SIRICOMM, INC.
REGISTRATION RIGHTS AGREEMENT
This Registration Rights Agreement, dated January ___, 2005 by and
between SiriCOMM, Inc., a Delaware corporation (the "Company") and the persons
listed as "Investors" on the signature pages hereto (the "Investors").
WHEREAS, the Investors exercised an aggregate of 85,000 warrants
("Warrants") to purchase the Company's common stock at $2.00 per share; and
WHEREAS, as an inducement for the Investors exercising the Warrants,
the Company issued to the Investors an aggregate of 63,750 warrants exercisable
for three years at an exercise price of $2.40 per share ("New Warrants");
WHEREAS, as a further inducement for the Investors to exercise said
Warrants, the Company agreed to register certain securities of the Company on
behalf of the Investors.
NOW THEREFORE, in consideration of the premises and the mutual
representations, warranties and agreements herein set froth, the parties hereto
agree as follows:
1. Definitions
The following terms, when used in this Agreement, will, unless
otherwise expressly provided, have the following meanings:
"Beneficial Owner" means a person who, directly or indirectly, through
any contract, arrangement, understanding, relationship or otherwise has or
shares the investment power which includes the power to dispose, or direct the
disposition of, such security or who would otherwise be deemed to be the
beneficial owner of any security under Rule 13d-3 issued under the Exchange Act,
as such Rule is amended from time to time. A person that is the "Beneficial
Owner" of any Warrants will be deemed to be the Beneficial Owner of the Stock
issuable pursuant to the Warrants, whether or not the Warrants are then
exercisable.
"Beneficially Owns" has a correlative meaning to "Beneficial Owner."
"Exchange Act" means the Securities Exchange Act of 1934, as it is or
may be amended.
"Holder" has the meaning set forth in Section 2.2.
"Person" means any individual, partnership, corporation, trust or
unincorporated organization, or a government or agency or political subdivision
thereof.
"Proposed Registration" has the meaning set forth in Section 3.1.
"Prospectus" means the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement and by all other amendments and
supplements to the prospectus, including post-effective amendments and all
material incorporated by reference in such prospectus.
"Registrable Securities" has the meaning set forth in Section 2.1.
"Registration Statement" means any registration statement of Company
which covers any of the Registrable Securities pursuant to the provisions of
this Agreement, including the Prospectus, amendments and supplements to such
Registration Statement, including post-effective amendments, all exhibits and
all material incorporated by reference in such Registration Statement.
"Reserved Shares" means all Shares issued or issuable upon exercise of
the Warrants, New Warrants and all Shares received as share dividends or on
stock splits, mergers, consolidations or other reorganizations with respect to
such Shares.
"Restricted Security" has the meaning set forth in Section 2.1
"SEC" means the Securities and Exchange Commission.
"Share" means a share of Stock.
"Stock" means Company's common stock, par value $.0001 per share.
"Trading Day" means any day that the NASDAQ is open for trading.
"Underwritten Registration" or "Underwritten Offering" means a
Registration in which securities of Company are sold to an underwriter for
reoffering on a firm underwriting basis to the public.
"Voting Securities" mean shares of Stock and any other securities that
are entitled to vote together as a single class with the Stock on all matters
submitted for the approval of the stockholders of Company.
2. Securities Subject to this Agreement
2.1 Registrable Securities. The securities entitled to the benefit of
this Agreement (the "Registrable Securities") are (a) the Shares issued to the
Investor as part of the private placement of units, (b) the shares issued to the
Investor upon the exercise of the Warrants, (c) the shares underlying the New
Warrants being delivered to the Investor herewith and (b) all Shares received as
share dividends or Shares issued on stock splits, mergers, consolidations or
other reorganizations with respect to the Shares referred to in the preceding
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clause, provided that a Share will be a Registrable Security only for so long as
such Share continues to be a Restricted Security. A Registrable Security shall
be a Restricted Security until it has been effectively registered under the
Securities Act and disposed of in accordance with the Registration Statement
covering it, or, if earlier, until it is eligible to be sold under Rule 144
under the Securities Act.
2.2 Holders of Registrable Securities. No person will be considered a
Holder other than the Purchasers under the Purchase Agreement, or a permitted
assignee of such purchaser.
3. Registration Rights
The Company agrees to file an S-3 registration statement or its
equivalent (SB-2) within 60 days of the date of this Agreement. The Company
agrees to register the Registrable Securities.
The Company further agrees that should the registration statement not
be effective within 120 days of filing such registration statement with the SEC,
to pay a penalty fee payable in cash or a like amount of shares: however, if
through limitations upon timeliness of SEC response, such period shall be
extended to 150 days. The amount of such fee to be calculated as one half of one
percent of the amount of Warrants exercised per each 30 day period that such
registration shall be ineffective. The Company agrees to take all necessary
steps to ensure the effectiveness of registration. Including timely filing of
all regulatory filing requirements.
3.1 Piggyback Registration
(a) Notice of Proposed Registration. Each time that Company
proposes for any reason to register any of its Shares under the Securities Act
(a "Proposed Registration"), on Form ▇-▇, ▇-▇ or S-3 or any similar or successor
forms, Company will promptly give written notice of such Proposed Registration
to the Holders and will offer the Holders the right to request inclusion of all
or a portion of such Holder's Registrable Securities in the Proposed
Registration. Each Holder will have ten (10) Trading Days from the receipt of
such notice to deliver a written request specifying the number of such
Registrable Securities that such Holder intends to sell and such Holder's
intended method of disposition. In the event that the Proposed Registration by
Company is, in whole or in part, an Underwritten Offering, any request under
Section 3.2 must specify that the Registrable Securities be included in the
underwriting on the same terms and conditions as the Shares, if any, otherwise
being sold through underwriters under such Proposed Registration. Company will
not be required to effect more than one registration pursuant to this Section 3.
(b) Allocation. Upon receipt of a written request pursuant to
Section 3.1 hereof, Company will promptly use its best efforts to cause all such
Registrable Securities to be registered under the Securities Act, to the extent
required to permit sale or disposition as set forth in the written request.
Notwithstanding the foregoing, if the managing underwriter(s) of any Proposed
Registration determines and advises in writing that the inclusion of all
Registrable Securities proposed to be included in the Underwritten Offering
together with any other issued and outstanding Shares proposed to be included
therein by other stockholders would interfere with the successful marketing of
Company's Shares (or any Shares being sold by any other stockholder with demand
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registration rights), then Company will not be required to register any
Registrable Securities in excess of the amount, if any, of Registrable
Securities which the managing underwriter(s) of such Underwritten Offering will
reasonably and in good faith agree to include in such offering in excess of any
amount to be registered for Company (or such stockholder with demand
registration rights); and provided, further, that if any Registrable Securities
are not included for this reason, any such reduction in the number of
Registrable Securities will be pro rata with any reduction in the number of
Shares sought to be included in the registration by such other stockholders with
similar "piggyback" registration rights.
4. Registration Procedures
4.1 Actions to be taken by Company. In connection with the registration
of Registrable Securities pursuant to Section 3 hereof, Company will use its
best efforts to effect such registration to permit the sale of such Registrable
Securities in accordance with the proposed method or methods of distribution by
the selling holders thereof and accordingly will:
4.1.1 prepare and file with the SEC, as soon as practicable, a
Registration Statement or Registration Statements on any appropriate form under
the Securities Act, which form will be available for the sale of the Registrable
Securities to be covered thereby in accordance with the intended method or
methods of distribution by the selling holders thereof and will include all
financial statements required by the SEC to be filed therewith; provided that
before filing a Registration Statement or any amendments or supplements thereto
or Prospectus, including in each case documents incorporated by reference,
Company will furnish to the holders of the Registrable Securities covered by
such Registration Statement and the underwriters, if any, copies of all such
documents at least three Trading Days prior to the day they are proposed to be
filed.
4.1.2 prepare and file with the SEC such amendments and
post-effective amendments to the Registration Statement as may be necessary to
keep the Registration Statement effective for a period ending on the earlier of
(a) nine months after the effective date of the Registration Statement or (b)
consummation of the distribution of the securities covered by such Registration
Statement; cause the Prospectus used in connection therewith to be supplemented
by any required Prospectus supplement, and as so supplemented to be filed
pursuant to Rule 424 under the Securities Act; and comply with the provisions of
the Securities Act with respect to the disposition of all securities covered by
such Registration Statement during the period referred to above in accordance
with the intended method or methods of distribution by the selling Holders
thereof set forth in such Registration Statement as amended or supplement to the
Prospectus used in connection therewith;
4.1.3 notify the selling Holders of Registrable Securities and
the managing underwriters, if any, promptly, and (if requested by any such
Person) confirm such advice in writing, (a) when the Prospectus or any
Prospectus supplement or post-effective amendment has been filed, and, with
respect to the Registration Statement or any post-effective amendment, when the
same has become effective, (b) of any request by the SEC for amendments or
supplements to the Registration Statement or the Prospectus or for additional
information, (c) of the issuance by the SEC of any stop order suspending the
effectiveness of the Registration Statement or the initiation of any proceedings
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for that purpose, (d) of the receipt by Company of any notification with respect
to the suspension of the qualification of the Registrable Securities for sale in
any jurisdiction or the initiation or threatening of any proceedings for such
purpose, and (e) of the happening of any event which makes any statement made in
the Registration Statement, the Prospectus, any amendment or supplement thereto,
or any document incorporated therein by reference untrue or which requires the
making of any changes in the Registration Statement, the Prospectus or any
document incorporated therein by reference in order to make the statements
therein not misleading;
4.1.4 upon the occurrence of any event contemplated by Section
4.1.3(e), prepare a supplement or post-effective amendment to the Registration
Statement or the related Prospectus or any document incorporated therein by
reference or file any other required document so that, as thereafter delivered
to the purchasers of the Registrable Securities, the Prospectus will not contain
any untrue statement of a material fact or omit to state any material fact
necessary to make the statements therein not misleading;
4.1.5 use its best efforts to obtain the withdrawal at the
earliest possible time of any order suspending or preventing the use of any
Prospectus or suspending the effectiveness of the Registration Statement or any
amendment or supplement thereto or suspending the qualification of any Shares
included in such Registration Statement for sale in any jurisdiction;
4.1.6 furnish each managing underwriter, if any, without
charge, at least one signed copy of the Registration Statement and every
post-effective amendment thereto, including financial statements and schedules,
all documents incorporated therein by reference, and all exhibits (including
those incorporated by reference) and furnish each selling Holder a conformed
copy of each such document;
4.1.7 deliver to each selling Holder of Registrable Securities
and the underwriters, if any, without charge, as many copies of the Prospectus
(including each preliminary Prospectus) and any amendment or supplement thereto
as such Persons may reasonably request; consent to the use of the Prospectus or
any amendment or supplement thereto by each of the selling Holders of
Registrable Securities and the underwriters, if any, in connection with the
offering and sale of the Registrable Securities covered by the Prospectus or any
amendment or supplement thereto;
4.1.8 prior to any public offering of Registrable Securities,
register or qualify or cooperate with the selling Holders of Registrable
Securities, the underwriters, if any, and their respective counsel on a best
efforts basis to register or qualify such Registrable Securities for offer and
sale under the securities or blue sky laws of such jurisdictions as any selling
Holder or underwriter reasonably requests in writing and do any and all other
acts or things necessary or advisable to enable the disposition in such
jurisdictions of the Registrable Securities covered by the Registration
Statement; provided that Company will not be required to (a) qualify generally
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to do business in any jurisdiction where it is not then so qualified or (b)
consent to general service of process for all purposes in any jurisdiction where
it is not then subject to process or (c) subject itself to taxation in any such
jurisdiction;
4.1.9 cooperate with the selling Holders of Registrable
Securities and the managing underwriters, if any, to facilitate the timely
preparation and delivery of certificates representing Registrable Securities to
be sold and not bearing any restrictive legends; enable such Registrable
Securities to be in such denominations and registered in such names as the
selling Holders or managing underwriters may request at least two Trading Days
prior to any sale of Registrable Securities to the underwriters;
4.1.10 provide a CUSIP number for all Registrable Securities,
not later than the effective date of the applicable registration;
4.1.11 enter into such agreements and take all such other
actions as may be reasonably required in order to expedite or facilitate the
disposition of such Registrable Securities and in such connection, (a) make such
representations and warranties to the selling Holders of such Registrable
Securities in form, substance and scope as are customarily made by issuers
comparable to Company to underwriters in primary underwritten offerings; (b)
obtain opinions of counsel to Company and updates thereof (which counsel and
opinions (in form, scope and substance) will be reasonably satisfactory to the
managing underwriters, if any) addressed to each selling holder and the
underwriters, if any, covering the matters customarily covered in opinions
requested in underwritten offerings and such other matters as may be reasonably
requested by such holders and underwriters; (c) if the Registrable Securities
are to be distributed pursuant to an Underwritten Offering, obtain "cold
comfort" letters and updates thereof from Company's independent certified public
accountants addressed to the selling Holders of Registrable Securities and the
underwriters, such letters to be in customary form and covering such matters of
the type customarily covered in "cold comfort" letters and as underwriters, if
any, may reasonably require; and (d) deliver such documents and certificates as
may be requested by the selling Holders and the managing underwriters, if any,
to evidence compliance with clause (a) above and with any customary conditions
contained in the underwriting agreement or other agreement entered into by
Company. The above shall be done at each closing under such underwriting or
similar agreement or as and to the extent required thereunder;
4.1.12 otherwise use its best efforts to comply with all
applicable rules and regulations of the SEC, and make generally available to its
security holders earnings statements satisfying the provisions of Section 11(a)
of the Securities Act and Rule 158 thereunder, as soon as practicable but in any
event no later than 45 days after the end of any 12-month period (or 90 days, if
such period is a fiscal year) (a) commencing at the end of any fiscal quarter in
which Registrable Securities are sold to underwriters in an Underwritten
Offering, or (b) if not sold to underwriters in such an offering, beginning with
the first month of Company's first fiscal quarter commencing after the effective
date of the Registration Statement, which statements will cover said 12-month
periods;
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4.1.13 in the case of an S-3 Registration, permit any selling
Holder of Registrable Securities which Holder believes he, she or it may be
deemed to be an underwriter to require the insertion in the Registration
Statement, Prospectus, preliminary prospectus, or any supplement or amendment
thereto, any material which in such Holder's reasonable judgment should be
inserted therein, provided that such material be furnished under circumstances
as will cause it to be subject to the indemnification provisions of Section 6.2
hereto and provided that Company will not be required to insert any material
that it believes to contain any untrue statement of a material fact or any
omission of a material fact required to be stated therein or necessary to make
the statements therein not misleading.
4.2 Information from Holders. Company may require such Holder of
Registrable Securities as to which any registration is being effected to furnish
to Company such information regarding the distribution of such securities as
Company may from time to time reasonably request in writing.
4.3 Certain Events. Each Holder of Registrable Securities agrees by
reason of its acquisition and holding of such Registrable Securities that, upon
receipt of any notice from Company of the happening of any event of the kind
described in Section 4.1.3 (c)-(e) hereof, such Holder will forthwith
discontinue disposition of Registrable Securities until such Holder's receipt of
the copies of the supplemented or amended Prospectus contemplated by Section
4.1.4 hereof, or until it is advised in writing by Company that the use of the
Prospectus may be resumed, and, if so directed by Company in writing, such
Holder will deliver to Company (at Company's expense) all copies, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice.
5. Registration Expenses
All expenses incident to Company's performance of or compliance with
this Agreement including without limitation all registration and filing fees,
fees with respect to listings or filings required to be made with NASDAQ or any
national securities exchange on which the Registrable Securities are listed,
fees and expenses of compliance with securities or blue sky laws, printing
expenses of any registration under Section 3, messenger, telephone and delivery
expenses, fees and disbursements of counsel for Company and of all independent
certified public accountants of Company (including the expenses of any special
audit and "cold comfort" letters required by or incidental to such performance),
and securities acts liability insurance if Company so desires, and reasonable
fees and expenses of other Persons retained by Company in connection with the
registration, will be borne by Company; provided however, that the Holders of
the Registrable Securities will be responsible (regardless of whether the
Registration Statement becomes effective) for any (a) underwriting discounts,
commissions, or fees attributable to the sale of the Registrable Securities, (b)
fees and expenses of any counsel, accountants, or other persons retained or
employed by the Holders and (c) transfer taxes, if any.
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6. Indemnification
6.1 Indemnification by Company. Company agrees to indemnify and hold
harmless, to the full extent permitted by law, each Holder of Registrable
Securities, its directors and officers and each Person who controls (within the
meaning of the Securities Act) such Holder against all losses, claims, damages,
liabilities, costs, expenses, fines and penalties (or actions in respect
thereof) (including reasonable attorney's fees and disbursements) caused by (a)
any violation of law by Company in connection with or any breach by Company of
its undertakings hereunder or (b) any untrue or alleged untrue statement of a
material fact contained in any Registration Statement or any amendment or
supplement thereto, Prospectus, preliminary prospectus or amendment 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 not
misleading, except insofar as the same are caused by or contained in any
information furnished in writing to Company by such Holder expressly for use
therein or by such Holder's failure to deliver a copy of the Registration
Statement or Prospectus or any amendment or supplement thereto after Company has
furnished such Holder with a sufficient number of copies of the same. Company
will also indemnify underwriters, selling brokers, dealer-managers and similar
securities industry professionals participating in the distribution, their
officers and directors and each Person who controls such persons (within the
meaning of the Securities Act) to substantially the same extent as provided
above with respect to the indemnification of the Holders of Registrable
Securities, if requested.
6.2 Indemnification by Holders of Registrable Securities. In connection
with the Registration, each Holder of Registrable Securities will furnish to
Company in writing such information and affidavits as Company reasonably
requests in connection with any Registration Statement or Prospectus and agrees
to indemnify and hold harmless, to the full extent permitted by law, Company,
its directors and officers and each Person who controls Company (within the
meaning of the Securities Act) against any losses, claims, damages, liabilities
and expenses (including reasonable attorney's fees and disbursements) resulting
from any untrue statement of a material fact contained in the Registration
Statement, Prospectus, preliminary prospectus, amendment or supplement thereto,
or any omission of a material fact required to be stated in the Registration
Statement or Prospectus or preliminary prospectus necessary to make the
statements therein not misleading, to the extent, but only the extent, that such
untrue statement or omission is contained in any information or affidavit so
furnished in writing by such Holder to Company specifically for inclusion in
such Registration Statement, Prospectus, preliminary prospectus, amendment or
supplement thereto, provided that no selling Holder will be required under this
Section 6.2 to pay an amount greater than the dollar amount of the proceeds
received by such selling Holder (net of underwriting commissions and discounts)
with respect to the sale of the Shares giving rise to the claim and the
liability of selling Holders will be several and not joint. Company will be
entitled to receive indemnities from underwriters, selling brokers,
dealer-managers and similar securities industry professionals participating in
the distribution, to the same extent as provided above or otherwise as agreed to
by Company and such Person with respect to information so furnished in writing
by such Person specifically for the inclusion in any Prospectus or Registration
Statement.
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6.3 Conduct of Indemnification Proceedings. Any Person entitled to
indemnification hereunder will (a) give prompt notice to the indemnifying party
of any claim with respect to which it seeks indemnification and (b) permit such
indemnifying party to assume the defense of such claims with counsel reasonably
satisfactory to the indemnified party, provided, however, that any Person
entitled to indemnification hereunder will have the right to employ separate
counsel and to participate in the defense of such claims, but the fees and
expense of such counsel will be at the expense of such Person unless (a) the
indemnifying party has agreed to pay such fees or expenses, or (b) the
indemnifying party has failed to assume the defense of such claim and employ
counsel reasonably satisfactory to such Person, or (c) in the reasonable
judgment of any such Person, based upon advice of its counsel, a conflict of
interest may exist between such Person and the indemnifying party, in any of
which events such reasonable fees and expenses will be borne by the indemnifying
party and the indemnifying party will not have the right to direct the defense
of such action on behalf of the indemnified party, it being understood, however,
that the indemnifying party will not, in connection with any such action or
proceeding or separate but substantially similar or related actions or
proceedings arising out of the same general allegations or circumstances, be
liable for the reasonable fees and expenses of more than one separate firm of
attorneys for all Holders. Anything in this Section to the contrary
notwithstanding, Company will not be liable for any settlement of any such claim
or action effected without its written consent.
6.4 Contribution. If the indemnification provided for in Sections 6.1
and 6.2 from the indemnifying party is unavailable to or unenforceable by the
indemnified party in respect to any losses, claims, damages, liabilities, costs,
expenses, fines or penalties referred to herein, then the indemnifying party, in
lieu of indemnifying such indemnified party, shall contribute to the amount paid
or payable by such indemnified party as a result of such losses, claims, damages
liabilities, costs, expenses, fines or penalties in such proportion as is
appropriate to reflect the relative fault of the indemnifying party and
indemnified parties in connection with the actions which resulted in such
losses, claims, damages, liabilities, costs, expenses, fines or penalties, as
well as any other relevant equitable considerations. The relative fault of such
indemnifying party and indemnified parties shall be determined by reference to,
among other things, whether any action in question including any untrue or
alleged untrue statement of material fact or omission or alleged omission to
state a material fact, has been made by, or relates to information supplied by,
such indemnifying party or indemnified parties, and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such action. The amount paid or payable by a party, as a result of the losses,
claims, damages, liabilities, costs, expenses, fines and penalties referred to
above shall be deemed to include, subject to the limitations set forth in
Section 6, any legal or other fees or expenses reasonably incurred by such party
in connection with any investigation or proceeding. Company and the Holders
agree that it would not be just and equitable if contribution pursuant to this
Section 6.4 were determined by pro rata allocation or by any other method of
allocation which does not take into account the equitable considerations
referred to above. No person guilty of fraudulent misrepresentation (within the
meaning of Section 11(f) of the Securities Act) will be entitled to contribution
from any Person who was not guilty of such fraudulent misrepresentation.
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7. Participation in Underwritten Registrations; Required Cooperation
No Holder may participate in any underwritten registration hereunder
unless such Holder (a) agrees to sell such Holder's securities on the basis
provided in any underwriting arrangements approved by Company and (b) completes
and executes all questionnaires, powers of attorney, indemnities, underwriting
agreements and other documents required under the terms of such underwriting
arrangements, provided that no selling Holder of Registrable Securities in any
Underwritten Registration will be required to make any representation or
warranty to Company or the underwriters other than representations and
warranties regarding such Holder and such Holder's intended method of
distribution. Nothing in this Section 7 will be construed to create any
additional rights regarding the registration of Registrable Securities in any
Person otherwise than as set forth therein.
8. Lock-Up
In the event of any Proposed Registration involving a proposed
Underwritten Offering of Shares or any security convertible into or exchangeable
for Shares, then each Holder whose Registrable Securities are included in a
Registration Settlement filed pursuant to Section 3 hereof will not effect any
sale or distribution of any Shares, including any sale pursuant to Rule 144,
without the consent of the managing underwriter for such Underwritten Offering,
during a period (the "Lock-Up Period") commencing 30 days before (or, if later,
the date on which the Holders receive notice of such proposed Underwritten
Offering) and ending 180 days (or such fewer number as the managing underwriter
may designate) after the effective date of such registration statement (or if
such Underwritten Offering is pursuant to a shelf registration, for a period
(not to exceed 180 days) commencing upon notice of such transaction and ending
180 days after pricing of such transaction.
9. Miscellaneous
9.1 Notices. Any notices, requests and other communications hereunder
will be in writing and will be deemed given on the date of delivery, if
delivered personally, by facsimile transmission, or by overnight courier, or
three (3) days after mailing, if sent by registered or certified United States
mail, postage prepaid and return receipt requested, in each case addressed as
follows:
If to the Company, to: SiriCOMM, Inc.
▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇ ▇▇▇
▇▇▇▇▇▇, ▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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With a copy to: ▇▇▇▇▇▇ & ▇▇▇▇▇▇▇▇▇ LLP
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇ ▇▇▇▇, ▇▇▇ ▇▇▇▇ ▇▇▇▇▇
Telephone: (▇▇▇) ▇▇▇-▇▇▇▇
Facsimile: (▇▇▇) ▇▇▇-▇▇▇▇
Attention: ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇, Esq.
If to the Purchasers, to: Their address set forth on Schedule I.
except that any of the foregoing may from time to time by written notice to the
others designate another address, which will thereupon become its effective
address for the purposes of this section. Any notice delivered by facsimile will
be confirmed by a written notice delivered in the mails, by overnight courier or
personally; provided that the foregoing will not effect the time for when such
facsimile notice will have been considered to have been delivered, such delivery
being determined as provided in the first sentence of this Section 9.1.
9.2 Modification and Waiver. No terms and provisions of this Agreement,
including without limitation the terms and provisions contained in this
sentence, will be waived, modified or altered so as to impose any additional
obligations or liability or grant any additional right or remedy and no custom,
payment, act, knowledge, extension of time, favor or indulgence, gratuitous or
otherwise, or words or silence at any time, will impose any additional
obligation or liability or grant any additional right or remedy or be deemed a
waiver or release of any obligation, liability, right or remedy except as set
forth in a written instrument properly executed and delivered by the party
sought to be charged, expressly stating that it is, and the extent to which it
is, intended to be so effective. No assent, express or implied, by any party, or
waiver by any party, to or of any breach of any term or provision of this
Agreement will be deemed to be an assent or waiver to or of such or any
succeeding breach of the same or any other such term or provision. This
Agreement may be amended, modified, supplemented or provisions waived only upon
the written agreement of the Company and the holder of not less than a majority
of the Registrable Shares.
9.3 Partial Invalidity. It is the intention of the parties that the
provisions of this Agreement will be enforceable to the fullest extent
permissible under applicable law, and that the unenforceability of any provision
or provisions of this Agreement by such law will not render unenforceable, or
impair, the remainder of the Agreement. If any part of this Agreement will be
determined to be invalid, illegal or unenforceable by any valid Act of Congress
or act of any legislature or by any regulation duly promulgated by the United
States or a state acting in accordance with the law, or declared null and void
by any court of competent jurisdiction, then such part will be reformed, if
possible, to conform to the law and, in any event, the remaining parts of this
Agreement will be fully effective and operative insofar as reasonably possible.
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9.4 Assignment; Successors. This Agreement is not assignable in whole
or in part by either party without the prior written consent of the other party.
Notwithstanding the foregoing, Company may assign this Agreement to a successor,
Affiliate or parent company without the consent of the Holders provided that any
such assignment will not release Company from its obligations hereunder. This
Agreement will be binding upon and will inure to the benefit of the parties
hereto and their respective successors and permitted assigns.
9.5 No Third Party Beneficiaries. Nothing contained in this Agreement
is intend to confer any benefit under this Agreement on anyone other than a
party hereto or any Holder.
9.6 Governing Law. THIS AGREEMENT AND THE SECURITIES SHALL BE CONSTRUED
AND ENFORCED IN ACCORDANCE WITH, AND THE RIGHTS OF THE PARTIES SHALL BE GOVERNED
BY, THE LAW OF THE STATE OF MISSOURI EXCLUDING CHOICE-OF-LAW PRINCIPLES OF THE
LAW OF SUCH STATE THAT WOULD REQUIRE THE APPLICATION OF THE LAWS OF A
JURISDICTION OTHER THAN SUCH STATE.
9.7 Submission to Jurisdiction. Each of the parties hereto hereby
irrevocably and unconditionally consents to submit to the exclusive jurisdiction
of the courts of the State of Missouri and of the United States of America, in
each case located in the City of Joplin, for any action, proceeding or
investigation in any court or before any governmental authority ("Litigation")
arising out of or relating to the Transaction Documents and the transactions
contemplated thereby (and agrees not to commence any Litigation relating thereto
except in such courts), and further agrees that service of any process, summons,
notice or document by U.S. registered mail to its respective address set forth
in this Agreement shall be effective service of process for any Litigation
brought against it in any such court. Each of the parties hereto hereby
irrevocably and unconditionally waives any objection to the laying of venue of
any Litigation arising out of this Agreement or the transactions contemplated
hereby in the courts of the State of Missouri or the United State of America, in
each case located in the City of Joplin, and hereby further irrevocably and
unconditionally waives and agrees not to plead or claim in any such court that
any such Litigation brought in any such court has been brought in an
inconvenient forum.
9.8 Service of Process. Nothing herein shall affect the right of any
holder of any Securities to serve process in any other manner permitted by law
or to commence legal proceedings or otherwise proceed against the Company in any
other jurisdiction.
9.9 Jury Waiver. COMPANY AND HOLDERS HEREBY WAIVE TRIAL BY JURY IN ANY
JUDICIAL PROCEEDING INVOLVING ANY MATTER IN ANY WAY ARISING OUT OF OR RELATED TO
THIS AGREEMENT.
9.10 Termination. All of Company's obligations to register Registrable
Securities pursuant to this Agreement shall terminate on the earlier of (i) such
time as all Registrable Securities held by or issuable to the Holder may be sold
under Rule 144 during any ninety (90) day period; or (ii) the seventh
anniversary of the date of this Agreement. Until the Reserved Shares are
eligible for resale by the Holders without registration pursuant to Rule 144(k),
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in order to make available to the Holders the benefits of certain rules and
regulations of the SEC which may at any time permit the sale of the Reserved
Shares to the public without registration, Company agrees to: (a) make and keep
public information available, as those terms are understood and defined in Rule
144 under the Securities Act; and (b) use its best efforts to file with the SEC
in a timely manner all reports and other documents required of Company under the
Securities Act and the Exchange Act.
9.11 No Inconsistent Agreements. Company will not on or after the date
of this Agreement enter into any agreement with respect to its securities which
conflicts with the provisions hereof. The rights granted to the Holders of
Registrable Securities hereunder do not conflict with any existing rights
granted to existing holders of Company securities under any other agreements,
except that certain existing holders of Company securities may have registration
rights which may provide priority to such existing holders in the event of
cut-backs of the securities to be included in certain registrations.
IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first written above.
SIRICOMM, INC.
By:____________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
[Following is Schedule I which is comprised of
multiple signature pages severally dated]
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SCHEDULE I
____________________________________________ ___________________________
(Name of Investor - Please Type or Print) (No. of Shares)
____________________________________________
(Address)
____________________________________________
____________________________________________
(Signature of Investor)
The Company confirms its Registration Rights Agreement with the above
Investor, who is one of several Investors, this ____ day of __________, 2005.
SIRICOMM, INC.
By:____________________________
▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
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