the Managers.

 

(e)      Secretary’s Certificate. The Company shall deliver to the Managers a certificate of the Secretary of the Company and attested to by an executive officer of the Company, dated as of such date, certifying as to (i) the Articles of Incorporation of the Company, (ii) the By-laws of the Company, (iii) the resolutions of the Board of Directors of the Company authorizing the execution, delivery and performance of this Agreement and the issuance of the Shares and (iv) the incumbency of the officers duly authorized to execute this Agreement and the other documents contemplated by this Agreement.

 

(f)     No Material Adverse Event. Since the respective dates as of which information is disclosed in the Registration Statement, the Prospectus and the Incorporated Documents, except as otherwise stated therein, there shall not have been (i) any change or decrease in previously reported results specified in the letter or letters referred to in paragraph (d) of this Section 6 or (ii) any change, or any development involving a prospective change, in or affecting the condition (financial or otherwise), earnings, business or properties of the Company and its subsidiaries taken as a whole, whether or not arising from transactions in the ordinary course of business, except as set forth in or contemplated in the Registration Statement, the Prospectus and the Incorporated Documents (exclusive of any amendment or supplement thereto) the effect of which, in any case referred to in clause (i) or (ii) above, is, in the reasonable judgment of the Managers, so material and adverse as to make it impractical or inadvisable to proceed with the offering or delivery of the Shares as contemplated by the Registration Statement (exclusive of any amendment thereof), the Incorporated Documents and the Prospectus (exclusive of any amendment or supplement thereto).

 

(g)     No Misstatement or Material Omission. The Managers shall not have advised the Company that the Registration Statement or Prospectus, or any amendment or supplement thereto, contains an untrue statement of fact that in the Managers’ reasonable opinion is material, or omits to state a fact that in the Managers’ reasonable opinion is material and is required to be stated therein or is necessary to make the statements therein not misleading.

 

(h)     Payment of All Fees. The Company shall have paid the required Commission filing fees relating to the Shares within the time period required by

 

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(a) Rule 456(b)(1)(i) of the Securities Act without regard to the proviso therein and otherwise in accordance with Rules 456(b) and 457(r) of the Securities Act and, if applicable, shall have updated the “Calculation of Registration Fee” table in accordance with Rule 456(b)(1)(ii) either in a post-effective amendment to the Registration Statement or on the cover page of a prospectus filed pursuant to Rule 424(b).

 

(i)     No FINRA Objections. FINRA shall not have raised any objection with respect to the fairness and reasonableness of the terms and arrangements under this Agreement.

 

(j)     Shares Listed on Trading Market. The Shares shall have been listed and admitted and authorized for trading on the Trading Market, and satisfactory evidence of such actions shall have been provided to the Managers.

 

(k)     Other Assurances. Prior to each Settlement Date and Time of Delivery, as applicable, the Company shall have furnished to the Managers such further information, certificates and documents as the Managers may reasonably request.

 

If any of the conditions specified in this Section 6 shall not have been fulfilled when and as provided in this Agreement, or if any of the opinions and certificates mentioned above or elsewhere in this Agreement shall not be reasonably satisfactory in form and substance to the Managers and counsel for the Managers, this Agreement and all obligations of the Managers hereunder may be canceled at, or at any time prior to, any Settlement Date or Time of Delivery, as applicable, by the Managers. Notice of such cancellation shall be given to the Company in writing or by telephone or facsimile confirmed in writing.

 

The documents required to be delivered by this Section 6 shall be delivered to the office of Sheppard Mullin Richter & Hampton LLP, counsel for the Managers, at 30 Rockefeller Plaza, 39th Floor, New York, New York 10112, on each such date as provided in this Agreement.

 

7.     Indemnification and Contribution.

 

(a)     Indemnification by Company. The Company agrees to indemnify and hold harmless the Managers, the directors, officers, employees and agents of the Managers and each person who controls the Managers within the meaning of either the Securities Act or the Exchange Act against any and all losses, claims, damages or liabilities, joint or several, to which they or any of them may become subject under the Securities Act, the Exchange Act or other Federal or state statutory law or regulation, at common law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in the Registration Statement for the registration of the Shares as

 

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originally filed or in any amendment thereof, or in the Base Prospectus, any Prospectus Supplement, the Prospectus, any Issuer Free Writing Prospectus, or in any amendment thereof or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and agrees to reimburse each such indemnified party for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the Company will not be liable in any such case to the extent that any such loss, claim, damage or liability arises out of or is based upon any such untrue statement or alleged untrue statement or omission or alleged omission made therein in reliance upon and in conformity with written information furnished to the Company by the Managers specifically for inclusion therein. The indemnification obligations of the Company under this Agreement will cease to apply to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall determine that such losses, claims, damages or liabilities (or actions in respect thereof) were solely caused by the gross negligence, willful misconduct or fraud of the Managers. This indemnity agreement will be in addition to any liability that the Company may otherwise have.

 

(b)     Indemnification by Managers. The Managers each agree to indemnify and hold harmless the Company, each of its directors, each of its officers who signs the Registration Statement, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, to the same extent as the foregoing indemnity from the Company to the Managers, but only with reference to written information relating to the Managers furnished to the Company by the Managers specifically for inclusion in the documents referred to in the foregoing indemnity; provided, however, that in no case shall the Managers be responsible for any amount in excess of the Broker Fee applicable to the Shares and paid hereunder, except to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall determine that such losses, claims, damages or liabilities (or actions in respect thereof) were solely caused by the gross negligence, willful misconduct, or fraud of the Managers. This indemnity agreement will be in addition to any liability which the Managers may otherwise have.

 

(c)     Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 7 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against the indemnifying party under this Section 7, notify the indemnifying party in writing of the commencement thereof; but the failure so to notify the indemnifying party (i) will not relieve it from liability under paragraph (a) or (b) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of substantial rights and defenses and (ii) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation

 

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provided in paragraph (a) or (b) above. The indemnifying party shall be entitled to appoint counsel of the indemnifying party’s choice at the indemnifying party’s expense to represent the indemnified party in any action for which indemnification is sought (in which case the indemnifying party shall not thereafter be responsible for the fees and expenses of any separate counsel retained by the indemnified party or parties except as set forth below); provided, however, that such counsel shall be reasonably satisfactory to the indemnified party. Notwithstanding the indemnifying party’s election to appoint counsel to represent the indemnified party in an action, the indemnified party shall have the right to employ separate counsel (including local counsel), and the indemnifying party shall bear the reasonable fees, costs and expenses of such separate counsel if (i) the use of counsel chosen by the indemnifying party to represent the indemnified party would present such counsel with a conflict of interest, (ii) the actual or potential defendants in, or targets of, any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably concluded that there may be legal defenses available to it and/or other indemnified parties which are different from or additional to those available to the indemnifying party, (iii) the indemnifying party shall not have employed counsel reasonably satisfactory to the indemnified party to represent the indemnified party within a reasonable time after notice of the institution of such action or (iv) the indemnifying party shall authorize the indemnified party to employ separate counsel at the expense of the indemnifying party. An indemnifying party will not, without the prior written consent of the indemnified parties, settle or compromise or consent to the entry of any judgment with respect to any pending or threatened claim, action, suit or proceeding in respect of which indemnification or contribution may be sought hereunder (whether or not the indemnified parties are actual or potential parties to such claim or action) unless such settlement, compromise or consent includes an unconditional release of each indemnified party from all liability arising out of such claim, action, suit or proceeding.

 

(d)     Contribution. In the event that the indemnity provided in paragraph (a), (b) or (c) of this Section 7 is unavailable to or insufficient to hold harmless an indemnified party for any reason, the Company and the Managers agree to contribute to the aggregate losses, claims, damages and liabilities (including legal or other expenses reasonably incurred in connection with investigating or defending the same) (collectively “Losses”) to which the Company and the Managers may be subject in such proportion as is appropriate to reflect the relative benefits received by the Company on the one hand and by the Managers on the other from the offering of the Shares; provided, however, that in no case shall the Managers be responsible for any amount in excess of the Broker Fee applicable to the Shares and paid hereunder, except to the extent that a court of competent jurisdiction in a final judgment that has become non-appealable shall determine that such losses, claims, damages or liabilities (or actions in respect thereof) were solely caused by the gross negligence, willful misconduct, or fraud of the Managers. If the allocation provided by the immediately preceding

 

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sentence is unavailable for any reason, the Company and the Managers severally shall contribute in such proportion as is appropriate to reflect not only such relative benefits but also the relative fault of the Company on the one hand and of the Managers on the other in connection with the statements or omissions which resulted in such Losses as well as any other relevant equitable considerations. Benefits received by the Company shall be deemed to be equal to the total net proceeds from the offering (before deducting expenses) received by it, and benefits received by the Managers shall be deemed to be equal to the Broker Fee applicable to the Shares and paid hereunder as determined by this Agreement. Relative fault shall be determined by reference to, among other things, whether any untrue or any alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information provided by the Company on the one hand or the Managers on the other, the intent of the parties and their relative knowledge, access to information and opportunity to correct or prevent such untrue statement or omission. The Company and the Managers agree that it would not be just and equitable if contribution were determined by pro rata allocation or any other method of allocation which does not take account of the equitable considerations referred to above. Notwithstanding the provisions of this paragraph (d), no person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) shall be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. For purposes of this Section 7, each person who controls the Managers within the meaning of either the Securities Act or the Exchange Act and each director, officer, employee and agent of the Managers shall have the same rights to contribution as the Manager, and each person who controls the Company within the meaning of either the Securities Act or the Exchange Act, each officer of the Company who shall have signed the Registration Statement and each director of the Company shall have the same rights to contribution as the Company, subject in each case to the applicable terms and conditions of this paragraph (d).

 

8.     Termination.

 

(a)     The Company shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement (relating to the solicitation of offers to purchase the Shares) in its sole discretion at any time upon one (1) Business Day’s prior written notice, unless waived by the Managers and provided that the Agreement remains operational during the one (1) Business Days following receipt of such written notice. Any such termination shall be without liability of any party to any other party except that (i) with respect to any pending sale, through the Managers for the Company, the obligations of the Company, including in respect of compensation of the Managers, shall remain in full force and effect notwithstanding the termination and (ii) the provisions of Sections 5, 6, 7, 8, 9, 10, 12 and 14 of this Agreement shall remain in full force and effect notwithstanding such termination.

 

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(b)     The Managers shall have the right, by giving written notice as hereinafter specified, to terminate the provisions of this Agreement (relating to the solicitation of offers to purchase the Shares) in its sole discretion at any time upon thirty (30) Business Days’ prior written notice, unless waived by the Company. Any such termination shall be without liability of any party to any other party except that the provisions of Sections 5, 6, 7, 8, 9, 10, 12 and 14 of this Agreement shall remain in full force and effect notwithstanding such termination.

 

(c)     This Agreement shall remain in full force and effect until the earlier of May 10, 2021 and such date that this Agreement is terminated pursuant to Sections 8(a) or (b) above or otherwise by mutual agreement of the parties, provided that any such termination by mutual agreement shall in all cases be deemed to provide that Sections 5, 6, 7, 8, 9, 10, 12 and 14 shall remain in full force and effect.

 

(d)     Any termination of this Agreement shall be effective on the date specified in such notice of termination, provided that such termination shall not be effective until the close of business on the date of receipt of such notice by the Managers or the Company, as the case may be. If such termination shall occur prior to the Settlement Date or Time of Delivery for any sale of the Shares, such sale shall settle in accordance with the provisions of Section 2(b) of this Agreement.

 

(e)     In the case of any purchase of Shares by the Managers pursuant to a Terms Agreement, the obligations of the Managers pursuant to such Terms Agreement shall be subject to termination, in the absolute discretion of the Managers, by prompt oral notice given to the Company prior to the Time of Delivery relating to such Shares, if any, and confirmed promptly by facsimile or electronic mail, if since the time of execution of the Terms Agreement and prior to such delivery and payment, (i) trading in the Common Stock shall have been suspended by the Commission or the Trading Market or trading in securities generally on the Trading Market shall have been suspended or limited or minimum prices shall have been established on the Trading Market, (ii) a banking moratorium shall have been declared either by Federal or New York State authorities or (iii) there shall have occurred any outbreak or escalation of hostilities, declaration by the United States of a national emergency or war, or other calamity or crisis the effect of which on financial markets is such as to make it, in the sole judgment of the Manager, impractical or inadvisable to proceed with the offering or delivery of the Shares as contemplated by the Prospectus (exclusive of any amendment or supplement thereto).

 

9.     Representations and Indemnities to Survive. The respective agreements, representations, warranties, indemnities and other statements of the Company or its officers and of the Managers set forth in or made pursuant to this Agreement will remain in full force and effect, regardless of any investigation made by the Managers or the

 

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Company or any of the officers, directors, employees, agents or controlling persons referred to in Section 7, and will survive delivery of and payment for the Shares.

 

10.     Notices. All communications hereunder will be in writing and effective only on receipt, and will be mailed, delivered or facsimiled to the addresses of the Company and Managers, respectively, set forth on the signature pages hereto, with copies to the following:

 

If to the Company to:

 

Olshan Frome Wolosky LLP

1325 Avenue of the Americas

New York, New York 10019

Attn: Spencer G. Feldman

 

If to the Managers to:

 

Sheppard, Mullin, Richter & Hampton

30 Rockefeller Plaza, 39th Floor

New York, New York 10112

Attn: Richard A. Friedman

 

An electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section 10 if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”) which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.

 

11.     Successors and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company and the Managers and their respective successors and the affiliates, controlling persons, officers and directors referred to in Section 10 hereof. References to any of the parties contained in this Agreement shall be deemed to include the successors and permitted assigns of such party. Nothing in this Agreement, express or implied, is intended to confer upon any party other than the parties hereto or their respective successors and permitted assigns any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. Neither party may assign its rights or obligations under this Agreement without the prior written consent of the other party; provided, however, that the Managers may assign its rights and obligations hereunder to an affiliate thereof without obtaining the Company’s consent.

 

12.     No Fiduciary Duty. The Company hereby acknowledges that (a) the purchase and sale of the Shares pursuant to this Agreement is an arm’s-length

 

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commercial transaction between the Company, on the one hand, and the Managers and any affiliate through which it may be acting, on the other, (b) the Managers are acting solely as sales agent and/or principal in connection with the purchase and sale of the Company’s securities and not as a fiduciary of the Company and (c) the Company’s engagement of the Managers in connection with the offering and the process leading up to the offering is as independent contractors and not in any other capacity. Furthermore, the Company agrees that it is solely responsible for making its own judgments in connection with the offering (irrespective of whether the Managers have advised or are currently advising the Company on related or other matters). The Company agrees that it will not claim that the Managers have rendered advisory services of any nature or respect, or owe an agency, fiduciary or similar duty to the Company, in connection with such transaction or the process leading thereto.

 

13.     Entire Agreement; Amendment; Severability. This Agreement (including all schedules and exhibits attached hereto and Sales Notices issued pursuant hereto) and any Terms Agreement constitutes the entire agreement and supersedes all other prior and contemporaneous agreements and undertakings, both written and oral, among the parties hereto with regard to the subject matter hereof. Neither this Agreement, any Terms Agreement, if any, nor any term hereof may be amended except pursuant to a written instrument executed by the Company and the Managers. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable as written by a court of competent jurisdiction, then such provision shall be given full force and effect to the fullest possible extent that it is valid, legal and enforceable, and the remainder of the terms and provisions herein shall be construed as if such invalid, illegal or unenforceable term or provision was not contained herein, but only to the extent that giving effect to such provision and the remainder of the terms and provisions hereof shall be in accordance with the intent of the parties as reflected in this Agreement.

 

14.     Applicable Law. This Agreement and any Terms Agreement will be governed by and construed in accordance with the laws of the State of New York applicable to contracts made and to be performed within the State of New York.

 

15.     WAIVER OF JURY TRIAL. THE COMPANY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT, ANY TERMS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY.

 

16.     Counterparts. This Agreement and any Terms Agreement may be signed in one or more counterparts, each of which shall constitute an original and all of which together shall constitute one and the same agreement, which may be delivered by facsimile or in .pdf file via e-mail.

 

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17.     Headings. The section headings used in this Agreement and any Terms Agreement are for convenience only and shall not affect the construction hereof.

 

18.     Adjustments for Stock Splits. The parties acknowledge and agree that all share-related numbers contained in this Agreement shall be adjusted to take into account any stock split, stock dividend or similar event effected with respect to the shares of Common Stock.

 

***************************

 

 

 

 

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If the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, whereupon this Terms Agreement, including those provisions of the At The Market Offering Agreement incorporated herein by reference, shall constitute a binding agreement between the Managers and the Company.

 

 

INDIA GLOBALIZATION CAPITAL, INC.

 

 

 

By: __________________________________________

Name: Ram Mukunda

Title: Chief Executive Officer

 

 

 

 

 

ACCEPTED as of the date first written above.

 

THE BENCHMARK COMPANY, LLC. 

 

 

By: __________________________________________

Name:

Title:

 

 

 

 

 

VIEWTRADE SECURITIES INC.

 

 

By: __________________________________________

Name:

Title:

 

 

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ANNEX I

 

Form of Terms Agreement

 

INDIA GLOBALIZATION CAPITAL, INC. TERMS AGREEMENT

 

Dear Sirs:

 

India Globalization Capital, Inc. (the “Company”) proposes, subject to the terms and conditions stated herein and in the At The Market Offering Agreement, dated October 1, 2018 (the “At The Market Offering Agreement”), between the Company and The Benchmark Company, LLC (“Manager”) and Viewtrade Securities Inc. (the “Co-Manager” and collectively with the Manager, the “Managers”), to issue and sell to Managers the securities specified in the Schedule I hereto (the “Purchased Shares”).

 

 

Each of the provisions of the At The Market Offering Agreement not specifically related to the solicitation by the Manager, as agents of the Company, of offers to purchase securities is incorporated herein by reference in its entirety, and shall be deemed to be part of this Terms Agreement to the same extent as if such provisions had been set forth in full herein. Each of the representations and warranties set forth therein shall be deemed to have been made at and as of the date of this Terms Agreement and the Time of Delivery, except that each representation and warranty in Section 3 of the At The Market Offering Agreement which makes reference to the Prospectus (as therein defined) shall be deemed to be a representation and warranty as of the date of the At The Market Offering Agreement in relation to the Prospectus, and also a representation and warranty as of the date of this Terms Agreement and the Time of Delivery in relation to the Prospectus as amended and supplemented to relate to the Purchased Shares.

 

An amendment to the Registration Statement (as defined in the At The Market Offering Agreement), or a supplement to the Prospectus, as the case may be, relating to the Purchased Shares, in the form heretofore delivered to the Benchmark is now proposed to be filed with the Securities and Exchange Commission.

 

Subject to the terms and conditions set forth herein and in the At The Market Offering Agreement which are incorporated herein by reference, the Company agrees to issue and sell to the Manager(s) and the Manager(s) agree to purchase from the Company the number of shares of the Purchased Shares at the time and place and at the purchase price set forth in the Schedule I attached hereto.

 

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If the foregoing is in accordance with your understanding, please sign and return to us a counterpart hereof, whereupon this Terms Agreement, including those provisions of the At The Market Offering Agreement incorporated herein by reference, shall constitute a binding agreement between the Managers and the Company.

 

 

	
			INDIA GLOBALIZATION CAPITAL, INC.

			 

			 

			 

			

By: __________________________________________

Name: Ram Mukunda

Title: Chief Executive Officer

 

 

 

ACCEPTED as of the date first written above.

 

THE BENCHMARK COMPANY, LLC

 

 

By: __________________________________________

Name: 

Title: 

 

VIEWTRADE SECURITIES INC.

 

 

By: __________________________________________

Name: 

Title: 

 

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