Document:

KBS SOR Q2 2011 Exhibit 4.4

Exhibit 4.4

SECOND AMENDED AND RESTATED SHARE REDEMPTION PROGRAM
The board of directors of KBS Strategic Opportunity REIT, Inc., a Maryland corporation (the “Company”), has adopted a Second Amended and Restated Share Redemption Program (the “SRP”), the terms and conditions of which are set forth below.  Capitalized terms shall have the same meaning as set forth in the Company's charter unless otherwise defined herein.
1.Qualifying Stockholders.  “Qualifying Stockholders” are (a) holders of the Company's shares of Common Stock (the “Shares”) who have held their Shares for at least one year, provided that, if the Company is redeeming all of a stockholder's Shares, then there is no holding period requirement for Shares purchased pursuant to the Company's dividend reinvestment plan and (b) stockholders or authorized representatives of stockholders qualifying for the special redemption provisions set forth in paragraphs 7, 8 and 9 below.  
2.Share Redemption.  Subject to the terms and conditions of this SRP, including the limitations on redemptions set forth in paragraphs 4 and 5 and the procedures for redemption set forth in paragraph 6, the Company will redeem such number of Shares as requested by a Qualifying Stockholder.
3.Redemption Price.  Unless the Shares are being redeemed in connection with a stockholder's death, Qualifying Disability (as defined in paragraph 8 below) or Determination of Incompetence (as defined in paragraph 9 below), the price at which the Company will redeem the Shares of a Qualifying Stockholder is as follows:
a.The lower of $9.25 or 92.5% of the price paid to acquire the Shares from the Company for stockholders who have held their Shares for at least one year; 
b.The lower of $9.50 or 95.0% of the price paid to acquire the Shares from the Company for stockholders who have held their Shares for at least two years; 
c.The lower of $9.75 or 97.5% of the price paid to acquire the Shares from the Company for stockholders who have held their Shares for at least three years; and 
d.The lower of $10.00 or 100% of the price paid to acquire the Shares from the Company for stockholders who have held their Shares for at least four years.
Notwithstanding the foregoing, once the Company establishes an estimated value per Share, the redemption price per Share for all stockholders will be equal to the estimated value per Share, as determined by the Company's advisor or another firm chosen for that purpose.  The Company expects to establish an estimated value per Share after completion of its offering stage.  The Company will consider its offering stage complete when the Company is no longer publicly offering equity securities - whether through its initial public offering or follow-on public offerings - and has not done so for 18 months.  The Company will report the redemption price in its annual report and three quarterly reports publicly filed with the Securities and Exchange Commission.  For the purpose of determining when the Company's offering stage is complete, equity offerings do not include offerings on behalf of selling stockholders or offerings related to any dividend reinvestment plan, employee benefit plan, or the redemption of interests in KBS Strategic Opportunity Limited Partnership, the Company's operating partnership.

4.Limitations on Redemption.  Notwithstanding anything contained in this SRP to the contrary, the Company's obligation to redeem Shares pursuant to paragraphs 2 and 7 hereof is limited as follows:
a.Unless the Shares are being redeemed in connection with a stockholder's death, Qualifying Disability (as defined in paragraph 8) or Determination of Incompetence (as defined in paragraph 9), the Company may not redeem Shares unless the stockholder has held the shares for one year.
b.Except as set forth in paragraph 5 below, during any calendar year, the Company may redeem only the number of Shares that the Company can purchase with the amount of net proceeds from the sale of Shares under the Company's dividend reinvestment plan during the prior calendar year.
c.During any calendar year, the Company may redeem no more than 5% of the weighted-average number of Shares outstanding during the prior calendar year.
d.The Company has no obligation to redeem Shares if the redemption would violate the restrictions on distributions under Maryland General Corporation Law, as amended from time to time, which prohibits distributions that would cause a corporation to fail to meet statutory tests of solvency.
5.Special Redemption Provisions During Early Stages of Offering.  Notwithstanding paragraph 4(b), the Company may also redeem Shares as follows: 
a.The Company may use the aggregate amount of net proceeds, if any, from the sale of Shares under the Company's dividend reinvestment plan during the calendar year ending December 31, 2011 (“Calendar Year 2011”) to redeem a Qualifying Stockholder's Shares pursuant to paragraphs 2 and 7 during Calendar Year 2011 and the calendar year ending December 31, 2012 (“Calendar Year 2012”); provided, however, that any redemptions during Calendar Year 2011 that are made from the amount of net proceeds from the sale of Shares under the Company's dividend reinvestment plan during Calendar Year 2011 will reduce in direct proportion funds available for redemption during Calendar Year 2012; and
b.The Company may use up to $1.244 million (approximately one percent (1%) of the gross proceeds from the Company's initial public offering as of July 31, 2011) to redeem a Qualifying Stockholder's Shares if the Shares are being redeemed in connection with a stockholder's death, Qualifying Disability (as defined in paragraph 8) or Determination of Incompetence (as defined in paragraph 9); provided, further, that for purposes of determining the amount of funds available for redemption under this SRP, redemptions for a stockholder's death, Qualifying Disability (as defined in paragraph 8) or Determination of Incompetence (as defined in paragraph 9), shall be made first from the funds available under this paragraph 5(b).  
6.Procedures for Redemption.  The Company has engaged a third party to administer the SRP.  Upon any change to the identity or the mailing address of the program administrator, the Company will notify stockholders of such change.  The Company will redeem 

Shares on the last business day of each month (the “Redemption Date”).   For a stockholder's Shares to be eligible for redemption in a given month, the program administrator must receive a written redemption request from the stockholder or from an authorized representative of the stockholder setting forth the number of Shares requested to be redeemed at least five business days before the Redemption Date.  If the Company cannot repurchase all Shares presented for redemption in any month because of the limitations on redemptions set forth in paragraphs 4 and 5, then the Company will honor redemption requests on a pro rata basis, except that (i) if a pro rata redemption would result in a stockholder owning less than half of the minimum purchase requirement described in a currently effective, or the most recently effective, registration statement of the Company as such registration statement has been amended or supplemented (the “Minimum Purchase Requirement”), then the Company would redeem all of such stockholder's Shares; and (ii) if a pro rata redemption would result in a stockholder owning more than half but less than all of the Minimum Purchase Requirement, then the Company would not redeem any Shares that would reduce a stockholder's ownership of Shares below the Minimum Purchase Requirement.  If the Company is redeeming all of a stockholder's Shares, there would be no holding period requirement for Shares purchased pursuant to the Company's dividend reinvestment plan.  
If the Company does not completely satisfy a redemption request at month-end because the program administrator did not receive the request in time or because of the limitations on redemption set forth in paragraphs 4 and 5, then the Company will treat the unsatisfied portion of the redemption request as a request for redemption at the next Redemption Date funds are available for redemption, unless the redemption request is withdrawn.  Any stockholder can withdraw a redemption request by sending written notice to the program administrator, provided such notice is received at least five business days before the Redemption Date.   
7.Special Provisions upon a Stockholder's Death, Qualifying Disability or Determination of Incompetence.  The Company will treat redemption requests made upon a stockholder's death, Qualifying Disability (as defined in paragraph 8) or Determination of Incompetence (as defined in paragraph 9) differently, as follows:
a.There is no one-year holding requirement.
b.Until the Company establishes an estimated value per share, which the Company expects to be after the completion of its offering stage (as defined in paragraph 3 above), the redemption price is the amount paid to acquire the Shares from the Company.
c.Once the Company has established an estimated value per share, the redemption price will be the estimated value of the Shares, as determined by the Company's advisor or another firm chosen for that purpose.  
Except as specifically set forth in this paragraph 7, redemptions upon a stockholder's death,  Qualifying Disability (as defined in paragraph 8) or Determination of Incompetence (as defined in paragraph 9) are subject to the same limitations and terms and conditions as other redemptions, including the limitations on redemptions set forth in paragraphs 4 and 5 and the redemption request procedures set forth in paragraph 6.

8.Qualifying Disability Determinations.  In order for a disability to entitle a stockholder to the special redemption terms described in paragraph 7 (a “Qualifying Disability”), (1) the stockholder must receive a determination of disability based upon a physical or mental condition or impairment arising after the date the stockholder acquired the Shares to be redeemed, and (2) such determination of disability must be made by the governmental agency responsible for reviewing the disability retirement benefits that the stockholder could be eligible to receive (the “Applicable Government Agency”).  The Applicable Government Agencies are limited to the following: (i) if the stockholder paid Social Security taxes and, therefore, could be eligible to receive Social Security disability benefits, then the Applicable Governmental Agency is the Social Security Administration or the agency charged with responsibility for administering Social Security disability benefits at that time if other than the Social Security Administration; (ii) if the stockholder did not pay Social Security taxes and, therefore, could not be eligible to receive Social Security disability benefits, but the stockholder could be eligible to receive disability benefits under the Civil Service Retirement System (“CSRS”), then the Applicable Governmental Agency is the U.S. Office of Personnel Management or the agency charged with responsibility for administering CSRS benefits at that time if other than the Office of Personnel Management; or (iii) if the stockholder did not pay Social Security taxes and, therefore, could not be eligible to receive Social Security benefits but suffered a disability that resulted in the stockholder's discharge from military service under conditions that were other than dishonorable and, therefore, could be eligible to receive military disability benefits, then the Applicable Governmental Agency is the Department of Veterans Affairs or the agency charged with the responsibility for administering military disability benefits at that time if other than the Department of Veterans Affairs.
Disability determinations by governmental agencies for purposes other than those listed above, including but not limited to worker's compensation insurance, administration or enforcement of the Rehabilitation Act or Americans with Disabilities Act, or waiver of insurance premiums will not entitle a stockholder to the special redemption terms described in paragraph 7.  Redemption requests following an award by the applicable governmental agency of disability benefits must be accompanied by: (1) the investor's initial application for disability benefits and (2) a Social Security Administration Notice of Award, a U.S. Office of Personnel Management determination of disability under CSRS, a Department of Veterans Affairs record of disability-related discharge or such other documentation issued by the Applicable Governmental Agency that the Company deems acceptable and that demonstrates an award of the disability benefits.
As the following disabilities do not entitle a worker to Social Security disability benefits, they do not qualify for special redemption terms, except in the limited circumstances when the investor is awarded disability benefits by the other Applicable Governmental Agencies described above:
a.disabilities occurring after the legal retirement age; and
b.disabilities that do not render a worker incapable of performing substantial gainful activity.
9.Determination of Incompetence.  In order for a determination of incompetence or incapacitation to entitle a stockholder to the special redemption terms described in paragraph 7 (a “Determination of Incompetence”), a state or federal court located in the United States (a “U.S.

Court”) must declare, determine or find the stockholder to be (i) mentally incompetent to enter into a contract, to prepare a will or to make medical decisions or (ii) mentally incapacitated, in both cases such determination must be made by a U.S. court after the date the stockholder acquired the Shares to be redeemed.  
A determination of incompetence or incapacitation by any person or entity other than a U.S. Court, or for any purpose other than those listed above, will not entitle a stockholder to the special redemption terms described in paragraph 7.  Redemption requests following a Determination of Incompetence by a U.S. Court must be accompanied by the court order, determination or the certificate of the court declaring the stockholder incompetent or incapacitated.
10.Termination, Suspension or Amendment of the SRP by the Company.  The Company may amend, suspend or terminate the SRP for any reason upon thirty days notice to the Company's stockholders.  The Company may provide notice by including such information (a) in a Current Report on Form 8-K or in its annual or quarterly reports, all publicly filed with the Securities and Exchange Commission or (b) in a separate mailing to the stockholders.  
The SRP provides stockholders a limited ability to redeem Shares for cash until a secondary market develops for the Shares.  If and when such a secondary market develops, the SRP will terminate.
11.Notice of Redemption Requests.  Qualifying Stockholders who desire to redeem their shares must provide written notice to the Company on the form provided by the Company.
12.Liability of the Company.  The Company shall not be liable for any act done in good faith or for any good faith omission to act.
13.Governing Law.  The SRP shall be governed by the laws of the State of Maryland.exhibit101.htm - Generated by SEC Publisher for SEC Filing

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CONVERTIBLE PREFERRED PURCHASE AGREEMENT

 

 

 

 

This Convertible Preferred Stock Purchase Agreement dated June
17, 2011 is by and between:

 

 

 

Hamburg Investment
Company, LLC

 

 

_________________________________________

(the “Purchaser”)

 

 

Parallax Diagnostics,
Inc

 

 

__________________________________________

(the “Company”  or 
“PRLX”)

 

 

 

 

WHEREAS, Parallax Diagnostics, Inc. (“PRLX” “Seller”)
a Nevada corporation at 2 Canal Park, 5th Floor Cambridge, MA 02141
is authorized to sell one hundred thousand (100,000) shares of Convertible
Preferred stock (“Preferred”) of Parallax Diagnostics, Inc; and

 

WHEREAS, the terms of the sale of one hundred
thousand (100,000) shares of Preferred stock include one hundred percent (100%)
Warrant coverage that would result in, if the Offering is fully converted from
Preferred into Common, the Purchaser owning one hundred (100,000) thousand
Warrants to purchase shares of Common stock at a price to be determined by the
Company’s next financing. If the Company has not completed a financing within
the next six (6) months then the price of the Common Stock that the Preferred
converts into will be priced at one ($1.00) dollar per share; and

 

WHEREAS, Parallax Diagnostics, Inc. has not yet
priced the Common Stock that the holder of Preferred is to convert into, the
Purchaser and the Company have agreed to use the valuation of the Company at
the time of its next financing to determine the price per share of Common stock. 
If the Company has not completed a financing within the next six (6) months
then the price of the Common Stock that the Preferred converts into will be
priced at one ($1.00) dollar per share; and

 

Confidential Convertible

Preferred Stock Purchase Agreement                                                    Parallax

Diagnostics, Inc                                                                                                                              November

12, 2010                                                                                      

                                                                                                                                                                                                                 

 

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WHEREAS, Hamburg Investment
Company, LLC (“HIC” “Purchaser”) a Nevada Limited Liability Co which has signed
the Investor Questionnaire, reviewed a Term Sheet, Subscription Supplement and
Risk Factors; and 

 

WHEREAS the parties wish to enter into a transaction whereby
HIC will acquire one hundred thousand (“100,000”) shares of Preferred stock of PRLX
(the “Shares”) at one ($1.00) dollar per share from PRLX on the terms and
conditions set out herein;

 

NOW, THEREFORE, in consideration of the mutual covenants and
agreements contained in the Agreement, and in order to consummate the purchase
and the sale of the Parallax Diagnostics, Inc. Preferred stock aforementioned,
it is hereby agreed as follows:

             

1.      PURCHASE
AND SALE: Subject to the terms and conditions hereinafter set forth, at the
closing of the transaction contemplated herby, the Seller shall sell, convey,
transfer, and deliver to the Purchaser certificates representing such stock,
and the Purchaser shall purchase from the Seller Parallax Diagnostic, Inc.
Preferred stock in consideration of the purchase price set forth in this
Agreement. The certificates representing the Corporation’s stock shall be duly
endorsed for transfer of accompanied by appropriate stock transfer powers duly
executed in blank, in either case with signatures guaranteed in the customary
fashion, and shall have all the necessary documentary transfer tax stamps affixed
thereto at the expense of the Seller. The closing of the transactions
contemplated by this Agreement (“Closing”), shall be held at 1327 Ocean Ave,
Suite M Santa Monica CA 90401, on June 24, 2011 at 10:00 AM PST, or such other
place, date and time as the parties hereto may otherwise agree.

 

2.      The
check issuance instructions are set forth below as follows;

 

Parallax Diagnostics, Inc.

In Care of: J. Michael Redmond

2 Canal Park, 5th Floor

Cambridge, MA 02141

             

            3.  Information for payment via bank wire;

 

Bank Name:                Bank
of America

Branch:                        1301 4th   Street

                                    Santa Monica , CA 90401

Account Name:           Parallax
Diagnostics, Inc.

                        Account Number:       02184-22996 

            Routing Number:        122000661

 

3.      The
address of Purchaser where the Shareholder is to send the Parallax Diagnostics,
Inc share certificate is outlined below:

 

Hamburg Investment Company, LLC

Confidential Convertible

Preferred Stock Purchase Agreement                                                    Parallax

Diagnostics, Inc                                                                                                                              November

12, 2010                                                                                      

                                                                                                                                                                                                                 

 

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3194 Quarry Road

Manchester,   NJ 08759

 

4.      AMOUNT
AND PAYMENT OF PURCHASE PRICE. The total consideration for the stock purchase
is fully set out below:

 

Purchase one hundred thousand (“100,000”)
shares of preferred stock priced at $1.00 per share for one hundred thousand
(“USD $100,000”) dollars. 

 

5.      REPRESENTATIONS
AND WARRANTIES OF SELLER. Seller hereby warrants and represent:

 

a.       Organization
and Standing. Parallax Diagnostics, Inc is a corporation duly organized under
the laws of the State of Nevada and has the corporate power and authority to
carry on its business as it is now being conducted.

 

6.        REPRESENTATIONS
AND WARRANTIES OF SELLER AND PURCHASER.

 

 Seller and Purchaser hereby
represent and warrant that there has been no act or omission by Seller,
Purchaser or the Corporation which would give rise to any valid claim against
any of the parties hereto for a brokerage commission, finder’s fee, or other
like payment in connection with the transactions contemplated hereby.

 

7.      GENERAL
PROVISIONS

 

a.       Entire
Agreement. This agreement (including the exhibits hereto and any written
agreements hereof executed by the parties) constitutes the entire Agreement and
supersedes all prior agreements and understandings, oral and written, between
the parties hereto with respect to the subject matter hereof.

 

b.      Section
and Other Heading. The section and other headings contained in this Agreement
are for reference purposes only and shall not affect the meaning or interpretation
of this Agreement.

 

c.       Governing
Law. This agreement and all transactions contemplated hereby, shall be governed
by, construed and enforced in accordance with the laws of the State of California. The parties herein waive trial by jury and agree to submit to the personal
jurisdiction and venue of a court of subject matter jurisdiction located in Los Angeles County, State of California. In the event that litigation results from or arises
out of this Agreement or the performance thereof, the parties agree to
reimburse the prevailing party’s reasonable attorney’s fees, court costs, and
all other expenses, whether or not taxable by the court as costs, in addition
to any other relief to which the prevailing party may be entitled.

 

 

Confidential Convertible

Preferred Stock Purchase Agreement                                                    Parallax

Diagnostics, Inc                                                                                                                              November

12, 2010                                                                                      

                                                                                                                                                                                                                 

 

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(balance of page
intentionally left blank – signature page follows)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Confidential Convertible

Preferred Stock Purchase Agreement                                                    Parallax

Diagnostics, Inc                                                                                                                              November

12, 2010                                                                                      

                                                                                                                                                                                                                 

 

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IN WITNESS WHEREOF, This Agreement has been executed by each
of the individual parties hereto on the date first above written.

 

 

 

 

 

Signed:

 

 

PARALLAX DIAGNOSTICS, INC.

 

 

 

By: __/s/ J.
Michael Redmond _________

       J. Michael Redmond                 Date

       President

       Parallax Diagnostics, Inc

 

 

HAMBURG INVESTMENT COMPANY, LLC

 

 

 

By: __/s/ Jorn Gorlach_       
____________     

       Jorn Gorlach                                  Date

       Managing Member

       Hamburg Investment Company, LLC

 

 

Confidential Convertible

Preferred Stock Purchase Agreement                                                    Parallax

Diagnostics, Inc                                                                                                                              November

12, 2010

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