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Sub-Urban Brands, Inc.
·
8-K
May 31, 5:04 PM ET
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Sub-Urban Brands, Inc. 8-K
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Contents
31
1. Vesting; Expiration Date; Exercise
3. Reservation of Shares. SUUB shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, such number of shares of Common Stock as shall from time to time be issuable upon exercise of the Warrants. If at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to permit the exercise of the Warrants, SUUB shall promptly seek such corporate action as may necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purpose.
4. Certificate as to Adjustments. In each case of any adjustment in the Exercise Price, or number or type of shares issuable upon exercise of these Warrants, the Chief Financial Officer of SUUB shall compute such adjustment in accordance with the terms of these Warrants and prepare a certificate setting forth such adjustment and showing in detail the facts upon which such adjustment is based, including a statement of the adjusted Exercise Price. SUUB shall promptly send (by facsimile and by either first class mail, postage prepaid or overnight delivery) a copy of each such certificate to the Holder.
5. Loss or Mutilation. Upon receipt of evidence reasonably satisfactory to SUUB of the ownership of and the loss, theft, destruction or mutilation of this Certificate, and of indemnity reasonably satisfactory to it, and (in the case of mutilation) upon surrender and cancellation of these Warrants, SUUB will execute and deliver in lieu thereof a new Certificate of like tenor as the lost, stolen, destroyed or mutilated Certificate.
6. Representations and Warranties of SUUB. SUUB hereby represents and warrants to Holder that:
7. Representations and Warranties of Trilogy. Trilogy hereby represents and warrants to SUUB that:
8. Notices of Record Date
9. Registration Rights.
9.1.1 A “Blackout Event” means any of the following: (a) the possession by SUUB of material information that is not ripe for disclosure in a registration statement or prospectus, as determined reasonably and in good faith by the Chief Executive Officer or the Board of Directors of SUUB or that disclosure of such information in the Registration Statement or the prospectus constituting a part thereof would be materially detrimental to the business and affairs of SUUB; or (b) any material engagement or activity by SUUB which would, in the reasonable and good faith determination of the Chief Executive Officer or the Board of Directors of SUUB, be materially adversely affected by disclosure in a registration statement or prospectus at such time.
9.1.2 “Exchange Act” shall mean the Securities Exchange Act of 1934, as amended.
9.1.3 “Included Shares” shall mean any Registrable Shares included in a Registration.
9.1.4 “Registrable Shares” shall mean the shares of Common Stock (or such stock or securities as at the time are receivable upon the exercise of these Warrants) issuable upon exercise of the Warrants and any other warrants and or other securities issued to Trilogy in connection with performing investor relations services for SUUB, and shares or securities issued as a result of stock split, stock dividend or reclassification of such shares.
9.1.5 “Registration” shall mean a registration of securities under the Securities Act pursuant to Section 9.2 or 9.3 of this Agreement.
9.1.6 “Registration Period” with respect to any Registration Statement the period commencing the effective date of the Registration Statement and ending upon withdrawal or termination of the Registration Statement.
9.1.7 “Registration Statement” shall mean the registration statement, as amended from time to time, filed with the SEC in connection with a Registration.
9.1.8 “SEC” shall mean the Securities and Exchange Commission.
9.4.1 SUUB shall take all lawful action such that the Registration Statement, any amendment thereto and the prospectus forming a part thereof does 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 light of the circumstances under which they are made, not misleading. Upon becoming aware of the occurrence of any event or the discovery of any facts during the Registration Period that make any statement of a material fact made in the Registration Statement or the related prospectus untrue in any material respect or which material fact is omitted from the Registration Statement or related prospectus that requires the making of any changes in the Registration Statement or related prospectus so that it will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they are made, not misleading (taking into account any prior amendments or supplements), SUUB shall promptly notify Holder, and, subject to the provisions of Section 9.5, as soon as reasonably practicable prepare (but, subject to Section 9.5, in no event more than five business days in the case of a supplement or seven business days in the case of a post-effective amendment) and file with the SEC a supplement or post-effective amendment to the Registration Statement or the related prospectus or file any other required document so that, as thereafter delivered to a purchaser of Shares from Holder, such prospectus will not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.
9.4.2 At least three business days prior to the filing with the SEC of the Registration Statement (or any amendment thereto) or the prospectus forming a part thereof (or any supplement thereto), SUUB shall provide draft copies thereof to Holder and shall consider incorporating into such documents such comments as Holder (and its counsel) may propose to be incorporated therein. Notwithstanding the foregoing, no prospectus supplement, the form of which has previously been provided to Holder, need be delivered in draft form to Holder.
9.4.3 SUUB shall promptly notify Holder upon the occurrence of any of the following events in respect of the Registration Statement or the prospectus forming a part thereof: (a) the receipt of any request for additional information from the SEC or any other federal or state governmental authority, the response to which would require any amendments or supplements to the Registration Statement or related prospectus; (b) the issuance by the SEC 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; or (c) the receipt of any notification with respect to the suspension of the qualification or exemption from qualification of any of the Shares for sale in any jurisdiction or the initiation or threatening of any proceeding for such purpose.
9.4.4 SUUB shall furnish to Holder with respect to the Included Shares registered under the Registration Statement (and to each underwriter, if any, of such Shares) such number of copies of prospectuses and such other documents as Holder may reasonably request, in order to facilitate the public sale or other disposition of all or any of the Included Shares by Holder pursuant to the Registration Statement.
9.4.5 In connection with any registration pursuant to Section 9.2, SUUB shall file or cause to be filed such documents as are required to be filed by SUUB for normal Blue Sky clearance in states specified in writing by Holder; provided, however, that SUUB shall not be required to qualify to do business or consent to service of process in any jurisdiction in which it is not now so qualified or has not so consented.
9.4.6 SUUB shall bear and pay all expenses incurred by it and Holder (other than underwriting discounts, brokerage fees and commissions and fees and expenses of more than one law firm) in connection with the registration of the Shares pursuant to the Registration Statement.
9.4.7 SUUB shall require each legal opinion and accountant’s “cold comfort” letter in connection with the Registration, if any, to be rendered to Holder as well as SUUB and/or its Board of Directors.
9.4.8 As a condition to including Registrable Shares in a Registration Statement, Holder must provide to SUUB such information regarding itself, the Registrable Shares held by it and the intended method of distribution of such Shares as shall be required to effect the registration of the Registrable Shares and, if the offering is being underwritten, Holder must provide such powers of attorney, indemnities and other documents as may be reasonably requested by the managing underwriter.
9.4.9 Following the effectiveness of the Registration Statement, upon receipt from SUUB of a notice that the Registration Statement contains an untrue statement of material fact or omits to state any material fact required to be stated therein or necessary to make the statements therein not misleading in light of the circumstances under which they were made, Holder will immediately discontinue disposition of Included Shares pursuant to the Registration Statement until SUUB notifies Holder that it may resume sales of Included Shares and, if necessary, provides to Holder copies of the supplemental or amended prospectus.
9.6.1.1 comply with the provisions of paragraph (c)(1) of Rule 144; and
9.6.1.2 file with the SEC in a timely manner all reports and other documents required to be filed by SUUB pursuant to Section 13 or 15(d) under the Exchange Act; and, if at any time it is not required to file such reports but in the past had been required to or did file such reports, it will, upon the request of a Purchaser, make available other information as required by, and so long as necessary to permit sales of its Shares pursuant to, Rule 144.
10. Nontransferability. Trilogy may not sell or transfer any Warrants to any person other than a director, officer, employee, manager or affiliate of Trilogy (or a person controlled by one or more directors, officers, employees, managers or affiliates of Trilogy) or to a person or entity that assists Trilogy in providing services to SUUB pursuant to the Letter of Engagement dated May 16, 2006 as the same may be amended from time to time, without the consent of SUUB.
11. Severability. If any term, provision, covenant or restriction of these Warrants is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of these Warrants shall remain in full force and effect and shall in no way be affected, impaired or invalidated.
12. Notices. All notices, requests, consents and other communications required hereunder shall be in writing and shall be effective when delivered or, if delivered by registered or certified mail, postage prepaid, return receipt requested, shall be effective on the third day following deposit in United States mail: to the Holder, at Trilogy Capital Partners, Inc., 11726 San Vicente Boulevard, Suite 235, Los Angeles, CA 90049; and if addressed to SUUB, at Sub-Urban Brands, Inc., 2222 East Washington Blvd., Suite B, Los Angeles, CA 90021, or such other address as Holder or SUUB may designate in writing.
13. No Rights as Shareholder. The Holder shall have no rights as a shareholder of SUUB with respect to the shares issuable upon exercise of the Warrants until the receipt by SUUB of all of the Exercise Documents.
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