SECURITIESPURCHASEAGREEMENT
ThisSECURITIESPURCHASEAGREEMENT(the“Agreement”),datedasof March1,2013,byandbetweenVOISINC.,aFloridacorporation,withheadquarterslocatedat3525DelMarHeightsRd.#802,SanDiego,CA92130(the“Company”),andASHER ENTERPRISES, INC., aDelawarecorporation,with itsaddressat 1Linden Place, Suite 207,GreatNeck,NY11021(the “Buyer”).
WHEREAS:
A. TheCompanyandtheBuyerareexecutinganddeliveringthisAgreementinrelianceupontheexemptionfromsecuritiesregistrationaffordedbytherulesandregulationsas promulgatedby theUnited States SecuritiesandExchange Commission(the“SEC”) under the SecuritiesAct of1933,asamended(the“1933Act”);
B. BuyerdesirestopurchaseandtheCompanydesirestoissueandsell,uponthe termsandconditionssetforthinthisAgreementan8%convertiblenoteoftheCompany,intheformattachedheretoasExhibitA,intheaggregate principalamountof $32,500.00(togetherwithany note(s)issuedinreplacement thereoforas a dividendthereonor otherwisewithrespect theretoinaccordancewiththetermsthereof,the“Note”),convertible intoshares ofcommon stock, $0.001 par value per share, of the Company(the“Common Stock”), upon the termsand subject to thelimitationsandconditions setforth in suchNote.
C. TheBuyerwishestopurchase,uponthetermsandconditionsstatedinthisAgreement,suchprincipalamountofNoteasissetforthimmediatelybelowitsnameonthe signaturepageshereto;and
NOWTHEREFORE,theCompanyandtheBuyerseverally(andnotjointly)herebyagreeasfollows:
1. Purchase and Saleof Note.
a. PurchaseofNote.OntheClosingDate(asdefinedbelow),the CompanyshallissueandselltotheBuyerandtheBuyeragreestopurchasefromtheCompany such principalamount ofNoteas is setforth immediately below theBuyer’s name on the signaturepageshereto.
b. FormofPayment.OntheClosingDate(asdefinedbelow),(i)theBuyershall pay thepurchasepricefortheNote to beissuedand sold to itat theClosing(as defined below)(the“Purchase Price”)bywiretransfer of immediatelyavailablefunds to the Company, inaccordancewiththeCompany’swrittenwiringinstructions,againstdeliveryoftheNote in the principalamountequal to the Purchase Priceas is setforthimmediatelybelow theBuyer’s name on the signature pages hereto,and(ii)the Company shalldeliver such dulyexecutedNoteon behalf oftheCompany, to theBuyer,against deliveryofsuch PurchasePrice.
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c. ClosingDate.Subjecttothesatisfaction(orwrittenwaiver)oftheconditionstheretosetforthinSection6andSection7below,thedateandtimeoftheissuance andsaleoftheNotepursuanttothisAgreement(the“ClosingDate”) shall be12:00noon,EasternStandardTimeonMarch5,2013,orsuchothermutuallyagreedupontime.Theclosing of the transactionscontemplatedbythisAgreement(the“Closing”) shall occur on the ClosingDate at such locationasmaybeagreed toby theparties.
2. Buyer’sRepresentationsandWarranties.TheBuyerrepresentsandwarrants to theCompanythat:
a. InvestmentPurpose.Asofthedatehereof,theBuyeris purchasingtheNoteandthesharesofCommonStockissuableuponconversionoforotherwise pursuanttotheNote(including,withoutlimitation,suchadditionalsharesofCommonStock,ifany,asareissuable(i)onaccountofinterestontheNote,(ii) asaresultoftheeventsdescribedin Sections 1.3and 1.4(g)of theNoteor(iii)in payment of the StandardLiquidatedDamagesAmount(asdefinedinSection2(f)below)pursuanttothisAgreement,such sharesofCommon Stock beingcollectivelyreferredto hereinas the“Conversion Shares”and,collectivelywith theNote,the“Securities”)foritsownaccountandnotwithapresentviewtowardsthepublicsaleor distribution thereof,exceptpursuantto salesregistered orexemptedfromregistration under the 1933Act;provided,however, thatby makingtherepresentations herein, theBuyer does notagree to holdanyof the Securitiesforanyminimum or other specific termandreserves theright todispose ofthe Securitiesatany time inaccordancewithorpursuant toaregistrationstatement or anexemption underthe1933Act.
b. AccreditedInvestorStatus.TheBuyerisan“accreditedinvestor”as that term is defined inRule501(a)ofRegulation D (an“AccreditedInvestor”).
c. Reliance onExemptions.TheBuyerunderstands that the SecuritiesarebeingofferedandsoldtoitinrelianceuponspecificexemptionsfromtheregistrationrequirementsofUnitedStatesfederalandstatesecurities lawsandthattheCompany isrelyinguponthe truthandaccuracyof,andtheBuyer’scompliancewith,therepresentations,warranties,agreements,acknowledgmentsandunderstandings of theBuyer setforth herein in ordertodeterminetheavailabilityofsuchexemptionsandtheeligibilityof theBuyertoacquire theSecurities.
d. Information.TheBuyeranditsadvisors,if any,havebeen,andfor solongastheNoteremainoutstandingwillcontinuetobe,furnishedwithallmaterialsrelating tothebusiness,financesandoperationsoftheCompanyandmaterialsrelatingtotheofferand saleoftheSecuritieswhich havebeenrequestedbytheBuyeroritsadvisors.TheBuyerand itsadvisors,ifany,have been,andforsolongas theNoteremainoutstandingwillcontinue tobe,affordedthe opportunitytoaskquestionsof theCompany.Notwithstandingtheforegoing,the Company hasnotdisclosedtotheBuyerany materialnonpublicinformationandwillnot disclose such information unless such information is disclosed to the public prior to or promptlyfollowing such disclosure to theBuyer.Neither such inquiries norany other due diligence investigationconducted byBuyeroranyofitsadvisors or representativesshall modify,amend oraffectBuyer’sright torely ontheCompany’srepresentationsandwarrantiescontainedin
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Section3below.TheBuyerunderstandsthatitsinvestmentintheSecuritiesinvolvesa significantdegreeofrisk.TheBuyeris notawareof anyfacts thatmayconstituteabreach ofany oftheCompany'srepresentationsandwarranties madeherein.
e. GovernmentalReview.TheBuyerunderstands that noUnited Statesfederalorstateagencyoranyothergovernmentorgovernmentalagencyhaspassedupon ormade anyrecommendation or endorsementoftheSecurities.
f. TransferorRe-sale.TheBuyerunderstandsthat(i)thesaleorre- saleoftheSecuritieshasnotbeenandisnotbeingregisteredunder the1933Actoranyapplicablestatesecurities laws,andtheSecurities maynot betransferred unless(a)theSecurities are soldpursuanttoaneffectiveregistrationstatementunder the 1933Act,(b)theBuyer shall have delivered to the Company,at thecost of theBuyer,an opinion ofcounsel that shall be inform, substanceandscopecustomaryfor opinions ofcounsel incomparable transactions to theeffect that the Securities to be sold or transferred may be sold or transferred pursuant toanexemptionfrom suchregistration,which opinion shall beacceptedby the Company,(c)the Securitiesare soldor transferred toan“affiliate”(as defined in Rule144promulgatedunder the 1933Act(or a successorrule)(“Rule 144”)) of theBuyerwhoagrees to sell or otherwise transfer the Securitiesonly inaccordancewith thisSection2(f)andwhoisanAccreditedInvestor,(d)the Securitiesare sold pursuant to Rule 144, or(e)the Securitiesare sold pursuant to Regulation S under the 1933Act(or a successorrule)(“Regulation S”),and theBuyer shall have delivered to the Company,at thecost of theBuyer,an opinion ofcounsel that shall be inform, substanceand scopecustomaryfor opinions ofcounsel incorporate transactions,which opinion shall beacceptedbythe Company;(ii)anysale of such Securities made inreliance on Rule144maybemadeonlyinaccordancewiththetermsofsaidRuleandfurther,ifsaidRuleis notapplicable,anyre-sale of such Securitiesundercircumstances inwhich the seller(or the person throughwhom the sale ismade) maybe deemed tobean underwriter(as that term is definedinthe1933Act)mayrequire compliancewithsomeotherexemptionunderthe1933Act ortherulesandregulationsoftheSEC thereunder;and(iii)neither theCompanynorany other personisunderany obligationtoregister such Securitiesunder the 1933Act orany state securities lawsor tocomplywith thetermsandconditions ofanyexemption thereunder(ineachcase).Notwithstanding theforegoing oranythingelsecontained herein to thecontrary, the Securities maybe pledgedascollateral inconnectionwith abonafidemarginaccount or other lendingarrangement.
g. Legends.TheBuyerunderstands that theNoteand, until such timeastheConversionShareshavebeenregisteredunderthe1933Actmay besoldpursuanttoRule 144orRegulationSwithoutanyrestrictionastothenumberofsecuritiesasofaparticulardate thatcanthenbe immediately sold,the ConversionSharesmay bear arestrictive legendin substantiallythefollowingform(anda stop-transfer order maybe placedagainsttransfer of thecertificatesforsuch Securities):
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“NEITHERTHEISSUANCEANDSALEOFTHESECURITIESREPRESENTEDBYTHISCERTIFICATENORTHESECURITIES INTOWHICHTHESESECURITIESAREEXERCISABLEHAVEBEENREGISTEREDUNDERTHESECURITIESACTOF 1933,ASAMENDED,ORAPPLICABLE STATESECURITIESLAWS.THESECURITIES MAYNOTBEOFFEREDFORSALE,SOLD,TRANSFERREDORASSIGNED
(I)INTHEABSENCEOF(A)ANEFFECTIVEREGISTRATIONSTATEMENTFORTHESECURITIESUNDERTHE
SECURITIESACTOF1933,ASAMENDED,OR(B)ANOPINIONOFCOUNSEL(WHICHCOUNSELSHALLBESELECTEDBYTHEHOLDER),INAGENERALLYACCEPTABLEFORM,
THATREGISTRATIONISNOTREQUIREDUNDERSAIDACTOR(II)UNLESSSOLDPURSUANTTORULE144ORRULE
144AUNDERSAIDACT.NOTWITHSTANDINGTHEFOREGOING,THESECURITIESMAYBEPLEDGEDINCONNECTIONWITHABONAFIDEMARGINACCOUNTOR
OTHERLOANORFINANCINGARRANGEMENTSECUREDBYTHE SECURITIES.”
ThelegendsetforthaboveshallberemovedandtheCompanyshallissueacertificatewithoutsuchlegendtotheholderofanySecurityuponwhichitisstamped,if,unlessotherwiserequiredbyapplicable state securitieslaws,(a) suchSecurity isregisteredforsale underan effectiveregistration statementfiled under the 1933Act or otherwise maybe sold pursuantto Rule 144or RegulationSwithoutanyrestrictionastothe numberof securitiesasof a particular datethatcanthen beimmediatelysold,or(b)suchholder providestheCompanywithanopinion ofcounsel, inform, substanceand scopecustomaryfor opinions ofcounsel incomparable transactions,totheeffectthatapublicsaleortransferofsuchSecurity maybemadewithoutregistrationunderthe1933Act,whichopinionshallbeacceptedbytheCompanysothatthesale or transfer iseffected.The Buyeragrees tosellall Securities, including thoserepresentedby acertificate(s)fromwhichthelegend hasbeenremoved,incompliancewithapplicableprospectus deliveryrequirements,ifany.Intheevent thatthe Company doesnotaccept the opinionofcounselprovidedbythe BuyerwithrespecttothetransferofSecuritiespursuanttoanexemptionfromregistration, suchas Rule 144 or Regulation S,at theDeadline, itwill beconsideredanEvent of Default pursuant to Section 3.2 ofthe Note.
h. Authorization;Enforcement.ThisAgreementhasbeendulyand validlyauthorized.ThisAgreementhasbeendulyexecutedanddeliveredonbehalfoftheBuyer,andthisAgreementconstitutesavalidandbindingagreement oftheBuyerenforceableinaccordance with its terms.
i. Residency.TheBuyerisaresidentofthejurisdictionsetforth immediatelybelowtheBuyer’s nameon thesignaturepageshereto.
3. RepresentationsandWarrantiesoftheCompany.TheCompanyrepresentsandwarrantsto theBuyerthat:
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a. OrganizationandQualification.TheCompanyandeachofits Subsidiaries(asdefinedbelow),ifany,isacorporationdulyorganized,validlyexistingandingood standing under the laws of the jurisdiction inwhich it is incorporated,withfull powerandauthority(corporateand other)toown,lease,useandoperateitspropertiesandtocarryonits businessasandwhere now owned, leased, used, operatedandconducted. Schedule 3(a) setsforth a list ofall of the Subsidiaries of the Companyand the jurisdiction inwhicheach is incorporated.The Companyandeachof itsSubsidiariesisdulyqualifiedasaforeigncorporationtodobusinessandisingoodstandingineveryjurisdictioninwhichitsownershipor use of property or the nature of the businessconductedby it makes such qualification necessaryexceptwhere thefailure tobe soqualifiedor ingood standingwouldnot have a MaterialAdverseEffect.“MaterialAdverseEffect”meansanymaterialadverseeffectonthebusiness, operations,assets,financialcondition or prospects of the Company orits Subsidiaries, ifany, takenasawhole,oron thetransactionscontemplated herebyorbythe agreements orinstruments tobeenteredintoinconnectionherewith.“Subsidiaries”meansanycorporationorother organization,whetherincorporatedorunincorporated,inwhichtheCompanyowns,directlyor indirectly,anyequityorotherownership interest.
b. Authorization;Enforcement.(i)TheCompanyhasallrequisitecorporatepowerandauthoritytoenterintoandperformthisAgreement,theNoteandtoconsummatethetransactionscontemplatedherebyandtherebyandtoissuetheSecurities,inaccordancewith the terms hereofand thereof,(ii) theexecutionand delivery of thisAgreement, theNoteby the Companyand theconsummationby it of the transactionscontemplated herebyand thereby(includingwithout limitation, the issuance of theNoteand the issuanceandreservationfor issuance of the Conversion Shares issuable uponconversion orexercise thereof) havebeendulyauthorizedbythe Company’sBoard ofDirectorsand nofurtherconsentorauthorization of the Company, itsBoard ofDirectors, or its shareholders isrequired,(iii) thisAgreement hasbeen dulyexecutedand deliveredby the Companybyitsauthorized representative,and suchauthorizedrepresentative is the trueand officialrepresentativewithauthority to sign thisAgreementand the otherdocumentsexecuted inconnection herewithand bindtheCompanyaccordingly,and(iv)thisAgreementconstitutes,anduponexecutionand deliverybythe Companyof theNote,each of such instrumentswillconstitute, a legal, validand binding obligationoftheCompanyenforceableagainsttheCompanyinaccordancewithits terms.
c. Capitalization.Asofthedate hereof, theauthorizedcapitalstock oftheCompanyconsistsof:(i)1,000,000,000sharesofCommonStock,$0.001parvaluepershare,ofwhich313,978,750sharesareissuedandoutstanding;and(ii) 10,000,000sharesof Preferred Stock $0.001ofwhichnosharesare issuedoroutstanding; nosharesarereservedfor issuance pursuant to the Company’s stock option plans, no sharesarereservedfor issuance pursuanttosecurities(otherthan theNoteand apriorconvertible promissory noteinfavor of the Buyer datedDecember 26,2012intheamount of $32,500.00forwhich5,000,000sharesof CommonStockare presentlyreserved)exercisablefor,orconvertible intoorexchangeablefor sharesofCommonStockand 141,100,000 sharesarereservedforissuance uponconversion of theNote.All of suchoutstanding shares ofcapital stockare,or uponissuancewill be, dulyauthorized, validly issued,fully paidand non-assessable.No shares ofcapital stock of the Companyaresubjecttopreemptiverights oranyothersimilarrightsof theshareholders ofthe Company oranyliens orencumbrances imposed through theactions orfailure toact of the Company.As of theeffective date of thisAgreement,(i) thereareno outstanding options,warrants, scrip,rights to subscribefor, puts,calls,rights offirstrefusal,agreements, understandings,claims or othercommitments orrights ofanycharacterwhatsoeverrelating to, or securities orrightsconvertible into orexchangeableforany shares ofcapital stock of the Company oranyof its Subsidiaries, orarrangements bywhich the Companyorany of its Subsidiaries is or maybecome bound to issueadditional shares ofcapital stock of the Company or any ofits Subsidiaries,(ii)therearenoagreements or arrangements under which theCompany orany of its Subsidiaries is obligated toregisterthe sale ofanyof its or their securities under the 1933Actand(iii) thereare noanti-dilution or priceadjustment provisionscontained inany security issued by the Company(or inanyagreement providingrights to security holders) thatwill be triggered by the issuanceof theNoteor the Conversion Shares.The Company hasfurnished to the Buyer trueandcorrectcopiesof the Company’s Certificate of Incorporationas ineffect on thedate hereof(“Certificate of Incorporation”), the Company’s By-laws,as ineffecton the date hereof(the“By-laws”),and the terms ofall securitiesconvertible into orexercisablefor Common Stock of the Companyand the materialrights of the holders thereof inrespect thereto.The Company shall provide the Buyerwith awritten update of thisrepresentation signed by theCompany’s ChiefExecutive on behalfoftheCompanyas ofthe ClosingDate.
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d. IssuanceofShares.TheConversionSharesaredulyauthorizedandreservedforissuanceand,uponconversionoftheNoteinaccordancewithitsrespective terms,willbevalidlyissued,fullypaidandnon-assessable,andfreefromalltaxes,liens,claimsandencumbranceswithrespect to the issue thereofand shall not be subject to preemptiverights or other similarrightsof shareholdersof the Companyandwillnotimpose personalliability upon theholderthereof.
e. AcknowledgmentofDilution.TheCompanyunderstandsandacknowledgesthepotentiallydilutiveeffecttotheCommonStockupontheissuanceofthe ConversionSharesuponconversionoftheNote.The Companyfurtheracknowledgesthatits obligation to issue Conversion Shares uponconversion of theNote inaccordancewith thisAgreement,theNote isabsoluteandunconditionalregardless ofthe dilutiveeffect that such issuancemay haveon theownership interests ofothershareholders oftheCompany.
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f. NoConflicts.Theexecution, deliveryandperformance ofthisAgreement, the NotebytheCompanyand the consummationby theCompany ofthetransactionscontemplatedherebyandthereby(including,withoutlimitation,theissuanceandreservationfor issuance of the Conversion Shares)willnot(i)conflictwithorresultina violationofany provisionof the Certificate ofIncorporation or By-laws, or(ii) violate orconflictwith,orresult ina breach ofanyprovisionof,orconstitute a default(oraneventwhichwith notice or lapse of time or bothcouldbecome adefault) under,orgive toothersanyrightsoftermination,amendment,acceleration orcancellation of,anyagreement, indenture, patent, patent license or instrumenttowhich theCompany orany ofitsSubsidiariesisaparty, or(iii)result ina violation ofany law,rule,regulation, order, judgmentor decree(includingfederaland state securities lawsandregulationsandregulations ofanyself-regulatory organizations towhich the Companyor its securitiesare subject)applicable tothe Companyoranyofits Subsidiaries orbywhichanyproperty orasset of the Companyoranyof its Subsidiaries is bound oraffected(exceptfor suchconflicts, defaults, terminations,amendments,accelerations,cancellationsand violationsaswould not, individually or in theaggregate, have a MaterialAdverseEffect).NeithertheCompany norany ofitsSubsidiaries is inviolationofitsCertificate ofIncorporation, By-laws or otherorganizational documentsandneither the Company norany of its Subsidiaries is in default(and noevent has occurredwhichwith notice or lapse of time or bothcould put the Company orany of its Subsidiaries in default) under,and neither the Company norany of its Subsidiaries has takenanyactionorfailedtotakeanyactionthatwouldgive toothersanyrights of termination,amendment,acceleration orcancellation of,anyagreement, indenture or instrument towhich the Companyorany of its Subsidiaries is a party orbywhichany property orassets of the Company orany of its Subsidiaries is bound oraffected,exceptfor possible defaultsaswould not, individually or in theaggregate,have aMaterialAdverseEffect.The businesses ofthe Companyand its Subsidiaries, ifany,are notbeingconducted,and shall not beconducted so longas the Buyerownsany of the Securities, in violation ofanylaw,ordinanceorregulation ofanygovernmentalentity.Exceptas specificallycontemplatedby thisAgreementandasrequired under the 1933Actandanyapplicable state securities laws, the Company is notrequired to obtainanyconsent,authorization or order of, or makeanyfiling orregistrationwith,anycourt,governmentalagency,regulatoryagency, selfregulatory organization or stock market orany third party in orderfor it toexecute, deliver or performany of its obligations under thisAgreement, theNote inaccordancewith the terms hereof or thereofor to issueandsell theNote inaccordancewith the terms hereofand to issue the Conversion Shares uponconversion of theNote.Allconsents,authorizations, orders,filingsandregistrationswhich the Company isrequired to obtain pursuant to the precedingsentence have been obtained oreffected on or prior to the date hereof.The Company is not in violation of the listingrequirements of theOver-the- Counter Bulletin Board(the“OTCBB”)and does notreasonablyanticipate that the Common Stockwill be delistedby theOTCBB in theforeseeablefuture.The Companyand its Subsidiariesare unaware ofanyfacts orcircumstanceswhich mightgiverise toanyof theforegoing.
g. SECDocuments;FinancialStatements.TheCompanyhastimelyfiledallreports,schedules,forms,statementsandotherdocumentsrequiredtobefiledby itwith theSECpursuanttothereportingrequirementsoftheSecuritiesExchangeActof1934,asamended(the“1934Act”)(all of theforegoingfiled prior to the datehereofandallexhibits includedthereinandfinancialstatementsandschedulestheretoand documents(otherthanexhibits to such documents) incorporatedbyreference therein, beinghereinafterreferred to hereinas the“SECDocuments”).Uponwrittenrequest the Companywill deliver to theBuyertrueandcompletecopiesoftheSECDocuments,exceptforsuchexhibitsandincorporated documents.As oftheirrespective dates, theSECDocumentscomplied inallmaterialrespectswith therequirements of the 1934Actand therulesandregulations ofthe SEC promulgated thereunderapplicable to the SECDocuments,and none of the SECDocuments,at the time theywerefiledwith the SEC,containedany untrue statement of a materialfact or omitted to state a materialfactrequiredtobe statedthereinornecessary inordertomake the statements therein,in light of thecircumstances underwhich theywere made, not misleading.None of the statements made inany such SECDocuments is, or has been,required to beamended or updated underapplicablelaw(exceptforsuchstatementsashavebeenamendedorupdatedinsubsequentfilings prior the datehereof).As of theirrespective dates, thefinancial statements of the Companyincluded in the SECDocumentscompliedas toform inallmaterialrespectswithapplicableaccountingrequirementsandthe publishedrulesandregulationsof the SECwith
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respectthereto.SuchfinancialstatementshavebeenpreparedinaccordancewithUnitedStatesgenerallyacceptedaccountingprinciples,consistentlyapplied,duringtheperiodsinvolvedandfairlypresentinallmaterialrespectstheconsolidatedfinancialpositionoftheCompanyanditsconsolidatedSubsidiariesasofthedatesthereofandtheconsolidatedresultsoftheiroperationsandcashflowsfortheperiodsthenended(subject,inthecaseofunaudited statements,tonormal year-endauditadjustments).Exceptas setforth in thefinancial statements of the Company included in theSECDocuments, theCompanyhas no liabilities,contingent orotherwise, other than(i) liabilitiesincurredinthe ordinarycourse of businesssubsequenttoSeptember 30,2012,and(ii) obligations undercontractsandcommitmentsincurred in the ordinarycourse of businessandnotrequiredunder generallyacceptedaccounting principlestobereflectedinsuchfinancial statements,which,individually or intheaggregate,are notmaterialtothefinancialcondition or operatingresultsofthe Company.TheCompanyissubjecttothereportingrequirementsofthe 1934Act.
h. AbsenceofCertainChanges.SinceSeptember30,2012,therehas beennomaterialadversechangeandnomaterialadversedevelopmentintheassets,liabilities, business,properties,operations,financialcondition,resultsofoperations,prospects or1934Actreportingstatus oftheCompanyoranyofits Subsidiaries.
i. AbsenceofLitigation.Thereisnoaction,suit,claim,proceeding, inquiry orinvestigationbeforeor byanycourt,publicboard,governmentagency,self-regulatory organizationorbodypendingor,totheknowledgeoftheCompanyorany ofitsSubsidiaries, threatenedagainst oraffecting the Company orany of its Subsidiaries, or theirofficers or directors in theircapacityas such, thatcouldhave a MaterialAdverseEffect. Schedule3(i)contains acomplete listand summarydescription ofanypending or, to the knowledge of the Company, threatenedproceedingagainst oraffecting the Companyoranyof its Subsidiaries,withoutregard towhether itwould have a MaterialAdverseEffect.The Companyand its Subsidiariesare unaware ofanyfacts orcircumstanceswhich mightgiverise toanyof theforegoing.
j. Patents,Copyrights,etc.TheCompanyandeachofits Subsidiariesownsorpossessestherequisitelicensesorrightstouseallpatents,patentapplications,patentrights,inventions,know-how,tradesecrets,trademarks,trademarkapplications,servicemarks,servicenames,tradenamesandcopyrights(“IntellectualProperty”)necessarytoenable it toconduct its businessas now operated(and,as presentlycontemplated to beoperatedinthefuture);thereisnoclaimoractionbyany personpertaining to,orproceeding pending, or to the Company’s knowledge threatened,whichchallenges theright of the Company or of a Subsidiarywithrespect toanyIntellectual Propertynecessarytoenable it toconduct its businessas now operated(and,as presentlycontemplated to be operated in thefuture); to the best of the Company’s knowledge, the Company’sor its Subsidiaries’currentand intended products,servicesandprocessesdonotinfringeonanyIntellectualProperty orotherrightsheldbyanyperson;and the Companyis unaware ofanyfacts orcircumstanceswhich mightgiverise toany of theforegoing.The Companyandeach of its Subsidiaries have takenreasonable securitymeasures to protect thesecrecy,confidentialityand valueoftheirIntellectual Property.
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k. NoMateriallyAdverseContracts,Etc.NeithertheCompanynoranyofitsSubsidiariesissubjecttoanycharter,corporateorotherlegalrestriction,orany judgment, decree,order,rule orregulationwhich in the judgment of the Company’sofficers has or isexpected in thefuture to have a MaterialAdverseEffect.Neither the Companynorany of its Subsidiaries is a party toanycontract oragreementwhich in the judgment of the Company’s officershas orisexpected to haveaMaterialAdverse Effect.
l. TaxStatus.TheCompanyandeachofits Subsidiaries hasmadeorfiledallfederal,stateandforeignincomeandallothertaxreturns,reportsanddeclarationsrequiredbyanyjurisdiction towhich it is subject(unlessand onlyto theextent that theCompanyandeachofitsSubsidiarieshassetasideonits booksprovisionsreasonablyadequateforthe paymentofallunpaidandunreportedtaxes)andhaspaidalltaxesandothergovernmentalassessmentsandchargesthatare material inamount, shown or determined to be due on suchreturns,reportsand declarations,except those beingcontested ingoodfaithand has setaside on its books provisionsreasonablyadequatefor the payment ofall taxesfor periods subsequent to theperiods towhichsuchreturns,reports ordeclarationsapply.Thereareno unpaid taxes inany materialamountclaimed to be dueby the taxingauthorityofanyjurisdiction,and the officers of the Company know ofno basisforany suchclaim.The Company hasnotexecuted awaiver withrespect to the statute of limitationsrelatingto theassessmentorcollection ofanyforeign,federal, state or local tax.None of the Company’s taxreturns is presently beingauditedbyany taxingauthority.
m. CertainTransactions.Exceptforarm’slengthtransactions pursuanttowhichtheCompanyoranyofitsSubsidiariesmakespaymentsintheordinarycourse ofbusinessupontermsnolessfavorablethantheCompanyoranyof itsSubsidiariescould obtainfrom third partiesand other than the grant of stock options disclosed on Schedule 3(c), noneofthe officers,directors,oremployeesoftheCompany ispresentlyapartytoany transactionwith the Companyoranyof its Subsidiaries(other thanfor servicesasemployees, officersand directors), includinganycontract,agreement or otherarrangement providingfor thefurnishing of services to orby, providingforrental ofreal or personal property to orfrom, or otherwiserequiringpayments to orfromany officer, directororsuchemployeeor, to the knowledge of the Company,anycorporation,partnership, trustor otherentityinwhichany officer, director,oranysuchemployeehas a substantial interest or isan officer, director, trustee orpartner.
n. Disclosure.All informationrelatingtoor concerning theCompany orany ofitsSubsidiaries setforth inthisAgreementandprovided totheBuyer pursuantto Section2(d)hereofandotherwise inconnectionwiththetransactionscontemplatedhereby is trueandcorrect inall materialrespectsand the Company has not omitted to stateany materialfact necessary in order to make the statements made herein or therein, in light of thecircumstances underwhich theywere made, not misleading.Noevent orcircumstance hasoccurred orexistswithrespect to the Companyorany of its Subsidiaries or its or their business, properties, prospects, operationsorfinancialconditions,which,underapplicable law,ruleorregulation,requires public disclosureorannouncementby the Companybutwhich has notbeen so publiclyannouncedor disclosed(assumingfor this purpose that theCompany’sreportsfiled under the 1934Actare being incorporated intoaneffectiveregistration statementfiledby the Company underthe1933Act).
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o. AcknowledgmentRegardingBuyer’PurchaseofSecurities.The CompanyacknowledgesandagreesthattheBuyerisacting solelyinthe capacityof arm’slength purchaserswithrespecttothisAgreementandthetransactionscontemplatedhereby.The CompanyfurtheracknowledgesthattheBuyerisnotactingasafinancialadvisororfiduciary of the Company(or inany similarcapacity)withrespect to thisAgreementand the transactionscontemplated herebyandany statement madeby theBuyer orany of itsrespectiverepresentatives oragents inconnectionwith thisAgreementand the transactionscontemplated herebyisnotadviceorarecommendationandismerelyincidentaltotheBuyer’purchase ofthe Securities.The Companyfurtherrepresents to theBuyer that the Company’s decision toenter intothisAgreementhasbeenbasedsolely ontheindependentevaluationofthe Companyanditsrepresentatives.
p. NoIntegratedOffering.NeithertheCompany,noranyofitsaffiliates,noranypersonactingonitsortheirbehalf,hasdirectlyorindirectlymadeanyoffers orsales inany securityorsolicitedany offers tobuyanysecurity under circumstances thatwouldrequireregistration under the 1933Act of the issuance of the Securities to the Buyer.The issuance of the Securities to the Buyerwill not be integratedwithany other issuance of the Company’s securities(past,currentorfuture)for purposes ofany shareholderapproval provisionsapplicableto theCompanyorits securities.
q. NoBrokers.TheCompanyhastakennoactionwhichwouldgiverisetoanyclaimbyanypersonforbrokeragecommissions,transactionfeesorsimilarpaymentsrelatingto thisAgreement orthetransactionscontemplated hereby.
r. Permits; Compliance.TheCompanyandeach ofits Subsidiaries is inpossessionofallfranchises,grants,authorizations,licenses,permits,easements,variances,exemptions,consents,certificates,approvalsandordersnecessary toown,leaseandoperateits propertiesandtocarryonitsbusinessasit isnow beingconducted(collectively,the“Company Permits”),and there is noaction pending or,to the knowledgeof the Company, threatenedregarding suspensionorcancellationofanyof the CompanyPermits.Neither the Companynoranyofits Subsidiaries is inconflictwith,orindefault orviolationof,any ofthe Company Permits,exceptforany suchconflicts,defaults orviolationswhich,individually orintheaggregate,wouldnotreasonablybeexpectedtohaveaMaterialAdverseEffect.SinceSeptember30, 2012,neitherthe Company noranyofitsSubsidiarieshasreceivedany notificationwithrespectto possible conflicts, defaults orviolations of applicablelaws,exceptfor noticesrelating topossibleconflicts,defaultsorviolations,whichconflicts, defaultsorviolationswould not haveaMaterialAdverse Effect.
s. Environmental Matters.
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(i) Thereare, totheCompany’s knowledge,withrespect to theCompany oranyofitsSubsidiariesorany predecessor oftheCompany, nopastorpresent violationsofEnvironmentalLaws(asdefined below),releasesofanymaterialinto theenvironment,actions,activities,circumstances,conditions,events, incidents, orcontractual obligationswhich may give risetoanycommon law environmental liabilityor anyliabilityunder the ComprehensiveEnvironmental Response,Compensationand LiabilityAct of1980orsimilarfederal, state, local orforeignlawsand neither the Company norany of its Subsidiaries hasreceivedany noticewithrespect toany of theforegoing, nor isanyaction pending or, to the Company’s knowledge, threatened inconnectionwithany of theforegoing.The term“EnvironmentalLaws” meansallfederal, state, local orforeign lawsrelating to pollution or protectionofhuman healthortheenvironment(including,without limitation,ambientair, surfacewater,groundwater, landsurface orsubsurface strata), including,withoutlimitation,lawsrelating toemissions, discharges,releases or threatenedreleases ofchemicals, pollutantscontaminants, or toxic or hazardous substancesorwastes(collectively,“Hazardous Materials”) into theenvironment, or otherwiserelating to the manufacture, processing, distribution, use, treatment, storage, disposal,transport orhandlingofHazardousMaterials,aswellasallauthorizations,codes,decrees,demands ordemand letters, injunctions, judgments, licenses, notices or notice letters, orders, permits, plans orregulations issued,entered, promulgated orapproved thereunder.
(ii) Otherthanthosethatareorwerestored,usedordisposed ofincompliancewithapplicablelaw,noHazardousMaterialsarecontainedonoraboutanyreal propertycurrentlyowned,leasedorusedbytheCompanyoranyofitsSubsidiaries,andnoHazardousMaterialswerereleasedonoraboutanyrealproperty previously owned,leasedor used by theCompany oranyofitsSubsidiariesduring theperiodthepropertywasowned,leased orusedby theCompany or anyofits Subsidiaries,except in thenormalcourseoftheCompany’s or any ofits Subsidiaries’business.
(iii) Therearenoundergroundstoragetanksonorunderanyrealpropertyowned,leasedorusedbytheCompanyoranyofitsSubsidiariesthatarenotincompliance withapplicablelaw.
t. TitletoProperty.TheCompanyanditsSubsidiarieshavegoodandmarketabletitleinfeesimpletoallrealpropertyandgoodandmarketable titletoall personal property ownedby themwhich is material to the business of the Companyand its Subsidiaries,ineachcasefreeandclear ofallliens,encumbrancesanddefectsexceptsuchasare described in Schedule3(t) or suchaswould not have a MaterialAdverseEffect.Any real propertyand facilitiesheld under lease by the Companyand its Subsidiariesareheld by themunder valid, subsistingandenforceable leaseswith suchexceptionsaswould nothave a MaterialAdverseEffect.
u. Insurance.TheCompanyandeach ofitsSubsidiariesareinsuredby insurers ofrecognizedfinancialresponsibilityagainst suchlossesandrisksandinsuchamountsasmanagement of the Companybelieves to be prudentandcustomary in the businesses inwhich the Companyand its Subsidiariesareengaged.Neither the Company norany such Subsidiary hasanyreason to believe that itwill not beable torenew itsexisting insurancecoverageasandwhen suchcoverageexpires orto obtain similarcoveragefrom similar insurersas maybe necessary tocontinue its businessat acost thatwould not have a MaterialAdverseEffect.Uponwrittenrequest the Companywill provide to theBuyertrueandcorrectcopies ofall policiesrelating todirectors’andofficers’ liabilitycoverage,errorsandomissionscoverage,andcommercial general liabilitycoverage.
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v. InternalAccountingControls.TheCompanyandeachofits Subsidiariesmaintainasystemofinternalaccountingcontrolssufficient,inthejudgmentofthe Company’sboardofdirectors,toprovidereasonableassurancethat(i)transactionsareexecuted inaccordancewithmanagement’sgeneralorspecificauthorizations,(ii)transactionsarerecordedasnecessary topermitpreparationoffinancialstatementsinconformitywithgenerallyacceptedaccounting principlesand to maintainassetaccountability,(iii)access toassets is permitted only inaccordancewith management’sgeneral orspecificauthorizationand(iv) therecordedaccountabilityforassetsiscomparedwiththeexistingassetsatreasonable intervalsandappropriateaction is takenwithrespect toanydifferences.
w. ForeignCorruptPractices.NeithertheCompany,noranyofits Subsidiaries,noranydirector,officer,agent,employeeor other personactingon behalfof the Companyorany Subsidiaryhas, in thecourse of hisactionsfor, or on behalf of, the Company, usedanycorporatefundsforanyunlawfulcontribution,gift,entertainmentorotherunlawfulexpensesrelating to politicalactivity; madeany direct or indirect unlawful payment toanyforeign or domesticgovernment official oremployeefromcorporatefunds; violated or is in violationofany provisionof theU.S.Foreign CorruptPracticesActof 1977,asamended,or madeany bribe,rebate,payoff,influence payment,kickbackor other unlawful payment toanyforeign ordomesticgovernment official oremployee.
x. Solvency.TheCompany(aftergivingeffecttothetransactionscontemplatedbythisAgreement) issolvent(i.e.,itsassetshave afair marketvalue inexcessof theamountrequired topayitsprobable liabilities on itsexistingdebtsas theybecomeabsoluteand matured)andcurrently the Companyhas no information thatwould lead it toreasonablyconclude thatthe Companywouldnot,aftergivingeffecttothe transactioncontemplatedbythisAgreement,have theabilityto, nor does it intend to takeanyaction thatwould impair itsability to, payits debtsfrom time to time incurred inconnection therewithas such debts mature.The Company did notreceive a qualified opinionfrom itsauditorswithrespect to its mostrecentfiscalyearendand,aftergivingeffecttothe transactionscontemplatedby thisAgreement,does notanticipate or know ofanybasis uponwhich itsauditors might issue a qualified opinion inrespect ofitscurrentfiscalyear.
y. NoInvestmentCompany.TheCompanyisnot,anduponthe issuanceandsaleoftheSecuritiesascontemplated by thisAgreementwillnotbean“investmentcompany”requiredtoberegisteredunderthe InvestmentCompanyActof 1940(an“Investment Company”).TheCompanyis notcontrolledbyanInvestment Company.
z. BreachofRepresentationsandWarrantiesbytheCompany.Ifthe CompanybreachesanyoftherepresentationsorwarrantiessetforthinthisSection3,andinaddition toany otherremediesavailable to theBuyer pursuant to thisAgreement, itwill beconsideredanEvent ofdefault underSection 3.4 ofthe Note.
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4. | COVENANTS. |
a. BestEfforts.Thepartiesshallusetheirbesteffortstosatisfy timelyeach oftheconditions described in Section6and 7 ofthisAgreement.
b. FormD;BlueSkyLaws.TheCompanyagreestofileaFormDwithrespecttotheSecuritiesasrequiredunderRegulationDandtoprovideacopythereoftotheBuyerpromptlyaftersuchfiling.TheCompany shall, on orbefore the ClosingDate,take suchactionas theCompanyshallreasonablydetermineis necessary to qualify theSecuritiesforsale to theBuyerat theapplicableclosing pursuant tothisAgreement underapplicable securities or“blue sky” lawsofthe statesoftheUnited States(or toobtainanexemptionfromsuch qualification),and shall provideevidence ofanysuchaction so taken to theBuyer on orprior to theClosingDate.
c. UseofProceeds.TheCompanyshallusetheproceedsforgeneral workingcapital practices.
d. RightofFirstRefusal.UnlessitshallhavefirstdeliveredtotheBuyer,atleastseventytwo(72)hourspriortotheclosingofsuchFutureOffering(asdefined herein),writtennotice describingtheproposedFutureOffering, includingthetermsandconditionsthereofand proposeddefinitive documentationtobeenteredintoinconnection therewith,and providing theBuyeran option during the seventytwo(72) hour periodfollowing deliveryof such notice to purchase thesecurities being offered in the FutureOffering on the same termsascontemplatedby suchFuture Offering(the limitationsreferred to in this sentenceand the preceding sentencearecollectivelyreferred toas the“Right ofFirst Refusal”) (and subject to theexceptions described below), the Companywill notconductanyequityfinancing(including debtwithanequitycomponent)(“FutureOfferings”) during the period beginning on theClosingDateandendingtwelve(12)monthsfollowing theClosingDate. Intheeventthe termsandconditions of a proposedFuture Offering areamended inanyrespect after deliveryof the notice totheBuyerconcerningtheproposedFuture Offering,the Companyshalldeliver a new notice to theBuyer describingtheamended termsandconditions of the proposedFutureOfferingandtheBuyerthereafter shallhaveanoptionduring the seventy two(72) hour periodfollowingdelivery ofsuch new notice to purchase its prorata share of the securities being offered on the same termsascontemplatedbysuch proposedFutureOffering,asamended.Theforegoing sentence shallapply to successiveamendments to the terms andconditions ofany proposedFutureOffering.The Right ofFirst Refusal shall notapplytoany transaction involving(i) issuances of securities in afirmcommitment underwritten public offering(excludingacontinuousofferingpursuant toRule 415underthe 1933Act) or(ii) issuancesof securitiesasconsiderationfor a merger,consolidation or purchase ofassets, or inconnectionwithany strategic partnership or joint venture (the primary purposeofwhich is not toraiseequitycapital), or inconnectionwith the disposition oracquisition of a business, product or licenseby the Company.The Right ofFirst Refusalalso shall notapply to the issuance of securitiesuponexercise orconversionof the Company’soptions,warrantsor otherconvertible securitiesoutstandingasof the date hereof or tothegrant ofadditionaloptionsorwarrants,or theissuance ofadditionalsecurities,underanyCompanystock optionorrestrictedstock planapprovedbytheshareholders oftheCompany.
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e. Expenses.AttheClosing,theCompanyshallreimburseBuyerforexpensesincurredbytheminconnectionwiththenegotiation,preparation,execution,deliveryandperformanceofthisAgreementandtheotheragreements tobeexecutedinconnection herewith(“Documents”), including,without limitation,reasonableattorneys’andconsultants’feesandexpenses, transferagentfees,feesfor stock quotation services,feesrelating toanyamendmentsor modificationsof theDocuments oranyconsentsorwaiversof provisionsintheDocuments,feesforthe preparation of opinions ofcounsel,escrowfees,andcosts ofrestructuring the transactionscontemplatedbytheDocuments.When possible, the Company mustpay thesefeesdirectly,otherwise the Company mustmake immediate paymentforreimbursement to the Buyerforallfeesandexpenses immediately uponwritten noticeby theBuyer or the submission ofan invoiceby theBuyer.The Company’s obligationwithrespect to this transaction is toreimburseBuyer’expenses shall be$2,500.
f. FinancialInformation.UponwrittenrequesttheCompanyagrees tosendormakeavailablethefollowingreportstotheBuyeruntiltheBuyertransfers,assigns,or sellsall of the Securities:(i) within ten(10) daysafter thefilingwith the SEC, acopy of itsAnnualReportonForm10-K itsQuarterlyReportsonForm10-QandanyCurrentReportsonForm8-K;(ii) withinone(1)dayafterrelease,copiesofallpressreleasesissuedby the Companyoranyof its Subsidiaries;and(iii) contemporaneouslywith the makingavailable or giving to the shareholders of the Company,copies ofany notices or other information the Companymakesavailableorgives to such shareholders.
g. | [INTENTIONALLYDELETED] |
h. Listing.TheCompanyshallpromptlysecurethelistingofthe Conversion Shares uponeachnational securitiesexchangeor automated quotationsystem, if any, uponwhichsharesofCommonStockarethenlisted(subjecttoofficialnoticeofissuance)and, solongastheBuyer ownsany of the Securities, shall maintain,solongasany other sharesof CommonStock shallbe so listed, suchlisting ofall Conversion Sharesfrom time to time issuable uponconversion oftheNote.The Companywill obtainand,so longas theBuyer ownsanyof the Securities,maintain the listingand tradingof its Common Stock on theOTCBB oranyequivalentreplacementexchange, theNasdaqNational Market(“Nasdaq”), theNasdaqSmallCapMarket(“NasdaqSmallCap”),theNewYorkStockExchange (“NYSE”),ortheAmerican StockExchange(“AMEX”)andwillcomplyinallrespectswith the Company’sreporting,filingandotherobligations underthebylaws orrulesof theFinancial Industry RegulatoryAuthority(“FINRA”)and suchexchanges,asapplicable.The Companyshall promptlyprovidetotheBuyercopiesofany noticesitreceivesfromtheOTCBBandany otherexchanges orquotationsystems onwhichthe CommonStockis thenlistedregardingthecontinuedeligibilityoftheCommon Stockforlistingon suchexchangesand quotationsystems.
i. CorporateExistence. Solongas theBuyer beneficiallyownsanyNote, theCompany shallmaintain itscorporateexistenceandshall notsellall orsubstantiallyall of the Company’sassets,except in theevent of a merger orconsolidation or sale ofall or substantiallyalloftheCompany’sassets,where thesurvivingorsuccessorentity insuch transaction(i)assumes the Company’s obligations hereunderand under theagreementsand instrumentsentered into inconnection herewithand(ii) is a publicly tradedcorporationwhose Common Stockis listedfor trading on theOTCBB,Nasdaq,Nasdaq SmallCap,NYSE orAMEX.
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j. NoIntegration.TheCompanyshallnotmakeanyoffersorsales ofanysecurity(otherthantheSecurities)undercircumstancesthatwouldrequireregistrationof the Securitiesbeingofferedor soldhereunder under the 1933Act orcause the offeringof the Securities to be integratedwithanyotheroffering ofsecuritiesbytheCompanyfor thepurpose of any stockholderapproval provisionapplicableto theCompany orits securities.
k. BreachofCovenants.IftheCompanybreachesanyofthecovenantssetforthinthisSection4,andinadditiontoanyotherremediesavailabletotheBuyer pursuantto thisAgreement, itwillbeconsideredanevent ofdefaultunder Section 3.4of theNote.
l. FailuretoComplywiththe1934Act. SolongastheBuyerbeneficiallyownstheNote,theCompanyshallcomplywiththereportingrequirementsofthe 1934Act;the Company shallcontinue tobe subjecttothereportingrequirementsof the 1934Actand theCompanywillcontinuetofileitsquarterlyandannualreports onform 10-QandForm 10-K.
m. TradingActivities.NeithertheBuyernoritsaffiliateshasanopenshort position in the common stock oftheCompanyand theBuyeragreethat it shall not,and that itwillcauseitsaffiliatesnotto,engageinanyshortsalesoforhedging transactionswithrespectto the common stock oftheCompany.
5. TransferAgentInstructions.TheCompanyshallissueirrevocable instructionstoitstransferagenttoissuecertificates,registeredinthenameoftheBuyerorits nominee,fortheConversionShares insuchamountsas specifiedfrom timetotimebytheBuyer to the Company uponconversion of theNote inaccordancewith the terms thereof(the“IrrevocableTransferAgentInstructions”).IntheeventthattheBorrowerproposestoreplaceits transferagent, theBorrower shall provide, prior to theeffective dateof suchreplacement, afullyexecutedIrrevocableTransferAgentInstructionsinaformasinitially deliveredpursuantto the PurchaseAgreement(including but not limited to the provision to irrevocablyreserve shares of Common Stock in the ReservedAmount) signedby the successor transferagent toBorrowerand theBorrower. Prior toregistration of the Conversion Shares under the 1933Act or the date onwhich the Conversion Shares may be sold pursuant to Rule 144withoutanyrestrictionas to the number of Securitiesas of a particular date thatcan then be immediatelysold,allsuch certificates shall bear therestrictive legend specified in Section 2(g) ofthisAgreement.The Companywarrants that:(i) no instruction otherthan theIrrevocableTransferAgentInstructionsreferredtointhis Section5,andstoptransferinstructions togiveeffect toSection2(f)hereof(in thecase of the Conversion Shares, prior toregistration of the Conversion Shares under the 1933Act or the date onwhich the Conversion Shares maybe sold pursuant to Rule 144withoutanyrestrictionas to the number of Securitiesas of a particular date thatcan then be immediately sold),will begivenbythe Company to its transferagentand that the Securities shall otherwise befreelytransferable on the booksandrecords of the Companyasand totheextent provided in
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thisAgreementandtheNote;(ii)itwillnotdirectitstransferagentnottotransferordelay, impair,and/orhinderitstransferagentintransferring(orissuing)(electronically orincertificatedform)anycertificateforConversion Shares to beissued to theBuyeruponconversion ofor otherwisepursuant to theNoteasandwhenrequiredby theNoteand thisAgreement;and(iii)itwill notfail toremove(ordirects its transferagent not toremoveorimpairs, delays,and/or hindersitstransferagentfromremoving)anyrestrictive legend(ortowithdrawany stoptransfer instructions inrespect thereof) onanycertificateforany Conversion Shares issued to the Buyer uponconversion of orotherwise pursuant to theNoteasandwhenrequiredbytheNoteand thisAgreement.Nothing in this Section shallaffect inanyway the Buyer’s obligationsandagreement setforth in Section 2(g)hereof tocomplywithallapplicable prospectus deliveryrequirements, ifany, uponre-sale of the Securities. If the Buyerprovides the Company,at thecost of the Buyer,with(i)an opinion ofcounsel inform, substanceandscopecustomaryfor opinions incomparable transactions, to theeffect that a public sale or transfer of such Securities maybe madewithoutregistration under the 1933Actand such saleor transfer iseffected or(ii) the Buyerprovidesreasonableassurances thatthe Securitiescan be sold pursuant to Rule 144, the Company shall permit the transfer,and, in thecaseof the Conversion Shares, promptly instruct its transferagent to issue one or morecertificates,freefromrestrictive legend, in suchnameand in such denominationsas specifiedbythe Buyer.The Companyacknowledges that a breachbyitofitsobligationshereunderwillcauseirreparableharmtotheBuyer,byvitiating the intentand purposeof the transactionscontemplated hereby.Accordingly, the Companyacknowledges that theremedyat lawfor a breach of its obligations under this Section 5 maybe inadequateandagrees, in theevent ofabreachorthreatened breach bytheCompanyofthe provisions of this Section, that the Buyer shall beentitled, inaddition toall otheravailableremedies, toan injunctionrestrainingany breachandrequiring immediate transfer,without the necessityofshowingeconomiclossandwithoutanybond orothersecuritybeingrequired.
6. ConditionstotheCompany’sObligationtoSell.Theobligationofthe CompanyhereundertoissueandselltheNotetotheBuyerattheClosing issubjecttothe satisfaction,at or before the ClosingDate ofeach ofthefollowingconditions thereto,provided that theseconditionsarefor the Company’s sole benefitand may bewaivedby the Companyatanytimein its solediscretion:
sameto theCompany.
a. | TheBuyershallhaveexecutedthisAgreementanddeliveredthe |
b. TheBuyershallhavedeliveredthePurchasePriceinaccordancewith Section 1(b) above.
c. TherepresentationsandwarrantiesoftheBuyershallbetrueandcorrectinallmaterialrespectsasofthedatewhenmadeandasoftheClosingDateasthough madeatthattime(exceptforrepresentationsandwarrantiesthatspeakas of aspecific date),and theBuyer shall haveperformed,satisfiedandcomplied inall materialrespectswith thecovenants,agreementsandconditionsrequiredbythisAgreementtobeperformed,satisfiedorcompliedwithbytheBuyerat orpriorto theClosingDate.
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d. Nolitigation,statute,rule,regulation,executiveorder,decree,rulingorinjunctionshallhavebeenenacted,entered,promulgatedorendorsedbyorinanycourt orgovernmentalauthorityofcompetent jurisdictionoranyself-regulatoryorganizationhavingauthorityoverthematterscontemplated herebywhich prohibits theconsummation ofanyofthe transactionscontemplatedby thisAgreement.
7. ConditionstoTheBuyer’sObligationtoPurchase.TheobligationoftheBuyerhereundertopurchasetheNoteattheClosing issubjecttothesatisfaction,atorbeforethe ClosingDateofeachofthefollowingconditions,providedthat theseconditionsarefortheBuyer’s solebenefitandmaybe waivedbytheBuyeratanytimein its solediscretion:
a. TheCompany shallhave executed thisAgreementanddelivered the same to the Buyer.
b. TheCompanyshallhavedeliveredtotheBuyerthedulyexecuted Note (in such denominationsas theBuyershallrequest)inaccordance with Section 1(b) above.
c. TheIrrevocableTransfer AgentInstructions, informand substance satisfactoryto amajority-in-interest oftheBuyer,shall havebeen deliveredtoandacknowledged inwritingbytheCompany’sTransferAgent.
d. TherepresentationsandwarrantiesoftheCompanyshallbetrueandcorrectinallmaterialrespectsasofthedatewhenmadeandasoftheClosingDateasthoughmadeatsuchtime(exceptforrepresentationsandwarrantiesthatspeakasof a specific date)andthe Companyshallhave performed, satisfiedandcompliedinall materialrespectswith thecovenants,agreementsandconditionsrequiredby thisAgreement to be performed, satisfied orcompliedwith bythe Companyatorpriorto theClosingDate.The Buyer shallhave receivedacertificate orcertificates,executedby thechiefexecutive officer of the Company, datedas of theClosingDate,totheforegoingeffectandastosuchothermattersasmaybereasonablyrequested by the Buyer including, but not limited tocertificateswithrespect to the Company’s Certificate ofIncorporation, By-lawsandBoard ofDirectors’resolutionsrelating to the transactionscontemplated hereby.
e. Nolitigation,statute,rule,regulation,executiveorder,decree,rulingorinjunctionshallhavebeenenacted,entered,promulgatedorendorsedbyorinanycourt orgovernmentalauthorityofcompetent jurisdictionoranyself-regulatoryorganizationhavingauthorityoverthematterscontemplated herebywhich prohibits theconsummation ofanyofthe transactionscontemplatedby thisAgreement.
f. Noeventshallhaveoccurredwhichcouldreasonablybeexpected tohaveaMaterialAdverseEffectontheCompanyincludingbutnotlimitedtoachangeinthe 1934ActreportingstatusoftheCompanyorthefailureoftheCompanytobetimelyinits1934Actreportingobligations.
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g. TheConversion Shares shall havebeenauthorizedforquotation on theOTCBBandtrading intheCommonStockontheOTCBBshallnothavebeen suspendedby theSEC orthe OTCBB.
h. TheBuyer shallhavereceivedanofficer’scertificate described in Section 3(c) above, datedas oftheClosingDate.
8. | GoverningLaw; Miscellaneous. |
a. GoverningLaw.ThisAgreementshallbegovernedbyandconstruedinaccordancewiththelawsoftheStateofNewYorkwithoutregardtoprinciplesofconflictsoflaws.Anyactionbroughtbyeitherpartyagainst theotherconcerning the transactionscontemplatedbythisAgreementshallbebroughtonly in thestatecourtsofNewYork or in thefederalcourts located in the stateandcounty ofNassau.The parties to thisAgreement hereby irrevocablywaiveany objection to jurisdictionand venue ofanyaction instituted hereunderand shallnotassertany defensebased on lack of jurisdiction or venueor baseduponforumnonconveniens.The CompanyandBuyerwaive trialbyjury.The prevailing partyshall beentitled torecoverfrom the other partyitsreasonableattorney'sfeesandcosts.In theevent thatanyprovisionofthisAgreement oranyotheragreementdeliveredinconnection herewith is invalid orunenforceable underanyapplicable statute orrule of law, then such provisionshallbedeemedinoperative totheextentthatitmayconflicttherewithandshallbe deemedmodified toconformwithsuchstatuteorruleoflaw.Anysuch provisionwhichmay proveinvalidorunenforceableunderanylawshallnotaffectthevalidityorenforceabilityofany other provision ofanyagreement.Each party herebyirrevocablywaives personal serviceof processandconsentsto processbeingservedinany suit,actionorproceeding inconnectionwith thisAgreement oranyotherTransactionDocumentbymailingacopythereof viaregistered orcertified mailor overnight delivery(withevidence of delivery) tosuch partyattheaddressineffectfor notices to itunder thisAgreementandagrees that suchservice shallconstitutegoodand sufficientserviceofprocessandnoticethereof.Nothingcontainedherein shall bedeemed to limit inanywayanyright to serveprocess inanyothermannerpermittedbylaw.
b. Counterparts;SignaturesbyFacsimile.ThisAgreementmaybeexecutedinoneormorecounterparts,each ofwhichshallbedeemedanoriginalbutallofwhich shallconstituteoneandthesameagreementand shall becomeeffectivewhencounterparts have been signedbyeach partyanddelivered to the other party.ThisAgreement, onceexecutedbya party,maybe delivered totheother partyheretobyfacsimile transmissionof acopy of thisAgreementbearingthesignature oftheparty so deliveringthisAgreement.
c. Headings.TheheadingsofthisAgreementareforconvenienceofreferenceonlyand shallnotform part of, oraffecttheinterpretation of, thisAgreement.
d. Severability.Intheeventthatany provisionofthisAgreement is invalidorunenforceable underanyapplicablestatuteorruleoflaw, thensuch provisionshall be deemedinoperativetotheextent thatitmayconflict therewithandshallbe deemed modified toconformwith such statute orrule of law.Any provision hereofwhich may prove invalid or unenforceable underany lawshall notaffect thevalidity orenforceability ofany otherprovision hereof.
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e. EntireAgreement;Amendments.ThisAgreementandthe instrumentsreferencedhereincontaintheentireunderstandingofthepartieswithrespecttothe matterscoveredhereinandthereinand,exceptasspecificallysetforthhereinortherein,neither the Company nor the Buyer makesanyrepresentation,warranty,covenant or undertakingwithrespecttosuchmatters.Noprovisionof thisAgreementmay bewaivedoramendedotherthanbyan instrument inwritingsignedby themajority in interest oftheBuyer.
f. Notices.Allnotices,demands,requests,consents,approvals,and othercommunicationsrequiredorpermittedhereundershallbeinwritingand,unlessotherwise specifiedherein,shallbe(i)personallyserved,(ii)deposited inthemail,registeredorcertified,returnreceiptrequested,postage prepaid,(iii)deliveredbyreputableaircourierservicewithchargesprepaid,or(iv) transmittedby handdelivery, telegram, orfacsimile,addressedasset forthbelowortosuchotheraddressassuchparty shallhavespecifiedmostrecentlybywritten notice.Any notice or othercommunicationrequired or permitted to begiven hereunder shallbe deemedeffective(a) upon hand deliveryor delivery byfacsimile,withaccurateconfirmationgeneratedbythe transmittingfacsimile machine,at theaddress or number designatedbelow(if delivered onabusinessdayduringnormal business hourswheresuchnoticeis to bereceived),or thefirst businessdayfollowingsuch delivery(if delivered other thanona businessdayduring normal business hourswhere such notice is to bereceived) or(b) on the second business dayfollowingthe date of mailing byexpresscourier service,fullyprepaid,addressed to suchaddress,or uponactualreceiptof suchmailing,whichever shallfirst occur.Theaddressesfor suchcommunications shall be:
Ifto theCompany, to:VOISINC.
3525Del MarHeightsRd. #802 SanDiego, CA92130
Attn:KERRY DRISCOLL, Chief ExecutiveOfficer facsimile:[enter faxnumber]
With a copybyfaxonlyto(whichcopyshall notconstitutenotice):
PROCOPIO
Attn:JohnP.Cleary
12544High BluffDrive,Suite300SanDiego,CA92130
tel:619-515-3221directfax:619-744-5459
Ifto theBuyer:
ASHERENTERPRISES,INC. - Attn: CurtKramer, President 1Linden Pl., Suite207
GreatNeck,NY. 11021facsimile: 516-498-9894
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With a copybyfaxonlyto(whichcopyshall notconstitutenotice):NaidichWurmanBirnbaum &MadayLLP
80 Cuttermill Road, Suite410GreatNeck,NY11021
Attn:Bernard S.Feldman,Esq.facsimile: 516-466-3555
Each partyshall providenoticeto theotherpartyof anychangeinaddress.
g. SuccessorsandAssigns.ThisAgreementshallbebindinguponandinuretothebenefit ofthepartiesandtheirsuccessorsandassigns.NeithertheCompany nor theBuyershallassign thisAgreement oranyrights orobligations hereunderwithout thepriorwrittenconsentof the other.Notwithstanding theforegoing, subject toSection 2(f), theBuyer mayassign itsrights hereunder toanyperson that purchases Securities in a private transactionfrom theBuyeror toanyof its“affiliates,”as that term is defined under the 1934Act,without the consent oftheCompany.
h. ThirdPartyBeneficiaries.ThisAgreementis intendedforthe benefitofthepartiesheretoandtheirrespectivepermittedsuccessorsandassigns,andisnotfor thebenefit of, normayanyprovision hereofbe enforcedby,anyotherperson.
i. Survival.TherepresentationsandwarrantiesoftheCompanyand theagreementsandcovenantssetforthinthisAgreementshallsurvivetheclosinghereunder notwithstandinganydue diligence investigationconducted byor onbehalf ofthe Buyer.The Companyagrees to indemnifyand hold harmless the Buyerandall their officers, directors,employeesandagentsfor loss or damagearisingas aresult of orrelatedtoanybreach oralleged breach bythe Company ofanyof itsrepresentations,warrantiesandcovenants setforth in thisAgreement orany ofitscovenantsandobligationsunderthisAgreement, includingadvancement of expensesas theyareincurred.
j. Publicity.TheCompany,andtheBuyershallhavetherighttoreviewareasonableperiod oftimebeforeissuanceofanypress releases, SEC,OTCBBor FINRAfilings, oranyother public statementswithrespect to the transactionscontemplated hereby;provided,however, that the Companyshall beentitled,without the priorapproval of theBuyer, to makeanypressrelease or SEC,OTCBB(or otherapplicable tradingmarket) or FINRAfilingswithrespect to such transactions as isrequiredbyapplicable lawandregulations(although theBuyershall beconsultedbythe Companyinconnectionwithany such pressrelease prior to itsreleaseand shall be providedwith acopythereofand begivenan opportunity tocomment thereon).
k. FurtherAssurances.Eachpartyshalldoandperform,orcauseto bedoneandperformed,allsuchfurtheractsandthings,andshallexecuteanddeliverallsuchotheragreements,certificates, instrumentsand documents,as the other partymayreasonablyrequest in order tocarryout the intentandaccomplish the purposes of thisAgreementand theconsummation ofthetransactionscontemplatedhereby.
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l. NoStrictConstruction.ThelanguageusedinthisAgreementwill bedeemedtobethelanguagechosenbythepartiestoexpresstheirmutualintent,andnorulesof strictconstructionwill be appliedagainstanyparty.
m. Remedies.TheCompanyacknowledgesthatabreachbyitofits obligations hereunderwillcauseirreparableharmto theBuyerbyvitiatingtheintentand purpose ofthetransactioncontemplated hereby.Accordingly, theCompanyacknowledges that theremedyatlawforabreachofitsobligationsunderthisAgreementwillbeinadequateandagrees, in theevent of a breach or threatened breachbythe Companyofthe provisions of thisAgreement, that theBuyer shall beentitled, inaddition toall otheravailableremediesat law or inequity,and inaddition to thepenaltiesassessable herein, toan injunction or injunctionsrestraining, preventingorcuringany breachof thisAgreementand toenforce specifically the termsand provisions hereof,without the necessity of showingeconomic lossandwithoutany bond orothersecuritybeingrequired.
INWITNESSWHEREOF,theundersignedBuyerandtheCompanyhavecausedthisAgreement to bedulyexecutedasofthedatefirstabove written.
VOIS INC.
By:
KERRYDRISCOLL
ChiefExecutiveOfficer
ASHERENTERPRISES, INC.
By:
Name: CurtKramer
Title: President
1Linden Pl., Suite207GreatNeck,NY. 11021
AGGREGATESUBSCRIPTION AMOUNT: AggregatePrincipalAmount of Note: |
$32,500.00 |
AggregatePurchasePrice: |
$32,500.00 |
3215(2)3-1-13 Kerry@mindsolutionscorp.com brent@mindsolutionscorp.com |
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