Common use of Material Changes Clause in Contracts

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company audited financial statements included in the financial statements contained within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or that would reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities or Common Stock Equivalents to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in equity incentive plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement and as may otherwise be disclosed herein or in any SEC Reports hereto, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company, Company or its Subsidiaries or their respective businesses, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at on a registration statement on Form S-1 filed with the time this representation is made that SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly disclosed in the SEC Reportsannounced.

Material Changes. Since the respective date of the latest balance sheet of the audited Company included in the financial statements contained within the SEC ReportsFinancial Statements, except as specifically disclosed in the SEC Reportsset forth on Schedule 3.1(j), (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed redeemed, or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director director, or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company’s Knowledge, there has not been a material increase in the aggregate dollar amount of (A) the Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or the Bank’s financial statements with respect thereto. Moreover, since the date(s) the Company afforded Purchaser (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, and (ii) access to information about the Company and its businessesSubsidiaries and their respective financial condition, results of operations, business, properties, operations management, prospects, and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences, or financial conditiondevelopments that have materially affected or would reasonably be expected to materially affect, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed either individually or in the SEC Reportsaggregate, the information as presented to Purchaser in connection with the offering of the Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Except as specifically disclosed set forth in the SEC ReportsReports (excluding any “risk factors” or “forward-looking statements” sections thereof) or as otherwise contemplated herein, since December 31, 2007, there has been no Material Adverse Effect in respect of the Issuer and its Subsidiaries taken as a whole. Except as set forth in the SEC Reports (excluding any “risk factors” or “forward-looking statements” sections thereof), since December 31, 2007, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, or liabilities not required to be reflected in on the Issuer’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports; (iv) any Lien or adverse claim on any of the Issuer’s material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business; (v) any sale, assignment or transfer of any of the Issuer’s material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right under, any material contract under which the Company, or any of its assets are bound or subject, and value; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to the Issuer’s critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer’s books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since (a) During the respective date period prior to the Agent notifying the Corporation of the latest balance sheet completion of the Company included distribution of the Offered Shares, the Corporation shall promptly inform the Agent (and if requested by the Agent, confirm such notification in writing) of the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, full particulars of: (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) the Company has not incurred any material change (actual, anticipated, contemplated, threatened, financial or otherwise) in the assets, liabilities (contingent or otherwise), business, affairs, operations or capital of the Corporation taken as a whole; (ii) other than (A) trade payables, accrued expenses any material fact which has arisen or has been discovered and other liabilities incurred would have been required to have been stated in the ordinary course Preliminary Prospectus or the Final Prospectus had the fact arisen or been discovered on, or prior to, the date of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, such documents; and (iii) any change in any material fact contained in the Company Preliminary Prospectus, the Final Prospectus and any Supplementary Material (collectively, the “Offering Documents”) or whether any event or state of facts has not materially altered its method occurred after the date hereof, which, in any case, is, or may be, of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made such a nature as to render any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)Offering Documents untrue or misleading in any material respect or to result in any misrepresentation in any of the Offering Documents, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued which would result in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, Final Prospectus or any waiver of Supplementary Material not complying (to the extent that such compliance is required) with Securities Laws. (b) The Corporation will prepare and file promptly any material right under, any material contract under Supplementary Material which may be necessary and will otherwise comply with all legal requirements necessary to continue to qualify the Company, or any of its assets are bound or subject, and (vii) except Offered Shares for the issuance distribution in each of the Securities Qualifying Jurisdictions. (c) In addition to the provisions of subparagraphs 6(a) and 6(b) hereof, the Corporation shall in good faith discuss with the Agent any change, event or fact contemplated by this Agreement, no event, liability in subparagraphs 6(a) and 6(b) which is of such a nature that there is or development has occurred or exists could be reasonable doubt as to whether notice should be given to the Agent under subparagraph 6(a) hereof and shall consult with the Agent with respect to the Company, its businesses, properties, operations form and content of any amendment or financial condition, as applicable, that would be required other Supplementary Material proposed to be disclosed filed by the Company under applicable securities laws at Corporation, it being understood and agreed that no such amendment or other Supplementary Material shall be filed with any Securities Regulator prior to the time this representation is made that has not been publicly disclosed review thereof by the Agent and its counsel, acting reasonably and without undue delay. (d) If during the period of distribution of the Offered Shares there shall be any change in Securities Laws which, in the SEC Reportsopinion of the Agent, acting reasonably, requires the filing of any Supplementary Material, upon written notice from the Agent, the Corporation shall, to the satisfaction of the Agent, acting reasonably, promptly prepare and file any such Supplementary Material with the appropriate Securities Regulators where such filing is required.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares and Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as set forth in the respective date SEC Reports or as otherwise contemplated herein, since September 30, 2006, there has been no Material Adverse Effect in respect of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Issuer and its Subsidiaries taken as specifically disclosed a whole. Except as set forth in the SEC Reports, since September 30, 2006, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, or liabilities not required to be reflected in on the Issuer’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports; (iv) any Lien or adverse claim on any of the Issuer’s material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business; (v) any sale, assignment or transfer of any of the Issuer’s material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right undervalue, any material contract under which other than in the Company, or any ordinary course of its assets are bound or subject, and business; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to the Issuer’s critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer’s books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since Except as provided in Schedule 3.1(i) hereto, since the respective date of the latest balance sheet of the Company included in the audited financial statements contained within the SEC Reports, except as specifically disclosed included in the SEC Reports, : (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared declared, nor has the Board of Directors of the Company authorized, or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities or common stock equivalents to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in equity incentive plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement and as may otherwise be disclosed herein or in any Schedule hereto, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, set forth on Schedule 3.1(i): (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or any Subsidiary, its or their respective businesses, prospects, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as set forth on Schedule 2(h) or elsewhere on the respective schedules hereto, since the date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. Except as set forth on Schedule 2(h), the SEC Reports, (vi) there has Company does not been have pending before the Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 2(h) or elsewhere on the Schedules hereto, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least 1 trading day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as provided in the respective SEC Reports hereto, since the date of the latest balance sheet of the Company included in the audited financial statements contained within the SEC Reports, except as specifically disclosed included in the SEC Reports, : (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared declared, nor has the Board of Directors of the Company authorized, or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities or Common Stock Equivalents to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except equity incentive plans. Except for the issuance of the Securities contemplated by this AgreementAgreement and as may otherwise be disclosed herein or in any Schedule hereto, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares and Warrants and the transactions contemplated by this Agreementthe Transaction Documents, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC ReportsReports or as set forth in Schedule 3.1(k) hereto, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this AgreementAgreement or as set forth in Schedule 3.1(k) hereto, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed set forth on Schedule 3.1(i) or in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development, that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company Company, any has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company, its businessesSubsidiaries or any of their respective business, prospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least 1 Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to material adverse effect on the Company, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliateaffiliate, except Common Stock stock options and restricted stock issued to newly hired and promoted officers in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, Reports (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders stockholders, other than the quarterly dividends payable on the Company’s outstanding shares of Series A Convertible Preferred Stock, $0.0001 par value per share, or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock or other equity securities issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except for there have not been any changes in the issuance of the Securities contemplated by this Agreementauthorized capital, no eventassets, liability or development has occurred or exists with respect to the Companyliabilities, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by business or operations of the Company under applicable securities laws at from that reflected in the time this representation is made that has not been publicly disclosed latest financial statements contained in the SEC ReportsReports except changes in the ordinary course of business which have not had or would not reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. Except as set forth on Section 3.1(k) of the Disclosure Schedule, neither the Company nor any of its Subsidiaries has taken any steps to seek protection pursuant to any law or statute relating to bankruptcy, insolvency, reorganization, receivership, liquidation or winding up, nor does the Company or any Subsidiary have any knowledge or reason to believe that any of their respective creditors intend to initiate involuntary bankruptcy proceedings or any actual knowledge of any fact which would reasonably lead a creditor to do so.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof or in connection herewith: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company Ableauctions has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Ableauctions’ financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company Ableauctions has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company Ableauctions has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company Ableauctions has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in . Ableauctions does not have pending before the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities Ableauctions Shares contemplated by this AgreementAgreement or as set forth on Schedule 4.8, no event, liability or development has occurred or exists with respect to the Company, Ableauctions or its businessesAbleauctions Subsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company Ableauctions under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in Schedule 3.1(j) or the SEC Reports, : (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or that would reasonably be expected to have result in a Material Adverse Effect with respect to the Company, Effect; (ii) neither the Company nor any Subsidiary has not incurred any material liabilities (contingent direct, indirect, contingent, or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, which are, individually or in the aggregate, material; (iii) the Company has not materially altered its method of accounting or the manner in which it keeps identity of its accounting books and records, auditors; (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), stock; (v) the Company there has been no waiver, not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant of business, by the Company or any of its Subsidiaries of a material right or of a material debt owed to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, it; (vi) there has not been any change or amendment to, or any waiver of any no material right under, any material contract under which transaction entered into by the Company, Company or any of its assets are bound or subject, and Subsidiaries other than in the ordinary course of business; and (vii) except there has been no sale, assignment, transfer, license, abandonment, loss, lapse or other disposition of, or failure to maintain, enforce or protect, any material Company Intellectual Property. Except for the issuance of the Securities and the other Transactions contemplated by this Agreementthe Transaction Documents, no event, liability or development has occurred or exists with respect to the Company, Company or any of its Subsidiaries or their respective businesses, properties, operations or financial conditioncondition that, as applicablein each case, that would be is required to be disclosed by the Company under applicable securities laws Laws at the time this representation is made that has not been publicly disclosed. Except as disclosed in on Schedule 3.1(j), the SEC ReportsCompany does not have pending before the Commission any request for confidential treatment of information.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Except as specifically disclosed set forth on Schedule 4.10 and in the SEC ReportsReports (excluding any “risk factors” or “forward-looking statements” sections thereof) or as otherwise contemplated herein, since December 31, 2009, there has been no Material Adverse Effect in respect of the Issuer and its Subsidiaries taken as a whole. Except as set forth in the SEC Reports (excluding any “risk factors” or “forward-looking statements” sections thereof) or as otherwise contemplated herein, since December 31, 2009, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, or liabilities not required to be reflected in on the Issuer’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports; (iv) any Lien or adverse claim on any of the Issuer’s material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business; (v) any sale, assignment or transfer of any of the Issuer’s material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right under, any material contract under which the Company, or any of its assets are bound or subject, and value; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to the Issuer’s critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer’s books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since Except as set forth in the respective date SEC Reports or as otherwise contemplated herein, since March 31, 2006, there has been no Material Adverse Effect in respect of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Issuer and its Subsidiaries taken as specifically disclosed a whole. Except as set forth in the SEC Reports, since March 31, 2006, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, liabilities not required to be reflected in on the Issuer’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports; (iv) any Lien or adverse claim on any of its material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business; (v) any sale, assignment or transfer of any of its material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right undervalue, any material contract under which other than in the Company, or any ordinary course of its assets are bound or subject, and business; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to its critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer’s books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have has been no eventsmaterial adverse change, occurrences or developments any development that have had or would reasonably be expected to have result in a material adverse change, in the condition, financial or otherwise, or in the earnings, business, properties, operations, assets, liabilities or prospects, whether or not arising from transactions in the ordinary course of business, of the Company and its Subsidiaries, considered as one entity (any such change being referred to herein as a “Material Adverse Effect with respect to the Company, Change”); (ii) the Company has and its Subsidiaries, considered as one entity, have not incurred any material liabilities (contingent liability or otherwise) obligation, indirect, direct or contingent, including without limitation any losses or interference with its business from fire, explosion, flood, earthquakes, accident or other than (A) trade payablescalamity, accrued expenses whether or not covered by insurance, or from any strike, labor dispute or court or governmental action, order or decree, that are material, individually or in the aggregate, to the Company and other liabilities incurred its Subsidiaries, considered as one entity, or has entered into any transactions not in the ordinary course of business consistent with past practice business; and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change material decrease in the capital stock or amendment toany material increase in any short-term or long-term indebtedness of the Company or its Subsidiaries and there has been no dividend or distribution of any kind declared, paid or made by the Company or, except for dividends paid to the Company or other Subsidiaries, by any of the Company’s Subsidiaries on any class of capital stock, or any waiver of any material right under, any material contract under which repurchase or redemption by the Company, Company or any of its assets are bound or subject, and (vii) except for the issuance Subsidiaries of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsany class of capital stock.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to Effect, except as has been reasonably cured by the Company, (ii) the Company has not incurred any material liabilities (contingent or otherwise) that are material to the Company or its Subsidiaries other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsany material respect except as otherwise required pursuant to GAAP, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), ) and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase and incentive plans or executive and director corporate arrangements disclosed in awards. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which information. To the Company’s knowledge, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made, except as would not be reasonably likely to result in the SEC Reportsan Material Adverse Effect.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive Stock Option Plans and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as disclosed in Schedule 3(i), since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or that would reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps identity of its accounting books and recordsauditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or any Person that, directly or indirectly through one or more intermediaries, controls or is controlled by or is under common control with a Person, as such terms are used in and construed under Rule 144 (an “Affiliate”), except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reportsplans, (vi) there the Company has not been sold any change assets, individually or amendment toin the aggregate, in excess of $250,000 outside of the ordinary course of business or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance Company has not had capital expenditures, individually or in the aggregate, in excess of $250,000 outside of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the ordinary course of business. The Company under applicable securities laws at the time this representation is made that has does not been publicly disclosed in have pending before the SEC Reportsany request for confidential treatment of information.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof and except as set forth on Schedule 3.1(i) attached hereto, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase equity incentive plans or executive and director corporate arrangements disclosed in Common Stock Equivalents outstanding as of the SEC Reports, (vi) there has date of the most recently filed periodic report under the Exchange Act. The Company does not been have pending before the Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, Reports (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, subject and (vii) except to the Company’s Knowledge, there has not been a material increase in the aggregate dollar amount of (A) the Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or the Bank’s financial statements with respect thereto. Except for the issuance of the Securities transactions contemplated by this AgreementAgreement and the Subscription Agreements, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. Moreover, since the date(s) the Company afforded Purchaser (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Common Shares and the merits and risks of investing in the SEC ReportsCommon Shares; and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management, prospects and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences or developments that have materially affected or would reasonably be expected to materially affect, either individually or in the aggregate, the information as presented to the Purchasers in connection with the offering of the Common Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC ReportsMarch 31, 2014, except as specifically disclosed in the SEC Reportson Schedule 3.1(k), (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) neither the Company nor any of its Subsidiaries has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) neither the Company nor any of its Subsidiaries has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) neither the Company nor any of its Subsidiaries has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) neither the Company nor any of its Subsidiaries has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsDisclosure Schedules, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which by the Company, Company or any of its assets are Subsidiaries under, or any termination of, any Material Contract under which the Company or any of its Subsidiaries is bound or subject, subject and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company’s Knowledge, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that there has not been publicly disclosed a material increase in the SEC Reportsaggregate dollar amount of: (A) the Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or Bank’s financial statements with respect thereto.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not mortgaged, pledged, transferred a security interest in, or allowed a lien to be created, with respect to any of its material properties or assets, except for Permitted Liens (as defined in the Security Agreement), (iv) the Company has not sold, assigned or transferred any Company Proprietary Assets except in the ordinary course of business as it may exist from time to time, (v) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (ivvi) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (vvii) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (viviii) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except . Except for the issuance of the Securities Note contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one trading day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company and the latest balance sheet of Amesite included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyCompany or Amesite, (ii) there have not been any changes in the authorized capital, assets, financial condition, business or operations of the Company or Amesite from that reflected in the financial statements contained within the SEC Reports except changes in the ordinary course of business which have not been, either individually or in the aggregate, materially adverse to the business, properties, financial condition, results of operations or future prospects of the Company or Amesite, (iii) neither the Company or any subsidiary nor Amesite has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company or of Amesite, as applicable, pursuant to GAAP or to be disclosed in filings made with the SECSEC Reports, (iiiiv) neither the Company or any subsidiary nor Amesite has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, and (ivv) neither the Company or any subsidiary nor Amesite has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company). The Company and its subsidiaries, (v) individually and on a consolidated basis, are not as of the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subjectdate hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent (vii) except for the issuance as defined below). For purposes of the Securities contemplated by this AgreementSection 3(u), no event“Insolvent” means, liability or development has occurred or exists with respect to the Company, on a consolidated basis with its businessessubsidiaries, (i) the present fair saleable value of the Company’s and its subsidiaries’ assets is less than the amount required to pay the Company’s and its subsidiaries’ total indebtedness), (ii) the Company and its subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or otherwise, as such debts and liabilities become absolute and matured or (iii) the Company and its subsidiaries intend to incur or believe that they will incur debts that would be beyond their ability to pay as such debts mature. To the best of its knowledge, other than with respect to the transactions contemplated by the Merger Agreement, no event, liability, development or circumstance has occurred or exists, or is contemplated to occur with respect to the Company, any of its subsidiaries or their respective business, properties, liabilities, prospects, operations (including results thereof) or condition (financial condition, as applicableor otherwise), that would be required to be disclosed by the Company under applicable securities laws at on a registration statement on Form S-1 filed with the time this representation is made that SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly disclosed in the SEC Reportsannounced.

Material Changes. Since the respective date of the latest balance sheet of the Company audited financial statements included in the financial statements contained within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or that would reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities or common stock equivalents to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in equity incentive plans. The Company does not have pending before the SEC ReportsCommission any request for confidential treatment of information, (vi) there has not been any change or amendment to, or any waiver except for requests relating to economic terms of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except a commercially sensitive nature. Except for the issuance of the Securities contemplated by this AgreementAgreement and as may otherwise be disclosed herein or in any SEC Reports hereto, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company, Company or its Subsidiaries or their respective businesses, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at on a registration statement on Form S-1 filed with the time this representation is made that SEC relating to an issuance and sale by the Company of its Common Stock and which has not been publicly disclosed in the SEC Reportsannounced.

Material Changes. Since the respective date of the latest balance sheet of audited financial statements included within the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC ReportsFinancial Statements, (i) there have been no events, occurrences occurrences, or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses expenses, and other liabilities incurred in the ordinary course of business consistent with past practice practice, and (B) liabilities not required to be reflected in the financial statements of the Company Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has and its Subsidiaries have not altered materially altered its their method of accounting or the manner in which it keeps its they keep their accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed redeemed, or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has and its Subsidiaries have not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsPerson, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which by the Company, Company or any of its assets are Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject, and (vii) except for there has not been a material increase in the issuance aggregate dollar amount of (A) the Securities contemplated by this Agreement, no event, liability Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or development has occurred more past due and still accruing interest) or exists with (B) the reserves or allowances established on and in respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsFinancial Statements.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends, or pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except for the respective transactions contemplated hereby, since the date of the latest balance sheet of the Company included in the financial statements contained within in the SEC ReportsPPM, except as specifically disclosed in the SEC Reportsset forth on Schedule 3 (v), (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) there have not been any changes in the assets, financial condition, business or operations of the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred from that reflected in the financial statements contained in the PPM except changes in the ordinary course of business consistent with past practice and (B) liabilities which have not required to be reflected been, either individually or in the aggregate, materially adverse to the business, properties, financial statements condition, results of operations or future prospects of the Company pursuant to GAAP or to be disclosed in filings made with the SECCompany, (iii) none of the Company or any of their respective Subsidiaries has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, and (iv) none of the Company or any of their respective Subsidiaries has not declared or made any dividend or distribution of cash or other property to its stockholders or equity holders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company). The Company and its Subsidiaries, (v) individually and on a consolidated basis, are not as of the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subjectdate hereof, and after giving effect to the transactions contemplated hereby to occur at the Initial Closing , will not be Insolvent (vii) except for the issuance of the Securities contemplated by this Agreementas defined below). “Insolvent” means, no event, liability or development has occurred or exists with respect to the Company, on a consolidated basis with its businessesSubsidiaries, properties(i) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’ total indebtedness, operations (ii) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or financial conditionotherwise, as applicable, such debts and liabilities become absolute and matured or (iii) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be required beyond their ability to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportspay as such debts mature.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC ReportsRegistration Statement, the Pricing Prospectus and the Prospectus, except as specifically disclosed set forth on Schedule 3.1(i) and in the SEC ReportsRegistration Statement, the Pricing Prospectus and the Prospectus, (i) there have has been no eventsevent, occurrences occurrence or developments development, including changes generally affecting the parallel-import vehicles industry, that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i) and in the Registration Statement, the Pricing Prospectus and the Prospectus, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company, its businessesSubsidiaries or any of their respective business, prospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained within the SEC Reportsstatements, except as specifically disclosed in the SEC ReportsOffering Circular, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reportsaffiliate, (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract under which the Company, or any of its assets are Company is bound or subject, subject and (vii) except for there has not been a material increase in the issuance aggregate dollar amount of (A) the Company’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s financial statements with respect thereto. Moreover, since the date(s) the Company afforded the Placement Agent and any prospective Purchaser (i) the opportunity to ask appropriate questions of, and receive answers from, representatives of the Securities contemplated by this AgreementCompany concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, no event, liability or development has occurred or exists with respect and (ii) access to information about the Company, including its businessesfinancial condition, results of operations, business, properties, operations or financial conditionmanagement, as applicableprospects and any potential transactions, that would be required sufficient to be disclosed by enable such prospective Purchaser(s) the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed Placement Agent to evaluate an investment in the SEC ReportsCommon Stock, there have been no events, occurrences or developments that have materially affected, or would reasonably be expected to materially affect, either individually or in the aggregate, the information as presented to the Placement Agent and such prospective Purchaser(s) in connection with the offering of the Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, or changed its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), ) and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock and pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, any subsidiary thereof, or any of its their assets are is bound or subject, and (vii) except . The Company does not have pending before the Commission any request for the issuance confidential treatment of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsinformation.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have has been no eventsevent, occurrences occurrence or developments development of the Company or Issuer that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company Issuer has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Issuer’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company Issuer has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company Issuer has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company Issuer has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to Issuer’s existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Issuer does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company, the Issuer or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company Issuer under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the Company, and (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as provided in Schedule 3.1(i) hereto, or described in the respective SEC Reports since the date of the latest balance sheet of the Company included in the audited financial statements contained within the SEC Reports, except as specifically disclosed included in the SEC Reports, : (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared declared, nor has the Board of Directors of the Company authorized, or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities or common stock equivalents to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in equity incentive plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement and as may otherwise be disclosed herein or in any Schedule hereto, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company and the latest balance sheet of Exicure included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyCompany or Exicure, (ii) there have not been any changes in the authorized capital, assets, financial condition, business or operations of the Company or Exicure from that reflected in the financial statements contained within the SEC Reports except changes in the ordinary course of business which have not been, either individually or in the aggregate, materially adverse to the business, properties, financial condition, results of operations or future prospects of the Company or Exicure, (iii) neither the Company or any subsidiary nor Exicure has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company or of Exicure, as applicable, pursuant to GAAP or to be disclosed in filings made with the SECSEC Reports, (iiiiv) neither the Company or any subsidiary nor Exicure has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, and (ivv) neither the Company or any subsidiary nor Exicure has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company and the latest balance sheet of Valeritas included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyCompany or Valeritas, (ii) neither the Company nor Valeritas has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company or of Valeritas, as applicable, pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) neither the Company nor Valeritas has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) neither the Company nor Valeritas has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) neither the Company nor Valeritas has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company or Valeritas stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsReports and Common Stock issued pursuant to the Merger, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, Valeritas or any of its their assets are bound or subject, and (vii) except for the issuance of the Securities Shares and Placement Agent Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its Valeritas or each of their businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company or Valeritas under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company Purchaser has not incurred any material liabilities (contingent or otherwise) other than (A) under the REVsolutions Agreement, (B) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice which in the aggregate will not exceed $10,000 as of the Closing Date and (BC) liabilities not required to be reflected in the Purchaser’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company Purchaser has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company Purchaser has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem purchase, any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company Purchaser has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in . The Purchaser does not have pending before the SEC Reports, (vi) there has not been any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities Consideration Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Purchaser or its businessesbusiness, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company Purchaser under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Business Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliateaffiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) to the Company’s knowledge, there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract under which the Company, Company or any of its assets are subsidiaries is bound or subject, and (vii) except to the Company’s knowledge, there has not been a material increase in the aggregate dollar amount of (A) the Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or Bank’s financial statements with respect thereto. Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one trading day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except for the respective transactions contemplated hereby, since the date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, changes, occurrences or developments that have had or would reasonably be expected expected, individually or in the aggregate, to have a Material Adverse Effect with respect to the Company, (ii) neither the Company nor any subsidiary has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECSEC Reports, (iii) neither the Company nor any subsidiary has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, and (iv) neither the Company or any subsidiary has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company). The Company and its subsidiaries, (v) individually and on a consolidated basis, are not as of the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subjectdate hereof, and after giving effect to the transactions contemplated hereby to occur at the Closing, will not be Insolvent (vii) except for the issuance as defined below). For purposes of the Securities contemplated by this AgreementSection 3(u), no event“Insolvent” means, liability or development has occurred or exists with respect to the Company, on a consolidated basis with its businessessubsidiaries, properties(i) the present fair saleable value of the Company’s and its subsidiaries’ assets is less than the amount required to pay the Company’s and its subsidiaries’ total indebtedness, operations (ii) the Company and its subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or financial conditionotherwise, as applicable, such debts and liabilities become absolute and matured or (iii) the Company and its subsidiaries intend to incur or believe that they will incur debts that would be required beyond their ability to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportspay as such debts mature.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC ReportsExcept as set forth on Schedule 4.16, except as specifically disclosed in the SEC Reportssince July 31, 2008 (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would could reasonably be expected to have a result in FRB Material Adverse Effect with respect to the CompanyEffect, (ii) the Company Buyer has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECbusiness, (iii) the Company Buyer has not materially altered its method of accounting or the manner in which it keeps identity of its accounting books and recordsauditors, (iv) the Company Buyer has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company Buyer has not issued any equity securities shares or options or warrants (except for the Employee Warrants) to acquire equity shares, (vi) Buyer has not mortgaged, pledged or subjected to lien any officerof its assets, director tangible or Affiliateintangible, (vii) Buyer has not sold, transferred or leased any of its assets except Common Stock issued in the ordinary course pursuant to existing Company stock option of business, (viii) Buyer has not cancelled or stock purchase plans compromised any debt or executive and director corporate arrangements disclosed claim, (ix) Buyer has not suffered any physical damage, destruction or loss (whether or not covered by insurance) or, as of the date hereof, loss of a material contractual right, or received written notice of a final non-appeallable ruling by a governmental agency adversely affecting the properties or business of Buyer, (x) Buyer has not entered into any material transaction other than in the SEC Reportsordinary course of business except for this Agreement, (vixi) Buyer has not made or granted any wage or salary increase or entered into any written employment agreement except as contemplated in this Agreement, (xii) Buyer has not suffered any material change in its business relationship with any of its material contractual parties, property owners, distributors or suppliers except as otherwise disclosed to Kreido’s Chief Executive Officer and Chief Financial Officer, (xiii) there has not been any change or amendment toare no renegotiations of, or attempt to renegotiate any waiver terms or provision of any material right under, contract or (xiv) Buyer has not entered into any material contract under which the Companyagreement, or otherwise obligated itself, to do any of its assets are bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC ReportsRegistration Statement and the Prospectus, except as specifically disclosed set forth on Schedule 3.1(i) and in the SEC ReportsRegistration Statement and the Prospectus, (i) there have has been no eventsevent, occurrences occurrence or developments development, including changes generally affecting the parallel-import vehicles industry, that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i) and in the Registration Statement and the Prospectus, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the Company, its businessesSubsidiaries or any of their respective business, prospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof or as set forth on Schedule 3.1(j), (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Notes and Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC ReportsReports and/or the Saleen Entities Financial Statements, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof or disclosed on Schedule 3.1(i), (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and the Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities that have been incurred since the date of the most recent balance sheet included in the SEC Reports or the Saleen Entities Financial Statements in the ordinary course of business consistent with past practice and are not (singly or in the aggregate) material to the Company’s business, and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP due and payable or to be disclosed performed or satisfied after the date hereof under the Company and the Subsidiaries’ material contracts in filings made accordance with their terms, in each case which are not (singly or in the SECaggregate) material to the Company’s business, (iii) the Company has and the Subsidiaries have not materially altered its their method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in . The Company does not have pending before the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in on or prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock stock options issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since Except for the respective transactions contemplated hereby or in the Merger Agreement, since the date of the latest balance sheet of the Company and the latest balance sheet of Adaptin included in the financial statements contained within in the SEC ReportsPPM, except as specifically disclosed in the SEC Reportsset forth on Schedule 3(v), (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyCompany or Adaptin, (ii) there have not been any changes in the assets, financial condition, business or operations of the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred Adaptin from that reflected in the financial statements contained in the PPM except changes in the ordinary course of business consistent with past practice and (B) liabilities which have not required to be reflected been, either individually or in the aggregate, materially adverse to the business, properties, financial statements condition, results of operations or future prospects of the Company pursuant to GAAP or to be disclosed in filings made with the SECAdaptin, (iii) none of the Company or Adaptin or any of their respective Subsidiaries has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, and (iv) none of the Company or Adaptin or any of their respective Subsidiaries has not declared or made any dividend or distribution of cash or other property to its stockholders or equity holders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company). The Company and its Subsidiaries, (v) individually and on a consolidated basis, are not as of the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subjectdate hereof, and after giving effect to the transactions contemplated hereby to occur at the Initial Closing, will not be Insolvent (vii) except for the issuance of the Securities contemplated by this Agreementas defined below). “Insolvent” means, no event, liability or development has occurred or exists with respect to the Company, on a consolidated basis with its businessesSubsidiaries, properties(i) the present fair saleable value of the Company’s and its Subsidiaries’ assets is less than the amount required to pay the Company’s and its Subsidiaries’ total indebtedness, operations (ii) the Company and its Subsidiaries are unable to pay their debts and liabilities, subordinated, contingent or financial conditionotherwise, as applicable, such debts and liabilities become absolute and matured or (iii) the Company and its Subsidiaries intend to incur or believe that they will incur debts that would be required beyond their ability to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportspay as such debts mature.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except or as specifically disclosed in included within the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock share option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth in the SEC Reports, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists or is reasonably expected to occur or exist with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, Reports and except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate of this Agreement, (i) there have been no events, occurrences or developments that have had or would that could reasonably be expected to have result, either individually or in the aggregate, in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), ) and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans an Equity Incentive Plan or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, Company or any of its their assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since (a) During the respective date period prior to the Agent notifying the Corporation of the latest balance sheet completion of the Company included distribution of the Offered Shares, the Corporation shall promptly inform the Agent (and if requested by the Agent, confirm such notification in writing) of the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, full particulars of: (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) the Company has not incurred any material change (actual, anticipated, contemplated, threatened, financial or otherwise) in the assets, liabilities (contingent or otherwise), business, affairs, operations or capital of the Corporation taken as a whole; (ii) other than (A) trade payables, accrued expenses any material fact which has arisen or has been discovered and other liabilities incurred would have been required to have been stated in the ordinary course Preliminary Prospectus or the Final Prospectus had the fact arisen or been discovered on, or prior to, the date of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, such documents; and (iii) any change in any material fact contained in the Company Preliminary Prospectus, the Final Prospectus or any Supplementary Material (collectively, the “Offering Documents”) or whether any event or state of facts has not materially altered its method occurred after the date hereof, which, in any case, is, or may be, of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made such a nature as to render any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)Offering Documents untrue or misleading in any material respect or to result in any misrepresentation in any of the Offering Documents, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued which would result in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, Final Prospectus or any waiver Supplementary Material not complying (to the extent that such compliance is required) with Securities Laws. (b) The Corporation will comply with Section 6.5(1) of any material right under, any material contract under which the Company, or any of its assets are bound or subjectNI 41-101, and (vii) except the Corporation will prepare and file promptly any Supplementary Material which may be necessary and will otherwise comply with all legal requirements necessary to continue to qualify the Offered Shares for the issuance distribution in each of the Securities Qualifying Jurisdictions. (c) In addition to the provisions of subparagraphs 6(a) and 6(b) hereof, the Corporation shall in good faith discuss with the Agent any change, event or fact contemplated by this Agreement, no event, liability in subparagraphs 6(a) and 6(b) which is of such a nature that there is or development has occurred or exists could be reasonable doubt as to whether notice should be given to the Agent under subparagraph 6(a) hereof and shall consult with the Agent with respect to the Company, its businesses, properties, operations form and content of any amendment or financial condition, as applicable, that would be required other Supplementary Material proposed to be disclosed filed by the Company under applicable securities laws at Corporation, it being understood and agreed that no such amendment or other Supplementary Material shall be filed with any Securities Regulator prior to the time this representation is made that has not been publicly disclosed review thereof by the Agent and its counsel, acting reasonably and without undue delay. (d) If during the period of distribution of the Offered Shares there shall be any change in Securities Laws which, in the SEC Reportsopinion of the Agent, acting reasonably, requires the filing of any Supplementary Material, upon written notice from the Agent, the Corporation shall, to the satisfaction of the Agent, acting reasonably, promptly prepare and file any such Supplementary Material with the appropriate Securities Regulators where such filing is required.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof and except as set forth on Schedule 3.1(j) to the Disclosure Schedule, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s consolidated financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi. Except as set forth on Schedule 3.1(j) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which to the Company, or any of its assets are bound or subject, Disclosure Schedule and (vii) except for the issuance of the Securities Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Undisclosed Events, Liabilities or Developments. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsany material respect, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or plans and employee stock purchase plans or executive and director corporate arrangements plans, the issuance of Common Stock Equivalents as disclosed in the SEC Reports, (vi) there has . The Company does not been have pending before the Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this Agreement, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists with respect to the CompanyCompany or its Subsidiaries or their respective businesses, its businessesprospects, properties, operations operations, assets or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed at least 1 Trading Day prior to the date that this representation is made. Unless otherwise disclosed in an SEC Report filed prior to the SEC Reportsdate hereof, the Company has not: (i) issued any securities or incurred any liability or obligation, direct or contingent, for borrowed money; or (ii) declared or paid any dividend or made any other distribution on or in respect to its capital stock.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC ReportsReports or Schedule 3.1(k), (i) there have been no events, occurrences or developments that have had or would that could reasonably be expected to have result, either individually or in the aggregate, in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), ) and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock and pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, any subsidiary thereof, or any of its their assets are is bound or subject, and (vii) except . The Company does not have pending before the Commission any request for the issuance confidential treatment of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsinformation.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC ReportsDecember 31, 2005, except as specifically disclosed in the SEC ReportsReports or as set forth in Schedule 3.1(k) hereto, (i) there have been no events, occurrences or developments that have had or would that could reasonably be expected to have result, either individually or in the aggregate, in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock and pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, any subsidiary thereof, or any of its their assets are is bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since the respective date of the latest balance sheet of the Company Financial Statements included in the financial statements contained within the SEC ReportsPublic Disclosure Documents, except as specifically disclosed in the SEC ReportsPublic Disclosure Documents filed at least one Trading Day prior to the date hereof and in the Prospectus Supplement, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or that would reasonably be expected to have a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, and (v) the Company has not issued any equity securities Equity Securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in incentive award plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities Common Shares contemplated by this AgreementAgreement at the time this representation is made or deemed made, no event, liability liability, fact, circumstance, occurrence or development has occurred or exists with respect to the CompanyCompany or its Businesses, its businessesprospects, properties, operations, assets, financial condition or results of operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws Securities Laws at the time this representation is made or deemed made or thereafter that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate hereof.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, the execution of the Merger Agreement, and the execution of this Agreement, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)Common Stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this AgreementAgreement and the execution of the Merger Agreement and the consummation of the transactions contemplated thereunder, including the Mergers, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since (a) During the respective date period prior to the Underwriter notifying the Corporation of the latest balance sheet completion of the Company included distribution of the Units, the Corporation shall promptly inform the Underwriter (and if requested by the Underwriter, confirm such notification in writing) of the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, full particulars of: (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) the Company has not incurred any material change (actual, anticipated, contemplated, threatened, financial or otherwise) in the assets, liabilities (contingent or otherwise), business, affairs, operations or capital of the Corporation and the Subsidiaries taken as a whole; (ii) other than (A) trade payables, accrued expenses any material fact which has arisen or has been discovered and other liabilities incurred would have been required to have been stated in the ordinary course Preliminary Prospectus or the Final Prospectus had the fact arisen or been discovered on, or prior to, the date of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, such documents; and (iii) any change in any material fact contained in the Company Preliminary Prospectus, the Final Prospectus or any Supplementary Material (collectively, the “Offering Documents”) or whether any event or state of facts has not materially altered its method occurred after the date hereof, which, in any case, is, or may be, of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made such a nature as to render any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)Offering Documents untrue or misleading in any material respect or to result in any misrepresentation in any of the Offering Documents, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued which would result in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, Final Prospectus or any waiver Supplementary Material not complying (to the extent that such compliance is required) with Securities Laws. (b) The Corporation will comply with Part 6 of any material right under, any material contract under which NI 41-101 and with the Company, or any comparable provisions of its assets are bound or subjectthe other Securities Laws, and (vii) except the Corporation will prepare and file promptly any Supplementary Material which may be necessary and will otherwise comply with all legal requirements necessary to continue to qualify the Units for the issuance distribution in each of the Securities Qualifying Jurisdictions. (c) In addition to the provisions of subsections 5(a) and 5(b) hereof, the Corporation shall in good faith discuss with the Underwriter any change, event or fact contemplated by this Agreement, no event, liability in subsections 5(a) and 5(b) which is of such a nature that there is or development has occurred or exists could be reasonable doubt as to whether notice should be given to the Underwriter under subsection 5(a) hereof and shall consult with the Underwriter with respect to the Company, its businesses, properties, operations form and content of any amendment or financial condition, as applicable, that would be required other Supplementary Material proposed to be disclosed filed by the Company under applicable securities laws at Corporation, it being understood and agreed that no such amendment or other Supplementary Material shall be filed with any Securities Regulator prior to the time this representation is made that has not been publicly disclosed review thereof by the Underwriter and its counsel, acting reasonably and without undue delay. (d) If during the period of distribution of the Units there shall be any change in Securities Laws which, in the SEC Reportsopinion of the Underwriter, acting reasonably, requires the filing of any Supplementary Material, upon written notice from the Underwriter, the Corporation shall, to the satisfaction of the Underwriter, acting reasonably, promptly prepare and file any such Supplementary Material with the appropriate Securities Regulators where such filing is required.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or plans and stock purchase plans plans, and pursuant to the conversion or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver exercise of any material right under, outstanding Common Stock Equivalents. The Company does not have pending before the Commission any material contract under which the Company, or any request for confidential treatment of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC ReportsReports and except as disclosed on Schedule 2(j), (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) neither the Company nor any Subsidiary has entered into any material contract, agreement or other transaction that is not in the ordinary course of business, (iii) neither the Company nor any Subsidiary has incurred any material liabilities or obligations (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and practice, (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, and (iiiC) liabilities not exceeding in the aggregate $200,000; (iv) neither the Company nor any Subsidiary has not materially altered its method of accounting or the manner in which it keeps identity of its accounting books and recordsauditors, (ivv) neither the Company nor any Subsidiary has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock stock, and (other than in connection with repurchases of unvested stock issued to employees of the Company), (vvi) neither the Company nor any Subsidiary has not issued any equity securities to any officer, director or AffiliateAffiliate (as defined below), except Common Stock issued in the ordinary course pursuant to existing Company stock option plans. The Company does not have pending before the Commission any request for confidential treatment of information. “Affiliate” means any Person that, directly or stock purchase plans indirectly through one or executive and director corporate arrangements disclosed in the SEC Reportsmore intermediaries, (vi) there has not been any change controls or amendment to, is controlled by or any waiver of any material right under, any material contract is under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists common control with respect to the Company, its businesses, properties, operations or financial conditiona Person, as applicable, that would be required to be disclosed by the Company such terms are used in and construed under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsRule 144.

Material Changes. Since the respective date of the latest balance sheet of financial statements included within the Company included in the financial statements contained within the SEC ReportsFinancial Statements, and except as specifically disclosed set forth in the SEC ReportsSchedule 3.1(j), (i) there have been no events, occurrences occurrences, or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses expenses, and other liabilities incurred in the ordinary course of business consistent with past practice practice, and (B) liabilities not required to be reflected in the financial statements of the Company Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has and its Subsidiaries have not altered materially altered its their method of accounting or the manner in which it keeps its they keep their accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed redeemed, or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has and its Subsidiaries have not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsPerson, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which by the Company, Company or any of its assets are Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject, and (vii) except for there has not been a material increase in the issuance aggregate dollar amount of (A) the Securities contemplated by this Agreement, no event, liability Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or development has occurred more past due and still accruing interest) or exists with (B) the reserves or allowances established on and in respect to the CompanyCompany Financial Statements. Since the date(s) the Company afforded the Purchasers (i) the opportunity to ask such questions as it has deemed necessary of, its businessesand to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, operations management, prospects, and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences, or financial conditiondevelopments that have materially affected or would reasonably be expected to materially affect, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed either individually or in the SEC Reportsaggregate, the information as presented to the Purchasers in connection with the offering of the Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsReports and Common Stock issued pursuant to the Share Exchange Transaction, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, Company or any of its assets are is bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesbusiness, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reports.

Material Changes. Since (a) During the respective period commencing on the date hereof and ending on the day the Underwriters notify the Company of the latest balance sheet completion of the distribution of the Offered Shares in accordance with Section 4(a) hereof, the Company included shall promptly inform the Underwriters (and promptly confirm such notification in writing) of the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reports, full particulars of: (i) there have been no eventsany material change whether actual, occurrences anticipated, contemplated, threatened or developments that have had or would reasonably be expected to have a Material Adverse Effect with respect to the Company, (ii) proposed in the Company has not incurred or any material Subsidiary or in any of their respective businesses, assets (including intangible assets), affairs, operations, prospects, liabilities (contingent or otherwise), capital, assets, properties, condition (financial or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred or results of operations or in the ordinary course Offering; (ii) any material fact which has arisen or has been discovered or any new material fact that would have been required to have been stated in the Offering Documents had that fact arisen or been discovered on or prior to the date of business consistent with past practice and any of the Offering Documents; or (Biii) liabilities not any change in any material fact (which for the purposes of this Agreement shall be deemed to include the disclosure of any previously undisclosed material fact) contained or incorporated by reference in the Offering Documents or whether any event or state of facts has occurred after the date hereof, which, in any case, is, or may be, of such a nature as to render any of the Offering Documents untrue or misleading in any material respect or to result in any misrepresentation in any of the Offering Documents, including as a result of any of the Offering Documents containing or incorporating by reference therein an untrue statement of a material fact or omitting to state a material fact required to be reflected stated therein or necessary to make any statement therein not false or not misleading in the financial statements light of the circumstances in which it was made, or which could result in any of the Offering Documents not complying with Securities Laws. (b) Subject to Section 6(d), the Company pursuant will prepare and file promptly (and, in any event, within the time prescribed by Securities Laws) any Supplementary Material which may be necessary under Securities Laws, and the Company will prepare and file promptly at the request of the Underwriters any Supplementary Material which, in the opinion of the Underwriters, acting reasonably, may be necessary or advisable, and will otherwise comply with all legal requirements necessary, to GAAP continue to qualify the Offered Shares for distribution in each of the Qualifying Jurisdictions. (c) During the period commencing on the date hereof until the Underwriters notify the Company of the completion of the distribution of the Offered Shares, the Company will promptly inform the Underwriters in writing of the full particulars of: (i) any request of any Securities Commission for any amendment to any Offering Document or for any additional information in respect of the Offering or the Company; (ii) the receipt by the Company of any material communication, whether written or oral, from any Securities Commission, the CSE or any other competent authority, relating to be disclosed in filings made with the SECPreliminary Prospectus, the Prospectus, the distribution of the Offered Shares or the Company; (iii) any notice or other correspondence received by the Company has not materially altered its method from any Governmental Authority and any requests from any Governmental Authority for information, a meeting or a hearing relating to the Company, any Material Subsidiary, the Offering, the issue and sale of accounting the Offered Shares or any other event or state of affairs that could, individually or in the manner in which it keeps its accounting books and recordsaggregate, have a Material Adverse Effect; or (iv) the Company has not declared issuance by any Securities Commission, the CSE or made any dividend other competent authority, including any other Governmental Authority, of any order to cease or suspend trading or distribution of cash any securities of the Company or other property of the institution, threat of institution of any proceedings for that purpose or any notice of investigation that could potentially result in an order to its stockholders cease or purchased, redeemed suspend trading or made distribution of any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees securities of the Company. (d) In addition to the provisions of Section 6(a), (vSection 6(b) and Section 6(c) hereof, the Company has not issued shall in good faith discuss with the Underwriters any equity securities to any officercircumstance, director change, event or Affiliate, except Common Stock issued fact contemplated in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound Section 6(a), Section 6(b) and Section 6(c) which is of such a nature that there is or subjectcould be reasonable doubt as to whether notice should be given to the Underwriters under any of Section 6(a), Section 6(b) and (viiSection 6(c) except for hereof and shall consult with the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists Underwriters with respect to the form and content of any Supplementary Material proposed to be filed by the Company, its businesses, properties, operations or financial condition, as applicable, it being understood and agreed that would no such Supplementary Material shall be required filed with any Securities Commission prior to be disclosed the review and approval thereof by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsUnderwriters and their counsel, acting reasonably.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof or on Schedule 3.1(i), (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliatesecurities, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, an Equity Incentive Plan (vi) there the Company has not been made any change amendment to its certificate of incorporation or amendment tobylaws (whether by merger, consolidation or otherwise), (viii) neither the Company nor any Subsidiary has entered into any settlement, or any waiver of offer or proposal to settle, (x) any material right underProceeding involving or against the Company or any Subsidiary, (y) any material contract under which stockholder litigation or dispute against the Company, Company or any of its assets are bound officers or subject, and directors or (viiz) except for any Proceeding or dispute that relates to the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by Transaction Documents. The Company does not have pending before the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsCommission any request for confidential treatment of information.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the CompanyCompany and a quarterly cash dividend of $0.04 per share of Common Stock on April 15, 2010), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except (A) Common Stock issued pursuant to existing Company option plans or equity based plans disclosed in the SEC Reports and (B) 8,740,000 shares of Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive March 2010, and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this AgreementAgreement (including, for the avoidance of doubt, the execution of any P&A Agreement and the consummation of any of the transactions contemplated thereunder, including any purchase of the Failed Bank or portion thereof), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included Except as set forth in the financial statements contained within the SEC Reports, except as specifically disclosed in since the date of the last audited financial statements included within the SEC Reports, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) neither the Company nor any of its Subsidiaries has not incurred any material liabilities of any nature (whether accrued, absolute, contingent or otherwise) that would be required under GAAP, as in effect on the date hereof, to be reflected on a consolidated balance sheet of the Company (including the notes thereto), other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SEC, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) neither the Company or any Subsidiary has entered into any agreement, arrangement or understanding, whether oral or written, whereby it has assumed or will assume or becomes responsible for any liability of a third party that is material to the Company on a consolidated basis, (vi) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, Reports and except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date of this Agreement: (i) there have been no events, occurrences or developments that have had or would that could reasonably be expected to have result, either individually or in the aggregate, in a Material Adverse Effect with respect to the CompanyEffect, (ii) except as set forth in Schedule 4(j), the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or AffiliateAffiliate (as defined in Rule 405 of the Securities Act), except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase incentive plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, Company or any of its their assets are is bound or subject, and (vii) except for the issuance . For purposes of the Securities contemplated by this Agreement, no event“Material Adverse Effect” means any of (i) a material and adverse effect on the legality, liability validity or development has occurred enforceability of any Transaction Documents, (ii) a material and adverse effect on the results of operations, assets, business or exists with respect financial condition of the Company and subsidiaries, taken as a whole, or (iii) any material adverse impairment to the Company, ’s ability to perform in any material respect on a timely basis its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company obligations under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsany Transaction Document.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), ) and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares and Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as set forth in the respective date SEC Reports or as otherwise contemplated herein, since September 30, 2003, there has been no Material Adverse Effect in respect of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Issuer and its Subsidiaries taken as specifically disclosed a whole. Except as set forth in the SEC Reports, since September 30, 2003, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, liabilities not required to be reflected in on the Issuer's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, and liabilities in connection with the matters described on Schedule 3.11; (iv) any Lien or adverse claim on any of its material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business, and except as set forth on Schedule 3.11; (v) any sale, assignment or transfer of any of its material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right undervalue, any material contract under which other than in the Company, or any ordinary course of its assets are bound or subject, and business; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to its critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer's books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reports, except Except as specifically disclosed set forth on Schedule 4.10 and in the SEC ReportsReports (excluding any “risk factors” or “forward-looking statements” sections thereof) or as otherwise contemplated herein, since December 31, 2008, there has been no Material Adverse Effect in respect of the Issuer and its Subsidiaries taken as a whole. Except as set forth in the SEC Reports (excluding any “risk factors” or “forward-looking statements” sections thereof) or as otherwise contemplated herein, since December 31, 2008, there has not been: (i) there have been no eventsany direct or indirect redemption, occurrences purchase or developments that have had other acquisition by the Issuer of any shares of the Common Stock; (ii) any declaration, setting aside or would reasonably be expected to have a Material Adverse Effect payment of any dividend or other distribution by the Issuer with respect to the Company, Common Stock; (iiiii) the Company has not any borrowings incurred or any material liabilities (contingent absolute, accrued or otherwisecontingent) assumed, other than (A) trade payables, accrued expenses and other current liabilities incurred in the ordinary course of business consistent with past practice and (B) business, liabilities under Contracts entered into in the ordinary course of business, or liabilities not required to be reflected in on the Issuer’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports; (iv) any Lien or adverse claim on any of the Issuer’s material properties or assets, except for Liens for taxes not yet due and payable or otherwise in the ordinary course of business; (v) any sale, assignment or transfer of any of the Issuer’s material assets, tangible or intangible, except in the ordinary course of business; (vi) there has not been any change extraordinary losses or amendment to, or any waiver of any rights of material right under, any material contract under which the Company, or any of its assets are bound or subject, and value; (vii) except for any material capital expenditures or commitments therefor other than in the issuance ordinary course of business; (viii) any other material transaction other than in the ordinary course of business; (ix) any material change in the nature or operations of the Securities contemplated by this Agreementbusiness of the Issuer and its Subsidiaries; (x) any default in the payment of principal or interest in any material amount, no eventor violation of any material covenant, liability or development has occurred or exists with respect to any outstanding debt obligations that are material to the Company, Issuer and its businesses, properties, operations Subsidiaries as a whole; (xi) any material changes to the Issuer’s critical accounting policies or financial condition, as applicable, that would be required material deviations from historical accounting and other practices in connection with the maintenance of the Issuer’s books and records; or (xii) any agreement or commitment to be disclosed by do any of the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsforegoing.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof or on Schedule 3.1(i), (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliatesecurities, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, an Equity Incentive Plan (vi) there the Company has not been made any change amendment to its certificate of incorporation or amendment tobylaws (whether by merger, consolidation or otherwise), (viii) neither the Company nor any Subsidiary has entered into any settlement, or any waiver of offer or proposal to settle, (x) any material right underProceeding involving or against the Company or any Subsidiary, (y) any material contract under which stockholder litigation or dispute against the Company, Company or any of its assets are bound officers or subject, and directors or (viiz) except for any Proceeding or dispute that relates to the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by Transaction Documents. The Company does not have pending before the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsCommission any request for confidential treatment of information.

Material Changes. Since the respective date of the latest balance sheet of the Company audited Financial Statements included in the financial statements contained within the SEC Reports, except as specifically disclosed in Schedule 3.10 and/or in any subsequent SEC Report filed prior to the SEC Reports, date hereof or in connection herewith: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the Companyon Odimo, (ii) the Company Odimo has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the financial statements of the Company Odimo’s Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company Odimo has not materially created or permitted any Lien on any material property of Odimo other than Permitted Liens, (iv) Odimo has not paid, discharged or satisfied any claim, obligation or liability in excess of US $10,000 in the aggregate, except for liabilities incurred prior to the date of this Agreement in the ordinary course of business, (v) Odimo has not has not released, waived or cancelled any claims or rights relating to or affecting Odimo in excess of US $10,000 in the aggregate or instituted or settled any Proceeding involving in excess of US $10,000 in the aggregate, (vi) Odimo has not has not guaranteed or endorsed in a material amount any obligation or net worth of any Person, (vii) Odimo has not altered its method of accounting or the manner accounting principles and practices utilized in which it keeps preparation of its accounting books and recordsFinancial Statements, other than as required by GAAP, (ivviii) the Company Odimo has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (vix) the Company Odimo has not issued, sold, disposed of or encumbered, or authorized the issuance, sale, disposition or encumbrance of, or granted or issued any option to acquire any shares of its capital stock or any other of its securities or any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment tosecurities, or any waiver altered the term of any material right under, any material contract under which the Company, or any of its assets are bound outstanding securities or subjectmade any change in its outstanding shares of capital stock or its capitalization, whether by reason of reclassification, recapitalization, stock split, combination, exchange or readjustment of shares, stock dividend or otherwise, and (viix) except Odimo has not entered into any agreement, otherwise obligated itself, to do any of the foregoing. Odimo does not have pending before the Commission any request for confidential treatment of information. Except for the issuance of the Securities Odimo Shares contemplated by this AgreementAgreement or as set forth on Schedule 3.10, no event, liability or development has occurred or exists with respect to the Company, Odimo or its businessesbusiness, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company Odimo under applicable securities laws Laws at the time this representation is made or deemed made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC ReportsReports or as set forth in Schedule 3.1(k) hereto, (i) there have been no events, occurrences or developments that have had or would that could reasonably be expected to have result, either individually or in the aggregate, in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, any subsidiary thereof, or any of its their assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth in Schedule 3.1(k) hereto, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except to the Company’s Knowledge, there has not been a material increase in the aggregate dollar amount of: (A) the Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or more past due and still accruing interest) or (B) the reserves or allowances established on the Company’s or Bank’s financial statements with respect thereto. Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, . Except as set forth in Schedule 3.1(k) and (vii) except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. Moreover, since the date(s) the Company afforded Purchaser (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Preferred Shares and the merits and risks of investing in the SEC ReportsPreferred Shares; and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management, prospects and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences or developments that have materially affected or would reasonably be expected to materially affect, either individually or in the aggregate, the information as presented to the Purchasers in connection with the offering of the Preferred Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, (i) there have been no events, occurrences or developments that have had or would could reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract Material Contract under which the Company, any of its Subsidiaries, or any of their respective assets is bound or subject, (vii) there has been no material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or any of its assets are bound Subsidiaries, or subject(viii) there has been no termination of the services of any key employee, and (vii) except or material change in the composition or duties of the senior management of the Company or any of its Subsidiaries. Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP IFRS or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its share capital stock (other than in connection with repurchases of unvested stock shares issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock Shares issued in the ordinary course pursuant to existing Company stock option or stock purchase plans share options or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares, Warrants and Prefunded Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since Except as described in the respective SEC Reports or Schedule 3.1(i), since the date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC Reports, : (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the Company, Effect; (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, Commission; (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, accounting; (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), stock; (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, plans; (vi) there has been no material damage, destruction or loss, whether or not covered by insurance to any assets or properties of the Company or its Subsidiaries; (vii) there has been no waiver by the Company or any Subsidiary of a material right or of a material debt owed to it; (viii) there has been no change or amendment toto the Company's Certificate of Incorporation or by-laws, or any waiver of any material right under, change to any material contract under or arrangement by which the CompanyCompany or any subsidiary is bound or to which any of their respective assets or properties is subject; (ix) there has been no loss of services of any key employee, or material change in the composition or duties of the senior management of the Company or any Subsidiary; (x) there has been no loss or threatened loss of any customer which has had or could reasonably be expected to have a Material Adverse Effect; and (xi) there has been no material transaction entered into by the Company or a Subsidiary other than in the ordinary course of business. The Company has not taken any steps, and does not currently expect to take any steps, to seek protection pursuant to any bankruptcy or receivership law, nor does the Company or any of its assets are bound Subsidiaries have any Knowledge or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists reason to believe that its creditors intend to initiate involuntary bankruptcy proceedings with respect to the Company, Company or any or its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsSubsidiaries.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC ReportsSeptember 30, 2017, except as specifically disclosed in the SEC Reports, Filings: (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to on the business, operations or financial condition of the Company, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and practice, (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECSEC and (C) liabilities incurred under the Settlement and License Agreement dated as of January 5, 2018 by and among Teva Pharmaceuticals International GmbH, AlderBio Holdings, LLC and the Company, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsrecords in any material respect, (iv) the Company has not declared or made any dividend or distribution of cash cash, shares of capital stock or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliatesecurities, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive the Company’s 2014 Equity Incentive Plan, the Company’s 2014 Employee Stock Purchase Plan and director corporate arrangements disclosed in the SEC Reportsthis Agreement, (vi) there has not been any no material adverse change in the net current assets or amendment to, or any waiver net assets of any material right under, any material contract under which the Company, or any of its assets are bound or subjectCompany and the Subsidiaries, and (vii) except for neither the issuance Company nor any of the Securities contemplated by this Agreement, no event, liability Subsidiaries has sustained any loss or development has occurred or exists interference with respect its business that is material to the CompanyCompany and the Subsidiaries taken as a whole and that is either from fire, its businessesexplosion, propertiesflood or other calamity, operations whether or financial conditionnot covered by insurance, as applicableor from any labor disturbance or dispute or any action, that would be required order or decree of any court or arbitrator or governmental or regulatory authority. The Company has not taken any steps, and does not currently expect to be disclosed by take any steps, to seek protection pursuant to any Bankruptcy Law nor does the Company under applicable securities laws at the time this representation have any knowledge or reason to believe that its creditors intend to initiate involuntary bankruptcy or insolvency proceedings. The Company is made that has not been publicly disclosed in the SEC Reportsfinancially solvent and is generally able to pay its debts as they become due.

Material Changes. Since Except as identified and described in the respective SEC Filings or the SEDAR Filings, since the date of the latest balance sheet of the Company included in the Company’s last audited financial statements contained within the SEC Reports, except as specifically disclosed in the SEC Reportsstatements, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock Shares issued in the ordinary course as dividends on outstanding preferred stock or pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Filings and the SEDAR Filings and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract under which the Company, any of its Subsidiaries, or any of its their respective assets are is bound or subject, and (vii) except . Except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof and except for consummation of the Merger and the transactions disclosed in the PPM, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company's financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reports, (vi) there has not been Commission any change or amendment to, or any waiver request for confidential treatment of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this Agreementthe Subscription Agreements or as set forth on Schedule 3(i), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. The representations and warranties in this Section 3(i) as they relate to the SEC ReportsCompany prior to consummation of the Merger are qualified to the extent of the actual knowledge of the Company.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares and Warrants contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed at least one Trading Day prior to the date that this representation is made. Moreover, since the date(s) the Company afforded Purchaser (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Preferred Shares and the merits and risks of investing in the SEC ReportsPreferred Shares; and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, management, prospects and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences or developments that have materially affected or would reasonably be expected to materially affect, either individually or in the aggregate, the information as presented to the Purchasers in connection with the offering of the Preferred Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in subsequent SEC Reports filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Voting Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements equity based plans disclosed in the SEC Reports, and (vi) there has not been any material change or amendment to, or any waiver of any material right by the Company under, any material contract Material Contract under which the Company, Company or any of its assets are Subsidiaries is bound or subject, and (vii) except . Except for the issuance of the Securities transactions contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, condition that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in the SEC ReportsReports and except as disclosed on Schedule 2(j), (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) neither the Company nor any Subsidiary has entered into any material contract, agreement or other transaction that is not in the ordinary course of business, (iii) neither the Company nor any Subsidiary has incurred any material liabilities or obligations (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and practice, (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SEC, and (iiiC) liabilities not exceeding in the aggregate $200,000; (iv) neither the Company nor any Subsidiary has not materially altered its method of accounting or the manner in which it keeps identity of its accounting books and recordsauditors, (ivv) neither the Company nor any Subsidiary has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock stock, and (other than in connection with repurchases of unvested stock issued to employees of the Company), (vvi) neither the Company nor any Subsidiary has not issued any equity securities to any officer, director or AffiliateAffiliate (as defined below), except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in plans. The Company does not have pending before the SEC Reportsany request for confidential treatment of information. “Affiliate” means any Person that, (vi) there has not been any change directly or amendment toindirectly through one or more intermediaries, controls or any waiver of any material right under, any material contract is controlled by or is under which the Company, or any of its assets are bound or subject, and (vii) except for the issuance of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists common control with respect to the Company, its businesses, properties, operations or financial conditiona Person, as applicable, that would be required to be disclosed by the Company such terms are used in and construed under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC ReportsRule 144.

Material Changes. Since Except as set forth on Schedule 3.1(j), since the respective date of the latest balance sheet of audited financial statements included within the Company included in the financial statements contained within the SEC ReportsFinancial Statements, and except as specifically disclosed in may result from the SEC Reportstransactions contemplated by this Agreement, (i) there have been no events, occurrences occurrences, or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses expenses, and other liabilities incurred in the ordinary course of business consistent with past practice practice, and (B) liabilities not required to be reflected in the financial statements of the Company Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has and its Subsidiaries have not altered materially altered its their method of accounting or the manner in which it keeps its they keep their accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed redeemed, or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has and its Subsidiaries have not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsPerson, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which by the Company, Company or any of its assets are Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject, and (vii) except for there has not been a material increase in the issuance aggregate dollar amount of (A) the Securities contemplated by this Agreement, no event, liability Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or development has occurred more past due and still accruing interest) or exists with (B) the reserves or allowances established on and in respect to the CompanyCompany Financial Statements. Since the date(s) the Company afforded the Purchasers (i) the opportunity to ask such questions as it has deemed necessary of, its businessesand to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, operations management, prospects, and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences, or financial conditiondevelopments that have materially affected or would reasonably be expected to materially affect, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed either individually or in the SEC Reportsaggregate, the information as presented to the Purchasers in connection with the offering of the Shares.

Material Changes. Since Except as disclosed in the respective Memorandum, the SEC Reports or Schedule 5.10 to the Disclosure Schedules, since the date of the latest balance sheet of the Company included in the audited financial statements contained within the SEC Reports, except as specifically disclosed included in the SEC Reports, the Company and its Subsidiaries have not done any of the following (iother than with respect to the matters referred to in clause (a) there or (j) below) that, if it had occurred (and, if applicable, continued) prior to the date of the most recent SEC Report, would have been no events, occurrences or developments required to be disclosed in such SEC Report and that have has had or would is reasonably be expected anticipated to have a Material Adverse Effect with respect Effect: (a) suffered any Material Adverse Change; (b) suffered any damage, destruction or loss, whether or not covered by insurance, in an amount in excess of CAD $200,000; (c) granted or agreed to make any increase in the Company, (ii) compensation payable or to become payable by the Company has not incurred or any material liabilities (contingent of its Subsidiaries to any officer or otherwise) other than (A) trade payablesemployee, accrued expenses and other liabilities incurred except for normal raises for non-executive personnel made in the ordinary course of business consistent that are usual and normal in amount; (d) declared, set aside or paid any dividend or made any other distribution on or in respect of the shares of capital stock of the Company or any of its Subsidiaries, or declared or agreed to any direct or indirect redemption, retirement, purchase or other acquisition by the Company or any of its Subsidiaries of such shares; (e) issued any shares of capital stock of the Company or any of its Subsidiaries, or any warrants, rights or options thereof, or entered into any commitment relating to the shares of capital stock of the Company or any of its Subsidiaries, other than pursuant to or as contemplated by any of the Transaction Documents or any engagement or similar agreement with past practice and the Placement Agent; (Bf) liabilities adopted or proposed the adoption of any change in the Company’s Certificate of Incorporation or Bylaws or similar constituent instruments; (g) made any change in the accounting methods or practices they follow, whether for general financial or tax purposes, or any change in depreciation or amortization policies or rates adopted therein, or any tax election; (h) sold, leased, abandoned or otherwise disposed of any real property or any machinery, equipment or other operating property other than in the ordinary course of their business; (i) sold, assigned, transferred, licensed or otherwise disposed of any of the Company’s Intellectual Property or interest thereunder or other intangible asset except in the ordinary course of their business; (j) been involved in any dispute involving any employee that would reasonably be expected to result in a Material Adverse Change; (k) entered into, terminated or modified any employment, severance, termination or similar agreement or arrangement with, or granted any bonuses (or bonus opportunity) to, or otherwise increased the compensation of any executive officer; (l) entered into any material commitment or transaction (including, without limitation, any borrowing or capital expenditure), other than pursuant to or as contemplated by any of the Transaction Documents or any engagement or similar agreement with the Placement Agent; (m) amended or modified, or waived any default under, any Material Contract (as defined below); (n) to the Company’s knowledge, incurred any material liabilities, contingent or otherwise, either matured or unmatured (whether or not required to be reflected in the financial statements in accordance with Canadian GAAP, and whether due or to become due), except for accounts payable or accrued salaries that have been incurred by the Company since the date of the Company pursuant to GAAP or to be disclosed in filings made with latest audited financial statements included within the SECSEC Reports, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course of its business and consistent with the Company’s past practices; (o) permitted or allowed any of their material property or assets to be subjected to any material Lien (other than Liens created pursuant to existing Company stock option or stock purchase plans as contemplated by any of the Transaction Documents); (p) settled any claim, litigation or executive and director corporate arrangements disclosed action, whether now pending or hereafter made or brought; (q) made any capital expenditure or commitment for additions to property, plant or equipment individually in excess of CAD $200,000 or in the SEC Reportsaggregate, in excess of CAD $500,000; (vir) there has not been paid, loaned or advanced any change amount to, or sold, transferred or leased any properties or assets to, or entered into any agreement or arrangement with any of their Affiliates, officers, directors or stockholders or, to the Company’s knowledge, any Affiliate or associate of any of the foregoing; (s) made any amendment to, or terminated any waiver agreement that, if not so amended or terminated, would be material to the business, assets, liabilities, operations or financial performance of any material right under, any material contract under which the Company, Company or any of its Subsidiaries; (t) compromised or settled any claims relating to taxes, any tax audit or other tax proceeding, or filed any amended tax returns; (u) merged or consolidated with any other Person, or acquired a material amount of assets are bound or subject, and of any other Person; (viiv) except for the issuance entered into any agreement in contemplation of the Securities contemplated by transactions specified herein other than this Agreement, no event, liability the other Transaction Documents and an engagement or development has occurred similar agreement with the Placement Agent; or (w) (other than pursuant to or exists as contemplated by any of the Transaction Documents or any engagement or similar agreement with respect the Placement Agent) agreed to the Company, its businesses, properties, operations take any action described in this Section 5.10 or financial condition, as applicable, that would reasonably be required expected to be disclosed by otherwise constitute a breach of any of the representations or warranties of the Company under applicable securities laws at the time contained in this representation is made that has not been publicly disclosed in the SEC ReportsAgreement.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the financial statements contained within the SEC Reportsmost recent Quarterly Report on Form 10-Q, except as specifically disclosed in the SEC Reports, (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to on the Company’s financial statements or results of operations as so reported, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or accounting, the manner in which it keeps its accounting books and records, or the identity of its auditors, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC Reports, Reports and (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which the Company, any subsidiary thereof, or any of its their assets are is bound or subject, and (vii) except . The Company does not have pending before the Commission any request for the issuance confidential treatment of the Securities contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, its businesses, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in the SEC Reportsinformation.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reportsdate hereof, (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course as dividends on outstanding preferred stock or issued pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares and the transactions contemplated by this Agreementthe Transaction Documents, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof: (i) there have has been no eventsevent, occurrences occurrence or developments development that have has had or would that could reasonably be expected to have result in a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or to be disclosed in filings made with the SECCommission, (iii) the Company has not materially altered its method of accounting or the manner in which it keeps its accounting books and recordsaccounting, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders stockholders, or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or plans and stock purchase plans or executive except as set forth on Schedule 3.1(i)(a), and director corporate arrangements disclosed in pursuant to the SEC Reports, (vi) there has not been any change conversion or amendment to, or any waiver exercise of any material right under, outstanding Common Stock Equivalents. The Company does not have pending before the Commission any material contract under which the Company, or any request for confidential treatment of its assets are bound or subject, and (vii) except information. Except for the issuance of the Securities contemplated by this AgreementAgreement or as set forth on Schedule 3.1(i)(b), no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made or deemed made that has not been publicly disclosed in at least 1 Trading Day prior to the SEC Reportsdate that this representation is made.

Material Changes. Since the respective date of the latest balance sheet of audited financial statements included within the Company included in the financial statements contained within the SEC Reports, except as specifically disclosed in the SEC ReportsFinancial Statements, (i) there have been no events, occurrences occurrences, or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has and its Subsidiaries have not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, accrued expenses expenses, and other liabilities incurred in the ordinary course of business consistent with past practice practice, and (B) liabilities not required to be reflected in the financial statements of the Company Financial Statements pursuant to GAAP or to be disclosed in filings made with the SECGAAP, (iii) the Company has and its Subsidiaries have not altered materially altered its their method of accounting or the manner in which it keeps its they keep their accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders shareholders or purchased, redeemed redeemed, or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company)stock, (v) the Company has and its subsidiaries have not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate arrangements disclosed in the SEC ReportsPerson, (vi) there has not been any material change or amendment to, or any waiver of any material right under, any material contract under which by the Company, Company or any of its assets are Subsidiaries under, any Material Contract under which the Company or any of its Subsidiaries is bound or subject, and (vii) except for there has not been a material increase in the issuance aggregate dollar amount of (A) the Securities contemplated by this Agreement, no event, liability Bank’s nonperforming loans (including nonaccrual loans and loans 90 days or development has occurred more past due and still accruing interest) or exists with (B) the reserves or allowances established on and in respect to the CompanyCompany Financial Statements. Since the date(s) the Company afforded Purchaser (i) the opportunity to ask such questions as it has deemed necessary of, its businessesand to receive answers from, representatives of the Company concerning the terms and conditions of the offering of the Shares and the merits and risks of investing in the Shares, and (ii) access to information about the Company and the Subsidiaries and their respective financial condition, results of operations, business, properties, operations management, prospects, and any potential transactions sufficient to enable it to evaluate its investment, there have been no events, occurrences, or financial conditiondevelopments that have materially affected or would reasonably be expected to materially affect, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed either individually or in the SEC Reportsaggregate, the information as presented to Purchaser in connection with the offering of the Shares.

Material Changes. Since the respective date of the latest balance sheet of the Company included in the audited financial statements contained included within the SEC Reports, except as specifically disclosed in a subsequent SEC Report filed prior to the SEC Reports, date hereof (i) there have been no events, occurrences or developments that have had or would reasonably be expected to have have, either individually or in the aggregate, a Material Adverse Effect with respect to the CompanyEffect, (ii) the Company has not incurred any material liabilities (contingent or otherwise) other than (A) trade payables, payables and accrued expenses and other liabilities incurred in the ordinary course of business consistent with past practice and (B) liabilities not required to be reflected in the Company’s financial statements of the Company pursuant to GAAP or required to be disclosed in filings made with the SECCommission, (iii) the Company has not altered materially altered its method of accounting or the manner in which it keeps its accounting books and records, (iv) the Company has not declared or made any dividend or distribution of cash or other property to its stockholders or purchased, redeemed or made any agreements to purchase or redeem any shares of its capital stock (other than in connection with repurchases of unvested stock issued to employees of the Company), and (v) the Company has not issued any equity securities to any officer, director or Affiliate, except Common Stock issued in the ordinary course pursuant to existing Company stock option or stock purchase plans or executive and director corporate compensation arrangements disclosed in the SEC Reports, (vi) there has not been any change or amendment to, or any waiver of any material right under, any material contract under which the Company, or any of its assets are bound or subject, and (vii) except . Except for the issuance of the Securities Shares contemplated by this Agreement, no event, liability or development has occurred or exists with respect to the Company, Company or its businessesSubsidiaries or their respective business, properties, operations or financial condition, as applicable, that would be required to be disclosed by the Company under applicable securities laws at the time this representation is made that has not been publicly disclosed in at least one (1) Trading Day prior to the SEC Reportsdate that this representation is made.