Common use of Capital Shares Clause in Contracts

Capital Shares. (a) The authorized capital shares of NetBank consists of 100,000,000 shares of NetBank Common Stock, of which 30,012,680 shares are issued and outstanding as of December 31, 2000, and 10,000,000 shares of preferred stock, no par value, of which none are issued and outstanding. All of the shares of NetBank Common Stock to be issued in consideration for the Company Stock upon Closing, when issued in accordance with the terms of this Agreement, will be duly and validly issued and outstanding and fully paid and nonassessable under the GCA. None of the shares of NetBank Common Stock to be issued at Closing under this Agreement will be issued in violation of any preemptive rights of the current or past shareholder of NetBank. (b) The authorized capital shares of Interim consist of 1,000 shares of Interim Common Stock, of which 1,000 shares are issued and outstanding.