Document:

exv10w2

Exhibit 10.2

FORM OF REGISTRATION RIGHTS AGREEMENT

BY AND AMONG

SWIFT TRANSPORTATION COMPANY,

JERRY MOYES

AND

THE MOYES AFFILIATES NOTED HEREIN

Dated as of December [], 2010

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	 
	 	 	 	 
	DEFINITIONS

	 
	 	 	 	 
	Section 1.1 Certain Defined Terms
	 	 	1	 
	Section 1.2 Construction
	 	 	4	 
	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	TRANSFER

	 
	 	 	 	 
	Section 2.1 Binding Effect on Transferees
	 	 	5	 
	Section 2.2 Additional Purchases
	 	 	5	 
	Section 2.3 Charter Provisions
	 	 	5	 
	Section 2.4 Legend
	 	 	5	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	REGISTRATION RIGHTS

	 
	 	 	 	 
	Section 3.1 Demand Registration
	 	 	6	 
	Section 3.2 Piggyback Registrations
	 	 	8	 
	Section 3.3 Shelf Registration
	 	 	9	 
	Section 3.4 Withdrawal Rights
	 	 	11	 
	Section 3.5 Holdback Agreements
	 	 	11	 
	Section 3.6 Registration Procedures
	 	 	12	 
	Section 3.7 Registration Expenses
	 	 	17	 
	Section 3.8 Indemnification
	 	 	17	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 4.1 Headings
	 	 	20	 
	Section 4.2 Entire Agreement
	 	 	20	 
	Section 4.3 Further Actions and Cooperation
	 	 	20	 
	Section 4.4 Notices
	 	 	20	 
	Section 4.5 Applicable Law
	 	 	21	 
	Section 4.6 Severability
	 	 	21	 
	Section 4.7 Successors and Assigns
	 	 	21	 
	Section 4.8 Amendments
	 	 	22	 
	Section 4.9 Waiver
	 	 	22	 
	Section 4.10 Counterparts
	 	 	22	 

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	 	 	Page
	Section 4.11 Submission To Jurisdiction
	 	 	22	 
	Section 4.12 Injunctive Relief
	 	 	23	 
	Section 4.13 Recapitalizations, Exchanges, Etc.
Affecting the Shares of Common Stock;
New Issuance
	 	 	23	 
	Section 4.14 Termination
	 	 	23	 
	Section 4.15 Rule 144
	 	 	23	 

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[FORM OF REGISTRATION RIGHTS AGREEMENT]

          THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is made as of December [], 2010, by and
among Jerry Moyes, Jerry and Vickie Moyes, jointly, the Jerry and Vickie Moyes Family Trust dated
12/11/87, the Todd Moyes Trust dated 4/27/07, the Hollie Moyes Trust dated 4/27/07, the Chris Moyes
Trust dated 4/27/07, the Lyndee Moyes Nester Trust dated 4/27/07, the Marti Lyn Moyes Trust dated
4/27/07, the Michael J. Moyes Trust dated 4/27/07 (together (excluding Jerry Moyes), the “Moyes
Affiliates” and, collectively with Jerry Moyes, the “Initial Stockholders”) and Swift
Transportation Company, a Delaware corporation (the “Company”). Unless otherwise indicated,
references to articles and sections shall be to articles and sections of this Agreement.

          WHEREAS, each of the Initial Stockholders is a holder of shares of the Company’s Class B
common stock, par value $0.01 per share (the “Class B Common Stock”), which, pursuant to the
Company’s Amended and Restated Certificate of Incorporation is convertible at the election of the
holders thereof at any time into shares of the Company’s Class A common stock, par value $0.01 per
share (the “Class A Common Stock), on a one-for-one basis; and

          WHEREAS, the Company has agreed to provide the registration rights and other rights set forth
herein.

          NOW, THEREFORE, in consideration of the foregoing and of the mutual covenants and agreements
set forth herein and for good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I

DEFINITIONS

          Section 1.1 Certain Defined Terms. For purposes of this Agreement, the following terms
shall have the following meanings:

               (a) “Affiliate” shall have the meaning set forth in Rule 12b-2 promulgated under the Exchange
Act; provided that no Stockholder shall be deemed an Affiliate of any other Stockholder solely by
reason of any investment in the Company.

               (b) “Agreement” shall have the meaning assigned to it in the preamble.

               (c) A Person shall be deemed to “Beneficially Own” securities if such Person is deemed to be a
“beneficial owner” within the meaning of Rules 13d-3 and 13d-5 under the Exchange Act as in effect
on the date of this Agreement.

               (d) “Board” shall mean the board of directors of the Company.

               (e) “Bylaws” shall mean the bylaws of the Company, as may be amended and/or restated from time
to time.

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               (f) “Certificate of Incorporation” shall mean the certificate of incorporation of the Company,
as may be amended and/or restated from time to time.

               (g) “Commission” shall mean the United States Securities and Exchange Commission or any
successor agency.

               (h) “Common Stock” shall mean the Class A Common Stock, Class B Common Stock and any and all
securities of any kind whatsoever of the Company which may be issued and outstanding on or after
the date hereof in respect of, in exchange for, or upon conversion of shares of Class A Common
Stock or Class B Common Stock pursuant to a merger, consolidation, stock split, stock dividend,
recapitalization,  equity incentive plan of the Company or otherwise.

               (i) “Company” shall have the meaning assigned to it in the preamble.

               (j) “Company Securities” shall mean (i) any Common Stock and (ii) any other securities of the
Company entitled to vote generally in the election of directors of the Company.

               (k) “Demand” shall have the meaning assigned to it in Section 3.1(a).

               (l) “Demand Registration” shall have the meaning assigned to it in Section 3.1(a).

               (m) “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended, and the rules
and regulations promulgated thereunder.

               (n) “Form S-3” shall have the meaning assigned to it in Section 3.3(a).

               (o) “Free Writing Prospectus” shall mean a free writing prospectus, as defined in Rule 405
under the Securities Act.

               (p) “Initial Public Offering” shall mean the initial public offering of Class A Common Stock
pursuant to an effective registration statement under the Securities Act.

               (q) “Initial Stockholders” shall have the meaning assigned to it in the preamble.

               (r) “Inspectors” shall have the meaning assigned to it in Section 3.6(a)(viii).

               (s) “Issuer Free Writing Prospectus” shall mean an issuer free writing prospectus, as defined
in Rule 433 under the Securities Act.

               (t) “Losses” shall have the meaning assigned to it in Section 3.8(a).

               (u) “Other Demanding Sellers” shall have the meaning assigned to it in Section 3.2(b).

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               (v) “Other Proposed Sellers” shall have the meaning assigned to it in Section 3.2(b).

               (w) “Permitted Transferee” shall mean, with respect to each Stockholder, (i) any other
Stockholder, (ii) such Stockholder’s Affiliates and (iii) in the case of any Stockholder, (A) any
member or general or limited partner of such Stockholder (including, without limitation, any member
of the Initial Stockholders), (B) any corporation, partnership, limited liability company or other
entity that is an Affiliate of such Stockholder or any general or limited partner of such
Stockholder (collectively, “Stockholder Affiliates”), (C) any general partner, director, limited
partner, officer or employee of any Stockholder Affiliate, or any spouse, lineal descendant
(including lineal descendants by adoption), sibling, parent, heir, executor, administrator,
testamentary trustee, legatee or beneficiary of any of the foregoing persons described in this
clause (D) (collectively, “Stockholder Associates”) or (E) any trust, the beneficiaries of which,
or any corporation, limited liability company or partnership, the stockholders, members or general
or limited partners of which, consist solely of any one or more of such Stockholder, any general or
limited partner of such Stockholder, any Stockholder Affiliates, any Stockholder Associates, their
spouses or their lineal descendants including lineal descendants by adoption).

               (x) “Person” shall mean any individual, firm, corporation, partnership, limited liability
company or other entity, and shall include any successor (by merger or otherwise) of such entity.

               (y) “Piggyback Notice” shall have the meaning assigned to it in Section 3.2(a).

               (z) “Piggyback Registration” shall have the meaning assigned to it in Section 3.2(a).

               (aa) “Piggyback Seller” shall have the meaning assigned to it in Section 3.2(a).

               (bb) “Public Offering” shall mean an offering of equity securities of the Company pursuant to
an effective registration statement under the Securities Act, including an offering in which
Stockholders are entitled to sell Common Stock pursuant to the terms of this Agreement, other than
the Initial Public Offering.

               (cc) “Records” shall have the meaning assigned to it in Section 3.6(a)(viii).

               (dd) “Registrable Amount” shall mean an amount of Common Stock equal to 1% of the Common Stock
issued and outstanding immediately after the consummation of the Initial Public Offering.

               (ee) “Registrable Securities” shall mean any Common Stock currently owned or hereafter
acquired by any Stockholder. As to any particular Registrable Securities, such securities shall
cease to be Registrable Securities when (x) a registration statement registering such securities
under the Securities Act has been declared effective and such

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securities have been sold or otherwise transferred by the holder thereof pursuant to such
effective registration statement or (y) such securities are sold in accordance with Rule 144 (or
any successor provision) promulgated under the Securities Act.

               (ff) “Requesting Stockholder” shall have the meaning assigned to it in Section 3.1(a).

               (gg) “Securities Act” shall mean the Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder.

               (hh) “Selling Holders” shall have the meaning assigned to it in Section 3.6(a)(i).

               (ii) “Shelf Notice” shall have the meaning assigned to it in Section 3.3(a).

               (jj) “Shelf Registration Effectiveness Period” shall have the meaning assigned to it in
Section 3.3(c).

               (kk) “Shelf Registration Statement” shall have the meaning assigned to it in Section 3.3(a).

               (ll) “Stockholders” shall mean (i) the Initial Stockholders and (ii) each Permitted Transferee
who becomes a party to or bound by the provisions of this Agreement in accordance with the terms
hereof or a Permitted Transferee thereof who is entitled to enforce the provisions of this
Agreement in accordance with the terms hereof, in each case of clauses (i) and (ii) to the extent
that the Initial Stockholders and Permitted Transferees, together, hold at least a Registrable
Amount.

               (mm) “Suspension Period” shall have the meaning assigned to it in Section 3.3(d).

               (nn) “Underwritten Offering” shall mean a sale of securities of the Company to an underwriter
or underwriters for reoffering to the public.

               (oo) “Voting Power of the Company” shall mean the total number of votes that may be cast in
the election of directors of the Company if all issued and outstanding Company Securities entitled
to vote on such election were present and voted at a meeting held for such purpose.

          Section 1.2 Construction. For the purposes of this Agreement (i) words (including
capitalized terms defined herein) in the singular shall be held to include the plural and vice
versa and words (including capitalized terms defined herein) of one gender shall be held to include
the other gender as the context requires, (ii) the terms “hereof,” “herein” and “herewith” and
words of similar import shall, unless otherwise stated, be construed to refer to this Agreement as
a whole and not to any particular provision of this Agreement, and Article and Section references
are to Articles and Sections of this Agreement, unless otherwise specified, (iii) the word
“including” and words of similar import when used in this Agreement shall mean

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“including, without limitation,” (iv) all references to any period of days shall be deemed to be to
the relevant number of calendar days unless otherwise specified, and (v) all references herein to
“$” or dollars shall refer to United States dollars, unless otherwise specified.

ARTICLE II

TRANSFER

          Section 2.1 Binding Effect on Transferees. A Permitted Transferee shall become a
Stockholder hereunder, without any further action by the Company, following a transfer by a
Stockholder of Company Securities to such Permitted Transferee upon the execution by such Permitted
Transferee of a joinder providing that such Person shall be bound by and shall fully comply with
the terms of this Agreement (including the provisions of Article III with respect to the Company
Securities being transferred to such transferee).

          Section 2.2 Additional Purchases. Any Company Securities owned by a Stockholder on or
after the date of this Agreement shall have the benefit of and be subject to the terms and
conditions of this Agreement.

          Section 2.3 Charter Provisions. The parties hereto shall use their respective reasonable
efforts (including voting or causing to be voted all of the Company Securities held of record by
such party or Beneficially Owned by such party by virtue of having voting power over such Company
Securities) so as to cause no amendment to be made to the Certificate of Incorporation or Bylaws as
in effect as of the date of this Agreement in a manner that would (a) add restrictions to the
transferability of the Company Securities by the Initial Stockholders or their Permitted
Transferees who remain a “Stockholder” (as such term is used herein) at the time of such an
amendment, which restrictions are beyond those then provided for in the Certificate of
Incorporation, this Agreement or applicable securities laws or (b) nullify any of the rights of the
Initial Stockholders or their Permitted Transferees who remain a “Stockholder” (as such term is
used herein) at the time of such amendment, which rights are explicitly provided for in this
Agreement, unless, in each such case, such amendment shall have been approved by such Stockholder.

          Section 2.4 Legend. Any certificate representing Company Securities issued to a
Stockholder shall be stamped or otherwise imprinted with a legend in substantially the following
form:

“The shares represented by this certificate are subject to the provisions contained
in the Registration Rights Agreement, dated as of December [], 2010, by and among
Swift Transportation Company and the stockholders of Swift Transportation Company
described therein.”

          The Company shall make customary arrangements to cause any Company Securities issued in
uncertificated form to be identified on the books of the Company in a substantially similar manner.

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ARTICLE III

REGISTRATION RIGHTS

          Section 3.1 Demand Registration.

               (a) At any time after the date that is 180 days after December [], 2010 (or in the case of the
first Demand (as hereafter defined), such prior date as would permit the Company to cause any
filings required hereunder to be filed on such date or the first possible date thereafter), any
Person that is a Stockholder (a “Requesting Stockholder”) on the date of such request shall be
entitled to make a written request of the Company (a “Demand”) for registration under the
Securities Act of an amount of Registrable Securities that, when taken together with the amounts of
Registrable Securities requested to be registered under the Securities Act by such Requesting
Stockholder’s Affiliates, equals or is greater than the Registrable Amount on the date of such
request (a “Demand Registration”) and thereupon the Company will, subject to the terms of this
Agreement, use its commercially reasonable efforts to effect the registration under the Securities
Act of:

               (i) the Registrable Securities which the Company has been so requested to
register by the Requesting Stockholders for disposition in accordance with the
intended method of disposition stated in such Demand, which may be an Underwritten
Offering;

               (ii) all other Registrable Securities which the Company has been requested to
register pursuant to Section 3.1(b); and

               (iii) all shares of Common Stock which the Company may elect to register in
connection with any offering of Registrable Securities pursuant to this Section 3.1,
but subject to Section 3.1(f);

all to the extent necessary to permit the disposition (in accordance with the intended methods
thereof) of the Registrable Securities and the additional Common Stock, if any, to be so
registered.

               (b) A Demand shall specify: (i) the aggregate number of Registrable Securities requested to be
registered in such Demand Registration, (ii) the intended method of disposition in connection with
such Demand Registration, to the extent then known and (iii) the identity of the Requesting
Stockholder (or Requesting Stockholders). Within 5 days after receipt of a Demand, the Company
shall give written notice of such Demand to any other Persons that on the date a Demand is
delivered to the Company is a Stockholder. Subject to Section 3.1(f), the Company shall include in
the Demand Registration covered by such Demand all Registrable Securities with respect to which the
Company has received a written request for inclusion therein (i) if a notice by the Company is
required by this paragraph, within 5 days after such notice by the Company has been given, or (ii)
if no notice by the Company is required by this paragraph, within 5 days after receipt by the
Company of such Demand. Such written request shall comply with the requirements of a Demand as set
forth in this Section 3.1(b).

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               (c) Each Stockholder shall be entitled to an unlimited number of Demand Registrations until
such time as the Stockholders, together, Beneficially Own less than a Registrable Amount.

               (d) Demand Registrations shall be on such appropriate registration form of the Commission as
shall be selected by the Requesting Stockholders, including, to the extent permissible, an existing
effective registration statement filed by the Company with the Commission, and shall be reasonably
acceptable to the Company.

               (e) The Company shall not be obligated to effect any Demand Registration (A) within three
months of a “firm commitment” Underwritten Offering in which all Stockholders were given
“piggyback” rights pursuant to Section 3.2 (subject to Section 3.1(f)) and at least 50% of the
number of Registrable Securities requested by such Stockholders to be included in such Demand
Registration were included) or (B) within three months of any other Demand Registration or any
Underwritten Offering pursuant to Section 3.3(e). In addition, the Company shall be entitled to
postpone (upon written notice to all Stockholders) for up to 120 days the filing or the
effectiveness of a registration statement for any Demand Registration (but no more than twice in
any period of 12 consecutive months) if the Board determines in good faith and in its reasonable
judgment that the filing or effectiveness of the registration statement relating to such Demand
Registration would cause the disclosure of material, non-public information that the Company has a
bona fide business purpose for preserving as confidential. In the event of a postponement by the
Company of the filing or effectiveness of a registration statement for a Demand Registration, the
holders of a majority of Registrable Securities held by the Requesting Stockholder(s) shall have
the right to withdraw such Demand in accordance with Section 3.4.

               (f) The Company shall not include any securities other than Registrable Securities in a Demand
Registration, except with the written consent of Stockholders participating in such Demand
Registration that hold a majority of the Registrable Securities included in such Demand
Registration. If, in connection with a Demand Registration, any managing underwriter (or, if such
Demand Registration is not an Underwritten Offering, a nationally recognized independent investment
bank selected by the Initial Stockholders or any of the Permitted Transferees thereof (to the
extent a Stockholder hereunder), reasonably acceptable to the Company, and whose fees and expenses
shall be borne solely by the Company) advises the Company, in writing, that, in its opinion, the
inclusion of all of the securities, including securities of the Company that are not Registrable
Securities, sought to be registered in connection with such Demand Registration would adversely
affect the marketability of the Registrable Securities sought to be sold pursuant thereto, then the
Company shall include in such registration statement only such securities as the Company is advised
by such underwriter or investment bank can be sold without such adverse effect as follows and in
the following order of priority: (i) first, up to the number of Registrable Securities requested to
be included in such Demand Registration by the Stockholders, which, in the opinion of the
underwriter can be sold without adversely affecting the marketability of the offering, pro rata
among such Stockholders requesting such Demand Registration on the basis of the number of such
securities held by such Stockholders and by Stockholders that are Piggyback Sellers; (ii) second,
securities the Company proposes to sell; and (iii) third, all other securities of the Company duly
requested to be included in such

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registration statement, pro rata on the basis of the amount of such other securities requested
to be included or such other method determined by the Company.

               (g) Any time that a Demand Registration involves an Underwritten Offering, the Company shall
select the investment banker or investment bankers and managers that will serve as lead and
co-managing underwriters with respect to the offering of such Registrable Securities, which shall
be reasonably acceptable to Stockholders participating in such Demand Registration that hold a
majority of the Registrable Securities included in such Demand Registration.

          Section 3.2 Piggyback Registrations.

               (a) Subject to the terms and conditions hereof, whenever the Company proposes to register any
of its equity securities under the Securities Act (other than a registration by the Company on a
registration statement on Form S-4 or a registration statement on Form S-8 or any successor forms
thereto) (each, a “Piggyback Registration”), whether for its own account or for the account of
others, the Company shall give the Stockholders prompt written notice thereof (but not less than 5
days prior to the filing by the Company with the Commission of any registration statement with
respect thereto). Such notice (a “Piggyback Notice”) shall specify, at a minimum, the number of
equity securities proposed to be registered, the proposed date of filing of such registration
statement with the Commission, the proposed means of distribution and the proposed managing
underwriter or underwriters (if any and if known). Upon the written request (i) if a Piggyback
Notice is required by this paragraph, of any Person that on the date of such Piggyback Notice is a
Stockholder, given within 5 days after such Piggyback Notice is received by such Person, or (ii) if
no Piggyback Notice is required by this paragraph, of any Person that on the date of approval by
the Board of the filing of such Piggyback Registration is a Stockholder, within 5 days of such
Board approval (any such Persons as described in (i) and (ii) above, each, a “Piggyback Seller”)
(which written request shall specify the number of Registrable Securities then presently intended
to be disposed of by such Piggyback Seller), the Company, subject to the terms and conditions of
this Agreement, shall use its commercially reasonable efforts to cause all such Registrable
Securities held by Piggyback Sellers with respect to which the Company has received such written
requests for inclusion to be included in such Piggyback Registration on the same terms and
conditions as the Company’s equity securities being sold in such Piggyback Registration.

               (b) If, in connection with a Piggyback Registration, any managing underwriter (or, if such
Piggyback Registration is not an Underwritten Offering, a nationally recognized independent
investment bank selected by the Initial Stockholders or any of their Permitted Transferees (to the
extent a Stockholder hereunder), reasonably acceptable to the Company, and whose fees and expenses
shall be borne solely by the Company) advises the Company in writing that, in its opinion, the
inclusion of all the equity securities sought to be included in such Piggyback Registration by (i)
the Company, (ii) others who have sought to have equity securities of the Company registered in
such Piggyback Registration pursuant to rights to demand (other than pursuant to so-called
“piggyback” or other incidental or participation registration rights) such registration (such
Persons being “Other Demanding Sellers”), (iii) the Piggyback Sellers and (iv) any other proposed
sellers of equity securities of the Company (such Persons being “Other Proposed Sellers”), as the
case may be, would adversely affect the

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marketability of the equity securities sought to be sold pursuant thereto, then the Company
shall include in the registration statement applicable to such Piggyback Registration only such
equity securities as the Company is so advised by such underwriter or investment bank can be sold
without such an effect, as follows and in the following order of priority:

               (i) if the Piggyback Registration relates to an offering for the Company’s own
account, then (A) first, such number of equity securities to be sold by the Company
as the Company, in its reasonable judgment and acting in good faith and in
accordance with sound financial practice, shall have determined, (B) second,
Registrable Securities of Piggyback Sellers and securities sought to be registered
by Other Demanding Sellers (if any), pro rata on the basis of the number of shares
of Common Stock held by such Piggyback Sellers and Other Demanding Sellers and (C)
third, other equity securities held by any Other Proposed Sellers; or

               (ii) if the Piggyback Registration relates to an offering other than for the
Company’s own account, then (A) first, such number of equity securities sought to be
registered by each Other Demanding Seller and the Piggyback Sellers (if any), pro
rata in proportion to the number of shares of Common Stock held by all such Other
Demanding Sellers and Piggyback Sellers and (B) second, other equity securities held
by any Other Proposed Sellers or to be sold by the Company as determined by the
Company and with such priorities among them as may from time to time be determined
or agreed to by the Company.

               (c) In connection with any Underwritten Offering under this Section 3.2 for the Company’s
account, the Company shall not be required to include a holder’s Registrable Securities in the
Underwritten Offering unless such holder accepts the terms of the underwriting as agreed upon
between the Company and the underwriters selected by the Company; provided, that any applicable
underwriting agreement includes only customary terms and conditions.

               (d) If, at any time after giving written notice of its intention to register any of its equity
securities as set forth in this Section 3.2 and prior to the time the registration statement filed
in connection with such Piggyback Registration is declared effective, the Company shall determine
for any reason not to register such equity securities, the Company may, at its election, give
written notice of such determination to each Stockholder and thereupon shall be relieved of its
obligation to register any Registrable Securities in connection with such particular withdrawn or
abandoned Piggyback Registration (but not from its obligation to pay the Registration Expenses in
connection therewith as provided herein); provided, that Stockholders may continue the registration
as a Demand Registration pursuant to the terms of Section 3.1.

          Section 3.3 Shelf Registration.

               (a) Subject to Section 3.3(d), and further subject to the availability of a Registration
Statement on Form S-3 or a successor form (“Form S-3”) to the Company, the Initial Stockholders or
any of their Permitted Transferees (in each case to the extent a Stockholder hereunder) may by
written notice delivered (which notice can be delivered at any

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time after the eleven month anniversary of the date hereof) to the Company (the “Shelf
Notice”) require the Company to (i) file as promptly as practicable (but no later than 30 days
after the date the Shelf Notice is delivered), and (if the Company is not at such time a well-known
seasoned issuer, as such term is defined in Rule 45 under the Securities Act) to use commercially
reasonable efforts to cause to be declared effective by the Commission at the earliest possible
date permitted under the rules and regulations of the Commission (but no later than 60 days after
such filing date), a Form S-3, or (ii) designate an existing Form S-3 filed with the Commission, in
each case providing for an offering to be made on a continuous basis pursuant to Rule 415 under the
Securities Act relating to the offer and sale, from time to time, of the Registrable Securities
owned by the Initial Stockholders or any of their Permitted Transferees, and any other Persons that
at the time of the Shelf Notice meet the definition of a Stockholder who elect to participate
therein as provided in Section 3.3(b) (the “Shelf Registration Statement”).

               (b) Within 5 business days after receipt of a Shelf Notice pursuant to Section 3.3(a), the
Company will deliver written notice thereof to each Stockholder. Each Stockholder may elect to
participate in the Shelf Registration Statement by delivering to the Company a written request to
so participate.

               (c) Subject to Section 3.3(d), the Company will use commercially reasonable efforts to keep
the Shelf Registration Statement continuously effective until the date on which all Registrable
Securities covered by the Shelf Registration Statement have been sold thereunder in accordance with
the plan and method of distribution disclosed in the prospectus included in the Shelf Registration
Statement (the “Shelf Registration Effectiveness Period”).

               (d) Notwithstanding anything to the contrary contained in this Agreement, the Company shall be
entitled, from time to time, by providing written notice to the Stockholders who elect to
participate in the Shelf Registration Statement, to require such Stockholders to suspend the use of
the prospectus for sales of Registrable Securities under the Shelf Registration Statement for a
reasonable period of time not to exceed 60 days in succession or 90 days in the aggregate in any
twelve-month period (a “Suspension Period”) if the Company shall determine that it is required to
disclose in the Shelf Registration Statement a financing, acquisition, corporate reorganization or
other similar corporate transaction or other material event or circumstance affecting the Company
or its securities, and that the disclosure of such information at such time would be detrimental to
the Company or its stockholders. Immediately upon receipt of such notice, the Stockholders covered
by the Shelf Registration Statement shall suspend the use of the prospectus until the requisite
changes to the prospectus have been made as required below. Any Suspension Period shall terminate
at such time as the public disclosure of such information is made. After the expiration of any
Suspension Period and without any further request from a Stockholder, the Company shall as promptly
as practicable prepare a post-effective amendment or supplement to the Shelf Registration Statement
or the prospectus, or any document incorporated therein by reference, or file any other required
document so that, as thereafter delivered to purchasers of the Registrable Securities included
therein, the prospectus will not include an 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, not misleading.

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               (e) At any time, and from time-to-time, during the Shelf Registration Effectiveness Period
(except during a Suspension Period), each of the Initial Stockholders or any of their Permitted
Transferees (in each case to the extent a Stockholder hereunder) may notify the Company of their
intent to sell Registrable Securities covered by the Shelf Registration Statement (in whole or in
part) in an Underwritten Offering (a “Shelf Underwritten Offering”); provided that the Company
shall not be obligated to participate in more than four underwritten offerings during any
twelve-month period. Such notice shall specify (x) the aggregate number of Registrable Securities
requested to be registered in such Shelf Underwritten Offering and (y) the identity of the
Stockholder(s) requesting such Shelf Underwritten Offering. Upon receipt by the Company of such
notice, the Company shall comply with the applicable provisions of Section 3.6, including, without
limitation, those provisions relating the Company’s obligation to make filings with the Commission,
participate in “road shows” and obtain “comfort” letters, and shall take such other actions as
necessary or appropriate to permit the consummation of such Shelf Underwritten Offering as promptly
as practicable. Each Shelf Underwritten Offering shall be for the sale of an amount of Registrable
Securities equal to or greater than the Registrable Amount. In any Shelf Underwritten Offering, the
Company shall select the investment banker or investment bankers and managers that will serve as
lead and co-managing underwriters with respect to the offering of such Registrable Securities,
which shall be reasonably acceptable to the Stockholders participating in such Shelf Underwritten
Offering that hold a majority of the Registrable Securities included in such Shelf Underwritten
Offering.

          Section 3.4 Withdrawal Rights. Any Stockholder having notified or directed the Company to
include any or all of its Registrable Securities in a registration statement under the Securities
Act shall have the right to withdraw any such notice or direction with respect to any or all of the
Registrable Securities designated by it for registration by giving written notice to such effect to
the Company prior to the effective date of such registration statement. In the event of any such
withdrawal, the Company shall not include such Registrable Securities in the applicable
registration and such Registrable Securities shall continue to be Registrable Securities for all
purposes of this Agreement. No such withdrawal shall affect the obligations of the Company with
respect to the Registrable Securities not so withdrawn; provided, however, that in the case of a
Demand Registration, if such withdrawal shall reduce the number of Registrable Securities sought to
be included in such registration below the Registrable Amount, then the Company shall as promptly
as practicable give each holder of Registrable Securities sought to be registered notice to such
effect and, within 10 days following the mailing of such notice, such holder(s) of Registrable
Securities still seeking registration shall, by written notice to the Company, elect to register
additional Registrable Securities, when taken together with elections to register Registrable
Securities by its Permitted Transferees, to satisfy the Registrable Amount or elect that such
registration statement not be filed or, if theretofore filed, be withdrawn. During such 10-day
period, the Company shall not file such registration statement if not theretofore filed or, if such
registration statement has been theretofore filed, the Company shall not seek, and shall use
commercially reasonable efforts to prevent, the effectiveness thereof.

          Section 3.5 Holdback Agreements. Each Stockholder agrees not to effect any public sale or
distribution (including sales pursuant to Rule 144) of equity securities of the Company, or any
securities convertible into or exchangeable or exercisable for such equity securities, during any
time period reasonably requested by the Company (which shall not exceed 45 days) with respect to
any Public Offering, Demand Registration or Piggyback Registration (in

11

 

each case, except as part of such registration), or, in each case, a later date required by any
underwriting agreement with respect thereto.

          Section 3.6 Registration Procedures.

               (a) If and whenever the Company is required to use commercially reasonable efforts to effect
the registration of any Registrable Securities under the Securities Act as provided in Sections
3.1, 3.2 and 3.3, the Company shall as promptly as practicable (in each case, to the extent
applicable):

               (i) prepare and file with the Commission a registration statement to effect
such registration, cause such registration statement to become effective at the
earliest possible date permitted under the rules and regulations of the Commission,
and thereafter use commercially reasonable efforts to cause such registration
statement to remain effective pursuant to the terms of this Agreement; provided,
however, that the Company may discontinue any registration of its securities which
are not Registrable Securities at any time prior to the effective date of the
registration statement relating thereto; provided, further that before filing such
registration statement or any amendments thereto, the Company will furnish to the
counsel selected by the holders of Registrable Securities which are to be included
in such registration (“Selling Holders”) copies of all such documents proposed to be
filed, which documents will be subject to the review of such counsel, and such
review to be conducted with reasonable promptness;

               (ii) prepare and file with the Commission such amendments (including
post-effective amendments) and supplements to such registration statement and the
prospectus used in connection therewith and any Exchange Act reports incorporated by
reference therein as may be necessary to keep such registration statement effective
and to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement until the
earlier of such time as all of such securities have been disposed of in accordance
with the intended methods of disposition by the seller or sellers thereof set forth
in such registration statement or (i) in the case of a Demand Registration pursuant
to Section 3.1, the expiration of 60 days after such registration statement becomes
effective or (ii) in the case of a Piggyback Registration pursuant to Section 3.2,
the expiration of 60 days after such registration statement becomes effective or
(iii) in the case of a Shelf Registration pursuant to Section 3.3, the Shelf
Registration Effectiveness Period;

               (iii) furnish to each Selling Holder and each underwriter, if any, of the
securities being sold by such Selling Holder such number of conformed copies of such
registration statement and of each amendment and supplement thereto (in each case
including all exhibits), such number of copies of the prospectus contained in such
registration statement (including each preliminary prospectus and any summary
prospectus) and any other prospectus filed under Rule 424 under the Securities Act,
in conformity with the requirements of the Securities Act, and any Issuer Free
Writing Prospectus and

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such other documents as such Selling Holder and underwriter, if any, may
reasonably request in order to facilitate the public sale or other disposition of
the Registrable Securities owned by such seller;

               (iv) use commercially reasonable efforts to register or qualify such
Registrable Securities covered by such registration statement under such other
securities laws or blue sky laws of such jurisdictions as any Selling Holder and any
underwriter of the securities being sold by such Selling Holder shall reasonably
request, and take any other action which may be reasonably necessary or advisable to
enable such Selling Holder and underwriter to consummate the disposition in such
jurisdictions of the Registrable Securities owned by such Selling Holder, except
that the Company shall not for any such purpose be required to qualify generally to
do business as a foreign corporation in any jurisdiction wherein it would not but
for the requirements of this clause (iv) be obligated to be so qualified, to subject
itself to taxation in any such jurisdiction or to file a general consent to service
of process in any such jurisdiction;

               (v) use commercially reasonable efforts to cause such Registrable Securities to
be listed on each securities exchange on which similar securities issued by the
Company are then listed and, if no such securities are so listed, use commercially
reasonable efforts to cause such Registrable Securities to be listed on the New York
Stock Exchange or the Nasdaq Stock Market;

               (vi) use commercially reasonable efforts to cause such Registrable Securities
covered by such registration statement to be registered with or approved by such
other governmental agencies or authorities as may be necessary to enable the Selling
Holder(s) thereof to consummate the disposition of such Registrable Securities;

               (vii) in connection with an Underwritten Offering, obtain for each Selling
Holder and underwriter:

                    (1) an opinion of counsel for the Company, covering the matters customarily
covered in opinions requested in underwritten offerings and such other matters as
may be reasonably requested by such Selling Holder and underwriters, and

                    (2) a “comfort” letter (or, in the case of any such Person which does not
satisfy the conditions for receipt of a “comfort” letter specified in Statement on
Auditing Standards No. 72, an “agreed upon procedures” letter) signed by the
independent registered public accountants who have certified the Company’s financial
statements included in such registration statement (and, if necessary, any other
independent registered public accountant of any subsidiary of the Company or any
business acquired by the Company from which financial statements and financial data
are, or are required to be, included in the registration statement);

13

 

               (viii) promptly make available for inspection by any seller, any underwriter
participating in any disposition pursuant to any registration statement, and any
attorney, accountant or other agent or representative retained by any such seller or
underwriter (collectively, the “Inspectors”), all financial and other records,
pertinent corporate documents and properties of the Company (collectively, the
“Records”), as shall be reasonably necessary to enable them to exercise their due
diligence responsibility, and cause the Company’s officers, directors and employees
to supply all information requested by any such Inspector in connection with such
registration statement; provided, however, that, unless the disclosure of such
Records is necessary to avoid or correct a misstatement or omission in the
registration statement or the release of such Records is ordered pursuant to a
subpoena or other order from a court of competent jurisdiction, the Company shall
not be required to provide any information under this subparagraph (viii) if (i) the
Company believes, after consultation with counsel for the Company, that to do so
would cause the Company to forfeit an attorney-client privilege that was applicable
to such information or (ii) if either (A) the Company has requested and been granted
from the Commission confidential treatment of such information contained in any
filing with the Commission or documents provided supplementally or otherwise or (B)
the Company reasonably determines in good faith that such Records are confidential
and so notifies the Inspectors in writing unless prior to furnishing any such
information with respect to (i) or (ii) such holder of Registrable Securities
requesting such information agrees, and causes each of its Inspectors, to enter into
a confidentiality agreement on terms reasonably acceptable to the Company; and
provided, further, that each Holder of Registrable Securities agrees that it will,
upon learning that disclosure of such Records is sought in a court of competent
jurisdiction, give notice to the Company and allow the Company, at its expense, to
undertake appropriate action and to prevent disclosure of the Records deemed
confidential;

               (ix) promptly notify in writing each Selling Holder and the underwriters, if
any, of the following events:

                    (1) the filing of the registration statement, the prospectus or any prospectus
supplement related thereto, any Issuer Free Writing Prospectus or post-effective
amendment to the registration statement and, with respect to the registration
statement or any post-effective amendment thereto, when the same has become
effective;

                    (2) any request by the Commission for amendments or supplements to the
registration statement or the prospectus or for additional information;

                    (3) the issuance by the Commission of any stop order suspending the
effectiveness of the registration statement or the initiation of any proceedings by
any Person for that purpose;

14

 

                    (4) when any Issuer Free Writing Prospectus includes information that may
conflict with the information contained in the registration statement; and

                    (5) the receipt by the Company of any notification with respect to the
suspension of the qualification of any Registrable Securities for sale under the
securities or blue sky laws of any jurisdiction or the initiation or threat of any
proceeding for such purpose;

               (x) notify each Selling Holder, at any time when a prospectus relating thereto
is required to be delivered under the Securities Act, upon discovery that, or upon
the happening of any event as a result of which, the prospectus included in such
registration statement, as then in effect, includes an untrue statement of a
material fact or omits to state any material fact required to be stated therein or
necessary to make the statements therein not misleading, and, at the request of any
Selling Holder, promptly prepare and furnish to such seller a reasonable number of
copies of a supplement to or an amendment of such prospectus as may be necessary so
that, as thereafter delivered to the purchasers of such Registrable Securities, such
prospectus shall not include 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;

               (xi) make every reasonable effort to obtain the withdrawal of any order
suspending the effectiveness of such registration statement;

               (xii) otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission, and make available to Selling
Holders, as promptly as practicable, an earnings statement covering the period of at
least 12 months, but not more than 18 months, beginning with the first day of the
Company’s first full quarter after the effective date of such registration
statement, which earnings statement shall satisfy the provisions of Section 11(a) of
the Securities Act and Rule 158 thereunder;

               (xiii) cooperate with the sellers and the managing underwriter to facilitate
the timely preparation and delivery of certificates (which shall not bear any
restrictive legends unless required under applicable law), if necessary or
appropriate, representing securities sold under any registration statement, and
enable such securities to be in such denominations and registered in such names as
the managing underwriter or such sellers may request and keep available and make
available to the Company’s transfer agent prior to the effectiveness of such
registration statement a supply of such certificates as necessary or appropriate;

               (xiv) have appropriate officers of the Company prepare and make presentations
at any “road shows” and before analysts and rating agencies, as the case may be, and
otherwise use its reasonable best efforts to cooperate as

15

 

reasonably requested by the Selling Holders and the underwriters in the
offering, marketing or selling of the Registrable Securities;

               (xv) if requested by any Selling Holders or any underwriter, promptly
incorporate in the registration statement or any prospectus, pursuant to a
supplement or post-effective amendment if necessary, such information as such
Selling Holders may reasonably request to have included therein, including, without
limitation, information relating to the “Plan of Distribution” of the Registrable
Securities;

               (xvi) cooperate and assist in any filings required to be made with the
Financial Industry Regulatory Authority, Inc. (“FINRA”) and in the performance of
any due diligence investigation by any underwriter that is required to be undertaken
in accordance with the rules and regulations of the FINRA; and

               (xvii) otherwise use commercially reasonable efforts to comply with all
applicable rules and regulations of the Commission and all reporting requirements
under the rules and regulations of the Exchange Act. The Company may require each
Selling Holder and each underwriter, if any, to furnish the Company in writing such
information regarding each Selling Holder or underwriter and the distribution of
such Registrable Securities as the Company may from time to time reasonably request
to complete or amend the information required by such registration statement.

               (b) Without limiting any of the foregoing, in the event that the offering of Registrable
Securities is to be made by or through an underwriter, the Company shall enter into an underwriting
agreement with a managing underwriter or underwriters containing representations, warranties,
indemnities and agreements customarily included (but not inconsistent with the covenants and
agreements of the Company contained herein) by an issuer of common stock in underwriting agreements
with respect to offerings of common stock for the account of, or on behalf of, such issuers. In
connection with any offering of Registrable Securities registered pursuant to this Agreement, the
Company shall furnish to the underwriter, if any (or, if no underwriter, the sellers of such
Registrable Securities), unlegended certificates representing ownership of the Registrable
Securities being sold (unless, in the Company’s sole discretion, such Registrable Securities are to
be issued in uncertificated form pursuant to the customary arrangements for issuing shares in such
form), in such denominations as requested and instruct any transfer agent and registrar of the
Registrable Securities to release any stop transfer order with respect thereto.

               (c) Each Selling Holder agrees that upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3.6(a)(ix), such Selling Holder shall
forthwith discontinue such Selling Holder’s disposition of Registrable Securities pursuant to the
applicable registration statement and prospectus relating thereto until such Selling Holder’s
receipt of the copies of the supplemented or amended prospectus contemplated by Section 3.6(a)(ix)
and, if so directed by the Company, deliver to the Company, at the Company’s expense, all copies,
other than permanent file copies, then in such Selling Holder’s possession of

16

 

the prospectus current at the time of receipt of such notice relating to such Registrable
Securities. In the event the Company shall give such notice, any applicable 60-day period during
which such registration statement must remain effective pursuant to this Agreement shall be
extended by the number of days during the period from the date of giving of a notice regarding the
happening of an event of the kind described in Section 3.6(a)(ix) to the date when all such Selling
Holders shall receive such a supplemented or amended prospectus and such prospectus shall have been
filed with the Commission.

          Section 3.7 Registration Expenses. All expenses incident to the Company’s performance of,
or compliance with, its obligations under this Agreement including, without limitation, all
registration and filing fees, all fees and expenses of compliance with securities and “blue sky”
laws, all fees and expenses associated with filings required to be made with FINRA (including, if
applicable, the fees and expenses of any “qualified independent underwriter” as such term is
defined in NASD Rule 2720 or the equivalent rule incorporated into the FINRA rulebook), all fees
and expenses of compliance with securities and “blue sky” laws, all printing (including, without
limitation, expenses of printing certificates, if any, for the Registrable Securities in a form
eligible for deposit with the Depository Trust Company and of printing prospectuses if the printing
of prospectuses and Issuer Free Writing Prospectuses is requested by a holder of Registrable
Securities) and copying expenses, all messenger and delivery expenses, all fees and expenses of the
Company’s independent certified public accountants and counsel (including, without limitation, with
respect to “comfort” letters and opinions) and fees and expenses of one firm of counsel to the
Stockholders selling in such registration (which firm shall be selected by the Stockholders selling
in such registration that hold a majority of the Registrable Securities included in such
registration) (collectively, the “Registration Expenses”) shall be borne by the Company, regardless
of whether a registration is effected. The Company will pay its internal expenses (including,
without limitation, all salaries and expenses of its officers and employees performing legal or
accounting duties, the expense of any annual audit and the expense of any liability insurance) and
the expenses and fees for listing the securities to be registered on each securities exchange and
included in each established over-the-counter market on which similar securities issued by the
Company are then listed or traded. Each Selling Holder shall pay its portion of all underwriting
discounts and commissions and transfer taxes, if any, relating to the sale of such Selling Holder’s
Registrable Securities pursuant to any registration.

          Section 3.8 Indemnification.

               (a) The Company agrees to indemnify and hold harmless, to the fullest extent permitted by law,
each Selling Holder, its officers, directors, employees, managers, members, partners and agents and
each Person who controls (within the meaning of Section 15 of the Securities Act and Section 20 of
the Exchange Act) such Selling Holder or such other indemnified Person from and against all losses,
claims, damages, liabilities and expenses (including reasonable expenses of investigation and
reasonable attorneys’ fees and expenses) (collectively, the “Losses”) caused by, resulting from or
relating to any untrue statement (or alleged untrue statement) of a material fact contained in any
registration statement, any Issuer Free Writing Prospectus, any prospectus or preliminary
prospectus or any amendment thereof or supplement thereto or any omission (or alleged omission) of
a material fact required to be stated therein or necessary to make the statements therein, in light
of the circumstances under which they were made, not misleading, except insofar as the same are
caused by any information

17

 

furnished in writing to the Company by such Selling Holder expressly for use therein. In
connection with an Underwritten Offering and without limiting any of the Company’s other
obligations under this Agreement, the Company shall also indemnify such underwriters, their
officers, directors, employees and agents and each Person who controls (within the meaning of
Section 15 of the Securities Act and Section 20 of the Exchange Act) such underwriters or such
other indemnified Person to the same extent as provided above with respect to the indemnification
(and exceptions thereto) of the holders of Registrable Securities being sold. Reimbursements
payable pursuant to the indemnification contemplated by this Section 3.8(a) will be made by
periodic payments during the course of any investigation or defense, as and when bills are received
or expenses incurred.

               (b) In connection with any registration statement in which a holder of Registrable Securities
is participating, each such Selling Holder will furnish to the Company in writing information
regarding such Selling Holder’s ownership of Registrable Securities and its intended method of
distribution thereof and, to the extent permitted by law, shall, severally and not jointly,
indemnify the Company, its directors, officers, employees and agents and each Person who controls
(within the meaning of Section 15 of the Securities Act and Section 20 of the Exchange Act) the
Company or such other indemnified Person against all Losses caused by any untrue statement of
material fact contained in the registration statement, any Issuer Free Writing Prospectus, any
prospectus or preliminary prospectus or any amendment thereof or supplement thereto or any omission
of a material fact required to be stated therein or necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading, but only to the extent that
such untrue statement or omission is caused by and contained in such information so furnished in
writing by such Selling Holder expressly for use therein; provided, however, that each Selling
Holder’s obligation to indemnify the Company hereunder shall, to the extent more than one Selling
Holder is subject to the same indemnification obligation, be apportioned between each Selling
Holder based upon the net amount received by each Selling Holder from the sale of Registrable
Securities, as compared to the total net amount received by all of the Selling Holders of
Registrable Securities sold pursuant to such registration statement. Notwithstanding the foregoing,
no Selling Holder shall be liable to the Company for amounts in excess of the lesser of (i) such
apportionment and (ii) the net amount received by such holder in the offering giving rise to such
liability.

               (c) Any Person entitled to indemnification hereunder shall give prompt written notice to the
indemnifying party of any claim with respect to which it seeks indemnification; provided, however,
the failure to give such notice shall not release the indemnifying party from its obligation,
except to the extent that the indemnifying party has been materially prejudiced by such failure to
provide such notice on a timely basis.

               (d) In any case in which any such action is brought against any indemnified party, and it
notifies an indemnifying party of the commencement thereof, the indemnifying party will be entitled
to participate therein, and, to the extent that it may wish, jointly with any other indemnifying
party similarly notified, to assume the defense thereof, with counsel reasonably satisfactory to
such indemnified party, and after notice from the indemnifying party to such indemnified party of
its election so to assume the defense thereof, the indemnifying party will not (so long as it shall
continue to have the right to defend, contest, litigate and settle the matter in question in
accordance with this paragraph) be liable to such

18

 

indemnified party hereunder for any legal or other expense subsequently incurred by such
indemnified party in connection with the defense thereof other than reasonable costs of
investigation, supervision and monitoring (unless (i) such indemnified party reasonably objects to
such assumption on the grounds that there may be defenses available to it which are different from
or in addition to the defenses available to such indemnifying party or (ii) the indemnifying party
shall have failed within a reasonable period of time to assume such defense and the indemnified
party is or is reasonably likely to be prejudiced by such delay, in either event the indemnified
party shall be promptly reimbursed by the indemnifying party for the expenses incurred in
connection with retaining separate legal counsel). An indemnifying party shall not be liable for
any settlement of an action or claim effected without its consent. The indemnifying party shall
lose its right to defend, contest, litigate and settle a matter if it shall fail to diligently
contest such matter (except to the extent settled in accordance with the next following sentence).
No matter shall be settled by an indemnifying party without the consent of the indemnified party
(which consent shall not be unreasonably withheld, it being understood that the indemnified party
shall not be deemed to be unreasonable in withholding its consent if the proposed settlement
imposes any obligation on the indemnified party other than the payment of money or if the proposed
settlement does not include an unconditional release of such indemnified party for all claims
relating to such matter).

               (e) The indemnification provided for under this Agreement shall remain in full force and
effect regardless of any investigation made by or on behalf of the indemnified Person and will
survive the transfer of the Registrable Securities and the termination of this Agreement.

               (f) If recovery is not available under the foregoing indemnification provisions for any reason
or reasons other than as specified therein, any Person who would otherwise be entitled to
indemnification by the terms thereof shall nevertheless be entitled to contribution with respect to
any Losses with respect to which such Person would be entitled to such indemnification but for such
reason or reasons. In determining the amount of contribution to which the respective Persons are
entitled, there shall be considered the Persons’ relative knowledge and access to information
concerning the matter with respect to which the claim was asserted, the opportunity to correct and
prevent any statement or omission, and other equitable considerations appropriate under the
circumstances. It is hereby agreed that it would not necessarily be equitable if the amount of such
contribution were determined by pro rata or per capita allocation. 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 found guilty of such fraudulent misrepresentation.
Notwithstanding the foregoing, no Selling Holder or transferee thereof shall be required to make a
contribution in excess of the net amount received by such holder from its sale of Registrable
Securities in connection with the offering that gave rise to the contribution obligation.

               (g) Not less than three days before the expected filing date of each registration statement
pursuant to this Agreement, the Company shall notify each Stockholder who has timely provided the
requisite notice hereunder entitling the Stockholder to register Registrable Securities in such
registration statement of the information, documents and instruments from such Stockholder that the
Company or any underwriter reasonably requests in connection with such registration statement,
including, but not limited to a questionnaire,

19

 

custody agreement, power of attorney, lock-up letter and underwriting agreement (the
“Requested Information”). If the Company has not received, on or before the day before the expected
filing date, the Requested Information from such Stockholder, the Company may file the Registration
Statement without including Registrable Securities of such Stockholder. The failure to so include
in any registration statement the Registrable Securities of a Stockholder (with regard to that
registration statement) shall not in and of itself result in any liability on the part of the
Company to such Stockholder.

ARTICLE IV

MISCELLANEOUS

          Section 4.1 Headings. The headings in this Agreement are for convenience of reference only
and shall not control or effect the meaning or construction of any provisions hereof.

          Section 4.2 Entire Agreement.

               (a) This Agreement constitutes the entire agreement and understanding of the parties hereto in
respect of the subject matter contained herein, and there are no restrictions, promises,
representations, warranties, covenants, conditions or undertakings with respect to the subject
matter hereof, other than those expressly set forth or referred to herein. This Agreement
supersedes all prior agreements and understandings between the parties hereto with respect to the
subject matter hereof.

          Section 4.3 Further Actions and Cooperation. Each of the Stockholders agrees to use its
reasonable efforts to take, or cause to be taken, all actions and to do, or cause to be done, and
to assist and cooperate with the other parties in doing, all things necessary, proper or advisable
to give effect to the transactions contemplated by this Agreement. Without limiting the generality
of the foregoing, each of the Stockholders (i) acknowledges that such Stockholder will prepare and
file with the Commission filings under the Exchange Act, including under Section 13(d) of the
Exchange Act, relating to its Beneficial Ownership of the Common Stock and (ii) agrees to use its
reasonable efforts to assist and cooperate with the other parties in promptly preparing, reviewing
and executing any such filings under the Exchange Act, including any amendments thereto.

          Section 4.4 Notices. All notices, requests, consents and other communications hereunder to
any party shall be deemed to be sufficient if contained in a written instrument delivered in person
or sent by facsimile, nationally recognized overnight courier or first class registered or
certified mail, return receipt requested, postage prepaid, addressed to such party at the address
set forth below or such other address as may hereafter be designated on the signature pages of this
Agreement or in writing by such party to the other parties:

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          If to the Initial Stockholders, to:

c/o Swift Transportation Company

2200 S. 75th Avenue

Phoenix, Arizona 85043

Fax: (623) 907-7503

Attn: Jerry Moyes

          with a copy (which shall not constitute notice) to:

Scudder Law Firm, P.C., L.L.O.

411 South 13th Street

Lincoln, Nebraska 68508 

Fax: (402) 435-3223

Attn: Mark Scudder

          If to the Company, to:

Swift Transportation Company

2200 S. 75th Avenue

Phoenix, Arizona 85043

Fax: (623) 907-7464

Attn: General Counsel

          If to a Stockholder that is not one of the Initial Stockholders, then to the address set forth
in the written agreement of such Stockholder provided for in Section 2.1 hereof.

          All such notices, requests, consents and other communications shall be deemed to have been
given or made if and when received (including by overnight courier) by the parties at the above
addresses or sent by facsimile, with confirmation received, to the facsimile numbers specified
above (or at such other address or facsimile number for a party as shall be specified by like
notice). Any notice delivered by any party hereto to any other party hereto shall also be delivered
to each other party hereto simultaneously with delivery to the first party receiving such notice.

          Section 4.5 Applicable Law. The substantive laws of the State of New York shall govern the
interpretation, validity and performance of the terms of this Agreement, without regard to
conflicts of law doctrines. THE PARTIES HERETO WAIVE THEIR RIGHT TO A JURY TRIAL WITH RESPECT TO
DISPUTES HEREUNDER.

          Section 4.6 Severability. The invalidity, illegality or unenforceability of one or more of
the provisions of this Agreement in any jurisdiction shall not affect the validity, legality or
enforceability of the remainder of this Agreement, including any such provisions, in any other
jurisdiction, it being intended that all rights and obligations of the parties hereunder shall be
enforceable to the fullest extent permitted by law.

          Section 4.7 Successors and Assigns. Except as otherwise provided herein, all the terms and
provisions of this Agreement shall be binding upon, shall inure to the benefit of

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and shall be enforceable by the respective successors and permitted assigns of the parties hereto.
No Stockholder may assign any of its rights hereunder to any Person other than a Permitted
Transferee. Each Permitted Transferee of any Stockholder shall be subject to all of the terms of
this Agreement, and by taking and holding such shares such Person shall be entitled to receive the
benefits of and be conclusively deemed to have agreed to be bound by and to comply with all of the
terms and provisions of this Agreement; provided, however, no transfer of rights permitted
hereunder shall be binding upon or obligate the Company unless and until (i) if required under
Section 2.1 hereof, the Company shall have received written notice of such transfer and the joinder
of the transferee provided for in Section 2.1 hereof, and (ii) such transferee can establish
Beneficial Ownership or ownership of record of a Registrable Amount (whether individually or
together with its Affiliates that are Stockholders or transferees of Stockholders and, if
applicable, its other Permitted Transferees that are Stockholders or transferees of Stockholders).
The Company may not assign any of its rights or obligations hereunder without the prior written
consent of each of the Stockholders. Notwithstanding the foregoing, no successor or assignee of
the Company shall have any rights granted under this Agreement until such Person shall acknowledge
its rights and obligations hereunder by a signed written statement of such Person’s acceptance of
such rights and obligations.

          Section 4.8 Amendments. This Agreement may not be amended, modified or supplemented unless
such amendment, modification or supplement is in writing and signed by each of the Stockholders and
the Company.

          Section 4.9 Waiver. The failure of a party hereto at any time or times to require
performance of any provision hereof shall in no manner affect its right at a later time to enforce
the same. No waiver by a party of any condition or of any breach of any term, covenant,
representation or warranty contained in this Agreement shall be effective unless in a writing
signed by the party against whom the waiver is to be effective, and no waiver in any one or more
instances shall be deemed to be a further or continuing waiver of any such condition or breach in
other instances or a waiver of any other condition or breach of any other term, covenant,
representation or warranty.

          Section 4.10 Counterparts. This Agreement may be executed in two or more counterparts,
each of which shall be deemed an original but all of which shall constitute one and the same
Agreement.

          Section 4.11 Submission To Jurisdiction. ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO
THIS AGREEMENT AND ANY ACTION FOR ENFORCEMENT OF ANY JUDGMENT IN RESPECT THEREOF MAY BE BROUGHT IN
THE COURTS OF THE STATE OF NEW YORK OR OF THE UNITED STATES OF AMERICA FOR THE SOUTHERN DISTRICT OF
NEW YORK AND, BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH PARTY HERETO HEREBY ACCEPTS FOR
ITSELF AND IN RESPECT OF ITS PROPERTY, GENERALLY AND UNCONDITIONALLY, THE NON-EXCLUSIVE
JURISDICTION OF THE AFORESAID COURTS AND THE APPELLATE COURTS THEREOF. EACH PARTY HERETO
IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS OUT OF ANY OF THE AFOREMENTIONED COURTS IN ANY SUCH
ACTION OR PROCEEDING BY THE MAILING OF COPIES THEREOF BY REGISTERED OR CERTIFIED MAIL, POSTAGE

22

 

PREPAID, TO SUCH PARTY AT THE ADDRESS FOR NOTICES SET FORTH HEREIN. EACH PARTY HERETO HEREBY
IRREVOCABLY WAIVES ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
OF THE AFORESAID ACTIONS OR PROCEEDINGS ARISING OUT OF OR IN CONNECTION WITH THIS AGREEMENT BROUGHT
IN THE COURTS REFERRED TO ABOVE AND HEREBY FURTHER IRREVOCABLY WAIVES AND AGREES NOT TO PLEAD OR
CLAIM IN ANY SUCH COURT THAT ANY SUCH ACTION OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN
BROUGHT IN AN INCONVENIENT FORUM.

          Section 4.12 Injunctive Relief. Each party hereto acknowledges and agrees that a violation
of any of the terms of this Agreement will cause the other parties irreparable injury for which an
adequate remedy at law is not available. Therefore, the Stockholders agree that each party shall be
entitled to, an injunction, restraining order, specific performance or other equitable relief from
any court of competent jurisdiction, restraining any party from committing any violations of the
provisions of this Agreement, without the need to post a bond or prove the inadequacy of monetary
damages.

          Section 4.13 Recapitalizations, Exchanges, Etc. Affecting the Shares of Common Stock; New
Issuance. The provisions of this Agreement shall apply, to the full extent set forth herein,
with respect to Company Securities and to any and all equity or debt securities of the Company or
any successor or assign of the Company (whether by merger, consolidation, sale of assets, or
otherwise) which may be issued in respect of, in exchange for, or in substitution of, such Company
Securities and shall be appropriately adjusted for any stock dividends, splits, reverse splits,
combinations, reclassifications, recapitalizations, reorganizations and the like occurring after
the date hereof.

          Section 4.14 Termination. Upon the mutual consent of all of the parties hereto or, with
respect to each Stockholder, at such earlier time as such Stockholder and its Affiliates and
Permitted Transferees ceases to Beneficially Own a Registrable Amount, the terms of this Agreement
shall terminate, and be of no further force and effect; provided, however, that the following
shall survive the termination of this Agreement: (i) the provisions of Sections, 3.7, 3.8, 4.5,
4.11, this Section 4.14 and Section 4.15; and (ii) the rights with respect to the breach of any
provision hereof by the Company.

          Section 4.15 Rule 144. The Company covenants that it will file the reports required to be
filed by it under the Securities Act and the Exchange Act and the rules and regulations adopted by
the Commission thereunder (or, if it is not required to file such reports, it will, upon the
request of any holder of Registrable Securities, make publicly available other information so long
as necessary to permit sales in compliance with Rule 144 under the Securities Act), and it will
take such further reasonable action, to the extent required from time to time to enable such holder
to sell Registrable Securities without registration under the Securities Act within the limitation
of the exemptions provided by Rule 144 under the Securities Act, as such Rule 144 may be amended
from time to time, or any similar rule or regulation hereafter adopted by the Commission. Upon the
reasonable request of any holder of Registrable Securities, the Company will deliver to such holder
a written statement as to whether it has complied with such information and filing requirements.

23

 

[Remainder of page left blank intentionally]

24

 

          IN WITNESS WHEREOF, the parties have caused this Agreement to be executed and delivered by
their respective officers or authorized signatories thereunto duly as of the date first above
written.

	 	 	 	 	 

	SWIFT TRANSPORTATION COMPANY	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name: James Fry	 	 
	Title: Executive Vice President, General Counsel and Corporate Secretary	 	 
	 
	 	 	 	 
	JERRY MOYES	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	VICKIE MOYES	 	 
	 
	 
	 	 	 	 
	 	 	 
	 
	THE JERRY AND VICKIE MOYES	 	 
	FAMILY TRUST DATED 12/11/87	 	 
	By: Jerry Moyes, as Co-Trustee	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	 	 	 
	 
	 	 	 	 
	THE JERRY AND VICKIE MOYES	 	 
	FAMILY TRUST DATED 12/11/87	 	 
	By: Vickie Moyes, as Co-Trustee	 	 
	 

	 

	 	 	 
	 

	THE TODD MOYES TRUST	 	 
	DATED 4/27/07	 	 
	By: Michael J. Moyes, as Trustee	 	 
	 
	 	 	 	 
	 	 	 

[Signature page to the Registration Rights Agreement]

 

	 	 	 

	THE HOLLIE MOYES TRUST  
	DATED 4/27/07
	 	 
	By: Michael J. Moyes, as Trustee
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	THE CHRIS MOYES TRUST
	 	 
	DATED 4/27/07
	 	 
	By: Michael J. Moyes, as Trustee
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	THE LYNDEE MOYES NESTER TRUST
	 	 
	DATED 4/27/07
	 	 
	By: Michael J. Moyes, as Trustee
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	THE MARTI LYN MOYES TRUST
	 	 
	DATED 4/27/07
	 	 
	By: Michael J. Moyes, as Trustee
	 	 
	 
	 	 
	 
	 	 
	 

	 	 
	 
	 	 
	THE MICHAEL J. MOYES TRUST
	 	 
	DATED 4/27/07
	 	 
	By: Lyndee Moyes Nester, as Trustee
	 	 
	 
	 	 
	 
	 	 
	 

	 	 

[Signature page to the Registration Rights Agreement]

2exh101.htm

Exhibit 10.1

STOCK EXCHANGE AGREEMENT

STOCK EXCHANGE AGREEMENT (the "Agreement") dated as of  , 2010, by and among Virtual Medical International, Inc., formerly, QE Brushes, Inc., a Nevada corporation whose principal office is located at 469 St. Pierre Road, Los Angeles, California 90077 (“VMII”) and Entertainment Arts Research, Inc, a Nevada corporation (“SELLER”) which owns all of the shares of common stock of Explain My Surgery Inc., a Nevada corporation (“EMSI”).

R E C I T A L S

A.         EMSI is engaged in the business of the design and operation of an Internet based pre-operation consultation system.

B.         SELLER owns 23,401,600 shares of common stock of EMSI which constitute all of the issued and outstanding shares of common stock of EMSI.

C.         VMII is a publicly traded company engaged in the design and operation of an Internet based pre-operation consultation system.

D.         On the Closing Date (as defined herein), VMII will have authorized capital of 250,000,000 shares of common stock, $0.00001 par value per share and 50,000,000 shares of preferred stock, $0.00001 par value per share.

E.         Immediately after Closing, VMII will have 48,769,141shares of common stock outstanding.

F.         VMII desires to acquire one hundred percent (100%) of the issued and outstanding shares of common stock of EMSI, in consideration for which VMII shall issue to SELLER 23,401,600 restricted shares of VMII common stock.  (the “Exchange”)

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AGREEMENT

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows.

ARTICLE I

ACQUISITION OF EMSI COMMON STOCK BY VMII

1.1       Acquisition of EMSI. In the manner and subject to the terms and conditions set forth herein, VMII shall acquire from SELLER, one hundred percent (100%) of the issued and outstanding shares of common stock of EMSI (the "EMSI shares of common stock").

1.2       Effective Date. If all of the conditions precedent to the obligations of each of the parties hereto as hereinafter set forth shall have been satisfied or shall have been waived, the transactions set forth herein (the "Exchange") shall become effective on the Closing Date as defined herein.

1.3       Consideration.

(a)           In connection with the acquisition of the EMSI shares of common stock, VMII will issue to SELLER 23,401,600 restricted shares of VMII common stock.

(b)           If the outstanding shares of VMII common stock are changed into a different number or class of shares by reason of any stock split, division or subdivision of shares, stock dividend, reverse stock split, consolidation of shares, reclassification, recapitalization, or other similar transaction, then the number of shares of common stock referenced in Section 1.3(a), above, shall be appropriately adjusted.

(c)           No fractional shares of VMII Common Stock will be issued in connection with this Agreement, and no certificates or scrip for any such fractional shares will be issued.

	
  

	
1.4

	
Effect of Stock Exchange. As of the Closing Date, all of the following shall occur:

(a)           The Articles of Incorporation of EMSI and VMII, as in effect on the Effective Date, shall continue in effect without change or amendment.

(b)           The Bylaws of EMSI and VMII, as in effect on the Closing Date, shall continue in effect without change or amendment.

1.5       Disclosure Schedules. Simultaneously with the execution of this Agreement: (a) VMII shall deliver a schedule relating to VMII which, along with the reports of VMII filed with the Securities and Exchange Commission, shall be referred to as the "VMII Disclosure Schedule" , and (b) SELLER shall deliver a schedule relating to EMSI (the "EMSI Disclosure Schedule" and collectively with the VMII Disclosure Schedule, the "Disclosure Schedules") setting forth the matters required to be set forth in the Disclosure Schedules as described elsewhere in this Agreement. The Disclosure Schedules shall be deemed to be part of this Agreement. VMII’S Disclosure Schedule shall include, but is not limited to, all publicly filed documents of VMII.

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1.6       Further Action. From time to time after the Closing, without further consideration, the parties shall execute and deliver such instruments of conveyance and transfer and shall take such other action as any party reasonably may request to more effectively transfer the EMSI shares of common stock and VMII Shares.

ARTICLE II

CONDUCT OF BUSINESS PENDING CLOSING; STOCKHOLDER APPROVAL

VMII and SELLER covenant that between the date hereof and the Closing Date (as hereinafter defined):

2.1       Access by SELLER. VMII shall afford to SELLER and its legal counsel, accountants and other representatives, throughout the period prior to the Closing Date, full access, during normal business hours, to (a) all of the books, contracts and records of VMII, and shall furnish SELLER and EMSI, during such period, with all information concerning VMII that SELLER may reasonably request and (b) the properties of VMII in order to conduct inspections at SELLER’s expense to determine that VMII is operating in material compliance with all applicable federal, state and local and foreign statutes, rules and regulations, and that VMII's assets are substantially in the condition and of the capacities represented and warranted in this Agreement. Any such investigation or inspection by SELLER shall not be deemed a waiver of, or otherwise limit, the representations, warranties and covenants contained herein. SELLER shall grant identical access to VMII and its agents.

2.2       Conduct of Business. During the period from the date hereof to the Closing Date, the business of VMII and EMSI shall be operated by the respective entities in the usual and ordinary course of such business and in material compliance with the terms of this Agreement. Without limiting the generality of the foregoing:

(a)           VMII and SELLER, respectively, shall each use their reasonable efforts to (i) keep available the services of the present agents of VMII and EMSI; (ii) complete or maintain all existing material arrangements; (iii) maintain the integrity of all confidential information of VMII and EMSI; and (iv) comply in all material respects with all applicable laws; and (b) Except as contemplated by this Agreement, VMII and EMSI shall not (i) sell, lease, assign, transfer or otherwise dispose of any of their material assets or property including cash; (ii) agree to assume, guarantee, endorse or in any way become responsible or liable for, directly or indirectly, any material contingent obligation; make any material capital expenditures; (iii) enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business; (iv) declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding; (v) make or suffer to exist any advances or loans to, or investments in any person, firm, corporation or other business entity not a party to this Agreement; (vi) enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; (vii) create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired; or (viii) agree to do any of the foregoing.

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2.3       Exclusivity to SELLER and EMSI. VMII and its officers, directors, representatives and agents, from the date hereof, until the Closing Date (unless this Agreement shall be earlier terminated as hereinafter provided), shall not hold discussions with any person or entity, other than SELLER and EMSI or their respective agents concerning the Exchange, nor solicit, negotiate or entertain any inquiries, proposals or offers to purchase the business of VMII, nor the shares of capital stock of VMII from any person other than SELLER and EMSI, nor, except in connection with the normal operation of VMII's respective business, or as required by law, or as authorized in writing by SELLER, disclose any confidential information concerning VMII to any person other than SELLER, EMSI and SELLER and EMSI’s representatives or agents. SELLER and EMSI shall from the date hereof, and until the Closing Date, owe the identical obligations of confidentiality and exclusivity to VMII concerning the Exchange as stated in this Section.

2.4       Board and Shareholder Approval. The Board of Directors of VMII has determined that the Exchange is fair to and in the best interests of its stockholders and has approved and adopted this Agreement and the terms of the Exchange.  Shareholders of VMII will not vote or approve of the transaction contemplated by this agreement.  This Agreement constitutes, and all other agreements contemplated hereby will constitute, when executed and delivered by VMII, the valid and binding obligation of VMII, enforceable in accordance with their respective terms.

ARTICLE III

REPRESENTATIONS AND WARRANTIES OF VMII

Except as set forth in the VMII Disclosure Schedule (which incorporates all the reports of VMII filed with the United States Securities and Exchange Commission) VMII represents and warrants to SELLER as follows:

3.1       Organization and Standing. VMII is a corporation duly organized, validly existing and in good standing under the laws of the State of Nevada. VMII has all requisite corporate power to carry on its business as it is now being conducted and is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where such qualification is necessary under applicable law except where the failure to qualify (individually or in the aggregate) will not have any material adverse effect on the business or prospects of VMII. The copies of the Articles of Incorporation and Bylaws of VMII, as amended to date, which have been delivered to SELLER and EMSI, are true and complete copies of these documents as now in effect.

3.2      Capitalization.

(a)           The  number of shares of capital stock which are issued and outstanding are set forth in Recital D. All of such shares of capital stock that are issued and outstanding are duly authorized, validly issued and outstanding, fully paid and nonassessable, and were not issued in violation of the preemptive rights of any person. Other than as set forth in the VMII Disclosure Schedule and Recital D, there are no subscriptions, warrants, rights or calls or other commitments or agreements to which VMII is a party or by which it is bound, pursuant to which VMII is or may be required to issue or deliver securities of any class. Other than as set forth in the VMII Disclosure Schedule and Recital D, there are no outstanding securities convertible or exchangeable, actually or contingently, into common stock or any other securities of VMII.

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(b)           To VMII’S knowledge, all outstanding shares of VMII capital stock have been issued and granted in compliance with all applicable securities laws and other applicable legal requirements.

(c)           VMII has good and marketable title to all of the VMII Shares, free and clear of all liens, claims and encumbrances of any third persons.

3.3       Subsidiaries. VMII owns no subsidiaries nor does it own or have an interest in any other corporation, partnership, joint venture or other entity.

3.4       Authority. VMII’s Board of Directors has determined that the Exchange is fair to and in the best interests of VMII’s stockholders. The execution, delivery and performance by VMII of this Agreement (including the contemplated issuance of up to 23,401,600 VMII Shares in accordance with this Agreement) has been duly authorized by all necessary action on the part of VMII. VMII has the absolute and unrestricted right, power and authority to perform its obligations under this Agreement. This Agreement constitutes, and all other agreements contemplated hereby will constitute, when executed and delivered by VMII in accordance herewith, the valid and binding obligations of VMII, enforceable in accordance with their respective terms.

3.5       Assets. Except as set forth in the VMII Disclosure Schedule, VMII has no material assets. VMII has good and marketable title to all of the assets and properties listed on Schedule 3.5 and as reflected on the balance sheet included in the VMII Financial Statements (as hereinafter defined).

3.6       Contracts and Other Commitments. Except as set forth in the VMII Disclosure Schedule, VMII is not a party to any contracts or agreements.

3.7       Litigation. There is no claim, action, proceeding, or investigation pending or, to its knowledge, threatened against or affecting VMII before or by any court, arbitrator or governmental agency or authority which, in its reasonable judgment, could have a material adverse effect on the operations or prospects of VMII. There are no decrees, injunctions or orders of any court, governmental department, agency or arbitration outstanding against VMII or asserted against VMII that has not been paid.

3.8       Taxes. For purposes of this Agreement, (A) "Tax" (and, with correlative meaning, "Taxes") shall mean any federal, state, local or foreign income, alternative or add_ on minimum, business, employment, franchise, occupancy, payroll, property, sales, transfer, use, value added, withholding or other tax, levy, impost, fee, imposition, assessment or similar charge together with any related addition to tax, interest, penalty or fine thereon; and (B) "Returns" shall mean all returns (including, without limitation, information returns and other material information), reports and forms relating to Taxes.

	
(a)          

	
VMII has duly filed all Returns required to be filed by it other than Return (individually and in the aggregate) where the failure to file would have no material adverse effect on the business or prospects of VMII. All such Returns were, when filed, and to the knowledge of VMII are, accurate and complete in all material respects and were prepared in conformity with applicable laws and regulations. VMII has paid or will pay in full or has adequately reserved against all Taxes otherwise assessed against it through the Closing Date.

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(b)          

	
VMII is not a party to any pending action or proceeding by any governmental authority for the assessment of any Tax, and, to the knowledge of VMII, no claim for assessment or collection of any Tax related to VMII has been asserted against VMII that has not been paid. There are no Tax liens upon the assets of VMII. There is no valid basis, to VMII 's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any Tax to be issued to VMII by any governmental authority.

3.9       Compliance with Laws and Regulations. VMII has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements (federal, state and local and foreign) applicable to it in all jurisdictions where the business of VMII is conducted or to which VMII is subject, including all requisite filings with the SEC. VMII has not made any misrepresentation nor has omitted any material facts in any of its SEC filings to date.

3.10     Hazardous Materials. To the knowledge of VMII, VMII has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use, maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term “Hazardous Materials” means any substance now or hereafter designated pursuant to Section 307(a) and 311 (b)(2)(A) of the Federal Clean Water Act, 33 USC §§ 1317(a), 1321(b)(2)(A), Section 112 of the Federal Clean Air Act, 42 USC § 3412, Section 3001 of the Federal Resource Conservation and Recovery Act, 42 USC § 6921, Section 7 of the Federal Toxic Substances Control Act, 15 USC § 2606, or Section 101(14) and Section 102 of the Comprehensive Environmental Response, Compensation and Liability Act, 42 USC §§ 9601(14), 9602.

3.11     No Breaches. The making and performance of this Agreement will not (i) conflict with or violate the Articles of Incorporation or the Bylaws of VMII, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which VMII is a party or by which VMII or any of its businesses, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of VMII under, or create any rights of termination, cancellation or acceleration in any person under, any contract.

3.12     Employees. VMII has no employees that are represented by any labor union or collective bargaining unit. Nor does VMII have any employment agreements or compensation plans which are in effect with anyone.

3.13     Financial Statements. Year end audited financial statements and unaudited quarterly stub financial statements are available online at www.sec.gov (collectively the "Financial Statements"). The Financial Statements present fairly, in all material respects, the financial position on the dates thereof and results of operations of VMII for the periods indicated, prepared in accordance with generally accepted accounting principles ("GAAP"), consistently applied. There are no assets of VMII the value of which is materially overstated in said balance sheets.

3.14     Absence of Certain Changes or Events. Except as set forth in the VMII Disclosure Schedule, since June 30, 2010 (the "Balance Sheet Dates"), there has not been:

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(a)           any material adverse change in the financial condition, properties, assets, liabilities or business of VMII;

(b)           any material damage, destruction or loss of any material properties of VMII, whether or not covered by insurance;

(c)           any material adverse change in the manner in which the business of VMII and has been conducted;

(d)           any material adverse change in the treatment and protection of trade secrets or other confidential information of VMII; and

(e)           any occurrence not included in paragraphs (a) through (d) of this Section 3.14 which has resulted, or which VMII has reason to believe, might be expected to result in, a material adverse change in the business or prospects of VMII.

3.15     Government Licenses, Permits, Authorizations. VMII has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted ("Licenses and Permits"). All such Licenses and Permits are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or, to the knowledge of VMII, threatened.

3.16     Employee Benefit Plans.

(a)           VMII has no bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan.

(b)           VMII has not maintained, sponsored or contributed to, any employee pension benefit plan (as defined in Section 3(2) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA")) or any similar pension benefit plan under the laws of any foreign jurisdiction.

(c)           Except as set forth in the VMII Disclosure Schedule, neither the execution, delivery or performance of this Agreement, nor the consummation of the Exchange or any of the other transactions contemplated by this Agreement, will result in any bonus, golden parachute, severance or other payment or obligation to any current or former employee or director of any of VMII, or result in any acceleration of the time of payment, provision or vesting of any such benefits.

3.17     Business Locations. Other than as set forth in the VMII Disclosure Schedule, VMII does not own or lease any real or personal property in any state or country.

3.18     Intellectual Property. VMII owns no intellectual property of any kind. VMII is not currently in receipt of any notice of any violation or infringements of, and is not knowingly violating or infringing, or to the best of its knowledge has not violated or infringed the rights of others in any trademark, trade name, service mark, copyright, patent, trade secret, know-how or other intangible asset.

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3.19     Governmental Approvals. Except as set forth in the VMII Disclosure Schedule, no authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by VMII with, any governmental authority, domestic or foreign, federal, state or local, is required in connection with VMII’s execution, delivery and performance of this Agreement. Except as set forth in the VMII Disclosure Schedule, no consents of any other parties are required to be received by or on the part of VMII to enable VMII to enter into and carry out this Agreement.

3.20     Transactions with Affiliates. Except as set forth in the VMII Disclosure Schedule, VMII is not indebted for money borrowed, either directly or indirectly, from any of its officers, directors, or any Affiliate (as defined below), in any amount whatsoever; nor are any of its officers, directors, or Affiliates indebted for money borrowed from VMII; nor are there any transactions of a continuing nature between VMII and any of its officers, directors, or Affiliates not subject to cancellation which will continue beyond the Closing Date, including, without limitation, use of the assets of VMII for personal benefit with or without adequate compensation. For purposes of this Agreement, the term "Affiliate" shall mean any person that, directly or indirectly, through one or more intermediaries, controls or is controlled by, or is under common control with, the person specified. As used in the foregoing definition, the term (i) "control” shall mean the power through the ownership of voting securities, contract or otherwise to direct the affairs of another person and (ii) "person" shall mean an individual, firm, trust, association, corporation, partnership, government (whether federal, state, local or other political subdivision, or any agency or bureau of any of them) or other entity.

3.21     No Distributions. VMII has not made nor has any intention of making any distribution or payment to any of its shareholders with respect to any of its shares prior to the Closing Date.

3.22     Liabilities. VMII has no material direct or indirect indebtedness, liability, claim, loss, damage, deficiency, obligation or responsibility, fixed or unfixed, choate or inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute, contingent or otherwise ("Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) Liabilities fully and adequately reflected or reserved against on the VMII Balance Sheet, (ii) Liabilities incurred since the Balance Sheet Date in the ordinary course of the business of VMII, or (iii) Liabilities otherwise disclosed in this Agreement, including the exhibits hereto and VMII Disclosure Schedule.

3.23     Accounts Receivable. VMII has no accounts receivable.

3.24     Insurance. VMII has no insurance policies in effect.

3.25     No Omissions or Untrue Statements. To the best of each party’s knowledge no representation or warranty made by VMII or the PRINCIPAL VMII SHARHOLDER (with respect to Section 3.25 only) to SELLER and EMSI in this Agreement, the VMII Disclosure Schedule or in any certificate of an VMII officer required to be delivered to SELLER pursuant to the terms of this Agreement, contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading as of the date hereof and as of the Closing Date.

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ARTICLE IV

REPRESENTATIONS AND WARRANTIES OF SELLER

Except as set forth in the EMSI Disclosure Schedule, SELLER jointly and severally represent and warrant to VMII as follows as of the date hereof and as of the Closing Date:

4.1       Organization and Standing of EMSI. EMSI is a corporation duly organized, validly existing and in good standing under the laws of Nevada, and has the corporate power to carry on its business as now conducted and to own its assets and is duly qualified to transact business as a foreign corporation in each state where such qualification is necessary except where the failure to qualify will not have a material adverse effect on the business or prospects of EMSI. The copies of the Articles of Incorporation and Bylaws of EMSI, as amended to date, and made available to VMII, are true and complete copies of those documents as now in effect.

4.2       Authority. The Board of Directors of EMSI has not approved or disapproved of this agreement.

4.3       No Conflict. The making and performance of this Agreement will not (i) conflict with the Articles of Incorporation or the Bylaws of EMSI, (ii) violate any laws, ordinances, rules, or regulations, or any order, writ, injunction or decree to which EMSI is a party or by which EMSI or any of their material assets, business, or operations may be bound or affected or (iii) result in any breach or termination of, or constitute a default under, or constitute an event which, with notice or lapse of time, or both, would become a default under, or result in the creation of any encumbrance upon any material asset of EMSI, or create any rights of termination, cancellation, or acceleration in any person under any material agreement, arrangement, or commitment.

4.4       Properties. Except as set forth in the EMSI Disclosure Schedule, SELLER has good and marketable title to all of the EMSI shares of common stock, free and clear of all liens, claims and encumbrances of third persons whatsoever, and EMSI has good and marketable title to all of the assets and properties which it purports to own as reflected on the balance sheet included in the EMSI Financial Statements (as hereinafter defined), or thereafter acquired.

4.5       Capitalization of EMSI. The authorized capital of EMSI consists of 100,000,000 shares of common stock, of which 23,401,600 shares of common stock are issued and outstanding.  There are no other classes of securities authorized for issuance by EMSI.   Such outstanding shares of common stock are duly authorized, validly issued, fully paid, and non-assessable. As of the date hereof, there were no outstanding options, warrants or rights of conversion or other rights, agreements, arrangements or commitments relating to the securities of EMSI or obligating EMSI to issue or sell shares of common stock. To EMSI’S knowledge, all outstanding shares of common stock of EMSI have been issued and granted in compliance with all applicable legal requirements.

4.6       Governmental Approval; Consents. No authorization, license, permit, franchise, approval, order or consent of, and no registration, declaration or filing by SELLER or EMSI with any governmental authority, domestic or foreign, federal, state or local, is required in connection with SELLERS OR EMSI’s execution, delivery and performance of this Agreement. Except as set forth in the EMSI Disclosure Schedule, no consents of any other parties are required to be received by or on the part of SELLER or EMSI to enable SELLER to enter into and carry out this Agreement.

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4.7       Adverse Developments. Since June 30, 2010, there have been no material adverse changes in the assets, liabilities, properties, operations or financial condition of EMSI, and no event has occurred other than in the ordinary and usual course of business or as set forth in the EMSI Financial Statements which could be reasonably expected to have a materially adverse effect upon EMSI.

4.8       Taxes. EMSI has duly filed all returns required to be filed. All such returns were, when filed, and to SELLER’S knowledge are, accurate and complete in all material respects and were prepared in conformity with applicable laws and regulations. EMSI has paid in full all taxes through the Closing Date. EMSI is not a party to any pending action or proceeding by any governmental authority for the assessment of any tax, and, to the knowledge of EMSI, no claim for assessment or collection of any tax has been asserted against EMSI that have not been paid. There are no tax liens upon the assets of EMSI. There is no valid basis, to EMSI 's knowledge, for any assessment, deficiency, notice, 30-day letter or similar intention to assess any tax to be issued to EMSI by any governmental authority.

4.9       Litigation. Except as set forth on the EMSI Disclosure Schedule, there is no material claim, action, proceeding, or investigation pending or, to their knowledge, threatened against or affecting SELLER or EMSI before or by any court, arbitrator or governmental agency or authority. There are no material decrees, injunctions or orders of any court, governmental department, agency or arbitration outstanding against SELLER or EMSI.

4.10     Compliance with Laws and Regulations. EMSI has complied and is presently complying, in all material respects, with all laws, rules, regulations, orders and requirements applicable to it in all jurisdictions in which its operations are currently conducted or to which it is currently subject.

4.11     Governmental Licenses, Permits and Authorizations. EMSI has all governmental licenses, permits, authorizations and approvals necessary for the conduct of its business as currently conducted. All such licenses, permits, authorizations and approvals are in full force and effect, and no proceedings for the suspension or cancellation of any thereof is pending or threatened.

4.12     Liabilities. EMSI has no material direct or indirect liabilities, as that term is defined in Section 3.22 ("EMSI Liabilities"), whether or not of a kind required by generally accepted accounting principles to be set forth on a financial statement, other than (i) EMSI Liabilities fully and adequately reflected or reserved against on the EMSI Balance Sheet, (ii) EMSI Liabilities incurred in the ordinary course of the business of EMSI, and (iii) EMSI Liabilities otherwise disclosed in this Agreement, including the Exhibits hereto.

4.13     SELLER's Representations Regarding VMII Shares.

(a)           SELLER acknowledges that VMII has limited assets and business and that the VMII Shares are speculative and involve a high degree of risk, including among many other risks that the VMII Shares will be restricted as elsewhere described in this Agreement and will not be transferable unless first registered under the Securities Act of 1933, as amended ("Act"), or pursuant to an exemption from the Act's registration requirements.

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(b)           SELLER acknowledges and agrees that it has been furnished with copies of the periodic reports of VMII filed with the United States Securities and Exchange Commission including those on Forms 10-K and 10-Q since VMII’s inception. SELLER has had an opportunity to ask questions of and receive answers from VMII regarding its business, assets, results of operations, financial condition and plan of operation and the terms and conditions of the issuance of the VMII Shares.

(c)           SELLER is an accredited investor as that term is defined in Regulation 501 of the Securities Act of 1933, as amended and are each acquiring the VMII Shares for his own account, and not for the account of any other person other than for the benefit of SELLER, and SELLER have no current intent to make any resale, pledge, hypothecation, distribution or public offering of the VMII Shares except as permitted by applicable law.

(d)           SELLER, acting with the assistance of counsel and other professional advisers, possesses such knowledge and experience in financial, tax and business matters as to enable it to utilize the information made available by VMII, to evaluate the merits and risks of acquiring the VMII Shares and to make an informed investment decision with respect thereto.

(e)           SELLER was not solicited by VMII or anyone on VMII's behalf to enter into any transaction whatsoever, by any form of general solicitation or general advertising, as those terms are defined in Regulation D of the Securities Act of 1933, as amended.

4.14     Contracts and Other Commitments. Schedule 4.14 of the EMSI Disclosure Schedule consists of a true and complete list of all material contracts, agreements, commitments and other instruments (whether oral or written) to which EMSI is a party. EMSI has made or will make available to VMII a copy of each such contract. All such contracts are valid and binding upon EMSI and are in full force and effect and are enforceable in accordance with their respective terms. No such contracts are in breach, and no event has occurred which, with the lapse of time or action by a third party, could result in a material default under the terms thereof. To EMSI’S knowledge, no stockholder of EMSI has received any payment from any contracting party in connection with or as an inducement for causing EMSI to enter into any such contract.

4.15     Absence of Certain Changes or Events. Except as set forth in the EMSI Disclosure Schedule, since June 30, 2010 (the "Balance Sheet Date"), there has not been:

(a)           any material adverse change in the financial condition, properties, assets, liabilities or business of EMSI;

(b)           any material damage, destruction or loss of any material properties of EMSI, whether or not covered by insurance;

(c)           any material adverse change in the manner in which the business of EMSI and has been conducted;

(d)           any material adverse change in the treatment and protection of trade secrets or other confidential information of EMSI; and

(e)           any occurrence not included in paragraphs (a) through (d) of this Section 4.15 which has resulted, or which EMSI has reason to believe, might be expected to result in a material adverse change in the business or prospects of EMSI.

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4.16     Financial Statements.   EMSI will supply financial statements as required by VMII.

4.17     EMSI Intellectual Property. Schedule 4.17 of the EMSI Disclosure Schedule sets forth a complete and correct list and summary description of all intellectual property, including computer software, trademarks, trade names, service marks, service names, brand names, copyrights and patents, registrations thereof and applications therefore, applicable to or used in the business of EMSI, together with a complete list of all licenses granted by or to EMSI with respect to any of the above. Except as otherwise set forth in Schedule 4.17 all such trademarks, trade names, service marks, service names, brand names, copyrights and patents are owned by EMSI, free and clear of all liens, claims, security interests and encumbrances of any nature whatsoever. EMSI is not currently in receipt of any notice of any violation or infringements of, and is not knowingly violating or infringing, the rights of others in any trademark, trade name, service mark, copyright, patent, trade secret, know-how or other intangible asset. EMSI has not (i) licensed any of the material proprietary assets to any person or entity on an exclusive basis, or (ii) entered into any covenant not to compete or agreement limiting its ability to exploit fully any proprietary asset or to transact business in any market or geographical area or with any person or entity.

4.18     Subsidiaries. Except as set forth in Schedule 4.18 of the EMSI Disclosure Schedule, EMSI owns no subsidiaries nor does it own or have an interest in any other corporation, partnership, joint venture or other entity.

4.19     Hazardous Materials. To the knowledge of EMSI, EMSI has not violated, or received any written notice from any governmental authority with respect to the violation of any law, rule, regulation or ordinance pertaining to the use, maintenance, storage, transportation or disposal of "Hazardous Materials." As used herein, the term “Hazardous Materials” means any substance now or hereafter designated which is found to be toxic or harmful to humans or the environment when present in certain amounts or quantities.

4.20     Employees. EMSI has no employees that are represented by any labor union or collective bargaining unit.

4.21     Employee Benefit Plans. The EMSI Disclosure Schedule identifies each salary, bonus, material deferred compensation, material incentive compensation, stock purchase, stock option, severance pay, termination pay, hospitalization, medical, insurance, supplemental unemployment benefits, profit-sharing, pension or retirement plan, program or material agreement.

4.22     Business Locations. Other than as set forth in the EMSI Disclosure Schedule, EMSI does not own or lease any real or personal property in any state or country.

4.23     Insurance. Except as set forth in Schedule 4.23 of the EMSI Disclosure Schedule, EMSI has no insurance policies in effect.

4.24     No Omission or Untrue Statement. To the best of each party’s knowledge, no representation or warranty made by SELLER to VMII in this Agreement contains or will contain any untrue statement of a material fact, or omits or will omit to state a material fact necessary to make the statements contained herein or therein not misleading as of the date hereof and as of the Closing Date.

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ARTICLE V

CLOSING

5.1       Closing. The Exchange shall be completed on the first business day after the day on which the last of the conditions contained in this Article V is fulfilled or waived (the “Closing Date”); provided, however, that in no event shall the Closing occur later than December 31, 2010, unless otherwise agreed to by the parties. The Closing shall take place as the parties may agree. At the Closing, VMII and SELLER shall make the deliveries contemplated by this Agreement, and in accordance with the terms of this Agreement.

5.2       VMII’s Closing Deliveries. At the Closing, in addition to documents referred elsewhere, VMII shall cause to be delivered to SELLER:

(a)           a certificate, dated as of the Closing Date, executed by the President or Chief Executive Officer of VMII, to the effect that the representations and warranties contained in this Agreement are true and correct in all material respects at and as of the Closing Date and that VMII has complied with or performed in all material respects all terms, covenants and conditions to be complied with or performed by VMII on or prior to the Closing Date;

(b)           certificates representing the VMII Shares issuable upon consummation of

the Exchange;

(c)           Certified resolution of the Board of Directors and shareholders authorizing and approving the transactions set forth herein;

(d)           The VMII Disclosure Schedule;

(e)           such other documents as SELLER or their counsel may reasonably require.

5.3       EMSI’s Closing Deliveries. At the Closing, in addition to documents referred to elsewhere, SELLER shall deliver to VMII:

(a)           a certificate of SELLER dated as of the Closing Date that the representations and warranties of SELLER contained in this Agreement are true and correct in all material respects and that SELLER have complied with or performed in all material respects all terms, covenants, and conditions to be complied with or performed by SELLER on or prior to the Closing Date;

(b)           certificates representing EMSI shares of common stock owned by SELLER, duly endorsed for transfer or accompanied by a properly executed stock power;

(c)           the EMSI Disclosure Schedule;

(d)           such other documents as VMII or its counsel may reasonably require.

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ARTICLE VI

CONDITIONS TO OBLIGATIONS OF VMII

The obligation of VMII to consummate the Closing is subject to the following conditions, any of which may be waived by it in its sole discretion.

6.1       Compliance by SELLER. SELLER shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or complied with in all material respects by SELLER prior to or on the Closing Date;

6.2       Accuracy of SELLER’s Representations. SELLER’s representations and warranties contained in this Agreement (including the Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for such changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

6.3       Documents. All documents and instruments required hereunder to be delivered by SELLER to VMII at the Closing shall be delivered in form and substance reasonably satisfactory to VMII and its counsel.

6.4       Litigation. No litigation seeking to enjoin the transactions contemplated by this Agreement or to obtain damages on account hereof shall be pending or, to VMII’s knowledge, be threatened.

6.5       Material Adverse Change. Except for operations in the ordinary course of business, no material adverse change shall have occurred subsequent to June 30, 2010 in the financial position, results of operations, assets, or liabilities of EMSI, nor shall any event or circumstance have occurred which would result in a material adverse change in the financial position, results of operations, assets, or liabilities of EMSI.

6.6       Approval by Board of Directors. The Board of Directors of VMII shall have approved this Agreement and the transactions contemplated hereby.

6.7       Satisfaction with Due Diligence. VMII shall have been satisfied with its due diligence review of EMSI, its subsidiaries and their operations.

6.8       Regulatory Compliance. VMII shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

ARTICLE VII

CONDITIONS TO SELLER’S OBLIGATIONS

SELLER’s obligation to consummate the Closing is subject to the following conditions:

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7.1       Compliance by VMII.  VMII shall have performed and complied in all material respects with all agreements and conditions required by this Agreement to be performed or complied with by them prior to or on the Closing Date.

7.2       Accuracy of Representations of VMII. The representations and warranties of VMII contained in this Agreement (including the exhibits hereto and the VMII Disclosure Schedule) or any schedule, certificate, or other instrument delivered pursuant to the provisions hereof or in connection with the transactions contemplated hereby shall be true and correct in all material respects at and as of the Closing Date (except for changes permitted by this Agreement) and shall be deemed to be made again as of the Closing Date.

7.3       Continuation as Publicly Traded Company. VMII shares shall continue to trade on the Bulletin Board.

7.4       Litigation. No litigation seeking to enjoin the transactions contemplated by this Agreement or to obtain damages on account hereof shall be pending or to SELLER’ knowledge, be threatened.

7.5       Documents. All documents and instruments required hereunder to be delivered by VMII at the Closing shall be delivered in form and substance reasonably satisfactory to SELLER and their counsel.

7.6       Balance Sheet. Except as set forth in Section 7.6 of the VMII Disclosure Schedule, VMII shall have no liabilities except as incurred in the ordinary course of business, as reflected on VMII's most recent balance sheet, or as otherwise approved by SELLER.

7.7       Approval by Board of Directors and Shareholders.  Neither the board of directors nor shareholders of EMSI shall have approved this Agreement and the transactions contemplated hereby.

7.8       Satisfaction with Due Diligence. SELLER shall have been satisfied with its due diligence review of VMII and satisfied themselves that VMII continues to trade its shares on the Bulletin Board.

7.9       Regulatory Compliance. EMSI shall have received any and all regulatory approvals and consents required to complete the transactions contemplated hereby.

7.10     Outstanding Shares. VMII remains a publicly traded corporation and VMII shall have __________ shares of VMII common stock issued and outstanding prior to the Closing.

ARTICLE VIII

TERMINATION

    8.1 Termination Prior to Closing.

(a)           If the Closing has not occurred by December 31, 2010, any party may terminate this Agreement at any time thereafter by giving written notice of termination to the other, provided, however, that no party may terminate this Agreement if such party has breached any material terms or

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conditions of this Agreement and such breach has prevented the timely closing of the Exchange. Notwithstanding the above, such deadline may be extended one or more times, only by mutual written consent of SELLER and VMII.

(b)           Prior to December 31, 2010, any party may terminate this Agreement following the insolvency or bankruptcy of the other party hereto, or if any one or more of the conditions to Closing set forth in Article VI or Article VII shall become incapable of fulfillment or there shall have occurred a material breach of this Agreement and either such condition of breach shall not have been waived by the party for whose benefit the condition was established, then VMII (in the case of a condition in Article VI) or SELLER (in the case of a condition specified in Article VII) may terminate this Agreement. In addition, either VMII or SELLER may terminate this Agreement upon written notice to the other if it shall reasonably determine that the Exchange has become inadvisable by reason of the institution or threat by any federal, state or municipal governmental authorities of a formal investigation or of any action, suit or proceeding of any kind against either or both parties.

8.2       Consequences of Termination. Upon termination of this Agreement pursuant to this Article VIII or any other express right of termination provided elsewhere in this Agreement, the parties shall be relieved of any further obligation under this Agreement except for the obligations in Section 11.4; provided, however, that no termination of this Agreement, pursuant to this Article VIII hereof or under any other express right of termination provided elsewhere in this Agreement shall operate to release any party from any liability to any other party incurred otherwise than under this Agreement before the date of such termination, or from any liability resulting from any willful misrepresentation of a material fact made in connection with this Agreement or willful breach of any material provision hereof.

ARTICLE IX

ADDITIONAL COVENANTS

9.1       Mutual Cooperation. The parties hereto will cooperate with each other, and will use all reasonable efforts to cause the fulfillment of the conditions to the parties' obligations hereunder and to obtain as promptly as possible all consents, authorizations, orders or approvals from each and every third party, whether private or governmental, required in connection with the transactions contemplated by this Agreement.

9.2       Changes in Representations and Warranties of a Party. Between the date of this Agreement and the Closing Date, no party shall directly or indirectly, enter into any transaction, take any action, or by inaction permit an otherwise preventable event to occur, which would result in any of the representations and warranties of such party herein contained not being true and correct at and as of the Closing Date. Each party shall promptly give written notice to the other parties upon becoming aware of (A) any fact which, if known on the date hereof, would have been required to be set forth or disclosed pursuant to this Agreement, and (B) any impending or threatened breach in any material respect of any of the party's representations and warranties contained in this Agreement and with respect to the latter shall use all reasonable efforts to remedy same.

9.3       SEC Filings. The parties agree that the following filings shall be made with the Securities and Exchange Commission ("Commission"): (a) a report on Form 8-K will be filed with the Commission disclosing the consummation of the Exchange; and, (b) any and all other filings necessary to comply with the Exchange Act.

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9.4       Conduct of Business. During the period from the date of this Agreement until the earlier of the Closing Date or the termination of this Agreement in accordance with its terms, EMSI shall continue to conduct its businesses and maintain its business relationships in the ordinary and usual course consistent with past practice and will not, without limitation, without the prior written consent of VMII:

(a)           Sell, lease, assign transfer or otherwise dispose of any of its material assets, including cash;

(b)           Agree to, or assume guarantee, endorse or otherwise in any way be or become responsible or liable for, directly or indirectly, any material contingent obligation;

(c)           Make any material capital expenditures;

(d)           Enter into any transaction concerning a merger or consolidation other than with the other party hereto or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, or assets, or stock or securities convertible into stock of any subsidiary, or make any material change in the present method of conducting business;

(e)           Declare or pay any dividends or make any other distribution (whether in cash or property) on any shares of its capital stock or purchase, redeem, retire or otherwise acquire for value any shares of its capital stock or warrants or options whether now or hereafter outstanding;

(f)           Make any advances or loans to, or investments in any person, firm, corporation or other business entity not a party to this Agreement;

(g)           Enter into any new material agreement or be or become liable under any new material agreement, for the lease, hire or use of any real or personal property; or

(h)           Create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property or assets, income or profits, whether now owned or hereafter acquired.

ARTICLE X

SECURITIES

10.1     VMII Shares Not Registered. SELLER has been advised that the VMII Shares have not been and when issued, will not be registered under the Securities Act of 1933, the securities laws of any state of the United States or the securities laws of any other country and that in issuing and selling the VMII Shares to SELLER pursuant hereto, VMII is relying upon the "safe harbor provided by Regulation 506 of Regulation D of the Securities Act of 1933 for offers and sales of securities occurring outside the United States ("Regulation S") under the Act. Resales of the VMII Shares may only be made pursuant to an effective registration statement or the availability of an exemption from registration. All certificates evidencing the VMII Shares shall, unless and until removed in accordance with law, bear a restrictive legend substantially in the following form:

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The securities evidenced hereby have not been registered under the Securities Act of 1933, as amended, nor any other applicable securities act (the "Acts"), and may not be sold, transferred, assigned, pledged or otherwise distributed, unless there is an effective registration statement under such Acts covering such securities or the Company receives an opinion of counsel for the holder of these securities (concurred on by counsel for the Company) stating that such sale, transfer, assignment, pledge or distribution is exempt from or in compliance with the registration and prospectus delivery requirements of such Acts.

10.2     Indemnification by VMII. VMII shall indemnify SELLER in respect of, and hold SELLER harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines fees, penalties, interest obligations, deficiencies, losses and expenses (including without limitation attorneys fees and litigation costs) incurred or suffered by SELLER:

(a)           resulting from any misrepresentation, breach of warranty or failure to perform any covenant or agreement of VMII contained in this Agreement; and

(b)           resulting from any liability of VMII incurred or resulting from activities that took place prior to the Closing not disclosed on the VMII Financial Statements.

10.3     Indemnification by SELLER. SELLER shall indemnify VMII in respect of, and hold VMII harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether known or unknown, or due or to become due or otherwise), monetary damages, fines fees, penalties, interest obligations, deficiencies, losses and expenses (including without limitation attorneys fees and litigation costs) incurred or suffered by VMII:

(a)           resulting from any misrepresentation, breach of warranty or failure to perform any covenant or agreement of SELLER contained in this Agreement; and,

(b)           resulting from any liability of SELLER incurred or resulting from activities that took place prior to the Closing not disclosed on the EMSI Financial Statements.

ARTICLE XI

MISCELLANEOUS

11.1     Expenses. Each party shall each pay its own expenses incident to the negotiation, preparation, and carrying out of this Agreement, including legal and accounting and audit fees.

11.2     Survival of Representations, Warranties and Covenants. All statements contained in this Agreement or in any certificate delivered by or on behalf of VMII or SELLER pursuant hereto, or in connection with the actions contemplated hereby shall be deemed representations, warranties and covenants by SELLER and VMII as the case may be, hereunder. All representations, warranties, and covenants made by VMII or SELLER in this agreement, or pursuant hereto, shall survive the Closing in a period of two (2) years.

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11.3     Publicity. SELLER and VMII shall not issue any press release or make any other public statement, in each case, relating to, in connection with or arising out of this Agreement or the transactions contemplated hereby, without obtaining the prior approval of the other, which shall not be unreasonably withheld or delayed, except that prior approval shall not be required if, in the reasonable judgment of VMII prior approval by SELLER would prevent the timely dissemination of such release or statement in violation of applicable federal securities laws, rules or regulations or policies of the Bulletin Board.

11.4     Non-Disclosure. A disclosing party will not at any time after the date of this Agreement, without the recipient’s consent, except in the ordinary operation of its business or as required by law, divulge, furnish to or make accessible to anyone any knowledge or information with respect to confidential or secret processes, inventions, discoveries, improvements, formulae, plans, material, devices or ideas or know-how, whether patentable or not, with respect to any confidential or secret aspects of such party (including, without limitation, customer lists, supplier lists and pricing arrangements with customers or suppliers) ("Confidential Information"). The parties will not at any time after the date of this Agreement and prior to the Exchange use, divulge, furnish to or make accessible to anyone any Confidential Information (other than to its representatives as part of its due diligence or corporate investigation). Any information, which (i)  at or prior to the time of disclosure by the disclosing party was generally available to the public through no breach of this covenant, (ii) was available to the public on a non-confidential basis prior to its disclosure by the disclosing party, or (iii) was made available to the public from a third party provided that such third party did not obtain or disseminate such information in breach of any legal obligation of the disclosing party, shall not be deemed Confidential Information for purposes hereof, and the undertakings in this covenant with respect to Confidential Information shall not apply thereto. The undertakings of the parties set forth above in this Section 11.4 shall terminate upon consummation of the Closing. If this Agreement is terminated pursuant to the provisions of Article VIII or any other express right of termination set forth in this Agreement, the recipient shall return to the disclosing party all copies of all Confidential Information previously furnished to it by the disclosing party.

11.5     Succession and Assignments and Third Party Beneficiaries. This Agreement may not be assigned (either voluntarily or involuntarily) by any party hereto without the express written consent of the other parties. Any attempted assignment in violation of this Section shall be void and ineffective for all purposes. In the event of an assignment permitted by this Section, this Agreement shall be binding upon the heirs, successors and assigns of the parties hereto. There shall be no third party beneficiaries of this Agreement except as expressly set forth herein to the contrary.

11.6     Notices. All notices, requests, demands, or other communications with respect to this Agreement shall be in writing and shall be (i) sent by facsimile transmission, (ii) sent by the United States Postal Service, registered or certified mail, return receipt requested, or (iii) personally delivered by a nationally recognized express overnight courier service, charges prepaid, to the following addresses (or such other addresses as the parties may specify from time to time in accordance with this Section)

(a)           To SELLER:

(b)           To VMII:

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Any such notice shall, when sent in accordance with the preceding sentence, be deemed to have been given and received on the earliest of (i) the day delivered to such address or sent by facsimile transmission, (ii) the tenth business day following the date deposited with the United States Postal Service or the PRC Postal Service, as the case may be, or (iii) 72 hours after shipment by such courier service.

11.7     Construction. This Agreement shall be construed and enforced in accordance with the internal laws of the State of Nevada without giving effect to the principles of conflicts of law thereof. All parties hereby irrevocably submit to the exclusive jurisdiction of the any state or federal court sitting in the state of Nevada for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waive, and agree not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is improper.

11.8     Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which shall together constitute one and the same Agreement.

11.9     No Implied Waiver; Remedies. No failure or delay on the part of the parties hereto to exercise any right, power, or privilege hereunder or under any instrument executed pursuant hereto shall operate as a waiver nor shall any single or partial exercise of any right, power, or privilege preclude any other or further exercise thereof or the exercise of any other right, power, or privilege. All rights, powers, and privileges granted herein shall be in addition to other rights and remedies to which the parties may be entitled at law or in equity.

11.10   Entire Agreement. This Agreement, including the Exhibits and Disclosure Schedules attached hereto, sets forth the entire understandings of the parties with respect to the subject matter hereof, and it incorporates and merges any and all previous communications, understandings, oral or written as to the subject matter hereof, and cannot be amended or changed except in writing, signed by the parties.

11.11   Headings. The headings of the Sections of this Agreement, where employed, are

for the convenience of reference only and do not form a part hereof and in no way modify,

interpret or construe the meanings of the parties.

11.12   Severability. To the extent that any provision of this Agreement shall be invalid or unenforceable, it shall be considered deleted hereof and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and effect.

11.13   Attorneys Fees. In the event any legal action is brought to interpret or enforce this Agreement, the party prevailing in such action shall be entitled to recover its attorneys’ fees and costs in addition to any other relief that it is entitled.

11.14   Consultants. Each party represents to the others that there is no broker or finder entitled to a fee or other compensation for bringing the parties together to effect the exchange.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement the day and year first above written.

	
VMII:

	
Virtual Medical International, Inc.

	  	
a Nevada Corporation

	  
	  	  	
By:

	
MARC SALLS

	  	  	  	
Marc Salls, President

	  	  	  	  
	  	  	  	  
	
SELLER:

	
Entertainment Arts Research, Inc.

	  	
a Nevada Corporation

	  
	  	  	
By:

	
JONATHAN EUBANKS

	  	  	  	
Jonathan Eubanks, President

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VMII Disclosure Schedule

None

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SELLER’s Disclosure Schedule

None

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Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00182-of-00352.parquet"}]]