股份收购协议(英文)

QUOTE"LIBC/2062365.3"\*MERGEFORMATLIBC/2062365.3-PAGE\*MERGEFORMAT1-QUOTE"LIBC/2062365.3"\*MERGEFORMATLIBC/2062365.3SERIESAPREFERREDSTOCKPURCHASEAGREEMENTPAGExxxQUOTE"LIBC/2062365.3"\*MERGEFORMATLIBC/2062365.3PreliminaryNoteTheStockPurchaseAgreementsetsforththebasictermsofthepurchaseandsaleofthepreferredstocktotheinvestors(suchasthepurchaseprice,closingdate,conditionstoclosing)andidentifiestheotherfinancingdocuments.Generallythisagreementdoesnotsetfortheither(1)thecharacteristicsofthestockbeingsold(whicharedefinedintheCertificateofIncorporation)or(2)therelationshipamongthepartiesaftertheclosing,suchasregistrationrights,rightsoffirstrefusalandco-sale,votingarrangements(thesemattersoftenimplicateotherpersonsthanjusttheCompanyandtheinvestorsinthisroundoffinancing,andareusuallyembodiedinseparateagreementstowhichthoseotherspersonsareparties,orinsomecasesbytheCertificateofIncorporation).ThemainitemsofnegotiationintheStockPurchaseAgreementarethereforethepriceandnumberofsharesbeingsold,andtherepresentationsandwarrantiesthattheCompany,andsometimestheFoundersaswell,mustmaketotheinvestors.PAGE8PAGEiTABLEOFCONTENTSPageTOC\o"1-2"\h\z\uHYPERLINK\l"_Toc147199806"1.PurchaseandSaleofPreferredStock.PAGEREF_Toc147199806\h1HYPERLINK\l"_Toc147199807"1.1.SaleandIssuanceofSeries APreferredStock.PAGEREF_Toc147199807\h1HYPERLINK\l"_Toc147199808"1.2.Closing;Delivery.PAGEREF_Toc147199808\h1HYPERLINK\l"_Toc147199809"1.3.SaleofAdditionalSharesofPreferredStock.PAGEREF_Toc147199809\h2HYPERLINK\l"_Toc147199810"1.4.UseofProceeds.PAGEREF_Toc147199810\h3HYPERLINK\l"_Toc147199811"1.5.DefinedTermsUsedinthisAgreement.PAGEREF_Toc147199811\h3HYPERLINK\l"_Toc147199812"2.RepresentationsandWarrantiesoftheCompany.PAGEREF_Toc147199812\h5HYPERLINK\l"_Toc147199813"2.1.Organization,GoodStanding,CorporatePowerandQualification.PAGEREF_Toc147199813\h6HYPERLINK\l"_Toc147199814"2.2.Capitalization.PAGEREF_Toc147199814\h6HYPERLINK\l"_Toc147199815"2.3.Subsidiaries.PAGEREF_Toc147199815\h8HYPERLINK\l"_Toc147199816"2.4.Authorization.PAGEREF_Toc147199816\h8HYPERLINK\l"_Toc147199817"2.5.ValidIssuanceofShares.PAGEREF_Toc147199817\h9HYPERLINK\l"_Toc147199818"2.6.GovernmentalConsentsandFilings.PAGEREF_Toc147199818\h9HYPERLINK\l"_Toc147199819"2.7.Litigation.PAGEREF_Toc147199819\h10HYPERLINK\l"_Toc147199820"2.8.IntellectualProperty.PAGEREF_Toc147199820\h10HYPERLINK\l"_Toc147199821"2.9.CompliancewithOtherInstruments.PAGEREF_Toc147199821\h11HYPERLINK\l"_Toc147199822"2.10.Agreements;Actions.PAGEREF_Toc147199822\h12HYPERLINK\l"_Toc147199823"2.11.CertainTransactions.PAGEREF_Toc147199823\h13HYPERLINK\l"_Toc147199824"2.12.RightsofRegistrationandVotingRights.PAGEREF_Toc147199824\h13HYPERLINK\l"_Toc147199825"2.13.AbsenceofLiens.PAGEREF_Toc147199825\h14HYPERLINK\l"_Toc147199826"2.14.FinancialStatements.PAGEREF_Toc147199826\h14HYPERLINK\l"_Toc147199827"2.15.Changes.PAGEREF_Toc147199827\h15HYPERLINK\l"_Toc147199828"2.16.EmployeeMatters.PAGEREF_Toc147199828\h16HYPERLINK\l"_Toc147199829"2.17.TaxReturnsandPayments.PAGEREF_Toc147199829\h18HYPERLINK\l"_Toc147199830"2.18.Insurance.PAGEREF_Toc147199830\h18HYPERLINK\l"_Toc147199831"2.19.ConfidentialInformationandInventionAssignmentAgreements.PAGEREF_Toc147199831\h19HYPERLINK\l"_Toc147199832"2.20.Permits.PAGEREF_Toc147199832\h19HYPERLINK\l"_Toc147199833"2.21.CorporateDocuments.PAGEREF_Toc147199833\h19HYPERLINK\l"_Toc147199834"2.22.[83(b)Elections.PAGEREF_Toc147199834\h19HYPERLINK\l"_Toc147199835"2.23.[RealPropertyHoldingCorporation.PAGEREF_Toc147199835\h19HYPERLINK\l"_Toc147199836"2.24.EnvironmentalandSafetyLaws.PAGEREF_Toc147199836\h20HYPERLINK\l"_Toc147199837"2.25.[QualifiedSmallBusinessStock.PAGEREF_Toc147199837\h20HYPERLINK\l"_Toc147199838"2.26.Disclosure.PAGEREF_Toc147199838\h21HYPERLINK\l"_Toc147199839"2.27.SmallBusinessConcern.PAGEREF_Toc147199839\h21HYPERLINK\l"_Toc147199840"3.[RepresentationsandWarrantiesoftheFounders.PAGEREF_Toc147199840\h22HYPERLINK\l"_Toc147199841"3.1.ConflictingAgreements.PAGEREF_Toc147199841\h22HYPERLINK\l"_Toc147199842"3.2.Litigation.PAGEREF_Toc147199842\h22HYPERLINK\l"_Toc147199843"3.3.StockholderAgreements.PAGEREF_Toc147199843\h23HYPERLINK\l"_Toc147199844"3.4.RepresentationsandWarranties.PAGEREF_Toc147199844\h23HYPERLINK\l"_Toc147199845"4.RepresentationsandWarrantiesofthePurchasers.PAGEREF_Toc147199845\h23HYPERLINK\l"_Toc147199846"4.1.Authorization.PAGEREF_Toc147199846\h23HYPERLINK\l"_Toc147199847"4.2.PurchaseEntirelyforOwnAccount.PAGEREF_Toc147199847\h24HYPERLINK\l"_Toc147199848"4.3.DisclosureofInformation.PAGEREF_Toc147199848\h24HYPERLINK\l"_Toc147199849"4.4.RestrictedSecurities.PAGEREF_Toc147199849\h24HYPERLINK\l"_Toc147199850"4.5.NoPublicMarket.PAGEREF_Toc147199850\h25HYPERLINK\l"_Toc147199851"4.6.Legends.PAGEREF_Toc147199851\h25HYPERLINK\l"_Toc147199852"4.7.AccreditedInvestor.PAGEREF_Toc147199852\h25HYPERLINK\l"_Toc147199853"4.8.ForeignInvestors.PAGEREF_Toc147199853\h25HYPERLINK\l"_Toc147199854"4.9.NoGeneralSolicitation.PAGEREF_Toc147199854\h26HYPERLINK\l"_Toc147199855"4.10.ExculpationAmongPurchasers.PAGEREF_Toc147199855\h26HYPERLINK\l"_Toc147199856"4.11.Residence.PAGEREF_Toc147199856\h26HYPERLINK\l"_Toc147199857"5.ConditionstothePurchasers’ObligationsatClosing.PAGEREF_Toc147199857\h26HYPERLINK\l"_Toc147199858"5.1.RepresentationsandWarranties.PAGEREF_Toc147199858\h27HYPERLINK\l"_Toc147199859"5.2.Performance.PAGEREF_Toc147199859\h27HYPERLINK\l"_Toc147199860"5.3.ComplianceCertificate.PAGEREF_Toc147199860\h27HYPERLINK\l"_Toc147199861"5.4.Qualifications.PAGEREF_Toc147199861\h27HYPERLINK\l"_Toc147199862"5.5.OpinionofCompanyCounsel.PAGEREF_Toc147199862\h27HYPERLINK\l"_Toc147199863"5.6.BoardofDirectors.PAGEREF_Toc147199863\h27HYPERLINK\l"_Toc147199864"5.7.IndemnificationAgreement.PAGEREF_Toc147199864\h27HYPERLINK\l"_Toc147199865"5.8.Investors’RightsAgreement.PAGEREF_Toc147199865\h27HYPERLINK\l"_Toc147199866"5.9.RightofFirstRefusalandCoSaleAgreement.PAGEREF_Toc147199866\h27HYPERLINK\l"_Toc147199867"5.10.VotingAgreement.PAGEREF_Toc147199867\h28HYPERLINK\l"_Toc147199868"5.11.RestatedCertificate.PAGEREF_Toc147199868\h28HYPERLINK\l"_Toc147199869"5.12.Secretary’sCertificate.PAGEREF_Toc147199869\h28HYPERLINK\l"_Toc147199870"5.13.ProceedingsandDocuments.PAGEREF_Toc147199870\h28HYPERLINK\l"_Toc147199871"5.14.MinimumNumberofSharesatInitialClosing.PAGEREF_Toc147199871\h28HYPERLINK\l"_Toc147199872"5.15.ManagementRights.PAGEREF_Toc147199872\h28HYPERLINK\l"_Toc147199873"5.16.SBAMatters.PAGEREF_Toc147199873\h28HYPERLINK\l"_Toc147199874"5.17.PreemptiveRights.PAGEREF_Toc147199874\h28HYPERLINK\l"_Toc147199875"6.ConditionsoftheCompany’sObligationsatClosing.PAGEREF_Toc147199875\h29HYPERLINK\l"_Toc147199876"6.1.RepresentationsandWarranties.PAGEREF_Toc147199876\h29HYPERLINK\l"_Toc147199877"6.2.Performance.PAGEREF_Toc147199877\h29HYPERLINK\l"_Toc147199878"6.3.Qualifications.PAGEREF_Toc147199878\h29HYPERLINK\l"_Toc147199879"6.4.Investors’RightsAgreement.PAGEREF_Toc147199879\h29HYPERLINK\l"_Toc147199880"6.5.RightofFirstRefusalandCoSaleAgreement.PAGEREF_Toc147199880\h29HYPERLINK\l"_Toc147199881"6.6.VotingAgreement.PAGEREF_Toc147199881\h29HYPERLINK\l"_Toc147199882"6.7.MinimumNumberofSharesatInitialClosing.PAGEREF_Toc147199882\h29HYPERLINK\l"_Toc147199883"7.Miscellaneous.PAGEREF_Toc147199883\h29HYPERLINK\l"_Toc147199884"7.1.SurvivalofWarranties.PAGEREF_Toc147199884\h29HYPERLINK\l"_Toc147199885"7.2.SuccessorsandAssigns.PAGEREF_Toc147199885\h29HYPERLINK\l"_Toc147199886"7.3.GoverningLaw.PAGEREF_Toc147199886\h30HYPERLINK\l"_Toc147199887"7.4.Counterparts;Facsimile.PAGEREF_Toc147199887\h30HYPERLINK\l"_Toc147199888"7.5.TitlesandSubtitles.PAGEREF_Toc147199888\h30HYPERLINK\l"_Toc147199889"7.6.Notices.PAGEREF_Toc147199889\h30HYPERLINK\l"_Toc147199890"7.7.NoFinder’sFees.PAGEREF_Toc147199890\h31HYPERLINK\l"_Toc147199891"7.8.FeesandExpenses.PAGEREF_Toc147199891\h31HYPERLINK\l"_Toc147199892"7.9.Attorney’sFees.PAGEREF_Toc147199892\h31HYPERLINK\l"_Toc147199893"7.10.AmendmentsandWaivers.PAGEREF_Toc147199893\h31HYPERLINK\l"_Toc147199894"7.11.Severability.PAGEREF_Toc147199894\h32HYPERLINK\l"_Toc147199895"7.12.DelaysorOmissions.PAGEREF_Toc147199895\h32HYPERLINK\l"_Toc147199896"7.13.EntireAgreement.PAGEREF_Toc147199896\h32HYPERLINK\l"_Toc147199897"7.14.CorporateSecuritiesLaw.PAGEREF_Toc147199897\h32HYPERLINK\l"_Toc147199898"7.15.DisputeResolution.PAGEREF_Toc147199898\h32HYPERLINK\l"_Toc147199899"7.16.NoCommitmentforAdditionalFinancing.PAGEREF_Toc147199899\h33ExhibitsREFSchedule_of_Purchasers_Exhibit\*Caps\hExhibitA-REFSchedule_of_Purchasers_Exhibit_Title\hSCHEDULEOFPURCHASERSREFAmended_Charter_Exhibit\*Caps\hExhibitB-REFAmended_Charter_Exhibit_Title\hFORMOFAMENDEDANDRESTATEDCERTIFICATEOFINCORPORATIONREFDisclosure_Schedule_Exhibit\*Caps\hExhibitC-REFDisclosure_Schedule_Exhibit_Title\hDISCLOSURESCHEDULEREFIndemn_Agmt_Exhibit\*Caps\hExhibitD-REFIndemn_Agmt_Exhibit_Title\h\*MERGEFORMATFORMOFINDEMNIFICATIONAGREEMENTREFInvestors_Rights_Agmt_Exhibit\*Caps\hExhibitE-REFInvestors_Rights_Agmt_Exhibit_Title\hFORMOFINVESTORS’RIGHTSAGREEMENTREFMgt_Rights_Ltr_Exhibit\*Caps\hExhibitF-REFMgt_Rights_Ltr_Exhibit_Title\hFORMOFMANAGEMENTRIGHTSLETTERREFRFR_Exhibit\*Caps\hExhibitG-REFRFR_Exhibit_Title\h\tFormofRightofFirstRefusalandCo-SaleAgreementREFVoting_Agmt_Exhibit\*Caps\hExhibitH-REFVoting_Agmt_Exhibit_Title\hFORMOFVOTINGAGREEMENTREFCo_Counsel_Legal_Op_Exhibit\*Caps\hExhibitI-REFCo_Counsel_Legal_Op_Exhibit_Title\hFORMOFLEGALOPINIONOF[COMPANYCOUNSEL]REFMilestone_Exhibit\*Caps\hExhibitJ-REFMilestone_Exhibit_Title\hMILESTONEEVENTSSERIESAPREFERREDSTOCKPURCHASEAGREEMENTTHISSERIES APREFERREDSTOCKPURCHASEAGREEMENT(the“Agreement”)ismadeasofthe[__]dayof[________,200_]byandamong[____________],aDelawarecorporation(the“Company”),theinvestorslistedonREFSchedule_of_Purchasers_Exhibit\*Caps\hExhibitAattachedtothisAgreement(eacha“Purchaser”andtogetherthe“Purchasers”)[andthepersonslistedas“Founders”onthesignaturepagestothisAgreement(eacha“Founder”andtogetherthe“Founders”)].Thepartiesherebyagreeasfollows:PurchaseandSaleofPreferredStock.SaleandIssuanceofSeries APreferredStock.TheCompanyshalladoptandfilewiththeSecretaryofStateoftheStateofDelawareonorbeforetheInitialClosingIfonlyoneclosingiscontemplated,referencesto“InitialClosing,”“eachClosing,”“suchClosing”etc.shouldbemodified.(asdefinedbelow)theAmendedandRestatedCertificateofIncorporationintheformofREFAmended_Charter_Exhibit\*Caps\hExhibitBattachedtothisAgreement(the“RestatedCertificate”).SometimesonlyaCertificateofAmendmentsisrequired.SubjecttothetermsandconditionsofthisAgreement,eachPurchaseragreestopurchaseattheClosingandtheCompanyagreestosellandissuetoeachPurchaserattheClosingthatnumberofsharesofSeries APreferredStocksetforthoppositeeachPurchaser’snameonREFSchedule_of_Purchasers_Exhibit\*Caps\hExhibitA,atapurchasepriceof$[__]pershare.ThesharesofSeries APreferredStockissuedtothePurchaserspursuanttothisAgreement(includinganysharesissuedattheInitialClosingandany[MilestoneSharesor]AdditionalShares,asdefinedbelow)shallbereferredtointhisAgreementasthe“Shares.”Closing;Delivery.TheinitialpurchaseandsaleoftheSharesshalltakeplaceremotelyviatheexchangeofdocumentsandsignatures,at[____][_].m.,on[__________,200_],oratsuchothertimeandplaceastheCompanyandthePurchasersmutuallyagreeupon,orallyorinwriting(whichtimeandplacearedesignatedasthe“InitialClosing”).IftheAgreementissignedpriortotheClosing,thisprovisiongivesthepartiesflexibilitytochangetheclosingdateascontingenciesarise.Asapracticalmatter,however,theAgreementisusuallysignedonthedateoftheClosing.Thismeansthat,untiltheClosing,everyonehasanopportunitytobackoutofthedeal.Intheeventthereismorethanoneclosing,theterm“Closing”shallapplytoeachsuchclosingunlessotherwisespecified.AteachClosing,theCompanyshalldelivertoeachPurchaseracertificaterepresentingtheSharesbeingpurchasedbysuchPurchaseratsuchClosingagainstpaymentofthepurchasepricethereforbycheckpayabletotheCompany,bywiretransfertoabankaccountdesignatedbytheCompany,bycancellationorconversionofindebtednessoftheCompanytoPurchaser[,includinginterestIfsomeorallofthePurchaserswillbeconvertingpreviouslyissuednotestoShares,considerpayingtheinterestincash,ifthetermsofthenotespermitthis,toavoidlast-minuterecomputationsiftheclosingisdelayed.Notethatcancellationofinterestinreturnforstockmaybeataxableeventintheamountoftheinterestcancelled.Accordingly,someofthePurchasersmayrequirepaymentofinterestincashtoavoidimputationofincomewithoutthecorrespondingpaymentofcashtopaythetax.],orbyanycombinationofsuchmethods.SaleofAdditionalSharesofPreferredStock.AftertheInitialClosing,theCompanymaysell,onthesametermsandconditionsasthosecontainedinthisAgreementTheCompanywilloftentrytonegotiatea“cushion”inthenegotiatedlimitofthenumberofpreferredsharesinordertopermitittoissueadditionalsharesofpreferredstockintransactionsoutsidethefinancing,e.g.,warrantsforpreferredstockissuedinconnectionwithanequipmentfinancing.Thelanguage“onthesametermsandconditionsasthosecontainedinthisAgreement”isflexibleenoughtopermitthis.Iftheinvestorswanttolimitthenumberofpreferredsharestobeissuedtothosepreferredsharesissuedinthefinancing,thelanguage“pursuanttothisAgreement”shouldbesubstituted.,upto[_________]additionalshares(subjecttoappropriateadjustmentintheeventofanystockdividend,stocksplit,combinationorsimilarrecapitalizationaffectingsuchshares)ofSeriesAPreferredStock(the“AdditionalShares”),tooneormorepurchasers(the“AdditionalPurchasers”)[reasonablyacceptabletoPurchasersholdinga[specifypercentage]ofthethenoutstandingSharesTheCompanymaywanttolimitthisapprovalrighttothelargerPurchasers.Asanalternative,theAgreementmayspecifythatAdditionalPurchasersmustbeapprovedbytheBoardofDirectors,includingthedirectorselectedbytheSeriesAPreferredStockholders.],providedthat(i)suchsubsequentsaleisconsummatedpriorto[90]daysaftertheInitialClosing,(ii)eachAdditionalPurchasershallbecomeapartytotheTransactionAgreements,(asdefinedbelow)(otherthantheManagementRightsLetter),byexecutinganddeliveringacounterpartsignaturepagetoeachoftheTransactionAgreements[,and(iii)[_________],counselfortheCompany,providesanopiniondatedasofthedateofsuchClosingthattheoffer,issuance,saleanddeliveryoftheAdditionalSharestotheAdditionalPurchasersdonotrequireregistrationundertheSecuritiesActof1933,asamended,orapplicablestatesecuritieslaws.]REFSchedule_of_Purchasers_Exhibit\*Caps\hExhibitAtothisAgreementshallbeupdatedtoreflectthenumberofAdditionalSharespurchasedateachsuchClosingandthepartiespurchasingsuchAdditionalShares.[AftertheInitialClosing,theCompanyshallsell,andthePurchasersshallpurchase,onthesametermsandconditionsasthosecontainedinthisAgreement,upto[_____________]additionalsharesofSeriesAPreferredStock(the“MilestoneShares”),proratainaccordancewiththenumberofSharesbeingpurchasedbyeachsuchPurchaseratallpriorClosings,onthecertificationbythe[Board][Purchasers]thattheeventsspecifiedinREFMilestone_Exhibit\*Caps\hExhibitJattachedtothisAgreementhaveoccurred(the“MilestoneEvents”).ThedateofthepurchaseandsaleoftheMilestoneSharesarereferredtointhisAgreementasthe“MilestoneClosing.”ConsiderwhethertheobligationsofeachPurchaserataMilestoneClosingareconditionedon(i)therepresentationsandwarrantiesremainingtrue(ormateriallyso)asofsuchMilestoneClosing,(ii)eachotherPurchaserpurchasingsharesattheMilestoneClosing(i.e.,ifonePurchaserbreachesthennoothersareobligated),and(iii)anyotherconditions.][UseofProceeds.InaccordancewiththedirectionsoftheCompany’sBoardofDirectors,asitshallbeconstitutedinaccordancewiththeVotingAgreement,theCompanywillusetheproceedsfromthesaleoftheSharesforproductdevelopmentandothergeneralcorporatepurposes.]DefinedTermsUsedinthisAgreement.Inadditiontothetermsdefinedabove,thefollowingtermsusedinthisAgreementshallbeconstruedtohavethemeaningssetforthorreferencedbelow.“Affiliate”means,withrespecttoanyspecifiedPerson,anyotherPersonwhoorwhich,directlyorindirectly,controls,iscontrolledby,orisundercommoncontrolwithsuchspecifiedPerson,including,withoutlimitation,anygeneralpartner,officer,directorormanagerofsuchPersonandanyventurecapitalfundnoworhereafterexistingthatiscontrolledbyoneormoregeneralpartnersormanagingmembersof,orsharesthesamemanagementcompanywith,suchPerson.“Code”meanstheInternalRevenueCodeof1986,asamended.“CompanyIntellectualProperty”meansallpatents,patentapplications,trademarks,trademarkapplications,servicemarks,tradenames,copyrights,tradesecrets,licenses,domainnames,maskworks,informationandproprietaryrightsandprocessesasarenecessarytotheconductoftheCompany’sbusinessasnowconductedandaspresentlyproposedtobeconducted.“IndemnificationAgreement”meanstheagreementbetweentheCompanyandthedirectordesignatedbyanyPurchaserentitledtodesignateamemberoftheBoardofDirectorspursuanttotheVotingAgreement,datedasofthedateoftheInitialClosing,intheformofREFIndemn_Agmt_Exhibit\*Caps\hExhibitDattachedtothisAgreement.“Investors’RightsAgreement”meanstheagreementamongtheCompanyandthePurchasersInSeriesAPreferredStockfinancings,theInvestors’RightsAgreementwillnormallybesignedbyalltheSeriesAPurchasers.Insubsequentfinancingrounds,thestandardpracticeistoamendandrestatetheInvestorRightsAgreement,whichwillthenbesignedbytheCompanyaswellasthesubsequentandpriorroundpurchasers.datedasofthedateoftheInitialClosing,intheformofREFInvestors_Rights_Agmt_Exhibit\*Caps\hExhibitEattachedtothisAgreement.“KeyEmployee”meansanyexecutive-levelemployee(includingdivisiondirectorandvicepresident-levelpositions)aswellasanyemployeeorconsultantwhoeitheraloneorinconcertwithothersdevelops,invents,programsordesignsanyCompanyIntellectualProperty.InaSeriesAroundatahigh-techstart-up,itislikelythattheonlykeyemployeesinadditiontomanagement,ifany,arethosewhoareresponsiblefordevelopingtheCompany’skeyintellectualpropertyassets.Itmaybesimplerfortheseearly-stagecompaniestolisttheKeyEmployeesbyname.Inlaterrounds,itmaybeappropriatetoincludeothers,e.g.,importantsalespeopleorconsultantsanddefineKeyEmployeesbyfunction(e.g.,divisiondirector).“Knowledge,”includingthephrase“totheCompany’sknowledge,”shallmeantheactualknowledge[afterreasonableinvestigation]ofthefollowingofficers:[specifynames].AnimportantpointofnegotiationisoftenwhethertheCompanywillrepresentthatagivenfact(a)istrueor(b)istruetotheCompany’sknowledge.Alternative(a)requirestheCompanytobeartheentireriskofthetruthorfalsityoftherepresentedfact,regardlesswhethertheCompanyknew(orcouldhaveknown)atthetimeoftherepresentationwhetherornotthefactwastrue.Alternative(b)ispreferablefromtheCompany’sstandpoint,sinceitholdstheCompanyresponsibleonlyforfactsofwhichitisactuallyaware.“ManagementRightsLetter”meanstheagreementbetweentheCompanyand[Purchaser],datedasofthedateoftheInitialClosing,intheformofREFMgt_Rights_Ltr_Exhibit\*Caps\hExhibitFattachedtothisAgreement.“MaterialAdverseEffect”meansamaterialadverseeffectonthebusiness,assets(includingintangibleassets),liabilities,financialcondition,property,prospectsSincetheprospectsofhigh-techstart-upcompaniesarebydefinitionhighlyuncertain,theCompanymayresisttheinclusionoftheword“prospects”onthegroundsthatinvestorsinaSeriesAfinancingareinthebusinessofshoulderingthatrisk.orresultsofoperationsoftheCompany.“Person”meansanyindividual,corporation,partnership,trust,limitedliabilitycompany,associationorotherentity.“Purchaser”meanseachofthePurchaserswhoisinitiallyapartytothisAgreementandanyAdditionalPurchaserwhobecomesapartytothisAgreementatasubsequentClosingunderSectionREF_Ref146361085\r\h1.3.“RightofFirstRefusalandCo-SaleAgreement”meanstheagreementamongtheCompany,thePurchasers,andcertaino