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Title: |
Subscription Agreement |
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Entities: |
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Date: |
2000 |
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Size: |
Preview shows 12KB of 49KB total |
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Price: |
$43 |
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ID: |
#1149537 |
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IXIA COMMUNICATIONS
SUBSCRIPTION AGREEMENT
Ixia Communications
4505 Las Virgenes Road
Suite 209
Calabasas, CA 91302
The undersigned ("Purchaser") understands that Ixia Communications, a
California corporation (the "Company"), proposes to offer and sell to Purchaser
300,000 shares of its Common Stock (the "Shares") set forth on the signature
page hereof for the aggregate purchase price of $33.33, payable in the form of
cash or check made payable to the Company.
Accordingly, Purchaser hereby agrees with the Company as follows:
SECTION 1
SUBSCRIPTION FOR SECURITIES
Subject to the terms and conditions hereof and upon acceptance of this
subscription by the Company, Purchaser hereby irrevocably subscribes to
purchase, and the Company will issue and sell to Purchaser, the Shares for the
aggregate purchase price of $33.33 (the "Purchase Price"). The Company has the
right to reject all or any portion of Purchaser's subscription.
SECTION 2
CLOSING; DELIVERY
2.1 CLOSING. Purchaser subscribes for the Shares being purchased
hereunder by executing and delivering to the Company, at the address set forth
above, this Subscription Agreement and the Purchase Price and the closing and
the issuance of the Shares (the "Closing" and the date thereof the "Closing
Date") shall occur as soon as practicable following the Company's acceptance of
such subscription and on such date as shall be determined by the Company. The
Purchase Price shall be paid in the form of cash or check made payable to the
Company, and by accepting and executing this Subscription Agreement, the Company
agrees to accept such payment as payment in full of the Purchase Price.
2.2 DELIVERY. At the Closing, in consideration for the Purchase Price,
the Company will issue the Shares and deliver to the Secretary of the Company to
hold in escrow in accordance with Section 6.5 hereof a certificate or
certificates registered in Purchaser's name representing the Shares purchased
hereunder by Purchaser.
<PAGE> 2
SECTION 3
REPRESENTATIONS AND WARRANTIES OF THE COMPANY
3.1 ORGANIZATION AND STANDING. The Company is a corporation duly
organized and existing under, and by virtue of, the laws of the State of
California and is in good standing under such laws. The Company has the
requisite corporate power to own and operate its properties and assets and to
carry on its business as presently conducted and as proposed to be conducted.
3.2 CORPORATE POWER. The Company will have, upon acceptance and
execution of this Subscription Agreement and at the Closing Date, all requisite
corporate power to execute and deliver this Subscription Agreement, to sell and
issue the Shares hereunder and to carry out and perform its obligations under
the terms of this Subscription Agreement. At the Closing Date, the Shares shall
be duly authorized, validly issued, fully paid and non-assessable.
3.3 AUTHORIZATION. All corporate action on the part of the Company, its
directors and shareholders necessary for the authorization, execution, delivery
and performance of this Subscription Agreement by the Company, the
authorization, sale, issuance and delivery of the Shares and the performance of
the Company's obligations hereunder has been taken or will be taken prior to the
Closing. This Subscription Agreement, when executed and delivered by the
Company, will constitute a valid and binding obligation of the Company
enforceable in accordance with its terms, subject to laws of general application
relating to specific performance, injunctive relief or other equitable remedies.
SECTION 4
REPRESENTATIONS AND WARRANTIES OF PURCHASER
Purchaser hereby represents and warrants as follows:
4.1 INVESTMENT. Purchaser is acquiring the Shares for investment for
Purchaser's own account and not with the view to, or for resale in connection
with, any distribution, assignment or resale within the meaning of the
Securities Act of 1933, as amended (the "Securities Act"), to others, and no
other person has a direct or indirect beneficial interest, in whole or in part,
in such Shares. Purchaser understands that the Shares have not been registered
under the Securities Act by reason of a specific exemption from the registration
provisions of the Securities Act, which exemption depends upon, among other
things, the bona fide nature of the investment intent as expressed herein.
4.2 RELATIONSHIP TO COMPANY; SOPHISTICATION. Purchaser (i) has a
preexisting business or personal relationship with the Company and/or one or
more of its officers, directors or controlling persons or (ii) by reason of
Purchaser's business or financial experience or the business or financial
experience of Purchaser's personal representative(s), if any, who are
unaffiliated with and who are not compensated by the Company or any affiliate or
selling agent of the Company, directly or indirectly, has the capacity to
protect Purchaser's own interests in connection with Purchaser's acquisition of
the Shares.
-2-
<PAGE> 3
4.3 RESTRICTIONS ON TRANSFER. Purchaser acknowledges that the Shares
must be held indefinitely unless subsequently registered under the Securities
Act or the Company receives an opinion of counsel satisfactory to the Company
that such registration is not required. Purchaser is aware of the provisions of
Rule 144 promulgated under the Securities Act which permit limited resale of
"restricted securities" acquired, directly or indirectly, from the issuer
thereof (or from an affiliate of such issuer) in a non-public offering, subject
to the satisfaction of certain conditions, including, among other things, the
existence of a public market for the stock, the availability of certain current
public information about the Company, the resale occurring not less than one
year after a party has purchased and made full payment for, within the meaning
of Rule 144, the securities to be sold, the sale being through a "broker's
transaction" or in transactions directly with a "market maker" and the number of
shares of the stock being sold during any three-month period not exceeding
specified limitations; provided, however, that if the seller is not an affiliate
of the issuer and has held the securities for at least two years after payment
therefor, certain of the foregoing conditions under Rule 144 may not be
applicable. Purchaser further acknowledges and understands that the Company may
not be satisfying the current public information requirement of Rule 144 at the
time Purchaser wishes to sell the Shares; and, if so, Purchaser would be
precluded from selling the Shares under Rule 144 even if the one-year minimum
holding period had been satisfied.
4.4 NO PUBLIC MARKET. Purchaser understands that no public market now
exists for the Shares, that there can be no assurance that a public market will
ever exist for the Shares and that the Company is under no obligation to
register the Shares.
4.5 EXEMPTION FROM REGISTRATION. Purchaser further acknowledges that, in
the event all of the requirements of Rule 144 are not met, compliance with
Regulation A under the Securities Act or some other registration exemption will
be required; and that, although Rule 144 is not exclusive, the staff of the
Commission has expressed its opinion that persons proposing to sell private
placement securities other than in a registered offering and other than pursuant
to Rule 144 will have a substantial burden of proof in establishing that an
exemption from registration is available for such offers or sales, that such
persons and the brokers who participate in the transactions do so at their own
risk, and that, therefore, there is no assurance that any exemption from
registration under the Securities Act will be available or, if available, will
allow Purchaser to dispose of, or otherwise transfer, all or any portion of the
Shares.
4.6 CERTAIN DISPOSITION REQUIREMENTS. Without in any way limiting
Purchaser's covenants, representations and warranties set forth herein,
Purchaser further agrees that he shall in no event make any disposition of all
or any portion of the Shares unless and until:
(i) There is then in effect a registration statement
under the Securities Act covering such proposed disposition and
such disposition is made in accordance with said registration
statement; or
(ii) Purchaser shall have (x) notified the Company of
the proposed disposition and furnished the Company with a detailed
statement of the circumstances surrounding the proposed
disposition, and (y) furnished the
-3-
<PAGE> 4
Company with an opinion of his own counsel to the effect that such
disposition will not require registration of such shares under the
Securities Act, and such opinion of his counsel shall have been
concurred in by counsel for the Company and the Company shall have
advised Purchaser of such concurrence.
4.7 ACCESS TO DATA. Purchaser has had an opportunity to discuss the
Company's business, management and financial affairs with the Company's
management and the opportunity to review the Company's facilities and books and
records.
4.8 EXPERIENCE. Purchaser and/or Purchaser's personal representative(s)
have such knowledge and experience in financial, tax and business matters so as
to enable Purchaser and/or them to utilize the information made available to
Purchaser and/or them in connection with the offering of the Shares, to evaluate
the merits and risks of the prospective investment and to make an informed
investment decision with respect thereto. Each personal representative, if any,
of Purchaser, in connection with Purchaser's investment in the Shares, has
confirmed in writing the specific details of any and all past, present or future
relationships, actual or contemplated, between Purchaser or Purchaser's
affiliates and the Company or any of the Company's affiliates.
4.9 PURCHASER'S LIQUIDITY. Purchaser (i) has adequate means of providing
for Purchaser's current needs and possible personal contingencies, (ii) has no
need for liquidity in Purchaser's investment, (iii) is able to bear the
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