Form 8-K
8-K — CleanCore Solutions, Inc.
Accession: 0001213900-26-066054
Filed: 2026-06-08
Period: 2026-06-08
CIK: 0001956741
SIC: 2842 (SPECIALTY CLEANING, POLISHING AND SANITATION PREPARATIONS)
Item: Entry into a Material Definitive Agreement
Item: Termination of a Material Definitive Agreement
Item: Financial Statements and Exhibits
Documents
8-K — ea029387401-8k_cleancore.htm (Primary)
EX-1.1 — SALES AGREEMENT, DATED JUNE 8, 2026, BETWEEN CLEANCORE SOLUTIONS, INC., CANTOR FITZGERALD & CO. AND CURVATURE SECURITIES LLC (ea029387401ex1-1.htm)
EX-5.1 — OPINION OF LUCOSKY BROOKMAN LLP, WITH RESPECT TO THE LEGALITY OF THE SECURITIES BEING REGISTERED (ea029387401ex5-1.htm)
EX-10.1 — TERMINATION LETTER, DATED JUNE 3, 2026, AMONG CLEANCORE SOLUTIONS, INC., MAXIM GROUP LLC AND CURVATURE SECURITIES LLC (ea029387401ex10-1.htm)
GRAPHIC (ea029387401_ex5-1img1.jpg)
XML — IDEA: XBRL DOCUMENT (R1.htm)
8-K — CURRENT REPORT
8-K (Primary)
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UNITED
STATES
SECURITIES
AND EXCHANGE COMMISSION
Washington,
D.C. 20549
FORM
8-K
CURRENT
REPORT
Pursuant
to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date
of Report (Date of earliest event reported): June 8, 2026
CLEANCORE SOLUTIONS, INC.
(Exact
name of registrant as specified in its charter)
Nevada
001-42033
88-4042082
(State or other jurisdiction
of incorporation)
(Commission File Number)
(IRS Employer
Identification No.)
5920 S. 118th Circle, Omaha, NE
68137
(Address of principal executive
offices)
(Zip Code)
(877)
860-3030
(Registrant’s telephone
number, including area code)
(Former name or former address,
if changed since last report)
Check
the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under
any of the following provisions:
☐
Written communications
pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant
to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications
pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications
pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities
registered pursuant to Section 12(b) of the Act:
Title
of each class
Trading
Symbol(s)
Name
of each exchange on which registered
Common Stock, par value $0.0001 per share
ZONE
NYSE American LLC
Indicate
by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 or Rule 12b-2
of the Securities Exchange Act of 1934.
Emerging
Growth Company ☒
If
an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying
with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item
1.01 Entry into a Material Definitive Agreement.
On
June 8, 2026, CleanCore Solutions, Inc. (the “Company”) entered into a Controlled Equity OfferingSM Sales Agreement
(the “Sales Agreement”) with Cantor Fitzgerald & Co. (“Cantor”) and Curvature Securities LLC (“Curvature”
and, together with Cantor, the “Agents”), pursuant to which the Company may offer and sell from time to time, through or
to the Agents, up to an aggregate of $750,000,000 of the Company’s common stock, par value $0.0001 per share (the “Shares”).
The
Shares to be sold under the Sales Agreement, if any, will be issued and sold pursuant to the Company’s Registration Statement on
Form S-3 (Registration No. 333-289867), filed with the Securities and Exchange Commission (the “Commission”) under the Securities
Act of 1933, as amended (the “Securities Act”) on August 26, 2025, and declared effective by the Commission on August 29,
2025 (the “Registration Statement”). The Company filed a prospectus supplement with the Commission pursuant to Rule 424(b)
under the Securities Act on June 8, 2026 in connection with the offer and sale of the Shares pursuant to the Sales Agreement.
Pursuant
to the Sales Agreement, sales of the Shares, if any, may be made in negotiated transactions, including block trades, transactions deemed
to be “at the market offerings” as defined in Rule 415(a)(4) under the Securities Act or by any other method permitted by
the Sales Agreement and any applicable law. The Company has no obligation to sell any of the Shares and may at any time suspend offers
under the Sales Agreement or terminate the Sales Agreement. The Agents may also decline to accept the terms contained in any placement
notice, suspend sales or terminate the Sales Agreement upon notice to the Company. The Sales Agreement may be terminated by either the
Company or the Agents upon ten (10) business days’ prior written notice to the other party, or at any time by the Agents under
certain circumstances specified in the Sales Agreement, including upon the occurrence of a material adverse effect. The Company has also
agreed to provide indemnification and contribution to the Agents with respect to certain liabilities, including liabilities under the
Securities Act.
The
Company intends to use the net proceeds from the sales of the Shares, after deducting the Agents’ commissions and offering expenses,
for its AI Critical Infrastructure Business including the identification, evaluation, and potential development of AI critical infrastructure
opportunities, including site identification, land acquisition, engineering and feasibility studies, power procurement, permitting, facility
construction or retrofit, equipment acquisition, and related development activities. The Company may also use net proceeds for general
corporate purposes, including working capital, capital expenditures, and general and administrative expenses, and to fund costs associated
with the potential disposition of the Company’s cleaning products business or the wind-down of the Company’s digital asset
treasury strategy.
The
Sales Agreement contains customary representations, warranties and agreements by the Company, including mutual obligations of the Company
and the Agents to indemnify the other party for certain liabilities, including under the Securities Act, and contribution provisions
in the event indemnification is unavailable. Under the terms of the Sales Agreement, the Company will pay the Agents a cash commission
of up to 3.0% of the gross proceeds from sales of the Shares sold under the Sales Agreement. The Company will also reimburse the Agents
for certain specified expenses.
This
Current Report on Form 8-K shall not constitute an offer to sell or a solicitation of an offer to buy, nor shall there be any sale of
the Company’s common stock in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification
under the securities laws of any such state.
The
foregoing description of the Sales Agreement does not purport to be complete and is qualified in its entirety by reference to the full
text of the Sales Agreement, a copy of which is filed as Exhibit 1.1 to this Current Report on Form 8-K, and is incorporated herein by
reference.
The
representations, warranties and covenants contained in the Sales Agreement were made only for purposes of such agreement and as of specific
dates, were solely for the benefit of the parties to such agreement and may be subject to limitations agreed upon by the contracting
parties.
The
legal opinion of Lucosky Brookman LLP relating to the issuance and sale of the Shares is filed as Exhibit 5.1 to this Current Report
on Form 8-K.
1
Item
1.02 Termination of a Material Definitive Agreement.
In
connection with the entry into the Sales Agreement, effective as of June 3, 2026, the Company terminated that certain Amended and Restated
Sales Agreement, dated August 29, 2025, between the Company, Maxim Group LLC (“Maxim”) and Curvature (the “Prior ATM
Agreement”), pursuant to a termination letter entered into by the Company, Maxim and Curvature (the “Termination Letter”).
The Prior ATM Agreement provided for the offer and sale of shares of the Company’s common stock in “at the market”
offerings through Maxim and Curvature as sales agents.
In
connection with the termination, the Company entered into separate limited waiver and release agreements with each of Maxim and Curvature
(the “Waiver Agreements”), pursuant to which, among other things, the Company agreed to pay Maxim $1,000,000 and Curvature
$500,000, and each of Maxim and Curvature agreed to waive certain rights under a placement agency agreement, dated September 1, 2025,
among the Company, Maxim and Curvature, and to release all claims arising out of or in connection with the Prior ATM Agreement. In addition,
pursuant to the Waiver Agreements, the exercise price of the five-year warrant to purchase 3,150,008 shares of common stock issued by
the Company to Maxim Partners LLC on September 5, 2025 was reduced from $1.33 per share to $0.90 per share, and the exercise price of
the five-year warrants to purchase an aggregate of 2,100,005 shares of common stock issued by the Company to Curvature and certain persons
associated with Curvature on September 5, 2025 was reduced from $1.33 per share to $1.18 per share. Such warrants were originally issued
as partial compensation for placement agent services in connection with the Company’s private placement completed on September
5, 2025. As additional consideration, the Company agreed to pay Curvature a fee equal to 0.20% of the gross proceeds received by the
Company from sales of the Company’s securities under any future at-the-market sales agreement entered into by the Company for a
period of two years from May 29, 2026, with the $500,000 cash payment credited against such fees. Curvature was also granted the right,
but not the obligation, to act as a co-placement agent on any private investment in public equity transaction conducted by the Company
during such two-year period.
The
foregoing description of the Termination Letter does not purport to be complete and is qualified in its entirety by reference to the
full text of such agreement, a copy of which is filed as Exhibit 10.1 to this Current Report on Form 8-K, and is incorporated herein
by reference.
Item 9.01.
Financial Statements and Exhibits.
(d)
Exhibits.
Exhibit No.
Description
1.1
Sales Agreement, dated June 8, 2026, between CleanCore Solutions, Inc., Cantor Fitzgerald & Co. and Curvature Securities LLC.
5.1
Opinion of Lucosky Brookman LLP, with respect to the legality of the securities being registered.
10.1
Termination Letter, dated June 3, 2026, among CleanCore Solutions, Inc., Maxim Group LLC and Curvature Securities LLC.
23.1
Consent of Lucosky Brookman LLP (contained in Exhibit 5.1 hereto).
104
Cover Page Interactive Data File (embedded within the Inline XBRL document).
2
SIGNATURES
Pursuant
to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by
the undersigned hereunto duly authorized.
Date: June 8, 2026
CLEANCORE SOLUTIONS, INC.
/s/
Tyler Hassen
Name:
Tyler Hassen
Title:
Chief Executive Officer
3
EX-1.1 — SALES AGREEMENT, DATED JUNE 8, 2026, BETWEEN CLEANCORE SOLUTIONS, INC., CANTOR FITZGERALD & CO. AND CURVATURE SECURITIES LLC
EX-1.1
Filename: ea029387401ex1-1.htm · Sequence: 2
Exhibit 1.1
CleanCore
Solutions, Inc.
Shares of Common Stock
(par value $0.0001 per share)
Controlled
Equity OfferingSM
Sales
Agreement
June
8, 2026
Cantor
Fitzgerald & Co.
110 East 59th Street
New
York, NY 10022
Curvature
Securities LLC
39
Main Street, Suite 100
Chatham,
NJ 07928
Ladies
and Gentlemen:
CleanCore
Solutions, Inc., a Nevada corporation (the “Company”), confirms its agreement (this “Agreement”)
with Cantor Fitzgerald & Co. (“Cantor”) and Curvature Securities LLC (each an “Agent”
and together, the “Agents”), as follows:
1. Issuance
and Sale of Shares. The Company agrees that, from time to time during the term of this
Agreement, on the terms and subject to the conditions set forth herein, it may issue and
sell to or through Cantor, as the sole designated sales agent, shares of common stock (the
“Placement Shares”) of the Company, par value $0.0001 per share
(the “Common Stock”); provided, however, that in
no event shall the Company issue or sell through the Agents such number or dollar amount
of Placement Shares that would (a) exceed the number or dollar amount of shares of Common
Stock registered on the effective Registration Statement (defined below) pursuant to which
the offering is being made, (b) exceed the number of authorized but unissued shares of Common
Stock (less shares of Common Stock issuable upon exercise, conversion or exchange of any
outstanding securities of the Company or otherwise reserved from the Company’s authorized
capital stock), (c) exceed the number or dollar amount of shares of Common Stock permitted
to be sold under Form S-3 (including General Instruction I.B.6 thereof, if applicable) or
(d) exceed the number or dollar amount of shares of Common Stock for which the Company has
filed a Prospectus (defined below) (the lesser of (a), (b), (c) and (d), the “Maximum
Amount”). Notwithstanding anything to the contrary contained herein, the parties
hereto agree that compliance with the limitations set forth in this Section 1
on the amount of Placement Shares issued and sold under this Agreement shall be the sole
responsibility of the Company and that the Agents shall have no obligation in connection
with such compliance. The offer and sale of Placement Shares through the Agents will be effected
pursuant to the Registration Statement (as defined below) filed by the Company and declared
effective by the Securities and Exchange Commission (the “Commission”)
on August 29, 2025, although nothing in this Agreement shall be construed as requiring the
Company to use the Registration Statement to issue Common Stock.
The
Company has prepared and filed, in accordance with the provisions of the Securities Act of 1933, as amended, and the rules and regulations
thereunder (the “Securities Act”), with the Commission a registration statement on Form S-3 (File No. 333-289867),
including a base prospectus, relating to certain securities, including the Placement Shares to be issued from time to time by the Company,
and which incorporates by reference documents that the Company has filed or will file in accordance with the provisions of the Securities
Exchange Act of 1934, as amended, and the rules and regulations thereunder (the “Exchange Act”). The Company
has prepared a prospectus supplement to the base prospectus included as part of the registration statement, which prospectus supplement
relates to the Placement Shares to be issued from time to time by the Company. Except where the context otherwise requires, such registration
statement(s), including all documents filed as part thereof or incorporated by reference therein, and including any information contained
in the Prospectus subsequently filed with the Commission pursuant to Rule 424(b) under the Securities Act or deemed to be a part
of such registration statement pursuant to Rule 430B of the Securities Act, and any one or more additional effective registration
statements on Form S-3 from time to time that will contain a base prospectus and, if applicable, a related prospectus or prospectus supplement
with respect to the Placement Shares, is herein called the “Registration Statement.” The base prospectus, including
all documents incorporated therein by reference, included in the Registration Statement, as it may be supplemented, if necessary, by
one or more prospectus supplements relating to the Placement Shares to be issued from time to time by the Company, in the form in which
such prospectus supplement(s) have most recently been filed by the Company with the Commission pursuant to Rule 424(b) under the
Securities Act, together with the then issued Issuer Free Writing Prospectus(es) (as defined below), is herein called the “Prospectus.”
Any
reference herein to the Registration Statement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and
include the documents, if any, incorporated by reference therein (the “Incorporated Documents”), including,
unless the context otherwise requires, the documents, if any, filed as exhibits to such Incorporated Documents. Any reference herein
to the terms “amend,” “amendment” or “supplement” with respect to the Registration Statement, any
prospectus supplement, the Prospectus or any Issuer Free Writing Prospectus shall be deemed to refer to and include the filing of any
document under the Exchange Act on or after the most-recent effective date of the Registration Statement, or the date of the prospectus
supplement, Prospectus or such Issuer Free Writing Prospectus, as the case may be, and incorporated therein by reference. For purposes
of this Agreement, all references to the Registration Statement, the Prospectus or to any amendment or supplement thereto shall be deemed
to include the most recent copy filed with the Commission pursuant to its Electronic Data Gathering Analysis and Retrieval system, or
if applicable, the Interactive Data Electronic Application system when used by the Commission (collectively, “EDGAR”).
The Company’s obligations under this Agreement to furnish, provide, deliver or make available (and all other references of like
import) copies of any filing, report or statement shall be deemed satisfied to the extent the same has been filed with the Commission
through EDGAR or any successor system.
All
references in this Agreement to financial statements and schedules and other information that is “contained,” “included”
or “stated” in the Registration Statement or the Prospectus (and all other references of like import) shall be deemed to
mean and include all such financial statements and schedules and other information that is incorporated by reference in the Registration
Statement or the Prospectus, as the case may be.
All
references in this Agreement to the Registration Statement, the Prospectus or any amendment or supplement to any of the foregoing shall
be deemed to include the copy filed with the Commission pursuant to EDGAR; all references in this Agreement to any Issuer Free Writing
Prospectus (other than any Issuer Free Writing Prospectuses that, pursuant to Rule 433, are not required to be filed with the Commission)
shall be deemed to include the copy thereof filed with the Commission pursuant to EDGAR; and all references in this Agreement to “supplements”
to the Prospectus shall include, without limitation, any supplements, “wrappers” or similar materials prepared in connection
with any offering, sale or private placement of any Placement Shares by the Agents outside of the United States.
2. Placements.
Each time that the Company wishes to issue and sell Placement Shares hereunder (each, a “Placement”),
it will notify Cantor by email notice (or other method mutually agreed to by the parties)
of the number of Placement Shares to be issued, the time period during which sales are requested
to be made, any limitation on the number of Placement Shares that may be sold in any one
day and any minimum price below which sales of Placement Shares may not be made (a “Placement
Notice”), the form of which is attached hereto as Schedule 1. The Placement
Notice shall originate from any of the individuals authorized to act on behalf of the Company,
which individuals have been identified by the Company on Schedule 3, (with a copy
to each of the other individuals identified by the Company on such schedule), and shall be
addressed to each of the individuals from Cantor set forth on Schedule 3, as such
Schedule 3 may be updated by either party from time to time by sending a written notice
containing a revised Schedule 3 to the other party in the manner provided in Section 13.
The Placement Notice shall be effective unless and until (i) in accordance with the
notice requirements set forth in Section 4, Cantor declines to accept the terms
contained therein for any reason, in its sole discretion, (ii) all of the Placement
Shares authorized to be sold under such Placement Notice have been sold, (iii) in accordance
with the notice requirements set forth in Section 4, the Company suspends or
terminates the Placement Notice, (iv) the Company issues a subsequent Placement Notice, (v) in
accordance with the notice requirements set forth in Section 4, the Company suspends
sales under or terminates the Placement Notice for any reason in its sole discretion, or
(vi) this Agreement has been terminated under the provisions of Section 12.
The amount of any discount, commission or other compensation to be paid by the Company to
Cantor in connection with the sale of the Placement Shares shall be calculated in accordance
with the terms set forth in Schedule 2. It is expressly acknowledged and agreed that
neither the Company nor Cantor will have any obligation whatsoever with respect to a Placement
or any Placement Shares unless and until the Company delivers a Placement Notice to Cantor
and Cantor does not decline such Placement Notice pursuant to the terms set forth above,
and then only upon the terms specified therein and herein. In the event of a conflict between
the terms of this Agreement and the terms of a Placement Notice, the terms of the Placement
Notice will control. Subject to the provisions of Section 5(a), Cantor, for the
period specified in the Placement Notice, will use its commercially reasonable efforts consistent
with its normal trading and sales practices and applicable state and federal laws, rules
and regulations and the rules of the NYSE American LLC (the “Exchange”),
to sell the Placement Shares up to the amount specified in, and otherwise in accordance with
the terms of, such Placement Notice. Cantor will provide written confirmation to the Company
no later than the opening of the Trading Day (as defined below) immediately following the
Trading Day on which it has made sales of Placement Shares hereunder setting forth the number
of Placement Shares sold on such day, the compensation payable by the Company to Cantor pursuant
to Section 2 with respect to such sales, and the Net Proceeds (as defined below)
payable to the Company, with an itemization of the deductions made by Cantor (as set forth
in Section 5(c)) from the gross proceeds that it receives from such sales. Subject
to the terms of the Placement Notice, Cantor may sell Placement Shares by any method permitted
by law deemed to be an “at the market offering” as defined in Rule 415(a)(4)
of the Securities Act. “Trading Day” means any day on which Common
Stock is traded on the Exchange.
2
3. Sale
of Placement Shares by Cantor. Cantor will provide written confirmation to the Company
no later than the opening of the Trading Day (as defined below) immediately following the
Trading Day on which it has made sales of Placement Shares hereunder setting forth the number
of Placement Shares sold on such day, the compensation payable by the Company to Cantor pursuant
to Section 2 with respect to such sales, and the Net Proceeds (as defined below)
payable to the Company, with an itemization of the deductions made by Cantor (as set forth
in Section 5(c)) from the gross proceeds that it receives from such sales. Subject
to the terms of the Placement Notice, Cantor may sell Placement Shares (i) in privately negotiated
transactions with the consent of the Company; (ii) as block transactions; or (iii) by any
other method permitted by law deemed to be an “at the market offering” as defined
in Rule 415(a)(4) of the Securities Act, including sales made directly on the Exchange or
sales made into any other existing trading market of the Common Stock. The Company acknowledges
and agrees that (i) there can be no assurance that Cantor will be successful in selling Placement
Shares, (ii) Cantor will incur no liability or obligation to the Company or any other person
or entity if it does not sell Placement Shares for any reason other than a failure by Cantor
to use its commercially reasonable efforts consistent with its normal trading and sales practices
to sell such Placement Shares as required under this Agreement and (iii) Cantor shall be
under no obligation to purchase Placement Shares on a principal basis pursuant to this Agreement.
“Trading Day” means any day on which Common Stock is traded on
the Exchange.
4. Suspension
of Sales. The Company or Cantor may, upon notice to the other party in writing (including
by email correspondence to each of the individuals of the other party set forth on Schedule
3, if receipt of such correspondence is actually acknowledged by any of the individuals
to whom the notice is sent, other than via auto-reply) or by telephone (confirmed immediately
by verifiable facsimile transmission or email correspondence to each of the individuals of
the other party set forth on Schedule 3), suspend any sale of Placement Shares (a
“Suspension”); provided, however, that such Suspension
shall not affect or impair any party’s obligations with respect to any Placement Shares
sold hereunder prior to the receipt of such notice. While a Suspension is in effect any obligation
under Sections 7(l), 7(m), and 7(n) with respect to the delivery of
certificates, opinions, or comfort letters to the Agents, shall be waived. Each of the parties
agrees that no such notice under this Section 4 shall be effective against any
other party unless it is made to one of the individuals identified on Schedule 3,
as such Schedule may be updated by either party from time to time by sending a written notice
containing a revised Schedule 3 to the other party in the manner provided in Section 13.
Notwithstanding any other provision of this Agreement, during any period in which the Company
is in possession of material non-public information, the Company and the Agents agree that
(i) no sale of Placement Shares will take place, (ii) the Company shall not request the sale
of any Placement Shares and shall cancel any effective Placement Notices instructing Cantor
to make any sales, and (iii) the Agents shall not be obligated to sell or offer to sell any
Placement Shares.
5. Settlement;
Delivery to Cantor.
(a) Settlement
of Placement Shares. Unless otherwise specified in the applicable Placement Notice,
settlement for sales of Placement Shares will occur on the first (1st) Trading Day (or such
earlier day as is industry practice or as is required for regular-way trading) following
the date on which such sales are made (each, a “Settlement Date”).
The amount of proceeds to be delivered to the Company on a Settlement Date against receipt
of the Placement Shares sold (the “Net Proceeds”) will be equal
to the aggregate sales price received by Cantor, after deduction for (i) Cantor’s commission,
discount or other compensation for such sales payable by the Company pursuant to Section 2
hereof, (ii) any other amounts due and payable by the Company to Cantor hereunder pursuant
to Section 8 hereof and (iii) any transaction fees imposed by any Governmental
Authority in respect of such sales.
(b) Delivery
of Placement Shares. On or before each Settlement Date, the Company will, or will cause
its transfer agent to, electronically transfer the Placement Shares being sold by crediting
Cantor’s or its designee’s account (provided Cantor shall have given the Company
written notice of such designee on or prior to the Settlement Date) at The Depository Trust
Company through its Deposit and Withdrawal at Custodian System or by such other means of
delivery as may be mutually agreed upon by the parties hereto which in all cases shall be
freely tradable, transferable, registered shares in good deliverable form. On each Settlement
Date, Cantor will deliver the related Net Proceeds in same day funds to an account designated
by the Company on, or prior to, the Settlement Date. The Company agrees that if the Company,
or its transfer agent (if applicable), defaults in its obligation to deliver Placement Shares
on a Settlement Date, the Company agrees that, in addition to and in no way limiting the
rights and obligations set forth in Section 10(a) hereto, will (i) hold Cantor
harmless against any loss, claim, damage, or expense (including reasonable legal fees and
expenses), as incurred, arising out of or in connection with such default by the Company
or its transfer agent (as applicable), (ii) pay to Cantor any commission, discount, or other
compensation to which it would otherwise have been entitled absent such default and (iii)
take all necessary action to cause the full amount of any Net Proceeds that were delivered
to the Company’s account with respect to such settlement, together with any costs incurred
by Cantor and/or its clearing firm in connection with recovering such Net Proceeds, to be
immediately returned to Cantor or its clearing firm no later than 5:00 P.M., New York City
time, on such Settlement Date, by wire transfer of immediately available funds to an account
designated by Cantor or its clearing firm.
3
(c) Denominations;
Registration. Certificates for the Placement Shares, if any, shall be in such
denominations and registered in such names as the Agents may request in writing at least
one full Business Day (as defined below) before the applicable Settlement Date. The certificates
for the Placement Shares, if any, will be made available by the Company for examination and
packaging by the Agents in The City of New York not later than noon (New York time)
on the Business Day prior to the applicable Settlement Date.
(d) Limitations
on Offering Size. Under no circumstances shall the Company cause or request the
offer or sale of any Placement Shares if, after giving effect to the sale of such Placement
Shares, the aggregate gross sales proceeds of Placement Shares sold pursuant to this Agreement
would exceed the lesser of (A) the Maximum Amount and (B) the amount authorized
from time to time to be issued and sold under this Agreement by the Company’s board
of directors, a duly authorized committee thereof or a duly authorized executive committee
(such entity, the “Company Authorization Body”). Under no circumstances
shall the Company cause or request the offer or sale of any Placement Shares pursuant to
this Agreement at a price lower than the minimum price authorized from time to time by the
Company Authorization Body.
6. Representations
and Warranties of the Company. The Company represents and warrants to, and agrees with
each Agent that as of the date of this Agreement and as of each Applicable Time (as defined
below), unless such representation, warranty or agreement specifies a different time:
(a) Registration
Statement and Prospectus. The Company and the transactions contemplated by this Agreement
meet the requirements for and comply with the applicable conditions set forth in Form S-3
(including General Instructions I.A and I.B) under the Securities Act. The Registration Statement
has been or will be filed with the Commission and has been or will be declared effective
by the Commission under the Securities Act prior to the issuance of any Placement Notices
by the Company. Prior to the delivery of the first Placement Notice and as of each Applicable
Time (as defined below) thereafter, the Registration Statement is and will be effective.
The Prospectus will name the Agents as the agents in the section entitled “Plan of
Distribution.” The Company has not received, and has no notice of, any order of the
Commission preventing or suspending the use of the Registration Statement, or threatening
or instituting proceedings for that purpose. The Registration Statement and the offer and
sale of Placement Shares as contemplated hereby meet the requirements of Rule 415 under
the Securities Act and comply in all material respects with said Rule. Any statutes, regulations,
contracts or other documents that are required to be described in the Registration Statement
or the Prospectus or to be filed as exhibits to the Registration Statement have been so described
in all material respects or filed. Copies of the Registration Statement, the Prospectus,
and any such amendments or supplements and all documents incorporated by reference therein
that were filed with the Commission on or prior to the date of this Agreement have been delivered,
or are available through EDGAR or any successor system, to the Agents and their counsel.
The Company has not distributed and, prior to the later to occur of each Settlement Date
and completion of the distribution of the Placement Shares, will not distribute any offering
material in connection with the offering or sale of the Placement Shares other than the Registration
Statement and the Prospectus and any Issuer Free Writing Prospectus to which the Agents have
consented.
(b) No
Misstatement or Omission. The Registration Statement, when it became or becomes effective,
and the Prospectus, and any amendment or supplement thereto, on the date of such Prospectus
or amendment or supplement, conformed and will conform in all material respects with the
requirements of the Securities Act. At each Settlement Date, the Registration Statement and
the Prospectus, as of such date, will conform in all material respects with the requirements
of the Securities Act. The Registration Statement, when it became or becomes effective, did
not, and will not, contain an untrue statement of a material fact or omit to state a material
fact required to be stated therein or necessary to make the statements therein not misleading.
The Prospectus and any amendment and supplement thereto, on the date thereof and at each
Applicable Time (as defined below), did not or will not include an untrue statement of a
material fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading. The documents incorporated
by reference in the Registration Statement or the Prospectus did not, and any further documents
filed and incorporated by reference therein will not, when filed with the Commission, contain
an untrue statement of a material fact or omit to state a material fact required to be stated
in such document or necessary to make the statements in such document, in light of the circumstances
under which they were made, not misleading. The foregoing shall not apply to statements in,
or omissions from, any such document made in reliance upon, and in conformity with, information
furnished to the Company by any Agent in writing specifically for use in the preparation
thereof, it being understood and agreed that the only such information furnished by the Agents
to the Company consists of the Agents’ Information (as defined below).
4
(c) Conformity
with the Securities Act and Exchange Act. The Registration Statement, the Prospectus,
any Issuer Free Writing Prospectus or any amendment or supplement thereto, and the documents
incorporated by reference in the Registration Statement, the Prospectus or any amendment
or supplement thereto, when such documents were or are filed with the Commission under the
Securities Act or the Exchange Act or became or become effective under the Securities Act,
as the case may be, conformed or will conform in all material respects with the requirements
of the Securities Act and the Exchange Act, as applicable.
(d) Exchange
Matters. The Company is subject to and in compliance in all material respects with the
reporting requirements of Section 13 or Section 15(d) of the Exchange Act. The
Common Stock is registered pursuant to Section 12(b) of the Exchange Act and is currently
listed on the Exchange. The Company has taken no action designed to, or reasonably likely
to have the effect of, terminating the registration of the Common Stock under the Exchange
Act, delisting the Common Stock from the Exchange, nor has the Company received any notification
that the Commission or the Exchange is contemplating terminating such registration or listing.
To the Company’s knowledge, it is in compliance with all applicable listing requirements
of the Exchange. The Company has filed a Notification of Listing of Additional Shares with
the Exchange with respect to the Placement Shares.
(e) Financial
Information. The consolidated financial statements of the Company included or incorporated
by reference in the Registration Statement and the Prospectus together with the related notes
and schedules, present fairly, in all material respects, the consolidated financial position
of the Company and the Subsidiaries (as defined below) as of the dates indicated and the
consolidated results of operations, cash flows and changes in stockholders’ equity
of the Company and the Subsidiaries (as defined below) for the periods specified and have
been prepared in compliance with the requirements of the Securities Act and Exchange Act
and in conformity with U.S. Generally Accepted Accounting Principles (“GAAP”)
applied on a consistent basis during the periods involved. To the extent applicable, any
pro forma financial statements, information or data included or included or incorporated
by reference in the Registration Statement and the Prospectus comply with the requirements
of Regulation S-X of the Securities Act, including, without limitation, Article 8 thereof,
fairly present the information set forth herein, and the assumptions used in the preparation
of such pro forma financial statements and data are reasonable, the pro forma adjustments
used therein are appropriate to give effect to the circumstances referred to therein and
the pro forma adjustments have been properly applied to the historical amounts in the compilation
of those statements and data. The other financial and statistical data with respect to the
Company and the Subsidiaries (as defined below) contained or incorporated by reference in
the Registration Statement and the Prospectus are accurately and fairly presented and prepared
on a basis consistent with the financial statements and books and records of the Company.
There are no financial statements (historical or pro forma) that are required to be included
or incorporated by reference in the Registration Statement, or the Prospectus that are not
included or incorporated by reference therein as required. The Company and the Subsidiaries
(as defined below) do not have any material liabilities or obligations, direct or contingent
(including any off-balance sheet obligations), not described in the Registration Statement
(excluding the exhibits thereto), and the Prospectus. All disclosures contained or incorporated
by reference in the Registration Statement and the Prospectus regarding “non-GAAP financial
measures” (as such term is defined by the rules and regulations of the Commission)
comply with Regulation G of the Exchange Act and Item 10 of Regulation S-K under the Securities
Act, to the extent applicable. The interactive data in eXtensible Business Reporting Language
included or incorporated by reference in the Registration Statement and the Prospectus fairly
presents the information called for in all material respects and has been prepared in accordance
with the Commission’s rules and guidelines applicable thereto.
(f) Conformity
with EDGAR Filing. The Prospectus delivered to the Agents for use in connection with
the sale of the Placement Shares pursuant to this Agreement will be identical to the versions
of the Prospectus created to be transmitted to the Commission for filing via EDGAR, except
to the extent permitted by Regulation S-T.
(g) Organization.
The Company is duly organized, validly existing as a corporation and in good standing under
the laws of its jurisdiction of incorporation. The Company is duly licensed or qualified
as a foreign corporation for transaction of business and in good standing under the laws
of each jurisdiction in which its respective ownership or lease of property or the conduct
of its respective business requires such license or qualification, and has all corporate
power and authority necessary to own or hold its respective properties and to conduct its
respective businesses as described in the Registration Statement and the Prospectus, except
where the failure to be so qualified or in good standing or have such power or authority
would not, individually or in the aggregate, have a material adverse effect or would reasonably
be expected to have a material adverse effect on or affecting the assets, business, operations,
earnings, properties, condition (financial or otherwise), earnings, results of operations,
business, prospects, properties, assets, liabilities or stockholders’ equity of the
Company and the Subsidiaries (as defined below) taken as a whole, whether or not arising
from transactions in the ordinary course of business, or prevent or materially interfere
with consummation of the transactions contemplated hereby (a “Material Adverse
Effect”).
5
(h) Subsidiaries.
Each of the Company’s “subsidiaries” (for purposes of this Agreement, as
defined in Rule 405 under the Securities Act) (each, a “Subsidiary”
and collectively, the “Subsidiaries”) is duly organized, validly
existing as a corporation and in good standing under the laws of its jurisdiction of incorporation,
is duly licensed or qualified as a foreign corporation for transaction of business and in
good standing under the laws of each jurisdiction in which its respective ownership or lease
of property or the conduct of its respective business requires such license or qualification,
and has all corporate power and authority necessary to own or hold its respective properties
and to conduct its respective businesses as described in the Registration Statement and the
Prospectus, except where the failure to be so qualified or in good standing or have such
power or authority would not, individually or in the aggregate, have a Material Adverse Effect.
Except as set forth in the Registration Statement and in the Prospectus, the Company owns,
directly or indirectly, all of the equity interests of the Subsidiaries free and clear of
any lien, charge, security interest, encumbrance, right of first refusal or other restriction,
and all the equity interests of the Subsidiaries are validly issued and are fully paid, nonassessable
and free of preemptive and similar rights. No Subsidiary is currently prohibited, directly
or indirectly, from paying any dividends to the Company, from making any other distribution
on such Subsidiary’s capital stock, from repaying to the Company any loans or advances
to such Subsidiary from the Company or from transferring any of such Subsidiary’s property
or assets to the Company or any other Subsidiary of the Company. Except for the entities
identified in Exhibit 21 to the Company’s most recent Annual Report on Form 10-K, the
Company does not own or control, directly or indirectly, any corporation, association or
other entity, which constitutes a “significant subsidiary” within the meaning
of Rule 1-02 of Regulation S-X under the Exchange Act.
(i) No
Violation or Default. Neither the Company nor any of its Subsidiaries is (i) in
violation of its charter or by-laws or similar organizational documents; (ii) in default,
and no event has occurred that, with notice or lapse of time or both, would constitute such
a default, in the due performance or observance of any term, covenant or condition contained
in any indenture, mortgage, deed of trust, loan agreement or other agreement or instrument
to which the Company or any of its Subsidiaries is a party or by which the Company or any
of its Subsidiaries is bound or to which any of the property or assets of the Company or
any of its Subsidiaries are subject; or (iii) in violation of any law or statute or
any judgment, order, rule or regulation of any Governmental Authority, except, in the case
of each of clauses (ii) and (iii) above, for any such violation or default that would not,
individually or in the aggregate, reasonably be expected to have a Material Adverse Effect.
To the Company’s knowledge, no other party under any material contract or other agreement
to which it or any of its Subsidiaries is a party is in default in any respect thereunder
where such default would reasonably be expected to have a Material Adverse Effect.
(j) No
Material Adverse Change. Subsequent to the respective dates as of which information is
given in the Registration Statement, the Prospectus and the Free Writing Prospectuses, if
any (including any document deemed incorporated by reference therein), there has not been
(i) any Material Adverse Effect or the occurrence of any development that could reasonably
be expected to result in a Material Adverse Effect, (ii) any transaction which is material
to the Company and the Subsidiaries taken as a whole, (iii) any obligation or liability,
direct or contingent (including any off-balance sheet obligations), incurred by the Company
or any Subsidiary, which is material to the Company and the Subsidiaries taken as a whole,
(iv) any material change in the capital stock or outstanding long-term indebtedness of the
Company or any of its Subsidiaries or (v) any dividend or distribution of any kind declared,
paid or made on the capital stock of the Company or any Subsidiary, other than in each case
above in the ordinary course of business or as otherwise disclosed in the Registration Statement
or Prospectus (including any document deemed incorporated by reference therein).
(k) Capitalization.
The issued and outstanding shares of capital stock of the Company have been validly issued,
are fully paid and nonassessable and have been issued in compliance with all federal, state
and local securities laws and are free and clear of any security interest, mortgage, pledge,
lien, encumbrance or adverse claim. None of the outstanding shares of capital stock of the
Company were issued in violation of any preemptive rights, rights of first refusal or other
similar rights to subscribe for or purchase securities of the Company. The Company has an
authorized, issued and outstanding capitalization as set forth in the Registration Statement
and the Prospectus as of the dates referred to therein (other than the grant of additional
options under the Company’s existing stock option plans, or changes in the number of
outstanding shares of Common Stock of the Company due to the issuance of shares upon the
exercise or conversion of securities exercisable for, or convertible into, Common Stock outstanding
on the date hereof) and such authorized capital stock conforms to the description thereof
set forth in the Registration Statement and the Prospectus. The description of the securities
of the Company in the Registration Statement and the Prospectus is complete and accurate
in all material respects. Except as disclosed in or contemplated by the Registration Statement
or the Prospectus, as of the date referred to therein, the Company does not have outstanding
any options to purchase, or any rights or warrants to subscribe for, or any securities or
obligations convertible into, or exchangeable for, or any contracts or commitments to issue
or sell, any shares of capital stock or other securities.
6
(l) Authorization;
Enforceability. The Company has full legal right, power and authority to enter into this
Agreement and perform the transactions contemplated hereby. This Agreement has been duly
authorized, executed and delivered by the Company and is a legal, valid and binding agreement
of the Company enforceable in accordance with its terms, except to the extent that enforceability
may be limited by bankruptcy, insolvency, reorganization, moratorium or similar laws affecting
creditors’ rights generally and by general equitable principles.
(m) Authorization
of Placement Shares. The Placement Shares, when issued and delivered pursuant to the
terms approved by the board of directors of the Company or a duly authorized committee thereof,
or a duly authorized executive committee, against payment therefor as provided herein, will
be duly and validly authorized and issued and fully paid and nonassessable, free and clear
of any pledge, lien, encumbrance, security interest or other claim, including any statutory
or contractual preemptive rights, resale rights, rights of first refusal or other similar
rights, and will be registered pursuant to Section 12 of the Exchange Act. The Placement
Shares, when issued, will conform to the description thereof set forth in or incorporated
into the Prospectus.
(n) No
Consents Required. No consent, approval, authorization, order, registration or qualification
of or with any Governmental Authority is required for the execution, delivery and performance
by the Company of this Agreement, the issuance and sale by the Company of the Placement Shares,
except for such consents, approvals, authorizations, orders and registrations or qualifications
as have already been obtained or as may be required under applicable state securities laws
or by the by-laws and rules of the Financial Industry Regulatory Authority (“FINRA”)
or the Exchange in connection with the sale of the Placement Shares by the Agents.
(o) No
Preferential Rights. Except as set forth in the Registration Statement and the Prospectus,
(i) no person, as such term is defined in Rule 1-02 of Regulation S-X promulgated under
the Securities Act (each, a “Person”), has the right, contractual
or otherwise, to cause the Company to issue or sell to such Person any Common Stock or shares
of any other capital stock or other securities of the Company, (ii) no Person has any
preemptive rights, resale rights, rights of first refusal, rights of co-sale, or any other
rights (whether pursuant to a “poison pill” provision or otherwise) to purchase
any Common Stock or shares of any other capital stock or other securities of the Company,
(iii) no Person has the right to act as an underwriter or as a financial advisor to
the Company in connection with the offer and sale of the Placement Shares hereunder, and
(iv) no Person has the right, contractual or otherwise, to require the Company to register
under the Securities Act any Common Stock or shares of any other capital stock or other securities
of the Company, or to include any such shares or other securities in the Registration Statement
or the offering contemplated thereby, whether as a result of the filing or effectiveness
of the Registration Statement or the sale of the Placement Shares as contemplated thereby
or otherwise.
(p) Independent
Public Accounting Firm. TAAD, LLP (the “Accountant”), whose
report on the consolidated financial statements of the Company is filed with the Commission
as part of the Company’s most recent Annual Report on Form 10-K filed with the Commission
and incorporated by reference into the Registration Statement and the Prospectus, are and,
during the periods covered by their report, were an independent registered public accounting
firm within the meaning of the Securities Act and the Public Company Accounting Oversight
Board (United States). To the Company’s knowledge, the Accountant is not in violation
of the auditor independence requirements of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”) with respect to the Company. The Accountant has not been engaged by the
Company to perform any “prohibited activities” or provided to the Company any
“non-audit services” (as defined in Section 10A of the Exchange Act).
(q) Enforceability
of Agreements. All agreements between the Company and third parties expressly referenced
in the Registration Statement and Prospectus are legal, valid and binding obligations of
the Company enforceable in accordance with their respective terms, except to the extent that
(i) enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium
or similar laws affecting creditors’ rights generally and by general equitable principles
and (ii) the indemnification provisions of certain agreements may be limited by federal
or state securities laws or public policy considerations in respect thereof.
(r) No
Litigation. Except as set forth in the Registration Statement or the Prospectus, there
are no actions, suits or proceedings by or before any Governmental Authority pending, nor,
to the Company’s knowledge, any audits or investigations by or before any Governmental
Authority to which the Company or a Subsidiary is a party or to which any property of the
Company or any of its Subsidiaries is the subject that, individually or in the aggregate,
would have a Material Adverse Effect and, to the Company’s knowledge, no such actions,
suits, proceedings, audits or investigations are threatened or contemplated by any Governmental
Authority or threatened by others; and (i) there are no current or pending audits or
investigations, actions, suits or proceedings by or before any Governmental Authority that
are required under the Securities Act to be described in the Registration Statement and Prospectus
that are not so described; and (ii) there are no contracts or other documents that are
required under the Securities Act to be filed as exhibits to the Registration Statement that
are not described in all material respects or filed as required.
7
(s) Consents
and Permits. The Company and each Subsidiary possess such valid and current certificates,
authorizations or permits issued by the appropriate state, federal or foreign regulatory
agencies or bodies necessary to conduct their respective businesses, except as otherwise
would not reasonably be expected to have a Material Adverse Effect, and neither the Company
nor any Subsidiary has received, or has any reason to believe that it will receive, any notice
of proceedings relating to the revocation or modification of, or non-compliance with, any
such certificate, authorization or permit which, singly or in the aggregate, if the subject
of an unfavorable decision, ruling or finding, could result in a Material Adverse Effect.
To the Company’s knowledge, neither the Company, any of its Subsidiaries nor any of
its directors, officers, employees or agents has made, or caused the making of, any false
statements on, or material omissions from, any other records or documentation prepared or
maintained to comply with the requirements of any Governmental Authority.
(t) Intellectual
Property. Except as disclosed in the Registration Statement and the Prospectus, the Company
and its Subsidiaries own, possess, license or have other rights to use all foreign and domestic
patents, patent applications, trade and service marks, trade and service mark registrations,
trade names, copyrights, licenses, inventions, trade secrets, technology, Internet domain
names, know-how (including unpatented and/or unpatentable proprietary or confidential information,
systems or procedures) and other intellectual property (collectively, the “Intellectual
Property”), necessary for the conduct of their respective businesses as now
conducted except to the extent that the failure to own, possess, license or otherwise hold
adequate rights to use such Intellectual Property would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect. Except as disclosed in the Registration
Statement and the Prospectus (i) there are no rights of third parties to any such Intellectual
Property owned by the Company and its Subsidiaries; (ii) to the Company’s knowledge,
there is no infringement by third parties of any such Intellectual Property; (iii) there
is no pending or, to the Company’s knowledge, threatened action, suit, proceeding or
claim by others challenging the Company’s and its Subsidiaries’ rights in or
to any such Intellectual Property, and the Company is unaware of any facts which could form
a reasonable basis for any such action, suit, proceeding or claim; (iv) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
challenging the validity or scope of any such Intellectual Property; (v) there is no pending
or, to the Company’s knowledge, threatened action, suit, proceeding or claim by others
that the Company and its Subsidiaries infringe or otherwise violate any patent, trademark,
copyright, trade secret or other proprietary rights of others; (vi) to the Company’s
knowledge, there is no third-party U.S. patent or published U.S. patent application which
contains claims for which an Interference Proceeding (as defined in 35 U.S.C. § 135)
has been commenced against any patent or patent application described in the Registration
Statement and the Prospectus as being owned by or licensed to the Company; (vii) all employees
or contractors engaged in the development of Intellectual Property on behalf of the Company
or its Subsidiaries have executed or have an obligation to execute an invention assignment
agreement whereby such employees or contractors presently assign all of their right, title
and interest in and to such Intellectual Property to the Company or the applicable subsidiary,
and to the Company’s knowledge no such agreement has been breached or violated; (viii)
the Company and its Subsidiaries use, and have used, commercially reasonable efforts to appropriately
maintain all information intended to be maintained as a trade secret; and (ix) the Company
and its Subsidiaries have complied with the terms of each agreement pursuant to which Intellectual
Property has been licensed to the Company or such Subsidiary, and all such agreements are
in full force and effect, except, in the case of any of clauses (i)-(ix) above, for any such
infringement by third parties or any such pending or threatened suit, action, proceeding
or claim as would not, individually or in the aggregate, reasonably be expected to result
in a Material Adverse Effect.
(u) Market
Capitalization. At the time the Registration Statement was originally declared effective,
and at the time the Company’s most recent Annual Report on Form 10-K was filed with
the Commission, the Company met the then applicable requirements for the use of Form S-3
under the Securities Act, including, but not limited to, General Instruction I.B.6 of Form
S-3. The Company is not a shell company (as defined in Rule 405 under the Securities Act)
and has not been a shell company for at least 12 calendar months previously and if it has
been a shell company at any time previously, has filed current Form 10 information (as defined
in Instruction I.B.6 of Form S-3) with the Commission at least 12 calendar months previously
reflecting its status as an entity that is not a shell company.
(v) FINRA
Matters. Neither the Company nor any of the Subsidiaries is required to register as a
“broker” or “dealer” in accordance with the provisions of the Exchange
Act and do not, directly or indirectly through one or more intermediaries, control or have
any other association with (within the meaning of Article I of the By-laws of FINRA) any
member firm of FINRA. No relationship, direct or indirect, exists between or among the Company,
on the one hand, and the directors, officers or shareholders of the Company, on the other
hand, which is required by the rules of FINRA to be described in the Registration Statement
and the Prospectus, which is not so described. The information provided to the Agents by
the Company, its counsel, and its officers and directors for purposes of the Agents’
compliance with applicable FINRA rules in connection with the offering of the Placement Shares
is true, complete, and correct in all material respects and compliant with FINRA’s
rules.
8
(w) No
Material Defaults. Neither the Company nor any of the Subsidiaries has defaulted on any
installment on indebtedness for borrowed money or on any rental on one or more long-term
leases, which defaults, individually or in the aggregate, would have a Material Adverse Effect.
The Company has not filed a report pursuant to Section 13(a) or 15(d) of the Exchange
Act since the filing of its last Annual Report on Form 10-K, indicating that it (i) has
failed to pay any dividend or sinking fund installment on preferred stock or (ii) has
defaulted on any installment on indebtedness for borrowed money or on any rental on one or
more long-term leases, which defaults, individually or in the aggregate, would have a Material
Adverse Effect.
(x) Certain
Market Activities. Neither the Company, nor any of the Subsidiaries, nor any of their
respective directors, officers or controlling persons has taken, directly or indirectly,
(i) any action designed, or that has constituted or would reasonably be expected to cause
or result in, under the Exchange Act or otherwise, the stabilization or manipulation of the
price of any security of the Company to facilitate the sale or resale of the Placement Shares
or (ii) any action designed to or that might constitute or reasonably be expected to cause
or result in a violation of Regulation M under the Exchange Act. The Company’s purchases,
sales and other transactions in digital assets, including Dogecoin, pursuant to its digital
asset treasury strategy are conducted in a manner that is not designed to, and would not
reasonably be expected to, constitute the stabilization or manipulation of the price of the
Common Stock or otherwise violate Regulation M under the Exchange Act.
(y) No
Reliance. The Company has not relied upon the Agents or legal counsel for the Agents
for any legal, tax or accounting advice in connection with the offering and sale of Placement
Shares.
(z) Taxes.
The Company and each of its Subsidiaries have filed all federal, state, local and foreign
tax returns which have been required to be filed and paid all taxes shown thereon through
the date hereof, to the extent that such taxes have become due and are not being contested
in good faith, except where the failure to so file or pay would not have a Material Adverse
Effect. Except as otherwise disclosed in or contemplated by the Registration Statement or
the Prospectus, no tax deficiency has been determined adversely to the Company or any of
its Subsidiaries which has had, or would have, individually or in the aggregate, a Material
Adverse Effect. The Company has no knowledge of any federal, state or other governmental
tax deficiency, penalty or assessment which has been or might be asserted or threatened against
it which would have a Material Adverse Effect. The charges, accruals and reserves on the
books of the Company and its Subsidiaries in respect of any income or other tax liability
for any years not finally determined are adequate to meet any assessments or re-assessments
for additional tax for any years not finally determined, except to the extent of any inadequacy
that would not reasonably be expected to result in a Material Adverse Effect.
(aa) Title
to Real and Personal Property. Except as set forth in the Registration Statement or the
Prospectus, the Company and its Subsidiaries have good and marketable title in fee simple
to all items of real property owned by them, good and valid title to all personal property
described in the Registration Statement or Prospectus as being owned by them, in each case
free and clear of all liens, encumbrances and claims, except those matters that (i) do not
materially interfere with the use made and proposed to be made of such property by the Company
and any of its Subsidiaries or (ii) would not, individually or in the aggregate, have a Material
Adverse Effect. Any real or personal property described in the Registration Statement or
Prospectus as being leased by the Company and any of its Subsidiaries is held by them under
valid, existing and enforceable leases, except those that (A) do not materially interfere
with the use made or proposed to be made of such property by the Company or any of its Subsidiaries
or (B) would not be reasonably expected, individually or in the aggregate, to have a Material
Adverse Effect. Each of the properties of the Company and its Subsidiaries complies with
all applicable codes, laws and regulations (including, without limitation, building and zoning
codes, laws and regulations and laws relating to access to such properties), except if and
to the extent disclosed in the Registration Statement or Prospectus or except for such failures
to comply that would not, individually or in the aggregate, reasonably be expected to interfere
in any material respect with the use made and proposed to be made of such property by the
Company and its Subsidiaries or otherwise have a Material Adverse Effect. None of the Company
or its Subsidiaries has received from any Governmental Authorities any notice of any condemnation
of, or zoning change affecting, the properties of the Company and its Subsidiaries, and to
the Company’s knowledge, there is no such condemnation or zoning change which is threatened,
except for such that would not reasonably be expected to interfere in any material respect
with the use made and proposed to be made of such property by the Company and its Subsidiaries
or otherwise have a Material Adverse Effect, individually or in the aggregate.
9
(bb) Environmental
Laws. Except as set forth in the Registration Statement or the Prospectus, the Company
and its Subsidiaries (i) are in compliance with any and all applicable federal, state,
local and foreign laws, rules, regulations, decisions and orders relating to the protection
of human health and safety, the environment or hazardous or toxic substances or wastes, pollutants
or contaminants (collectively, “Environmental Laws”); (ii) have
received and are in compliance with all permits, licenses or other approvals required of
them under applicable Environmental Laws to conduct their respective businesses as described
in the Registration Statement and the Prospectus; and (iii) have not received notice
of any actual or potential liability for the investigation or remediation of any disposal
or release of hazardous or toxic substances or wastes, pollutants or contaminants, except,
in the case of any of clauses (i), (ii) or (iii) above, for any such failure to comply or
failure to receive required permits, licenses, other approvals or liability as would not,
individually or in the aggregate, have a Material Adverse Effect.
(cc) Disclosure
Controls. The Company and each of its Subsidiaries maintain systems of internal accounting
controls sufficient to provide reasonable assurance that (i) transactions are executed
in accordance with management’s general or specific authorizations; (ii) transactions
are recorded as necessary to permit preparation of financial statements in conformity with
GAAP and to maintain asset accountability; (iii) access to assets is permitted only
in accordance with management’s general or specific authorization; and (iv) the
recorded accountability for assets is compared with the existing assets at reasonable intervals
and appropriate action is taken with respect to any differences. The Company’s internal
control over financial reporting is effective and the Company is not aware of any material
weaknesses in its internal control over financial reporting (other than as set forth in the
Prospectus). Since the date of the latest audited financial statements of the Company included
in the Prospectus, there has been no change in the Company’s internal control over
financial reporting that has materially affected, or is reasonably likely to materially affect,
the Company’s internal control over financial reporting (other than as set forth in
the Prospectus). The Company has established disclosure controls and procedures (as defined
in Exchange Act Rules 13a-15 and 15d-15) for the Company and designed such disclosure controls
and procedures to ensure that material information relating to the Company and each of its
Subsidiaries is made known to the certifying officers by others within those entities, particularly
during the period in which the Company’s Annual Report on Form 10-K or Quarterly Report
on Form 10-Q, as the case may be, is being prepared. The Company’s certifying officers
have evaluated the effectiveness of the Company’s disclosure controls and procedures
as of a date within 90 days prior to the filing date of the Annual Report on Form 10-K for
the fiscal year most recently ended (such date, the “Evaluation Date”).
The Company presented in its Annual Report on Form 10-K for the fiscal year most recently
ended the conclusions of the certifying officers about the effectiveness of the disclosure
controls and procedures based on their evaluations as of the Evaluation Date and the disclosure
controls and procedures are effective. Since the Evaluation Date, there have been no significant
changes in the Company’s internal controls (as such term is defined in Item 307(b)
of Regulation S-K under the Securities Act) or, to the Company’s knowledge, in other
factors that could significantly affect the Company’s internal controls.
(dd) Sarbanes-Oxley.
There is and has been no failure on the part of the Company or any of the Company’s
directors or officers, in their capacities as such, to comply in all material respects with
any applicable provisions of the Sarbanes-Oxley Act of 2002 (the “Sarbanes-Oxley
Act”) and the rules and regulations promulgated thereunder. Each of the principal
executive officer and the principal financial officer of the Company (or each former principal
executive officer of the Company and each former principal financial officer of the Company
as applicable) has made all certifications required by Sections 302 and 906 of the Sarbanes-Oxley
Act with respect to all reports, schedules, forms, statements and other documents required
to be filed by it or furnished by it to the Commission. For purposes of the preceding sentence,
“principal executive officer” and “principal financial officer” shall
have the meanings given to such terms in the Sarbanes-Oxley Act.
(ee) Finder’s
Fees. Neither the Company nor any of the Subsidiaries has incurred any liability for
any finder’s fees, brokerage commissions or similar payments in connection with the
transactions herein contemplated, except as may otherwise exist with respect to the Agents
pursuant to this Agreement.
(ff) Labor
Disputes. No labor disturbance by or dispute with employees of the Company or any of
its Subsidiaries exists or, to the knowledge of the Company, is threatened or imminent, which
would, singly or in the aggregate, reasonably be expected to result in a Material Adverse
Effect on the Company and its Subsidiaries, taken as a whole.
10
(gg) Investment
Company Act. To the Company’s knowledge, neither the Company nor any of the Subsidiaries
is or, after giving effect to the offering and sale of the Placement Shares, will be an “investment
company” or an entity “controlled” by an “investment company,”
as such terms are defined in the Investment Company Act of 1940, as amended (the “Investment
Company Act”). Without limiting the foregoing, the Company has determined that
it is not and, after giving effect to the offering and sale of the Placement Shares, will
not be an “investment company” as defined in the Investment Company Act, without
taking account of any exemption arising out of the number of holders of its securities. To
the Company’s knowledge, the Company’s digital assets, including its Dogecoin
holdings, do not constitute “securities” within the meaning of the Investment
Company Act, and the Company’s digital asset treasury strategy does not cause the Company
to be an “investment company” within the meaning of the Investment Company Act.
(hh) Operations.
The operations of the Company and its Subsidiaries are and have been conducted at all times
in compliance with applicable financial record keeping and reporting requirements of the
Currency and Foreign Transactions Reporting Act of 1970, as amended, the money laundering
statutes of all jurisdictions to which the Company or its Subsidiaries are subject, the rules
and regulations thereunder and any related or similar rules, regulations or guidelines, issued,
administered or enforced by any Governmental Authority (collectively, the “Money
Laundering Laws”); and no action, suit or proceeding by or before any Governmental
Authority involving the Company or any of its Subsidiaries with respect to the Money Laundering
Laws is pending or, to the knowledge of the Company, threatened.
(ii) Off-Balance
Sheet Arrangements. There are no transactions, arrangements and other relationships between
and/or among the Company, and/or any of its affiliates and any unconsolidated entity, including,
but not limited to, any structured finance, special purpose or limited purpose entity (each,
an “Off-Balance Sheet Transaction”) that could reasonably be expected
to affect materially the Company’s liquidity or the availability of or requirements
for its capital resources, including those Off-Balance Sheet Transactions described in the
Commission’s Statement about Management’s Discussion and Analysis of Financial
Conditions and Results of Operations (Release Nos. 33-8056; 34-45321; FR-61), required to
be described in the Registration Statement and the Prospectus which have not been described
as required.
(jj) Other
Underwriter Agreements. The Company is not a party to any agreement with an agent or
underwriter for any other “at the market”, equity line of credit or other continuous
equity transaction.
(kk) ERISA.
To the knowledge of the Company, each material employee benefit plan, within the meaning
of Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”),
that is maintained, administered or contributed to by the Company or any of its affiliates
for employees or former employees of the Company and any of its Subsidiaries has been maintained
in material compliance with its terms and the requirements of any applicable statutes, orders,
rules and regulations, including but not limited to ERISA and the Internal Revenue Code of
1986, as amended (the “Code”); no prohibited transaction, within
the meaning of Section 406 of ERISA or Section 4975 of the Code, has occurred which would
result in a material liability to the Company with respect to any such plan excluding transactions
effected pursuant to a statutory or administrative exemption; and for each such plan that
is subject to the funding rules of Section 412 of the Code or Section 302 of ERISA,
no “accumulated funding deficiency” as defined in Section 412 of the Code
has been incurred, whether or not waived, and the fair market value of the assets of each
such plan (excluding for these purposes accrued but unpaid contributions) exceeds the present
value of all benefits accrued under such plan determined using reasonable actuarial assumptions.
(ll) Forward-Looking
Statements. Each financial or operational projection or other forward-looking statement
(within the meaning of Section 27A of the Securities Act and Section 21E of the
Exchange Act) (a “Forward-Looking Statement”) contained in the
Registration Statement and the Prospectus (i) was so included by the Company in good faith
and with a reasonable basis after due consideration by the Company of the underlying assumptions,
estimates and other applicable facts and circumstances and (ii) as required, is accompanied
by meaningful cautionary statements identifying those factors that could cause actual results
to differ materially from those in such Forward-Looking Statement. No Forward-Looking Statement
was made with the knowledge of a director or executive officer of the Company that was false
or misleading.
(mm) Agent
Purchases, Research Analyst Independence. The Company understands that each Agent
is a full service securities firm and as such from time to time, subject to applicable securities
laws, may effect transactions for such Agent’s own account or the account of such Agent’s
customers and hold long or short positions in debt or equity securities of the companies
that may be the subject of the transactions contemplated by this Agreement. The Company further
acknowledges that each Agent’s research analysts and research departments are required
to and should be independent from their respective investment banking divisions and are subject
to certain regulations and internal policies, and as such each Agent’s research analysts
may hold views and make statements or investment recommendations and/or publish research
reports with respect to the Company or the offering contemplated by this Agreement that differ
from the views of their respective investment banking divisions.
11
(nn) Margin
Rules. Neither the issuance, sale and delivery of the Placement Shares nor the application
of the proceeds thereof by the Company as described in the Registration Statement and the
Prospectus will violate Regulation T, U or X of the Board of Governors of the Federal Reserve
System or any other regulation of such Board of Governors.
(oo) Insurance.
The Company and each of its Subsidiaries carry, or are covered by, insurance in such amounts
and covering such risks as the Company and each of its Subsidiaries reasonably believe are
adequate for the conduct of their properties and as is customary for companies engaged in
similar businesses in similar industries. Neither the Company nor its Subsidiaries has been
refused any insurance coverage sought or applied for. Neither the Company nor its Subsidiaries
has any reason to believe that it will not be able to renew its existing insurance coverage
as and when such coverage expires or to obtain similar coverage from similar insurers as
may be necessary to continue its business at a cost that would not reasonably be expected
to, singly or in the aggregate, have a Material Adverse Effect on the Company and its Subsidiaries,
taken as a whole.
(pp) No
Improper Practices. (i) Neither the Company nor the Subsidiaries, nor any director,
officer, or employee of the Company or any Subsidiary nor, to the Company’s knowledge,
any agent, affiliate or other person acting on behalf of the Company or any Subsidiary has,
in the past five years, made any unlawful contributions to any candidate for any political
office (or failed fully to disclose any contribution in violation of applicable law) or made
any contribution or other payment to any official of, or candidate for, any federal, state,
municipal, or foreign office or other person charged with similar public or quasi-public
duty in violation of any applicable law or of the character required to be disclosed in the
Registration Statement and the Prospectus; (ii) no relationship, direct or indirect,
exists between or among the Company or any Subsidiary or any affiliate of any of them, on
the one hand, and the directors, officers and stockholders of the Company or any Subsidiary,
on the other hand, that is required by the Securities Act to be described in the Registration
Statement and the Prospectus that is not so described; (iii) except as described in
the Registration Statement and the Prospectus, there are no material outstanding loans or
advances or material guarantees of indebtedness by the Company or any Subsidiary to or for
the benefit of any of their respective officers or directors or any of the members of the
families of any of them; and (iv) the Company has not offered, or caused any placement agent
to offer, Common Stock to any person with the intent to influence unlawfully (A) a customer
or supplier of the Company or any Subsidiary to alter the customer’s or supplier’s
level or type of business with the Company or any Subsidiary or (B) a trade journalist
or publication to write or publish favorable information about the Company or any Subsidiary
or any of their respective products or services, and, (v) neither the Company nor any Subsidiary
nor any director, officer or employee of the Company or any Subsidiary nor, to the Company’s
knowledge, any agent, affiliate or other person acting on behalf of the Company or any Subsidiary
has (A) violated or is in violation of any applicable provision of the U.S. Foreign Corrupt
Practices Act of 1977, as amended, the UK Bribery Act 2010, as amended, or any other applicable
anti-bribery or anti-corruption law (collectively, “Anti-Corruption Laws”),
(B) promised, offered, provided, attempted to provide or authorized the provision of anything
of value, directly or indirectly, to any person for the purpose of obtaining or retaining
business, influencing any act or decision of the recipient, or securing any improper advantage;
or (C) made any payment of funds of the Company or any Subsidiary or received or retained
any funds in violation of any Anti-Corruption Laws. The Company and its Subsidiaries and,
to the knowledge of the Company, the Company’s affiliates have conducted their respective
businesses in compliance with the Anti-Corruption Laws and have instituted and maintain policies
and procedures designed to ensure, and which are reasonably expected to continue to ensure,
continued compliance therewith.
(qq) Status
Under the Securities Act. The Company was not and is not an ineligible issuer as defined
in Rule 405 under the Securities Act at the times specified in Rules 164 and 433 under the
Securities Act in connection with the offering of the Placement Shares.
(rr) No
Misstatement or Omission in an Issuer Free Writing Prospectus. Each Issuer Free Writing
Prospectus, as of its issue date and as of each Applicable Time (as defined below), did not,
does not and will not include any information that conflicted, conflicts or will conflict
with the information contained in the Registration Statement or the Prospectus, including
any incorporated document deemed to be a part thereof that has not been superseded or modified.
The foregoing sentence does not apply to statements in or omissions from any Issuer Free
Writing Prospectus based upon and in conformity with written information furnished to the
Company by any Agent specifically for use therein.
12
(ss) No
Conflicts. Neither the execution of this Agreement, nor the issuance, offering or sale
of the Placement Shares, nor the consummation of any of the transactions contemplated herein
and therein, nor the compliance by the Company with the terms and provisions hereof and thereof
will conflict with, or will result in a breach of, any of the terms and provisions of, or
has constituted or will constitute a default under, or has resulted in or will result in
the creation or imposition of any lien, charge or encumbrance upon any property or assets
of the Company pursuant to the terms of any contract or other agreement to which the Company
may be bound or to which any of the property or assets of the Company is subject, except
(i) such conflicts, breaches or defaults as may have been waived and (ii) such conflicts,
breaches and defaults that would not have a Material Adverse Effect.
(tt) Sanctions.
(i) The Company represents that, neither the Company nor any of its Subsidiaries (collectively,
the “Entity”) or any director, officer, employee, agent, affiliate
or representative of the Entity, is a government, individual, or entity (in this paragraph
(tt), “Person”) that is, or is owned or controlled by a Person
that is:
(A) the
subject of any sanctions administered or enforced by the U.S. Department of Treasury’s
Office of Foreign Assets Control (“OFAC”), the United Nations Security
Council, the European Union, His Majesty’s Treasury, or other relevant sanctions authorities,
including, without limitation, designation on OFAC’s Specially Designated Nationals
and Blocked Persons List or OFAC’s Foreign Sanctions Evaders List (as amended, collectively,
“Sanctions”), nor
(B) located,
organized or resident in a country or territory that is the subject of Sanctions that broadly
prohibit dealings with that country or territory (including, without limitation, Cuba, Iran,
North Korea, Syria, the so-called Donetsk People’s Republic, the so-called Luhansk
People’s Republic, the Crimea Region of Ukraine, the non-government controlled areas
of the Zaporizhzhia and Kherson Regions of Ukraine (or any other Covered Region of Ukraine
identified pursuant to Executive Order 14065)) (the “Sanctioned Countries”).
(ii) The
Entity represents and covenants that it will not, directly or indirectly, use the proceeds
of the offering, or lend, contribute or otherwise make available such proceeds to any subsidiary,
joint venture partner or other Person:
(A) to
fund or facilitate any activities or business of or with any Person or in any country or
territory that, at the time of such funding or facilitation, is the subject of Sanctions
or is a Sanctioned Country; or
(B) in
any other manner that will result in a violation of Sanctions by any Person (including any
Person participating in the offering, whether as underwriter, advisor, investor or otherwise).
(iii) The
Entity represents and covenants that, except as detailed in the Registration Statement and
the Prospectus, during the applicable statute of limitations period, it has not engaged in,
is not now engaging in, and will not engage in, any dealings or transactions with any Person,
or in any country or territory, that at the time of the dealing or transaction is or was
the subject of Sanctions or is or was a Sanctioned Country.
(uu) Export
Compliance. The Company and each of its subsidiaries has not, nor has any director, officer,
agent, employee or other Person acting on behalf of the Company or any of its subsidiaries
violated or failed to comply with any applicable law related to the export or reexport of
goods (including hardware, software, technology and data), services and know-how except in
such cases as would not reasonably be expected, individually or in the aggregate, to have
a Material Adverse Effect.
(vv) Stock
Transfer Taxes. On each Settlement Date, all stock transfer or other taxes (other than
income taxes) which are required to be paid in connection with the sale and transfer of the
Placement Shares to be sold hereunder will be, or will have been, fully paid or provided
for by the Company and all laws imposing such taxes will be or will have been fully complied
with.
13
(ww) Compliance
with Laws. To the knowledge of the Company, each of the Company and its Subsidiaries:
(A) is and at all times has been in compliance with all statutes, rules, or regulations applicable
to the ownership, testing, development, manufacture, packaging, processing, use, distribution,
marketing, labeling, promotion, sale, offer for sale, storage, import, export or disposal
of any product manufactured or distributed by the Company or its Subsidiaries (“Applicable
Laws”), except as could not, individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect; (B) has not received any notice of adverse
finding, warning letter, untitled letter or other correspondence or notice from any Governmental
Authority alleging or asserting noncompliance with any Applicable Laws or any licenses, certificates,
approvals, clearances, authorizations, permits and supplements or amendments thereto required
by any such Applicable Laws (“Authorizations”); (C) possesses all
material Authorizations and such Authorizations are valid and in full force and effect and
are not in material violation of any term of any such Authorizations; (D) has not received
notice of any claim, action, suit, proceeding, hearing, enforcement, investigation, arbitration
or other action from any Governmental Authority or third party alleging that any product
operation or activity is in violation of any Applicable Laws or Authorizations and has no
knowledge that any such Governmental Authority or third party is considering any such claim,
litigation, arbitration, action, suit, investigation or proceeding; (E) has not received
notice that any Governmental Authority has taken, is taking or intends to take action to
limit, suspend, modify or revoke any Authorizations and has no knowledge that any such Governmental
Authority is considering such action; (F) has filed, obtained, maintained or submitted all
material reports, documents, forms, notices, applications, records, claims, submissions and
supplements or amendments as required by any Applicable Laws or Authorizations and that all
such reports, documents, forms, notices, applications, records, claims, submissions and supplements
or amendments were complete and correct on the date filed (or were corrected or supplemented
by a subsequent submission); and (G) has not, either voluntarily or involuntarily, initiated,
conducted, or issued or caused to be initiated, conducted or issued, any recall, market withdrawal
or replacement, safety alert, post sale warning or other notice or action relating to the
alleged lack of safety or efficacy of any product or any alleged product defect or violation
and, to the Company’s knowledge, no third party has initiated, conducted or intends
to initiate any such notice or action.
(xx) Statistical
and Market-Related Data. The statistical, demographic and market-related data included
in the Registration Statement and Prospectus are based on or derived from sources that the
Company believes to be reliable and accurate or represent the Company’s good faith
estimates that are made on the basis of data derived from such sources and the Company has
obtained the written consent to the use of such data from such sources to the extent required.
(yy) Cybersecurity.
The Company and its Subsidiaries’ information technology assets and equipment, computers,
systems, networks, hardware, software, websites, applications, and databases (collectively,
“IT Systems”) are adequate for, and operate and perform in all
material respects1 as required in connection with the operation of the business
of the Company and each of its Subsidiaries as currently conducted, free and clear of all
material bugs, errors, defects, Trojan horses, time bombs, malware and other corruptants.
The Company and its Subsidiaries have implemented and maintained commercially reasonable
physical, technical and administrative controls, policies, procedures, and safeguards to
maintain and protect their material confidential information and the integrity, continuous
operation, redundancy and security of all IT Systems and data, including all “Personal
Data” (defined below) and all sensitive, confidential or regulated data (“Confidential
Data”) used in connection with their businesses. “Personal Data”
means (i) a natural person’s name, street address, telephone number, e-mail address,
photograph, social security number or tax identification number, driver’s license number,
passport number, credit card number, bank information, or customer or account number; (ii)
any information which would qualify as “personally identifying information” under
the Federal Trade Commission Act, as amended; (iii) “personal data” as defined
by GDPR; (iv) any information which would qualify as “protected health information”
under the Health Insurance Portability and Accountability Act of 1996, as amended by the
Health Information Technology for Economic and Clinical Health Act (collectively, “HIPAA”);
(v) any “personal information” as defined by the California Consumer Privacy
Act (“CCPA”); and (vi) any other piece of information that allows
the identification of such natural person, or his or her family, or permits the collection
or analysis of any data related to an identified person’s health or sexual orientation.
There have been no breaches, violations, outages or unauthorized uses of or accesses to same,
except for those that have been remedied without material cost or liability or the duty to
notify any other person, nor any incidents under internal review or investigations relating
to the same. The Company and its Subsidiaries are presently in material compliance with all
applicable laws or statutes and all judgments, orders, rules and regulations of any court
or arbitrator or governmental or regulatory authority, internal policies and contractual
obligations relating to the privacy and security of IT Systems, Confidential Data, and Personal
Data and to the protection of such IT Systems, Confidential Data, and Personal Data from
unauthorized use, access, misappropriation or modification.
1 Already
materially qualified.
14
(zz) Compliance
with Data Privacy Laws. The Company and its Subsidiaries are, and at all prior times
were, in material2 compliance with all applicable state and federal data privacy
and security laws and regulations, including without limitation HIPAA, CCPA, and the European
Union General Data Protection Regulation (“GDPR”) (EU 2016/679)
(collectively, the “Privacy Laws”). To ensure compliance with the
Privacy Laws, the Company has in place, complies with, and takes appropriate steps to ensure
compliance in all material respects with their policies and procedures relating to data privacy
and security and the collection, storage, use, processing, disclosure, handling, and analysis
of Personal Data and Confidential Data (the “Policies”). The Company
has at all times made all disclosures to users or customers required by applicable laws and
regulatory rules or requirements, and none of such disclosures made or contained in any Policy
have been inaccurate or in violation of any applicable laws and regulatory rules or requirements
in any material respect. The Company further certifies that neither it nor any subsidiary:
(i) has received notice of any actual or potential liability under or relating to, or actual
or potential violation of, any of the Privacy Laws, and has no knowledge of any event or
condition that would reasonably be expected to result in any such notice; (ii) is currently
conducting or paying for, in whole or in part, any investigation, remediation, or other corrective
action pursuant to any Privacy Law; or (iii) is a party to any order, decree, or agreement
that imposes any obligation or liability under any Privacy Law.
(aaa) Emerging
Growth Company Status. From the time of the initial filing of the Company’s first
registration statement with the Commission through the date hereof, the Company has been
and is an “emerging growth company,” as defined in Section 2(a) of the Securities
Act (an “Emerging Growth Company”).
(bbb) Bankruptcy.
The Company is not in or subject to a bankruptcy or insolvency proceeding in any jurisdiction.
Any
certificate signed by an officer of the Company and delivered to the Agents or to counsel for the Agents pursuant to or in connection
with this Agreement shall be deemed to be a representation and warranty by the Company, as applicable, to the Agents as to the matters
set forth therein.
7. Covenants
of the Company. The Company covenants and agrees with each Agent that:
(a) Registration
Statement Amendments. After the date of this Agreement and during any period in which
a Prospectus relating to any Placement Shares is required to be delivered by the Agents under
the Securities Act (including in circumstances where such requirement may be satisfied pursuant
to Rule 172 under the Securities Act or similar rule), (i) the Company will notify the
Agents promptly of the time when any subsequent amendment to the Registration Statement has
been filed with the Commission and/or has become effective, any Rule 462(b) Registration
Statement has been filed with the Commission or any subsequent supplement to the Prospectus
has been filed and of any request by the Commission for any amendment or supplement to the
Registration Statement or Prospectus or for additional information (provided, however,
that that the Company shall not be obligated to notify the Agents of the filing of any Incorporated
Documents which do not discuss this Agreement, the Placement or the Agents), (ii) the
Company will prepare and file with the Commission, promptly upon the Agents’ request,
any amendments or supplements to the Registration Statement or Prospectus that, in the Agents’
reasonable opinion, may be necessary or advisable in connection with the distribution of
the Placement Shares by the Agents (provided, however, that the failure of
the Agents to make such request shall not relieve the Company of any obligation or liability
hereunder, or affect the Agents’ right to rely on the representations and warranties
made by the Company in this Agreement and provided, further, that the only
remedy the Agents shall have with respect to the failure by the Company to make such filing
(but without limiting the Agents’ rights under Section 10 hereof) shall
be to cease making sales under this Agreement until such amendment or supplement is filed);
(iii) the Company will not file any amendment or supplement to the Registration Statement
or Prospectus or any Rule 462(b) Registration Statement relating to the Placement Shares
or a security convertible into or exchangeable or exercisable for the Placement Shares unless
a copy thereof has been submitted to the Agents within a reasonable period of time before
the filing and the Agents have not objected thereto (provided, however, that
the failure of the Agents to make such objection shall not relieve the Company of any obligation
or liability hereunder, or affect the Agents’ right to rely on the representations
and warranties made by the Company in this Agreement and provided, further,
that the only remedy the Agents shall have with respect to the failure by the Company to
obtain such consent (but without limiting the Agents’ rights under Section 10
hereof) shall be to cease making sales under this Agreement) and the Company will furnish
to the Agents at the time of filing thereof a copy of any Incorporated Documents, except
for those documents available via EDGAR or any successor system; and (iv) the Company
will cause each amendment or supplement to the Prospectus to be filed with the Commission
as required pursuant to the applicable paragraph of Rule 424(b) of the Securities Act or,
in the case of Incorporated Documents, to be filed with the Commission as required pursuant
to the Exchange Act, within the time period prescribed (the determination to file or not
file any amendment or supplement with the Commission under this Section 7(a),
based on the Company’s reasonable opinion or reasonable objections, shall be made exclusively
by the Company).
2 Already
materially qualified.
15
(b) Notice
of Commission Stop Orders. The Company will advise the Agents, promptly after it receives
notice or obtains knowledge thereof, of the issuance or threatened issuance by the Commission
of any stop order suspending the effectiveness of the Registration Statement or any Rule
462(b) Registration Statement, of the suspension of the qualification of the Placement Shares
for offering or sale in any jurisdiction, or of the initiation or threatening of any proceeding
for any such purpose; and it will promptly use its commercially reasonable efforts to prevent
the issuance of any stop order or to obtain its withdrawal if such a stop order should be
issued. The Company will advise the Agents promptly after it receives any request by the
Commission for any amendments to the Registration Statement or any Rule 462(b) Registration
Statement or any amendment or supplements to the Prospectus or any Issuer Free Writing Prospectus
or for additional information related to the offering of the Placement Shares or for additional
information related to the Registration Statement, any Rule 462(b) Registration Statement,
the Prospectus or any Issuer Free Writing Prospectus.
(c) Delivery
of Prospectus; Subsequent Changes. During any period in which a Prospectus relating to
the Placement Shares is required to be delivered by the Agents under the Securities Act with
respect to the offer and sale of the Placement Shares, (including in circumstances where
such requirement may be satisfied pursuant to Rule 172 under the Securities Act or a similar
rule), the Company will use commercially reasonable efforts to comply in all material respects
with all requirements imposed upon it by the Securities Act, as from time to time in force,
and will file on or before their respective due dates all reports (taking into account any
extensions available under the Exchange Act) and any definitive proxy or information statements
required to be filed by the Company with the Commission pursuant to Sections 13(a), 13(c),
14, 15(d) or any other provision of or under the Exchange Act. If the Company has omitted
any information from the Registration Statement pursuant to Rule 430B under the Securities
Act, it will use its commercially reasonable efforts to comply with the provisions of and
make all requisite filings with the Commission pursuant to said Rule 430B and to notify the
Agents promptly of all such filings and to notify the Agents promptly of all such filings
if not available on EDGAR. If during such period any event occurs as a result of which the
Prospectus as then amended or supplemented would include an untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein, in the light
of the circumstances then existing, not misleading, or if during such period it is necessary
to amend or supplement the Registration Statement or Prospectus to comply with the Securities
Act, the Company will promptly notify the Agents to suspend the offering of Placement Shares
during such period and the Company will promptly amend or supplement the Registration Statement
or Prospectus (at the expense of the Company) so as to correct such statement or omission
or effect such compliance (provided, however, that the only remedy the Agents
shall have with respect to the failure by the Company to file such amendment or supplement
to the Registration Statement or Prospectus (but without limiting the Agents’ rights
under Section 10 hereof) shall be to cease making sales under this Agreement).
(d) Listing
of Placement Shares. During any period in which the Prospectus relating to the Placement
Shares is required to be delivered by the Agents under the Securities Act with respect to
a pending sale of the Placement Shares (including in circumstances where such requirement
may be satisfied pursuant to Rule 172 under the Securities Act), the Company will use its
reasonable best efforts to cause the Placement Shares to be listed on the Exchange.
(e) Delivery
of Registration Statement and Prospectus. The Company will furnish to the Agents and
their counsel (at the expense of the Company) copies of the Registration Statement, the Prospectus
(including all documents incorporated by reference therein) and all amendments and supplements
to the Registration Statement or Prospectus that are filed with the Commission during any
period in which a Prospectus relating to the Placement Shares is required to be delivered
under the Securities Act (including all Incorporated Documents), in each case as soon as
reasonably practicable and in such quantities as the Agents may from time to time reasonably
request and, at the Agents’ request, will also furnish copies of the Prospectus to
each exchange or market on which sales of the Placement Shares may be made; provided,
however, that the Company shall not be required to furnish any document (other than
the Prospectus) to the Agents to the extent such document is available on EDGAR.
(f) Earning
Statement. The Company will make generally available to its security holders and to the
Agents as soon as practicable, but in any event not later than 15 months after the end of
the Company’s current fiscal quarter, an earnings statement covering a 12-month period
that satisfies the provisions of Section 11(a) of and Rule 158 under the Securities
Act; provided that the Company will be deemed to have furnished such statement to its security
holders to the extent it is available on EDGAR.
16
(g) Use
of Proceeds. The Company will use the Net Proceeds as described in the Prospectus in
the section entitled “Use of Proceeds.”
(h) Notice
of Other Sales. Without the prior written consent of Cantor, the Company will not, directly
or indirectly, offer to sell, sell, contract to sell, grant any option to sell or otherwise
dispose of any Common Stock (other than the Placement Shares offered pursuant to this Agreement)
or securities convertible into or exchangeable or exercisable for Common Stock, warrants
or any rights to purchase or acquire, Common Stock during the period beginning on the third
(3rd) Trading Day immediately prior to the date on which any Placement Notice
is delivered to Cantor hereunder and ending on the third (3rd) Trading Day immediately
following the final Settlement Date with respect to Placement Shares sold pursuant to such
Placement Notice (or, if the Placement Notice has been terminated or suspended prior to the
sale of all Placement Shares covered by a Placement Notice, the date of such suspension or
termination); and will not directly or indirectly in any other “at the market”,
equity line of credit or other continuous equity transaction offer to sell, sell, contract
to sell, grant any option to sell or otherwise dispose of any Common Stock (other than the
Placement Shares offered pursuant to this Agreement) or securities convertible into or exchangeable
or exercisable for Common Stock, warrants or any rights to purchase or acquire, Common Stock
prior to the thirtieth (30th) day immediately following the termination of this
Agreement; provided, however, that such restrictions will not be required in
connection with the Company’s issuance or sale of (i) Common Stock, options to
purchase Common Stock or other equity awards for Common Stock, or Common Stock issuable upon
the exercise of options or vesting and settlement of any equity awards, pursuant to any employee
or director stock option or benefits plan, stock ownership plan or dividend reinvestment
plan (but not Common Stock subject to a waiver to exceed plan limits in its dividend reinvestment
plan) or other compensation plan of the Company whether now in effect or hereafter implemented
(including any amendments or modifications to the foregoing), (ii) Common Stock issuable
upon conversion of securities or the exercise of warrants, options or other rights in effect
or outstanding, and disclosed in filings by the Company available on EDGAR or any successor
system or otherwise in writing to the Agents and (iii) Common Stock or securities convertible
into or exchangeable for shares of Common Stock as consideration for mergers, acquisitions,
other business combinations or strategic alliances, collaborations, partnerships, joint ventures
or similar transactions occurring after the date of this Agreement which are not issued for
capital raising purposes; provided that the aggregate number of Common Stock issued or issuable
pursuant to this clause (iii) during the term of this Agreement shall not exceed 10% of the
issued and outstanding Common Stock as of the date of this Agreement.
(i) Change
of Circumstances. The Company will, at any time during a fiscal quarter in which the
Company intends to tender a Placement Notice or sell Placement Shares, advise the Agents
promptly after it shall have received notice or obtained knowledge thereof, of any information
or fact that would alter or affect in any material respect any opinion, certificate, letter
or other document provided or required to be provided to the Agents pursuant to this Agreement.
(j) Due
Diligence Cooperation. The Company will cooperate with any reasonable due diligence review
conducted by the Agents or their respective representatives in connection with the transactions
contemplated hereby, including, without limitation, providing information and making available
documents and senior corporate officers, during regular business hours and at the Company’s
principal offices or via remote digital access, as the Agents may reasonably request.
(k) Required
Filings Relating to Placement of Placement Shares. The Company shall disclose, in its
Quarterly Reports on Form 10-Q and in its Annual Report on Form 10-K to be filed by the Company
with the Commission from time to time, the number of the Placement Shares sold through the
Agents under this Agreement, and the net proceeds to the Company from the sale of the Placement
Shares pursuant to this Agreement during the relevant quarter or, in the case of an Annual
Report on Form 10-K, during the fiscal year covered by such Annual Report and the fourth
quarter of such fiscal year. The Company agrees that on such dates as the Securities Act
shall require, the Company will (i) file a prospectus supplement with the Commission
under the applicable paragraph of Rule 424(b) under the Securities Act (each and every filing
date under Rule 424(b), a “Filing Date”), which prospectus supplement
will set forth, within the relevant period, the amount of Placement Shares sold through the
Agents, the Net Proceeds to the Company and the compensation payable by the Company to the
Agents with respect to such Placement Shares, and (ii) deliver such number of copies
of each such prospectus supplement to each exchange or market on which such sales were effected
as may be required by the rules or regulations of such exchange or market.
17
(l) Representation
Dates; Certificate. (1) Prior to the date of the first Placement Notice and (2) each
time the Company:
(i) files
the Prospectus relating to the Placement Shares or amends or supplements (other than a prospectus
supplement relating solely to an offering of securities other than the Placement Shares)
the Registration Statement or the Prospectus relating to the Placement Shares by means of
a post-effective amendment, sticker, or supplement but not by means of incorporation of documents
by reference into the Registration Statement or the Prospectus relating to the Placement
Shares;
(ii) files
an Annual Report on Form 10-K under the Exchange Act (including any Annual Report Form 10-K/A
containing amended financial information or a material amendment to the previously filed
Annual Report on Form 10-K);
(iii) files
its Quarterly Reports on Form 10-Q under the Exchange Act; or
(iv) files
a Current Report on Form 8-K containing (x) amended financial information (other than information
“furnished” pursuant to Items 2.02 or 7.01 of Form 8-K or to provide disclosure
pursuant to Item 8.01 of Form 8-K relating to the reclassification of certain properties
as discontinued operations in accordance with Statement of Financial Accounting Standards
No. 144) or (y) disclosing any material transaction requiring the filing of historical or
pro forma financial statements under Item 9.01 of Form 8-K and subject to the guidance set
forth in Section 2050.3 of the Financial Reporting Manual of the Commission under the
Exchange Act (each date of filing of one or more of the documents referred to in clauses
(i) through (iv) shall be a “Representation Date”);
the
Company shall furnish the Agents (but in the case of clause (iv) above only if Cantor reasonably determines that the information contained
in such Form 8-K is material) with a certificate dated the Representation Date, in the form attached hereto as Exhibit 7(l), modified,
as necessary, to relate to the Registration Statement and the Prospectus as amended or supplemented. The requirement to provide a certificate
under this Section 7(l) shall be automatically waived for any Representation Date occurring at a time when no Placement Notice
is outstanding or a Suspension is in effect, which waiver shall continue until the earlier to occur of the date the Company delivers
instructions for the sale of Placement Shares hereunder (which for such calendar quarter shall be considered a Representation Date) and
the next occurring Representation Date. Notwithstanding the foregoing, if the Company subsequently decides to sell Placement Shares following
a Representation Date when a Suspension was in effect and did not provide the Agents with a certificate under this Section 7(l),
then before the Company delivers the instructions for the sale of Placement Shares or the Agents sell any Placement Shares pursuant to
such instructions, the Company shall provide the Agents with a certificate in the form attached hereto as Exhibit 7(l) dated as
of the date that the instructions for the sale of Placement Shares are issued.
(m) Legal
Opinion. (1) Prior to the date of the first Placement Notice and (2) on each Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to
Section 7(l) for which no waiver is applicable and excluding the date of this
Agreement, the Company shall cause to be furnished to the Agents a written opinion of Lucosky
Brookman LLP, counsel to the Company (or other counsel to the Company satisfactory to the
Agents), dated the date of delivery, addressed to the Agents, in form and substance reasonably
satisfactory to the Agents and their counsel, substantially similar to the form previously
provided to the Agents and their counsel, modified, as necessary, to relate to the Registration
Statement and the Prospectus as then amended or supplemented; provided, that in lieu
of such opinions for subsequent periodic filings under the Exchange Act, such counsel may
furnish the Agents with a letter (a “Reliance Letter”) to the effect
that the Agents may rely on the prior opinion delivered under this Section 7(m)
to the same extent as if it were dated the date of such letter (except that statements in
such prior opinion shall be deemed to relate to the Registration Statement and the Prospectus
as amended or supplemented as of the date of the Reliance Letter).
18
(n) Comfort
Letter. (1) Prior to the date of the first Placement Notice and (2) on each Representation
Date with respect to which the Company is obligated to deliver a certificate pursuant to
Section 7(l) for which no waiver is applicable and excluding the date of this
Agreement, the Company shall cause its independent registered public accounting firm (and
any other independent accountants whose report is included in the Registration Statement
or the Prospectus) to furnish the Agents letters (the “Comfort Letters”),
dated the date the Comfort Letter is delivered, which shall meet the requirements set forth
in this Section 7(n). If requested by the Agents, the Company shall also cause
a comfort letter to be furnished to the Agents on the date of occurrence of any material
transaction or event requiring the filing of a Current Report on Form 8-K containing material
amended financial information of the Company, including the restatement of the Company’s
financial statements. The Comfort Letter from the Company’s independent registered
public accounting firm shall be in a form and substance satisfactory to the Agents, (i) confirming
that they are an independent registered public accounting firm within the meaning of the
Securities Act and the Public Company Accounting Oversight Board (“PCAOB”),
(ii) stating, as of such date, the conclusions and findings of such firm with respect to
the financial information and other matters ordinarily covered by accountants’ “comfort
letters” to underwriters in connection with registered public offerings (the first
such letter, the “Initial Comfort Letter”) and (iii) updating the
Initial Comfort Letter with any information that would have been included in the Initial
Comfort Letter had it been given on such date and modified as necessary to relate to the
Registration Statement and the Prospectus, as amended and supplemented to the date of such
letter.
(o) Market
Activities; Compliance with Regulation M. The Company will not, directly or indirectly,
(i) take any action designed to cause or result in, or that constitutes or would reasonably
be expected to constitute, the stabilization or manipulation of the price of any security
of the Company to facilitate the sale or resale of Common Stock or (ii) sell, bid for,
or purchase Common Stock in violation of Regulation M, or pay anyone any compensation for
soliciting purchases of the Placement Shares other than the Agents.
(p) Investment
Company Act. The Company will conduct its affairs in such a manner so as to reasonably
ensure that neither it nor any of its Subsidiaries will be or become, at any time prior to
the termination of this Agreement, an “investment company,” as such term is defined
in the Investment Company Act.
(q) Securities
Act and Exchange Act Compliance. The Company will use its commercially reasonable efforts
to comply with all requirements imposed upon it by the Securities Act and the Exchange Act
as from time to time in force, so far as necessary to permit the sales of, or dealings in,
the Placement Shares as contemplated by the provisions hereof and the Prospectus.
(r) No
Offer to Sell. Other than an Issuer Free Writing Prospectus approved in advance by the
Company and the Agents in their capacity as agents hereunder, neither the Agents nor the
Company (including its agents and representatives, other than the Agents in their capacity
as such) will make, use, prepare, authorize, approve or refer to any written communication
(as defined in Rule 405 under the Securities Act), required to be filed with the Commission,
that constitutes an offer to sell or solicitation of an offer to buy Placement Shares hereunder.
(s) Blue
Sky and Other Qualifications. The Company will use its commercially reasonable
efforts, in cooperation with the Agents, to qualify the Placement Shares for offering and
sale, or to obtain an exemption for the Placement Shares to be offered and sold, under the
applicable securities laws of such states and other jurisdictions (domestic or foreign) as
the Agents may reasonably designate and to maintain such qualifications and exemptions in
effect for so long as required for the distribution of the Placement Shares (but in no event
for less than one year from the date of this Agreement); provided, however,
that the Company shall not be obligated to file any general consent to service of process
or to qualify as a foreign corporation or as a dealer in securities in any jurisdiction in
which it is not so qualified or to subject itself to taxation in respect of doing business
in any jurisdiction in which it is not otherwise so subject. In each jurisdiction in which
the Placement Shares have been so qualified or exempt, the Company will file such statements
and reports as may be required by the laws of such jurisdiction to continue such qualification
or exemption, as the case may be, in effect for so long as reasonably required for the distribution
of the Placement Shares (but in no event for less than one year from the date of this Agreement).
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(t) Sarbanes-Oxley
Act. The Company and the Subsidiaries will maintain and keep accurate books and records
reflecting their assets and maintain internal accounting controls in a manner designed to
provide reasonable assurance regarding the reliability of financial reporting and the preparation
of financial statements for external purposes in accordance with GAAP and including those
policies and procedures that (i) pertain to the maintenance of records that in reasonable
detail accurately and fairly reflect the transactions and dispositions of the assets of the
Company, (ii) provide reasonable assurance that transactions are recorded as necessary
to permit the preparation of the Company’s consolidated financial statements in accordance
with GAAP, (iii) that receipts and expenditures of the Company are being made only in
accordance with management’s and the Company’s directors’ authorization,
and (iv) provide reasonable assurance regarding prevention or timely detection of unauthorized
acquisition, use or disposition of the Company’s assets that could have a material
effect on its financial statements. The Company and the Subsidiaries will maintain such controls
and other procedures, including, without limitation, those required by Sections 302 and 906
of the Sarbanes-Oxley Act, and the applicable regulations thereunder that are designed to
ensure that information required to be disclosed by the Company in the reports that it files
or submits under the Exchange Act is recorded, processed, summarized and reported, within
the time periods specified in the Commission’s rules and forms, including, without
limitation, controls and procedures designed to ensure that information required to be disclosed
by the Company in the reports that it files or submits under the Exchange Act is accumulated
and communicated to the Company’s management, including its principal executive officer
and principal financial officer, or persons performing similar functions, as appropriate
to allow timely decisions regarding required disclosure and to ensure that material information
relating to the Company or the Subsidiaries is made known to them by others within those
entities, particularly during the period in which such periodic reports are being prepared.
(u) Secretary’s
Certificate; Further Documentation. Prior to the date of the first Placement Notice,
the Company shall deliver to the Agents a certificate of the Secretary of the Company and
attested to by an executive officer of the Company, dated as of such date, certifying as
to (i) the Articles of Incorporation of the Company, (ii) the By-laws of the Company, (iii)
the resolutions of the Board of Directors of the Company and any other authorized committee
authorizing the execution, delivery and performance of this Agreement and the issuance of
the Placement Shares and (iv) the incumbency of the officers duly authorized to execute this
Agreement and the other documents contemplated by this Agreement. Within five (5) Trading
Days of each Representation Date, the Company shall have furnished to the Agents such further
information, certificates and documents as the Agents may reasonably request.
(v) Emerging
Growth Company Status. The Company will promptly notify the Agents if the Company ceases
to be an Emerging Growth Company prior to June 30, 2029.
8. Payment
of Expenses. The Company will pay all expenses incident to the performance of its obligations
under this Agreement, including (i) the preparation and filing of the Registration Statement,
including any fees required by the Commission, and the printing or electronic delivery of
the Prospectus as originally filed and of each amendment and supplement thereto, in such
number as the Agents shall deem necessary, (ii) the printing and delivery to the Agents of
this Agreement and such other documents as may be required in connection with the offering,
purchase, sale, issuance or delivery of the Placement Shares, (iii) the preparation,
issuance and delivery of the certificates, if any, for the Placement Shares to the Agents,
including any stock or other transfer taxes and any capital duties, stamp duties or other
duties or taxes payable upon the sale, issuance or delivery of the Placement Shares to the
Agents, (iv) the fees and disbursements of the counsel, accountants and other advisors
to the Company, (v) the reasonable and documented fees and expenses of the counsel to
the Agents, payable upon the execution of this Agreement, (a) in an amount not to exceed
$150,000 in connection with the execution of this Agreement, (b) in an amount not to exceed
$25,000 per calendar quarter thereafter payable in connection with each Representation Date
with respect to which the Company is obligated to deliver a certificate pursuant to Section 7(l)
for which no waiver is applicable and excluding the date of this Agreement, and (c) in an
amount not to exceed $40,000 for each program “refresh” (filing of a new registration
statement, prospectus or prospectus supplement relating to the Placement Shares and/or an
amendment of this Agreement) executed pursuant to this Agreement, (vi) the qualification
or exemption of the Placement Shares under state securities laws in accordance with the provisions
of Section 7(r) hereof, including filing fees, but excluding fees of the Agents’
counsel, (vii) the printing and delivery to the Agents of copies of any Permitted Issuer
Free Writing Prospectus and the Prospectus and any amendments or supplements thereto in such
number as the Agents shall deem necessary, (viii) the preparation, printing and delivery
to the Agents of copies of the blue sky survey, (ix) the fees and expenses of the transfer
agent and registrar for the Common Stock, (x) the filing and other fees incident to
any review by FINRA of the terms of the sale of the Placement Shares including the reasonable
and documented fees of the Agents’ counsel (subject to the caps set forth in clause
(v) above), and (xi) the fees and expenses incurred in connection with the listing of
the Placement Shares on the Exchange. The Company agrees to pay the reasonable and documented
fees and expenses of counsel to the Agents set forth in clause (v) above by wire transfer
of immediately available funds directly to such counsel upon presentation of an invoice containing
the requisite payment information prepared by such counsel.
20
9. Conditions
to the Agents’ Obligations. The obligations of the Agents hereunder with respect
to a Placement will be subject to the continuing accuracy and completeness of the representations
and warranties made by the Company herein, to the due performance by the Company of its obligations
hereunder, to the completion by the Agents of a due diligence review satisfactory to them
in their reasonable judgment, and to the continuing satisfaction (or waiver by the Agents
in their sole discretion) of the following additional conditions:
(a) Registration
Statement Effective. The Registration Statement shall be effective and shall be available
for the (i) resale of all Placement Shares issued to the Agents and not yet sold by
the Agents and (ii) sale of all Placement Shares contemplated to be issued by any Placement
Notice.
(b) No
Material Notices. None of the following events shall have occurred and be continuing:
(i) receipt by the Company of any request for additional information from the Commission
or any other federal or state Governmental Authority during the period of effectiveness of
the Registration Statement, the response to which would require any post-effective amendments
or supplements to the Registration Statement or the Prospectus; (ii) the issuance by
the Commission or any other federal or state Governmental Authority of any stop order suspending
the effectiveness of the Registration Statement or the initiation of any proceedings for
that purpose; (iii) receipt by the Company of any notification with respect to the suspension
of the qualification or exemption from qualification of any of the Placement Shares for sale
in any jurisdiction or the initiation or threatening of any proceeding for such purpose;
or (iv) the occurrence of any event that makes any statement of a material fact made
in the Registration Statement or the Prospectus or any document incorporated or deemed to
be incorporated therein by reference untrue or that requires the making of any changes in
the Registration Statement, the Prospectus or documents so that, in the case of the Registration
Statement, it will not contain an untrue statement of a material fact or omit to state any
material fact required to be stated therein or necessary to make the statements therein not
misleading and, that in the case of the Prospectus, it will not contain an untrue statement
of a material fact or omit to state a material fact required to be stated therein or necessary
to make the statements therein, in the light of the circumstances under which they were made,
not misleading.
(c) No
Misstatement or Material Omission. The Agents shall not have advised the Company that
the Registration Statement or Prospectus, or any amendment or supplement thereto, contains
an untrue statement of fact that in the Agents’ reasonable opinion is material, or
omits to state a fact that in the Agents’ reasonable opinion is material and is required
to be stated therein or is necessary to make the statements therein not misleading.
(d) Material
Changes. Except as contemplated in the Prospectus, or disclosed in the Company’s
reports filed with the Commission, there shall not have been any material adverse change
in the authorized capital stock of the Company or any Material Adverse Effect or any development
that would cause a Material Adverse Effect, or a downgrading in or withdrawal of the rating
assigned to any of the Company’s securities (other than asset backed securities) by
any rating organization or a public announcement by any rating organization that it has under
surveillance or review its rating of any of the Company’s securities (other than asset
backed securities), the effect of which, in the case of any such action by a rating organization
described above, in the reasonable judgment of the Agents (without relieving the Company
of any obligation or liability it may otherwise have), is so material as to make it impracticable
or inadvisable to proceed with the offering of the Placement Shares on the terms and in the
manner contemplated in the Prospectus.
(e) Legal
Opinions. The Agents shall have received the opinions and negative assurance letters
required to be delivered pursuant to Section 7(m) on or before the date on which
such delivery of such opinions is required pursuant to Section 7(m).
(f) Comfort
Letter. The Agents shall have received the Comfort Letter required to be delivered pursuant
to Section 7(n) on or before the date on which such delivery of such Comfort
Letter is required pursuant to Section 7(n).
(g) Representation
Certificate. The Agents shall have received the certificate required to be delivered
pursuant to Section 7(l) on or before the date on which delivery of such certificate
is required pursuant to Section 7(l).
21
(h) Secretary’s
Certificate. The Agents shall have received the certificate required to be delivered
pursuant to Section 7(u) on or before the date on which delivery of such certificate
is required pursuant to Section 7(u).
(i) No
Suspension. Trading in the Common Stock shall not have been suspended on the Exchange
and the Common Stock shall not have been delisted from the Exchange.
(j) Other
Materials. On each date on which the Company is required to deliver a certificate pursuant
to Section 7(l), the Company shall have furnished to the Agents such appropriate
further information, opinions, certificates, letters and other documents as the Agents may
reasonably request. All such opinions, certificates, letters and other documents will be
in compliance with the provisions hereof.
(k) Securities
Act Filings Made. All filings with the Commission required by Rule 424 or Rule 433 under
the Securities Act to have been filed prior to the issuance of any Placement Notice hereunder
shall have been made within the applicable time period prescribed for such filing by Rule
424 or Rule 433, as applicable.
(l) Approval
for Listing. The Placement Shares shall either have been (i) approved for listing on
the Exchange, subject only to notice of issuance, or (ii) the Company shall have filed an
application for listing of the Placement Shares on the Exchange at, or prior to, the issuance
of any Placement Notice and the Exchange shall have reviewed such application and not provided
any objections thereto.
(m) FINRA.
If applicable, FINRA shall have raised no objection to the terms of this offering and the
amount of compensation allowable or payable to the Agents as described in the Prospectus.
(n) No
Termination Event. There shall not have occurred any event that would permit the Agents
to terminate this Agreement pursuant to Section 12(a).
10. Indemnification
and Contribution.
(a) Company
Indemnification. The Company agrees to indemnify and hold harmless each Agent, its affiliates
and their respective partners, members, directors, officers, employees and agents and each
person, if any, who (i) controls such Agent or any affiliate within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act, or (ii) is controlled by or
is under common control with such Agent:
(i) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or
several, arising out of or based upon any untrue statement or alleged untrue statement of
a material fact contained in the Registration Statement (or any amendment thereto), or the
omission or alleged omission therefrom of a material fact required to be stated therein or
necessary to make the statements therein not misleading, or arising out of any untrue statement
or alleged untrue statement of a material fact included in any related Issuer Free Writing
Prospectus or the Prospectus (or any amendment or supplement thereto), the omission or alleged
omission therefrom of a material fact necessary in order to make the statements therein,
in the light of the circumstances under which they were made, not misleading or any breach
by the Company of any of its respective representations, warranties or agreements contained
in this Agreement;
(ii) against
any and all loss, liability, claim, damage and expense whatsoever, as incurred, joint or
several, to the extent of the aggregate amount paid in settlement of any litigation, or any
investigation or proceeding by any Governmental Authority, commenced or threatened, or of
any claim whatsoever based upon any such untrue statement or omission, or any such alleged
untrue statement or omission; provided that (subject to Section 10(d)
below) any such settlement is effected with the written consent of the Company, which consent
shall not unreasonably be delayed or withheld; and
(iii) against
any and all reasonable and documented expense whatsoever, as incurred (including the reasonable
and documented fees and disbursements of counsel), reasonably incurred in investigating,
preparing or defending against any litigation, or any investigation or proceeding by any
Governmental Authority, commenced or threatened, or any claim whatsoever based upon any such
untrue statement or omission, or any such alleged untrue statement or omission (whether or
not a party), to the extent that any such expense is not paid under (i) or (ii) above,
22
provided,
however, that this indemnity agreement shall not apply to any loss, liability, claim, damage or expense to the extent arising
out of any untrue statement or omission or alleged untrue statement or omission made solely in reliance upon and in conformity with the
Agents’ Information (as defined below). The indemnity agreement set forth in this Section 10(a) shall be in addition
to any liabilities that the Company may otherwise have.
(b) Agents
Indemnification. Each Agent, severally but not jointly, agrees to indemnify and hold
harmless the Company and its directors and each officer of the Company who signed the Registration
Statement, and each person, if any, who (i) controls the Company within the meaning of Section 15
of the Securities Act or Section 20 of the Exchange Act or (ii) is controlled by or
is under common control with the Company against any and all loss, liability, claim, damage
and expense described in the indemnity contained in Section 10(a), as incurred,
but only with respect to untrue statements or omissions, or alleged untrue statements or
omissions, made in the Registration Statement (or any amendments thereto), the Prospectus
(or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment
or supplement thereto) in reliance upon and in conformity with information relating to such
Agent and furnished to the Company in writing by such Agent expressly for use therein. The
Company hereby acknowledges that the only information that the Agents have furnished to the
Company expressly for use in the Registration Statement, the Prospectus or any Issuer Free
Writing Prospectus (or any amendment or supplement thereto) are the statements set forth
in the third and fourth sentences of the first paragraph, and the first sentence of the third
paragraph, under the caption “Plan of Distribution” in the Prospectus (the “Agents’
Information”)].3
(c) Procedure.
Any party that proposes to assert the right to be indemnified under this Section 10
will, promptly after receipt of notice of commencement of any action against such party in
respect of which a claim is to be made against an indemnifying party or parties under this
Section 10, notify each such indemnifying party of the commencement of such action,
enclosing a copy of all papers served, but the omission so to notify such indemnifying party
will not relieve the indemnifying party from (i) any liability that it might have to
any indemnified party otherwise than under this Section 10 and (ii) any
liability that it may have to any indemnified party under the foregoing provision of this
Section 10 unless, and only to the extent that, such omission results in the
forfeiture of substantive rights or defenses by the indemnifying party. If any such action
is brought against any indemnified party and it notifies the indemnifying party of its commencement,
the indemnifying party will be entitled to participate in and, to the extent that it elects
by delivering written notice to the indemnified party promptly after receiving notice of
the commencement of the action from the indemnified party, jointly with any other indemnifying
party similarly notified, to assume the defense of the action, with counsel reasonably satisfactory
to the indemnified party, and after notice from the indemnifying party to the indemnified
party of its election to assume the defense, the indemnifying party will not be liable to
the indemnified party for any other legal expenses except as provided below and except for
the reasonable and documented costs of investigation subsequently incurred by the indemnified
party in connection with the defense. The indemnified party will have the right to employ
its own counsel in any such action, but the fees, expenses and other charges of such counsel
will be at the expense of such indemnified party unless (1) the employment of counsel
by the indemnified party has been authorized in writing by the indemnifying party, (2) the
indemnified party has reasonably concluded (based on advice of counsel) that there may be
legal defenses available to it or other indemnified parties that are different from or in
addition to those available to the indemnifying party, (3) a conflict or potential conflict
exists (based on advice of counsel to the indemnified party) between the indemnified party
and the indemnifying party (in which case the indemnifying party will not have the right
to direct the defense of such action on behalf of the indemnified party) or (4) the
indemnifying party has not in fact employed counsel to assume the defense of such action
or counsel reasonably satisfactory to the indemnified party, in each case, within a reasonable
time after receiving notice of the commencement of the action; in each of which cases the
reasonable and documented fees, disbursements and other charges of counsel will be at the
expense of the indemnifying party or parties. It is understood that the indemnifying party
or parties shall not, in connection with any proceeding or related proceedings in the same
jurisdiction, be liable for the reasonable fees, disbursements and other charges of more
than one separate firm (plus local counsel) admitted to practice in such jurisdiction at
any one time for all such indemnified party or parties. All such reasonable and documented
fees, disbursements and other charges will be reimbursed by the indemnifying party promptly
as they are incurred. An indemnifying party will not, in any event, be liable for any settlement
of any action or claim effected without its written consent. No indemnifying party shall,
without the prior written consent of each indemnified party, settle or compromise or consent
to the entry of any judgment in any pending or threatened claim, action or proceeding relating
to the matters contemplated by this Section 10 (whether or not any indemnified
party is a party thereto), unless such settlement, compromise or consent (1) includes
an express and unconditional release of each indemnified party, in form and substance reasonably
satisfactory to such indemnified party, from all liability arising out of such litigation,
investigation, proceeding or claim and (2) does not include a statement as to or an
admission of fault, culpability or a failure to act by or on behalf of any indemnified party.
3 Note
to Draft: Blood language to conform to final prospectus supplement.
23
(d) Settlement
Without Consent if Failure to Reimburse. If an indemnified party shall have requested
an indemnifying party to reimburse the indemnified party for reasonable and documented fees
and expenses of counsel, such indemnifying party agrees that it shall be liable for any settlement
of the nature contemplated by Section 10(a)(ii) effected without its written
consent if (1) such settlement is entered into more than 45 days after receipt by such
indemnifying party of the aforesaid request, (2) such indemnifying party shall have
received notice of the terms of such settlement at least 30 days prior to such settlement
being entered into and (3) such indemnifying party shall not have reimbursed such indemnified
party in accordance with such request prior to the date of such settlement.
(e) Contribution.
In order to provide for just and equitable contribution in circumstances in which the indemnification
provided for in the foregoing paragraphs of this Section 10 is applicable in
accordance with its terms but for any reason is held to be unavailable or insufficient from
the Company or an Agent, the Company and such Agent will contribute to the total losses,
claims, liabilities, expenses and damages (including any investigative, legal and other expenses
reasonably incurred in connection with, and any amount paid in settlement of, any action,
suit or proceeding or any claim asserted) to which the Company and the Agents may be subject
in such proportion as shall be appropriate to reflect the relative benefits received by the
Company on the one hand and the Agents on the other hand. The relative benefits received
by the Company on the one hand and the Agents on the other hand shall be deemed to be in
the same proportion as the total net proceeds from the sale of the Placement Shares (before
deducting expenses) received by the Company bear to the total compensation received by the
Agents (before deducting expenses) from the sale of Placement Shares on behalf of the Company.
If, but only if, the allocation provided by the foregoing sentence is not permitted by applicable
law, the allocation of contribution shall be made in such proportion as is appropriate to
reflect not only the relative benefits referred to in the foregoing sentence but also the
relative fault of the Company, on the one hand, and such Agent, on the other hand, with respect
to the statements or omission that resulted in such loss, claim, liability, expense or damage,
or action in respect thereof, as well as any other relevant equitable considerations with
respect to such offering. Such relative fault shall be determined by reference to, among
other things, whether the untrue or alleged untrue statement of a material fact or omission
or alleged omission to state a material fact relates to information supplied by the Company
or such Agent, the intent of the parties and their relative knowledge, access to information
and opportunity to correct or prevent such statement or omission. The Company and the Agents
agree that it would not be just and equitable if contributions pursuant to this Section 10(e)
were to be determined by pro rata allocation or by any other method of allocation that does
not take into account the equitable considerations referred to herein. The amount paid or
payable by an indemnified party as a result of the loss, claim, liability, expense, or damage,
or action in respect thereof, referred to above in this Section 10(e) shall be
deemed to include, for the purpose of this Section 10(e), any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or
defending any such action or claim to the extent consistent with Section 10(c)
hereof. Notwithstanding the foregoing provisions of this Section 10(e), no Agent
shall be required to contribute any amount in excess of the commissions received by it under
this Agreement and no person found 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. For purposes of this Section 10(e),
any person who controls a party to this Agreement within the meaning of the Securities Act,
any affiliates of any Agent and any officers, directors, partners, employees or agents of
any Agent or any of its affiliates, will have the same rights to contribution as that party,
and each director of the Company and each officer of the Company who signed the Registration
Statement will have the same rights to contribution as the Company, subject in each case
to the provisions hereof. Any party entitled to contribution, promptly after receipt of notice
of commencement of any action against such party in respect of which a claim for contribution
may be made under this Section 10(e), will notify any such party or parties from
whom contribution may be sought, but the omission to so notify will not relieve that party
or parties from whom contribution may be sought from any other obligation it or they may
have under this Section 10(e) except to the extent that the failure to so notify
such other party materially prejudiced the substantive rights or defenses of the party from
whom contribution is sought. Except for a settlement entered into pursuant to the last sentence
of Section 10(c) hereof, no party will be liable for contribution with respect
to any action or claim settled without its written consent if such consent is required pursuant
to Section 10(c) hereof. The Agents’ respective obligations to contribute
pursuant to this Section 10(e) are several in proportion to the respective number
of Placement Shares they have sold hereunder, and not joint.
24
11. Representations
and Agreements to Survive Delivery. The indemnity and contribution agreements contained
in Section 10 of this Agreement and all representations and warranties of the
Company herein or in certificates delivered pursuant hereto shall survive, as of their respective
dates, regardless of (i) any investigation made by or on behalf of any Agent, any controlling
persons, or the Company (or any of their respective officers, directors, employees or controlling
persons), (ii) delivery and acceptance of the Placement Shares and payment therefor
or (iii) any termination of this Agreement.
12. Termination.
(a) Each
Agent may terminate this Agreement with respect to itself, by notice to the Company and the
other Agents, as hereinafter specified at any time (1) if any Material Adverse Effect,
or any development that could reasonably be expected to result in a Material Adverse Effect,
has occurred, which individually or in the aggregate, in the sole judgment of such Agent
makes it impractical or inadvisable to market the Placement Shares or to enforce contracts
for the sale of the Placement Shares, (2) the Company shall have failed, refused or been
unable to perform any material agreement on its part to be performed hereunder (3) if
there has occurred any material adverse change in the financial markets in the United States
or the international financial markets, any outbreak of hostilities or escalation thereof
or other calamity or crisis or any change or development involving a prospective change in
national or international political, financial or economic conditions, in each case the effect
of which is such as to make it, in the judgment of such Agent, impracticable or inadvisable
to market the Placement Shares or to enforce contracts for the sale of the Placement Shares,
(4) if trading in the Common Stock has been suspended or limited by the Commission or
the Exchange, or if trading generally on the Exchange has been suspended or limited, or minimum
prices for trading have been fixed on the Exchange, (5) if any suspension of trading of any
securities of the Company on any exchange or in the over-the-counter market shall have occurred
and be continuing, (6) if a major disruption of securities settlements or clearance services
in the United States shall have occurred and be continuing, or (7) if a banking moratorium
has been declared by either U.S. Federal or New York authorities. Any such termination shall
be without liability of any party to any other party except that the provisions of Section 8
(Payment of Expenses), Section 10 (Indemnification and Contribution), Section 11
(Representations and Agreements to Survive Delivery), Section 17 (Governing Law
and Time; Waiver of Jury Trial) and Section 18 (Consent to Jurisdiction) hereof
shall remain in full force and effect notwithstanding such termination. If an Agent elects
to terminate this Agreement as provided in this Section 12(a), such Agent shall
provide the required notice as specified in Section 13 (Notices). For the avoidance
of doubt, the termination by one Agent of its rights and obligations under this Agreement
pursuant to this Section 12(a) shall not affect the rights and obligations of the
other Agents under this Agreement.
(b) The
Company shall have the right, by giving ten (10) Business Days’ notice as hereinafter
specified to terminate this Agreement in its sole discretion at any time after the date of
this Agreement. Any such termination shall be without liability of any party to any other
party except that the provisions of Section 8, Section 10, Section 11,
Section 18 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination. For the avoidance of doubt, the termination by the Company
of this Agreement with respect to one Agent pursuant to this Section 12(b) shall not
affect the rights and obligations of the other Agents under this Agreement.
(c) Each
Agent shall have the right, by giving ten (10) Business Days’ notice as hereinafter
specified to terminate this Agreement in its sole discretion at any time after the date of
this Agreement. Any such termination shall be without liability of any party to any other
party except that the provisions of Section 8, Section 10, Section 11,
Section 18 and Section 19 hereof shall remain in full force and effect
notwithstanding such termination. For the avoidance of doubt, the termination by one Agent
of its rights and obligations under this Agreement pursuant to this Section 12(c)
shall not affect the rights and obligations of the other Agents under this Agreement.
(d) This
Agreement shall remain in full force and effect unless terminated pursuant to Sections
12(a), (b), or (c) above or otherwise by mutual agreement of the parties; provided,
however, that any such termination by mutual agreement shall in all cases be deemed
to provide that Section 8, Section 10, Section 11, Section 18
and Section 19 shall remain in full force and effect.
25
(e) Any
termination of this Agreement shall be effective on the date specified in such notice of
termination; provided, however, that such termination shall not be effective
until the close of business on the date of receipt of such notice by the Agents or the Company,
as the case may be. If such termination shall occur prior to the Settlement Date for any
sale of Placement Shares, such Placement Shares shall settle in accordance with the provisions
of this Agreement.
13. Notices.
All notices or other communications required or permitted to be given by any party to any
other party pursuant to the terms of this Agreement shall be in writing, unless otherwise
specified, and if sent to the Agents, shall be delivered to:
Cantor
Fitzgerald & Co.
110 East 59th Street
New York, New York 10022
Attention: Capital Markets
Email: CFCEO@cantor.com
and:
Cantor
Fitzgerald & Co.
110 East 59th Street
New York, New York 10022
Attention: General Counsel
Email: legal-IBD@cantor.com
with
a copy to:
DLA
Piper LLP (US)
1251
Avenue of the Americas
New
York, New York 10022
Attention: Stephen
P. Alicanti
Email: stephen.alicanti@us.dlapiper.com
and
Curvature
Securities LLC
39
Main Street, Suite 100
Chatham,
NJ 07928
Attention:
Michael Bodner
Email: mbodner@curvaturesecurities.com
and
if to the Company, shall be delivered to:
CleanCore
Solutions, Inc.
5920
S 118th Circle
Omaha,
Nebraska 68137
Attention: Tyler Hassen
Email: tyler@cleancoresol.com
with
a copy to:
Lucosky
Brookman LLP
101 Wood Avenue South
Woodbridge,
NJ 08830
Attention: Joseph
Lucosky and Sebastian Bacon
E-mail: jlucosky@lucbro.com; sbacon@lucbro.com
26
Each
party to this Agreement may change such address for notices by sending to the parties to this Agreement written notice of a new address
for such purpose. Each such notice or other communication shall be deemed given (i) when delivered personally or by verifiable facsimile
transmission (with an original to follow) on or before 4:30 p.m., New York City time, on a Business Day or, if such day is not a
Business Day, on the next succeeding Business Day, (ii) by Electronic Notice, as set forth below, (iii) on the next Business Day
after timely delivery to a nationally-recognized overnight courier and (iv) on the Business Day actually received if deposited in
the U.S. mail (certified or registered mail, return receipt requested, postage prepaid). For purposes of this Agreement, “Business
Day” shall mean any day on which the Exchange and commercial banks in the City of New York are open for business.
An
electronic communication (“Electronic Notice”) shall be deemed written notice for purposes of this Section 13
if sent to the electronic mail address specified by the receiving party under separate cover. Electronic Notice shall be deemed received
at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic
Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form (“Nonelectronic Notice”)
which shall be sent to the requesting party within ten (10) days of receipt of the written request for Nonelectronic Notice.
14. Successors
and Assigns. This Agreement shall inure to the benefit of and be binding upon the Company
and each Agent and their respective successors and the parties referred to in Section 10
hereof. References to any of the parties contained in this Agreement shall be deemed to include
the successors and permitted assigns of such party. Nothing in this Agreement, express or
implied, is intended to confer upon any party other than the parties hereto or their respective
successors and permitted assigns any rights, remedies, obligations or liabilities under or
by reason of this Agreement, except as expressly provided in this Agreement. Neither party
may assign its rights or obligations under this Agreement without the prior written consent
of the other party; provided, however, that each Agent may assign its rights
and obligations hereunder to an affiliate thereof without obtaining the Company’s consent.
15. Adjustments
for Stock Splits. The parties acknowledge and agree that all share-related numbers contained
in this Agreement shall be adjusted to take into account any stock split, stock dividend
or similar event effected with respect to the Placement Shares.
16. Entire
Agreement; Amendment; Severability; Waiver. This Agreement (including all schedules and
exhibits attached hereto, any side letters and Placement Notices issued pursuant hereto,
any contemporaneous side letters and any prior engagement letters between the Company and
any of the Agents) constitutes the entire agreement and supersedes all other prior and contemporaneous
agreements and undertakings, both written and oral, among the parties hereto with regard
to the subject matter hereof. Neither this Agreement nor any term hereof may be amended except
pursuant to a written instrument executed by the Company and each Agent. In the event that
any one or more of the provisions contained herein, or the application thereof in any circumstance,
is held invalid, illegal or unenforceable as written by a court of competent jurisdiction,
then such provision shall be given full force and effect to the fullest possible extent that
it is valid, legal and enforceable, and the remainder of the terms and provisions herein
shall be construed as if such invalid, illegal or unenforceable term or provision was not
contained herein, but only to the extent that giving effect to such provision and the remainder
of the terms and provisions hereof shall be in accordance with the intent of the parties
as reflected in this Agreement. No implied waiver by a party shall arise in the absence of
a waiver in writing signed by such party. No failure or delay in exercising any right, power,
or privilege hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any right,
power, or privilege hereunder.
17. Recognition
of U.S. Special Resolutions Regimes. In the event that an Agent is a Covered Entity and
becomes subject to a proceeding under a U.S. Special Resolution Regime, the transfer from
such Agent of this Agreement, and any interest and obligation in or under this Agreement,
will be effective to the same extent as the transfer would be effective under the U.S. Special
Resolution Regime if this Agreement, and any such interest and obligation, were governed
by the laws of the United States or a state of the United States. In the event that an Agent
is a Covered Entity and such Agent or a BHC Act Affiliate of such Agent becomes subject to
a proceeding under a U.S. Special Resolution Regime, Default Rights under this Agreement
that may be exercised against such Agent are permitted to be exercised to no greater extent
than such Default Rights could be exercised under the U.S. Special Resolution Regime if this
Agreement were governed by the laws of the United States or a state of the United States.
For purposes of this Agreement, (A) “BHC Act Affiliate” has the meaning
assigned to the term “affiliate” in, and shall be interpreted in accordance with,
12 U.S.C. § 1841(k); (B) “Covered Entity” means any of the following:
(i) a “covered entity” as that term is defined in, and interpreted in accordance
with, 12 C.F.R. § 252.82(b); (ii) a “covered bank” as that term is defined
in, and interpreted in accordance with, 12 C.F.R. § 47.3(b); or (iii) a “covered
FSI” as that term is defined in, and interpreted in accordance with, 12 C.F.R. §
382.2(b); (C) “Default Right” has the meaning assigned to that term in,
and shall be interpreted in accordance with, 12 C.F.R. §§ 252.81, 47.2 or 382.1,
as applicable; and (D) “U.S. Special Resolution Regime” means each of
(i) the Federal Deposit Insurance Act and the regulations promulgated thereunder and (ii)
Title II of the Dodd-Frank Wall Street Reform and Consumer Protection Act and the regulations
promulgated thereunder.
27
18. GOVERNING
LAW AND TIME; WAIVER OF JURY TRIAL. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE PRINCIPLES OF
CONFLICTS OF LAWS. SPECIFIED TIMES OF DAY REFER TO NEW YORK CITY TIME. EACH PARTY HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR
THE TRANSACTIONS CONTEMPLATED HEREBY.
19. CONSENT
TO JURISDICTION. EACH PARTY HEREBY IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION
OF THE STATE AND FEDERAL COURTS SITTING IN THE CITY OF NEW YORK, BOROUGH OF MANHATTAN, FOR
THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH ANY TRANSACTION CONTEMPLATED
HEREBY, AND HEREBY IRREVOCABLY WAIVES, AND AGREES 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 BROUGHT IN AN INCONVENIENT FORUM OR THAT THE VENUE OF SUCH
SUIT, ACTION OR PROCEEDING IS IMPROPER. EACH PARTY HEREBY IRREVOCABLY WAIVES PERSONAL SERVICE
OF PROCESS AND CONSENTS TO PROCESS BEING SERVED IN ANY SUCH SUIT, ACTION OR PROCEEDING BY
MAILING A COPY THEREOF (CERTIFIED OR REGISTERED MAIL, RETURN RECEIPT REQUESTED) TO SUCH PARTY
AT THE ADDRESS IN EFFECT FOR NOTICES TO IT UNDER THIS AGREEMENT AND AGREES THAT SUCH SERVICE
SHALL CONSTITUTE GOOD AND SUFFICIENT SERVICE OF PROCESS AND NOTICE THEREOF. NOTHING CONTAINED
HEREIN SHALL BE DEEMED TO LIMIT IN ANY WAY ANY RIGHT TO SERVE PROCESS IN ANY MANNER PERMITTED
BY LAW.
20. Counterparts.
This Agreement may be executed in two or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument. Delivery
of an executed Agreement by one party to the other may be made by facsimile, electronic mail
(including any electronic signature covered by the U.S. federal ESIGN Act of 2000, Uniform
Electronic Transactions Act, the Electronic Signatures and Records Act or other applicable
law, e.g., www.docusign.com) or other transmission method and any counterpart so delivered
shall be deemed to have been duly and validly delivered and be valid and effective for all
purposes.
21. Construction.
The section and exhibit headings herein are for convenience only and shall not affect the
construction hereof. References herein to any law, statute, ordinance, code, regulation,
rule or other requirement of any Governmental Authority shall be deemed to refer to such
law, statute, ordinance, code, regulation, rule or other requirement of any Governmental
Authority as amended, reenacted, supplemented or superseded in whole or in part and in effect
from time to time and also to all rules and regulations promulgated thereunder.
22. Permitted
Free Writing Prospectuses. The Company represents, warrants and agrees that, unless it
obtains the prior written consent of the Agents, and each Agent represents, warrants and
agrees that, unless it obtains the prior written consent of the Company, it has not made
and will not make any offer relating to the Placement Shares that would constitute an Issuer
Free Writing Prospectus, or that would otherwise constitute a “free writing prospectus,”
as defined in Rule 405, required to be filed with the Commission. Any such free writing
prospectus consented to by the Agents or by the Company, as the case may be, is hereinafter
referred to as a “Permitted Free Writing Prospectus.” The Company represents
and warrants that it has treated and agrees that it will treat each Permitted Free Writing
Prospectus as an “issuer free writing prospectus,” as defined in Rule 433,
and has complied and will comply with the requirements of Rule 433 applicable to any
Permitted Free Writing Prospectus, including timely filing with the Commission where required,
legending and record keeping. For the purposes of clarity, the parties hereto agree that
all free writing prospectuses, if any, listed in Exhibit 21 hereto are Permitted Free
Writing Prospectuses.
23. Absence
of Fiduciary Relationship. The Company acknowledges and agrees that:
(a) each
Agent is acting solely as agent in connection with the public offering of the Placement Shares
and in connection with each transaction contemplated by this Agreement and the process leading
to such transactions, and no fiduciary or advisory relationship between the Company or any
of its respective affiliates, stockholders (or other equity holders), creditors or employees
or any other party, on the one hand, and the Agents, on the other hand, has been or will
be created in respect of any of the transactions contemplated by this Agreement, irrespective
of whether or not any Agent has advised or is advising the Company on other matters, and
the Agents have no obligation to the Company with respect to the transactions contemplated
by this Agreement except the obligations expressly set forth in this Agreement;
28
(b) it
is capable of evaluating and understanding, and understands and accepts, the terms, risks
and conditions of the transactions contemplated by this Agreement;
(c) neither
the Agents nor their respective affiliates have provided any legal, accounting, regulatory
or tax advice with respect to the transactions contemplated by this Agreement and it has
consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed
appropriate;
(d) it
is aware that each Agent and its affiliates are engaged in a broad range of transactions
which may involve interests that differ from those of the Company and such Agent and its
affiliates have no obligation to disclose such interests and transactions to the Company
by virtue of any fiduciary, advisory or agency relationship or otherwise; and
(e) it
waives, to the fullest extent permitted by law, any claims it may have against an Agent or
its affiliates for breach of fiduciary duty or alleged breach of fiduciary duty in connection
with the sale of Placement Shares under this Agreement and agrees that such Agent and its
affiliates shall not have any liability (whether direct or indirect, in contract, tort or
otherwise) to it in respect of such a fiduciary duty claim or to any person asserting a fiduciary
duty claim on its behalf or in right of it or the Company, employees or creditors of the
Company, other than in respect of the Agent’s obligations under this Agreement and
to keep information provided by the Company to the Agent and the Agent’s counsel confidential
to the extent not otherwise publicly-available.
24. Definitions.
As used in this Agreement, the following terms have the respective meanings set forth below:
“Applicable
Time” means (i) each Representation Date, (ii) the time of each sale of any Placement Shares pursuant to this Agreement
and (iii) each Settlement Date.
“Governmental
Authority” means (i) any federal, provincial, state, local, municipal, national or international government or governmental
authority, regulatory or administrative agency, governmental commission, department, board, bureau, agency or instrumentality, court,
tribunal, arbitrator or arbitral body (public or private); (ii) any self-regulatory organization; or (iii) any political subdivision
of any of the foregoing.
“Issuer
Free Writing Prospectus” means any “issuer free writing prospectus,” as defined in Rule 433, relating
to the Placement Shares that (1) is required to be filed with the Commission by the Company, (2) is a “road show”
that is a “written communication” within the meaning of Rule 433(d)(8)(i) whether or not required to be filed with the
Commission, or (3) is exempt from filing pursuant to Rule 433(d)(5)(i) because it contains a description of the Placement Shares
or of the offering that does not reflect the final terms, in each case in the form filed or required to be filed with the Commission
or, if not required to be filed, in the form retained in the Company’s records pursuant to Rule 433(g) under the Securities Act.
“Rule
164,” “Rule 172,” “Rule 405,” “Rule 415,”
“Rule 424,” “Rule 424(b),” “Rule 430B,” and “Rule 433”
refer to such rules under the Securities Act.
“Rule
462(b) Registration Statement” means any registration statement filed by the Company pursuant to Rule 462(b) under the
Securities Act in connection with the offer and sale of Placement Shares.
[Signature
Page Follows]
29
If
the foregoing correctly sets forth the understanding between the Company and each Agent, please so indicate in the space provided below
for that purpose, whereupon this Agreement shall constitute a binding agreement between the Company and each Agent.
Very truly yours,
CLEANCORE SOLUTIONS, INC.
By:
/s/
Tyler Hassen
Name:
Tyler Hassen
Title:
Chief Executive Officer
ACCEPTED as of the date first-above written:
CANTOR FITZGERALD & CO.
By:
/s/
Sameer Vasudev
Name:
Sameer Vasudev
Title:
Managing Director
CURVATURE SECURITIES LLC
By:
/s/
Michael Bodner
Name:
Michael Bodner
Title:
President
30
SCHEDULE
1
Form
of Placement Notice
From:
CleanCore Solutions, Inc.
To:
Cantor Fitzgerald & Co.
Attention: Sameer Vasudev (svasudev@cantor.com)
Subject:
Placement Notice
Date:
[●], 2026
Ladies
and Gentlemen:
Pursuant to the terms and
subject to the conditions contained in the Sales Agreement by and among CleanCore Solutions, Inc., a Nevada corporation (the “Company”),
Cantor Fitzgerald & Co. (“Cantor”) and Curvature Securities LLC, dated June 8, 2026, the Company hereby
requests that Cantor sell up to [●] of the Company’s common stock, par value $0.0001 per share, at a minimum market price of
$[●] per share, during the time period beginning [month, day, time] and ending [month, day, time].
31
SCHEDULE
2
Compensation
The Company shall pay to the
Agents in cash, upon each sale of Placement Shares pursuant to this Agreement, an amount equal to 3.0% of the aggregate gross proceeds
from each sale of Placement Shares.
32
SCHEDULE
3
Notice
Parties
The
Company
Tyler
Hassen (tyler@cleancoresol.com)
With
a copy to:
Lucosky
Brookman LLP: jlucosky@lucbro.com
Cantor
Fitzgerald & Co.
Sameer
Vasudev (svasudev@cantor.com)
With
copies to:
CFCEO@cantor.com
stephen.alicanti@us.dlapiper.com
Curvature Securities LLC
Michael Bodner (mbodner@curvaturesecurities.com)
33
SCHEDULE
4
Subsidiaries
Incorporated
by reference to Exhibit 21 of the Company’s most recently filed Form 10-K, as applicable.
34
Exhibit
7(l)
Form
of Representation Date Certificate Pursuant to Section 7(l)
The
undersigned, the duly qualified and elected [●], of CleanCore Solutions, Inc., a Nevada corporation (the “Company”),
does hereby certify in such capacity and on behalf of the Company, pursuant to Section 7(l) of the Sales Agreement, dated
June 8, 2026 (the “Sales Agreement”), by and among the Company, Cantor Fitzgerald & Co. and Curvature
Securities LLC, that to the best of the knowledge of the undersigned:
(i) The
representations and warranties of the Company in Section 6 of the Sales Agreement are true and correct on and as of the date
hereof with the same force and effect as if expressly made on and as of the date hereof, except for those representations and warranties
that speak solely as of a specific date and which were true and correct as of such date; provided, however, that such representations
and warranties also shall be qualified by the disclosure included or incorporated by reference in the Registration Statement and Prospectus;
and
(ii) The
Company has complied with all agreements and satisfied all conditions on its part to be performed or satisfied pursuant to the Sales
Agreement at or prior to the date hereof.
Capitalized
terms used herein without definition shall have the meanings given to such terms in the Sales Agreement.
CleanCore Solutions, Inc.
By:
Name:
Title:
Date:
[●]
Exhibit
21
Permitted
Free Writing Prospectus
None.
EX-5.1 — OPINION OF LUCOSKY BROOKMAN LLP, WITH RESPECT TO THE LEGALITY OF THE SECURITIES BEING REGISTERED
EX-5.1
Filename: ea029387401ex5-1.htm · Sequence: 3
Exhibit 5.1
LUCOSKY BROOKMAN LLP
101 Wood Avenue South
5th Floor
Woodbridge, NJ 08830
T – (732) 395-4400
F – (732) 395-4401
111 Broadway
Suite 807
New York, NY 10006
T – (212) 332-8160
F – (212) 332-8161
www.lucbro.com
June
8, 2026
CleanCore
Solutions, Inc.
5920
S 118th Circle
Omaha,
NE 68137
Re: CleanCore
Solutions, Inc. Sales Agreement
Ladies
and Gentlemen:
We
have acted as counsel for CleanCore Solutions, Inc., a Nevada corporation (the “Company”), in connection with the
issuance and sale from time to time of up to $750,000,000 of shares (the “Shares”) of the Company’s common
stock, par value $0.0001 per share (the “Common Stock”), pursuant to the Sales Agreement, dated June 8, 2026 (the
“Sales Agreement”), between the Company and Cantor Fitzgerald & Co., as sales agent (the “Sales
Agent”). The Shares will be issued pursuant to the Company’s Registration Statement on Form S-3 (File No.
333-289867), as filed with the U.S. Securities and Exchange Commission (the “Commission”) under the Securities
Act of 1933, as amended (the “Securities Act”), on August 26, 2025 (such Registration Statement, as amended from
time to time, is herein referred to as the “Registration Statement”), which was declared effective by the
Commission on August 29, 2025, including the prospectus which forms a part of the Registration Statement, and the related prospectus
supplement dated June 8, 2026 (collectively, the “Prospectus”).
We,
as your counsel, have examined originals or copies of such documents, corporate records, certificates of public officials and other instruments
as we have deemed necessary or advisable for the purpose of rendering this opinion. In rendering the opinion expressed herein, we have,
without independent inquiry or investigation, assumed that (i) all documents submitted to us as originals are authentic and complete,
(ii) all documents submitted to us as copies conform to authentic, complete originals, (iii) all signatures on all documents that we
reviewed are genuine, (iv) all natural persons executing documents had and have the legal capacity to do so, (v) all statements in certificates
of public officials and officers of the Company that we reviewed were and are accurate, and (vi) all representations made by the Company
as to matters of fact in the documents that we reviewed were and are accurate.
Based
upon the foregoing, and subject to the additional assumptions and qualifications set forth below, we advise you that, in our opinion,
when the Shares have been issued and sold by the Company and delivered by the Company against payment therefor in accordance with the
terms of the Sales Agreement, such Shares will be validly issued, fully paid and non-assessable.
CleanCore
Solutions, Inc.
June 8, 2026
Page 2
In
rendering the foregoing opinion, we have assumed that (x) the Shares will not be issued or transferred in violation of any restriction
or limitation contained in the Company’s Amended and Restated Articles of Incorporation (the “Charter”), (y)
upon the issuance of such Shares, the total number of shares of Common Stock issued and outstanding will not exceed the total number
of shares of Common Stock that the Company is then authorized to issue under the Charter, and (z) the terms of certain sales of the Shares
pursuant to the Sales Agreement will be authorized and approved by the Board of Directors of the Company or a committee thereof established
by the Board of Directors of the Company with the authority to issue and sell the Shares pursuant to the Sales Agreement in accordance
with the Charter, the Bylaws of the Company and the resolutions of the Board of Directors of the Company.
The
foregoing opinions are subject to the following exclusions and qualifications:
(a) Our
opinions are as of the date hereof, and we have no responsibility to update this opinion
for events and circumstances occurring after the date hereof or as to facts relating to prior
events that are subsequently brought to our attention; this opinion is limited to the laws,
including the rules and regulations, as in effect on the date hereof, and we disavow any
undertaking to advise you of any changes in law.
(b) We
are members of the Bar of the State of New York, and we do not express any opinions herein
concerning any laws other than the laws of the State of New York, Nevada Revised Statutes,
and the federal securities laws of the United States of America, and we express no opinion
with respect to the laws of any other jurisdiction and expressly disclaim responsibility
for advising you as to the effect, if any, that the laws of any other jurisdiction may have
on the opinions set forth herein.
We
hereby consent to the filing of this opinion as Exhibit 5.1 to the Current Report on Form 8-K disclosing the material terms and provisions
of the Sales Agreement to be filed by the Company with the Commission, and its incorporation by reference into the Registration Statement.
We further consent to the reference to our name under the caption “Legal Matters” in the Prospectus Supplement, which is
a part of the Registration Statement. In giving this consent, we do not admit that we are in the category of persons whose consent is
required under Section 7 of the Securities Act or the rules and regulations of the Commission promulgated thereunder.
Very truly yours,
/s/ Lucosky Brookman LLP
Lucosky Brookman LLP
EX-10.1 — TERMINATION LETTER, DATED JUNE 3, 2026, AMONG CLEANCORE SOLUTIONS, INC., MAXIM GROUP LLC AND CURVATURE SECURITIES LLC
EX-10.1
Filename: ea029387401ex10-1.htm · Sequence: 4
Exhibit 10.1
TERMINATION LETTER
This Termination Letter (this
“Agreement”) is entered into as of June 3, 2026, by and among CleanCore Solutions, Inc. (the “Company”),
Maxim Group LLC (“Maxim”), and Curvature Securities LLC (“Curvature,” and together with Maxim, the
“Agents,” and each, an “Agent”).
WHEREAS, the Company
and the Agents are parties to that certain Amended and Restated Sales Agreement, dated as of August 29, 2025 (the “Sales Agreement”);
WHEREAS, the Company
has entered into a separate waiver and release agreement with each of Curvature and Maxim, respectively, in connection with the transactions
contemplated by the Sales Agreement; and
WHEREAS, the parties
hereto desire to terminate the Sales Agreement in its entirety, effective as of the date hereof, on the terms and conditions set forth
herein.
NOW, THEREFORE, in
consideration of the mutual covenants and agreements set forth herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties agree as follows:
1. Termination. The Sales Agreement is hereby terminated in its entirety, effective as of the date
hereof (the “Termination Date”). From and after the Termination Date, the Sales Agreement shall be of no further force
or effect, and no party shall have any further rights or obligations thereunder, except as expressly set forth herein or as otherwise
provided in the separate waiver and release agreements entered into between the Company and each Agent. Each party hereby waives any notice
period or other procedural requirements that may otherwise be required under the Sales Agreement in connection with such termination.
2. Survival. Notwithstanding Section 1, any provisions of the Sales Agreement that by their terms
survive termination (including, without limitation, provisions relating to indemnification, contribution, and governing law) shall continue
in full force and effect in accordance with their terms, except as modified by the separate waiver and release agreements entered into
between the Company and each Agent.
3. No Further Sales. Effective as of the Termination Date, the Agents shall not make any further sales
or offers to sell the Company’s securities pursuant to the Sales Agreement, and shall promptly wind down any pending settlement obligations
in accordance with customary market practice.
4. Representations and Warranties. Each party represents and warrants to the other parties that (a)
it has full power and authority to execute, deliver, and perform this Agreement, (b) the execution, delivery, and performance of this
Agreement have been duly authorized by all necessary corporate or limited liability company action, and (c) this Agreement constitutes
a valid and binding obligation of such party, enforceable against such party in accordance with its terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium, and similar laws affecting creditors’ rights generally and to general principles of equity.
5. Waiver and Release Agreements. For the avoidance of doubt, the separate waiver and release agreements
entered into between the Company and each of Maxim and Curvature, respectively, shall remain in full force and effect in accordance with
their respective terms and are not modified or superseded by this Agreement.
6. Governing Law; Jurisdiction. This Agreement shall be governed by and construed in accordance with
the laws of the State of New York, without regard to the principles of conflicts of laws. Each party hereby irrevocably submits to the
exclusive jurisdiction of the state and federal courts located in the Borough of Manhattan, City of New York, for any action arising out
of or relating to this Agreement.
7. Counterparts. This Agreement may be executed in one or more counterparts, each of which shall be
deemed an original and all of which together shall constitute one and the same instrument. Delivery of an executed counterpart of a signature
page to this Agreement by facsimile or electronic transmission (including .pdf or any electronic signature complying with the U.S. federal
ESIGN Act of 2000) shall be effective as delivery of a manually executed counterpart of this Agreement.
8. Entire Agreement. This Agreement, together with the separate waiver and release agreements referenced
herein, constitutes the entire agreement among the parties with respect to the subject matter hereof and supersedes all prior negotiations,
representations, and agreements relating thereto.
9. Amendment. This Agreement may not be amended, modified, or supplemented except by a written instrument
signed by all parties hereto.
10. Severability. If any provision of this Agreement is held to be invalid, illegal, or unenforceable
in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision of this Agreement, and this Agreement
shall be construed as if such invalid, illegal, or unenforceable provision had never been contained herein.
*************************
(Signature Page Follows)
IN WITNESS WHEREOF,
the parties have executed this Agreement as of the date first written above.
CLEANCORE SOLUTIONS, INC.
By:
/s/ Tyler Hassen
Name:
Tyler Hassen
Title:
Chief Executive Officer
MAXIM GROUP LLC
By:
/s/ James Siegel
Name:
James Siegel
Title:
General Counsel
CURVATURE SECURITIES LLC
By:
/s/ Michael Bodner
Name:
Michael Bodner
Title:
President
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