Jammin Java Corp. 10-Q
Exhibit 10.47
SECURITIES PURCHASEAGREEMENT
ThisSECURITIES PURCHASE AGREEMENT(the“Agreement”), dated as ofNovember 15,2016, byand betweenJAMMIN JAVA CORP., aNevada corporation, withheadquarters locatedat 730 Tejon St., Denver,Colorado 80211 (the“Company”),andVISVIRESGROUP,INC.,aNew Yorkcorporation, with itsaddress at 111Great Neck Road – Suite216, GreatNeck,NY11021 (the“Buyer”).
WHEREAS:
A. TheCompany andtheBuyerare executing and delivering thisAgreement inreliance upon theexemption fromsecurities registration afforded by therulesand regulations aspromulgated by theUnited StatesSecurities and Exchange Commission (the“SEC”) under theSecurities Act of 1933,as amended (the “1933Act”);
B. BuyerdesirestopurchaseandtheCompany desirestoissueand sell, uponthetermsand conditionsset forth in this Agreementan 8%convertible note of theCompany,in theformattached hereto as Exhibit A, in theaggregateprincipalamount of$14,000.00(togetherwithanynote(s)issued inreplacement thereoforas adividend thereon orotherwisewith respecttheretoinaccordancewith theterms thereof, the“Note”), convertible intoshares ofcommon stock,$0.001par valueper share, of theCompany (the“Common Stock”),upon theterms and subjectto thelimitationsandconditionsset forth insuch Note;and
C. TheBuyer wishestopurchase,upon theterms and conditions stated in thisAgreement, such principal amount of Noteasisset forthimmediately belowitsname on thesignature pages hereto.
NOWTHEREFORE, theCompany and theBuyerseverally (and notjointly)herebyagreeasfollows:
1. Purchaseand SaleofNote.
a. Purchaseof Note.On the ClosingDate (as definedbelow),theCompany shall issueand sell totheBuyerandtheBuyeragrees topurchasefrom the Companysuchprincipalamount of Noteas is set forthimmediatelybelow theBuyer’s name on thesignature pages hereto.
b. FormofPayment.Onthe Closing Date(as defined below),(i) theBuyershallpay thepurchase price for the Note tobe issuedandsold to itatthe Closing (asdefined below) (the“Purchase Price”) by wiretransferofimmediately availablefunds to theCompany,in accordance with theCompany’swritten wiring instructions, against delivery of the Notein theprincipal amount equal to thePurchasePriceasis set forthimmediatelybelow theBuyer’s name on thesignature pages hereto,and (ii) theCompany shall deliver such dulyexecuted Note on behalf of theCompany, to theBuyer,againstdelivery ofsuch PurchasePrice.
c. Closing Date. Subjectto thesatisfaction(orwrittenwaiver) of theconditions thereto setforthin Section 6and Section 7below, thedateandtime of theissuance andsale ofthe Notepursuant tothis Agreement (the“ClosingDate”)shallbe 12:00 noon,Eastern StandardTime on orabout November 18,2016,or such othermutuallyagreed upontime.Theclosingofthetransactions contemplated by thisAgreement (the “Closing”) shall occur on theClosingDateat such locationas maybeagreed to by theparties.
2. Buyer’sRepresentations and Warranties.TheBuyerrepresentsandwarrants totheCompanythat:
a. InvestmentPurpose.Asofthe date hereof, theBuyer ispurchasingtheNoteand thesharesofCommon Stockissuable upon conversion oforotherwise pursuant to the Note(including, withoutlimitation, suchadditionalshares ofCommonStock, ifany,as areissuable(i) onaccount ofinterestonthe Note or (ii)as aresultof theevents described inSection1.4(g) of theNote,suchshares ofCommon Stockbeingcollectively referred toherein as the“ConversionShares” and, collectivelywith theNote, the“Securities”)forits ownaccountandnotwith apresentviewtowards the publicsale ordistribution thereof, except pursuant tosalesregisteredorexempted fromregistration underthe 1933Act;provided,however,thatbymaking therepresentationsherein, theBuyer does notagreetohold any of theSecurities forany minimum or otherspecific termand reserves theright todispose of theSecuritiesatanytime inaccordancewith orpursuantto aregistration statement oranexemption under the 1933Act.
b. Accredited Investor Status.TheBuyeris an “accredited investor” asthattermis definedinRule 501(a) ofRegulation D(an“Accredited Investor”).
c. RelianceonExemptions.TheBuyerunderstands that theSecuritiesarebeingofferedandsold to itin reliance uponspecificexemptions from theregistration requirementsofUnited Statesfederal and statesecuritieslawsandthat theCompany isrelying upon the truthand accuracy of,and theBuyer’scompliance with, therepresentations,warranties,agreements, acknowledgments andunderstandings of theBuyerset forthherein inordertodetermine the availability ofsuchexemptionsand theeligibility of theBuyer toacquire theSecurities.
d. Information.The Buyeranditsadvisors,ifany, havebeen,andfor solongas theNoteremainsoutstanding willcontinuetobe,furnishedwithallmaterials relating to thebusiness,financesandoperations of theCompany and materials relatingtotheofferandsale oftheSecurities whichhavebeen requested by theBuyer orits advisors.The Buyerand its advisors,ifany,havebeen,and for solongas the Noteremainsoutstanding willcontinuetobe,afforded the opportunitytoask questions oftheCompany.Notwithstandingtheforegoing, theCompany has notdisclosedto theBuyeranymaterial nonpublicinformation andwill notdisclose such information unless such information is disclosed to thepublic prior to orpromptly following such disclosureto theBuyer. Neither suchinquiries norany other duediligenceinvestigationconductedbyBuyeroranyofits advisors orrepresentatives shallmodify,amend oraffectBuyer’sright torelyon theCompany’s representationsandwarrantiescontained inSection3below. TheBuyerunderstandsthatits investmentin theSecurities involves asignificantdegree of risk.The Buyer is notaware ofany facts thatmay constitute abreach ofany oftheCompany'srepresentationsandwarrantiesmadeherein.
e. Governmental Review.The Buyerunderstands that noUnited Statesfederalor stateagencyorany othergovernment orgovernmentalagencyhaspassed upon ormade anyrecommendation orendorsement oftheSecurities.
f. Transfer or Re-sale. The Buyer understands that (i) the sale or re- sale of the Securities has not been and is not being registered under the 1933 Act or any applicable state securities laws, and the Securities may not be transferred unless (a) the Securities are sold pursuant to an effective registration statement under the 1933 Act, (b) the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in comparable transactions to the effect that the Securities to be sold or transferred may be sold or transferred pursuant to an exemption from such registration, which opinion shall be accepted by the Company, (c) the Securities are sold or transferred to an “affiliate” (as defined in Rule 144 promulgated under the 1933 Act (or a successor rule) (“Rule 144”)) of the Buyer who agrees to sell or otherwise transfer the Securities only in accordance with this Section 2(f) and who is an Accredited Investor, (d) the Securities are sold pursuant to Rule 144, or (e) the Securities are sold pursuant to Regulation S under the 1933 Act (or a successor rule) (“Regulation S”), and the Buyer shall have delivered to the Company, at the cost of the Buyer, an opinion of counsel that shall be in form, substance and scope customary for opinions of counsel in corporate transactions, which opinion shall be accepted by the Company; (ii) any sale of such Securities made in reliance on Rule 144 may be made only in accordance with the terms of said Rule and further, if said Rule is not applicable, any re-sale of such Securities under circumstances in which the seller (or the person through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other person is under any obligation to register such Securities under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder (in each case). Notwithstanding the foregoing or anything else contained herein to the contrary, the Securities may be pledged as collateral in connection with abona fidemargin account or other lending arrangement.
g. Legends.TheBuyerunderstandsthat the Noteand,untilsuchtimeas the Conversion Shareshavebeen registered under the 1933Actmaybe soldpursuantto Rule 144 orRegulation Swithoutanyrestriction astothenumber ofsecurities as of aparticulardate thatcan thenbeimmediatelysold, theConversion Shares maybear arestrictivelegend insubstantiallythefollowing form (and astop-transferorder may beplaced against transferofthecertificatesforsuchSecurities):
“NEITHER THE ISSUANCEANDSALE OFTHE SECURITIES REPRESENTEDBY THISCERTIFICATE NOR THESECURITIES INTO WHICHTHESESECURITIESARE EXERCISABLE HAVEBEENREGISTEREDUNDERTHE SECURITIES ACT OF1933,ASAMENDED, OR APPLICABLESTATESECURITIES LAWS.THESECURITIES MAYNOTBEOFFEREDFOR SALE, SOLD,TRANSFERREDORASSIGNED
(I)INTHE ABSENCEOF(A)ANEFFECTIVE REGISTRATIONSTATEMENT FOR THESECURITIES UNDER THE SECURITIES ACT OF1933, ASAMENDED, OR(B) ANOPINIONOFCOUNSEL(WHICHCOUNSELSHALL BESELECTEDBYTHEHOLDER), IN AGENERALLY ACCEPTABLE FORM,THATREGISTRATION ISNOT REQUIRED UNDERSAID ACT OR(II) UNLESSSOLD PURSUANTTO RULE 144ORRULE144AUNDERSAID ACT.NOTWITHSTANDING THEFOREGOING, THESECURITIES MAY BEPLEDGED INCONNECTION WITH ABONA FIDE MARGINACCOUNT OROTHER LOAN ORFINANCING ARRANGEMENT SECUREDBYTHE SECURITIES.”
The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of any Security upon which it is stamped, if, unless otherwise required by applicable state securities laws, (a) such Security is registered for sale under an effective registration statement filed under the 1933 Act or otherwise may be sold pursuant to Rule 144 or Regulation S without any restriction as to the number of securities as of a particular date that can then be immediately sold, or (b) such holder provides the Company with an opinion of counsel, in form, substance and scope customary for opinions of counsel in comparable transactions, to the effect that a public sale or transfer of such Security may be made without registration under the 1933 Act, which opinion shall be accepted by the Company so that the sale or transfer is effected. The Buyer agrees to sell all Securities, including those represented by a certificate(s) from which the legend has been removed, in compliance with applicable prospectus delivery requirements, if any. In the event that the Company does not accept the opinion of counsel provided by the Buyer with respect to the transfer of Securities pursuant to an exemption from registration, such as Rule 144 or Regulation S, at the Deadline, it will be considered an Event of Default pursuant to Section 3.2 of the Note.
h. Authorization; Enforcement.ThisAgreement hasbeendulyandvalidly authorized. ThisAgreementhasbeen duly executed and delivered onbehalfof theBuyer,and thisAgreement constitutes avalidand binding agreementof theBuyerenforceable inaccordancewith itsterms.
i. Residency.TheBuyer is aresident of thejurisdictionset forth immediately below theBuyer’snameon thesignature pages hereto.
3. RepresentationsandWarrantiesof theCompany.The Companyrepresentsandwarrantsto theBuyer that:
a. Organizationand Qualification. TheCompanyandeach ofitsSubsidiaries (as defined below),ifany,is acorporationdulyorganized, validly existing and ingoodstanding under thelawsof thejurisdictioninwhich it is incorporated,withfullpower and authority (corporateandother) to own,lease, useand operateitsproperties andtocarryonits business asandwhere nowowned, leased, used, operatedandconducted. Schedule 3(a) setsforth alist ofallof theSubsidiaries ofthe Company andthejurisdiction in whicheach isincorporated. The Company and each of itsSubsidiariesis dulyqualified as aforeign corporationto dobusiness andis in goodstandingin everyjurisdictionin whichitsownershiporuse ofpropertyorthenature of thebusinessconductedby itmakessuchqualificationnecessaryexceptwhere thefailuretobe soqualifiedorin goodstandingwould nothave aMaterial Adverse Effect. “MaterialAdverseEffect”means anymaterial adverse effect on thebusiness, operations, assets,financialconditionorprospectsof theCompanyoritsSubsidiaries, if any, takenas awhole, or on thetransactionscontemplated herebyor by theagreements orinstruments tobeenteredintoin connection herewith.“Subsidiaries”means anycorporationorotherorganization,whether incorporatedorunincorporated,inwhich theCompany owns, directly orindirectly,any equityorotherownershipinterest.
b. Authorization;Enforcement.(i)TheCompanyhasallrequisitecorporate powerandauthority toenter intoandperformthisAgreement,the Noteand toconsummate thetransactionscontemplatedherebyand thereby and toissue theSecurities,inaccordance withthe termshereofand thereof,(ii)theexecution anddeliveryofthisAgreement, the Note by theCompany and theconsummation by it of thetransactions contemplated hereby and thereby (including withoutlimitation, theissuanceof theNoteand theissuanceandreservationforissuance of theConversion Sharesissuable uponconversion orexercise thereof)havebeendulyauthorizedby theCompany’sBoard ofDirectorsandnofurtherconsentorauthorization oftheCompany,its Board ofDirectors, oritsshareholders is required, (iii)thisAgreementhas been dulyexecutedanddelivered by theCompanybyitsauthorized representative,andsuch authorized representative is the trueandofficial representativewith
authoritytosignthis Agreementandthe otherdocumentsexecuted inconnectionherewith andbind the Companyaccordingly,and (iv)this Agreement constitutes,and uponexecutionanddeliveryby theCompanyof theNote,each ofsuch instrumentswillconstitute, alegal,valid and binding obligation of theCompany enforceable against theCompany inaccordancewith itsterms.
c. Capitalization.Asof the datehereof, theauthorizedcapitalstock of theCompany consists of: (i) 5,112,861,525authorizedshares ofCommon Stock,$0.001 parvaluepershare, ofwhich 230,567,965shares areissuedandoutstanding;and (ii) there are noauthorized shares ofPreferred Stock,(iii)52,211,321 shares are reservedforissuance pursuant to theCompany’sstock optionplans, (iv) noshares are reserved forissuance pursuant to securities(otherthan the Noteand a NotedatedMarch 11,2016 forwhich23,300,000 are reserved forVis Vires Group,Inc.) and due tothe diminutionoftheBid Price,the total amount ofshares exercisable for, orconvertibleinto orexchangeablefor shares ofCommon Stock, except asotherwisedisclosedin the SECDocuments, and 500,000,000shares are reserved forissuanceuponconversion of the Noteas well as theMarch 11,2016Note.All ofsuch outstanding shares ofcapitalstock are, or uponissuancewillbe,dulyauthorized, validly issued, fully paid and non-assessable. No shares ofcapitalstock of theCompany aresubject topreemptive rights or any othersimilar rightsofthe shareholders ofthe Company oranyliens orencumbrances imposed through theactions orfailuretoact of the Company. As of theeffective date ofthis Agreement,(i) there are no outstanding options, warrants, scrip, rights tosubscribefor,puts,calls,rights of first refusal, agreements,understandings,claimsorother commitments orrightsof any character whatsoever relating to, or securities or rights convertible into orexchangeableforanyshares of capital stock of the Company or any of its Subsidiaries, orarrangements bywhich the Company or any ofitsSubsidiaries is or maybecomebound toissueadditionalsharesof capital stock of the Company or any of its Subsidiaries (except as otherwise disclosed intheSECDocuments), (ii) there arenoagreementsorarrangements under whichtheCompanyoranyof itsSubsidiaries is obligatedtoregister the saleofanyof its or their securitiesunder the 1933 Actand (iii) thereareno anti-dilutionorpriceadjustment provisionscontainedin any security issuedbytheCompany(orinanyagreement providing rightstosecurity holders)that will betriggeredbytheissuanceof the Note or theConversion Shares.The Company hasfurnishedtotheBuyer true andcorrectcopies of the Company’sCertificateofIncorporation asineffecton thedate hereof(“Certificate of Incorporation”),theCompany’s By-laws,as in effecton thedatehereof (the“By-laws”), andthetermsofall securitiesconvertible into orexercisableforCommonStock of theCompany andthe materialrightsof theholders thereof in respect thereto. TheCompany shall provide the Buyer with awritten updateof thisrepresentation signedbytheCompany’sChiefExecutiveon behalf of theCompany asof the ClosingDate.
d. Issuance of Shares. The Conversion Shares are duly authorized and reserved for issuance and, upon conversion of the Note in accordance with its respective terms, will be validly issued, fully paid and non-assessable, and free from all taxes, liens, claims and encumbrances with respect to the issue thereof and shall not be subject to preemptive rights or other similar rights of shareholders of the Company and will not impose personal liability upon the holder thereof.
e. Acknowledgmentof Dilution.The Companyunderstandsandacknowledges thepotentiallydilutiveeffectto theCommonStockupon theissuance oftheConversionShares uponconversionofthe Note.The Companyfurther acknowledges thatitsobligationtoissueConversion Shares uponconversion oftheNotein accordance withthisAgreement, the Noteis absoluteandunconditional regardless of the dilutiveeffect thatsuch issuance may have on theownershipinterests ofothershareholders of theCompany.
f. NoConflicts.Theexecution, delivery and performanceof thisAgreement,the Note by theCompany and theconsummationby theCompany of thetransactions contemplated hereby and thereby (including, withoutlimitation, theissuanceand reservation forissuance of theConversion Shares)will not(i)conflictwith orresultin aviolation ofanyprovision ofthe Certificate ofIncorporation orBy-laws, or(ii)violate orconflictwith,orresult in abreach ofanyprovisionof, orconstitute adefault (oranevent which withnotice orlapse oftime orbothcould become adefault) under, orgivetoothersanyrights oftermination, amendment, accelerationorcancellation of,anyagreement, indenture, patent, patentlicense orinstrumenttowhich theCompany oranyof itsSubsidiaries is aparty, or(iii)result in aviolationof anylaw,rule,regulation, order, judgmentordecree(including federaland statesecuritieslawsand regulationsand regulations ofany self-regulatory organizations towhichtheCompanyoritssecurities are subject)applicableto theCompany or any ofitsSubsidiaries or bywhich any propertyorassetoftheCompanyor any of itsSubsidiariesisbound oraffected(except forsuchconflicts,defaults,terminations, amendments,accelerations,cancellationsandviolations as would not, individually orin theaggregate,have aMaterialAdverseEffect). Neither the Company noranyof itsSubsidiaries isinviolationofitsCertificate ofIncorporation, By-laws or otherorganizational documents and neither the Company noranyofitsSubsidiariesisin default (and noeventhasoccurred which with notice or lapse of time or bothcouldput theCompany or any of itsSubsidiaries in default) under, and neither theCompany nor any of itsSubsidiarieshastakenanyaction orfailedtotakeany action that wouldgivetoothersanyrightsoftermination, amendment, acceleration orcancellationof,any agreement, indenture orinstrumenttowhich theCompanyorany ofitsSubsidiaries is aparty or bywhich any property orassets oftheCompanyorany of itsSubsidiariesisbound oraffected, except forpossible defaults as would not,individuallyorin theaggregate,have aMaterial Adverse Effect. Thebusinesses ofthe Company anditsSubsidiaries, ifany, are notbeing conducted,andshallnotbeconducted so longastheBuyer owns any of theSecurities, inviolation of any law,ordinance orregulation of anygovernmentalentity.Except as specifically contemplated by thisAgreementandas required under the 1933Actandany applicable statesecuritieslaws, theCompany is notrequiredtoobtain any consent,authorization ororderof, ormake anyfilingorregistration with, any court, governmental agency, regulatoryagency, self-regulatory organization or stockmarket oranythirdpartyinorder for it toexecute,deliver orperformany ofitsobligations underthisAgreement, the Notein accordancewith theterms hereoforthereofor toissueandsell theNote
in accordancewiththeterms hereofand toissuethe ConversionSharesupon conversion oftheNote.Allconsents, authorizations,orders,filingsand registrations which the Company isrequired toobtain pursuant to theprecedingsentence havebeenobtained oreffected on orpriorto thedate hereof.If theCompanyislisted ontheOTCQB,theCompany is notinviolationof thelistingrequirements of theOTCQBand does notreasonably anticipate that theCommon Stockwill bedelisted by theOTCQB in the foreseeable future.TheCompany and itsSubsidiaries are unaware of anyfacts orcircumstances which might giverisetoanyof theforegoing.
g. SECDocuments; Financial Statements. TheCompanyhasfiled all reports, schedules,forms,statementsandotherdocumentsrequiredtobefiledbyit with theSECpursuant to thereportingrequirements of theSecuritiesExchange Act of 1934,as amended (the“1934 Act”) (all ofthe foregoing filed prior to thedate hereof and all exhibits included thereinandfinancial statements andschedulestheretoanddocuments (otherthan exhibitstosuch documents) incorporatedbyreference therein,beinghereinafter referred tohereinas the“SEC Documents”), except for theCompany’s quarterlyreportonForm 10-Q for theperiod endedJuly 31, 2016.Uponwrittenrequest theCompany willdeliverto theBuyer trueandcomplete copies ofthe SECDocuments, exceptforsuchexhibits andincorporated documents.As of theirrespective dates,theSEC Documents complied inallmaterial respects with therequirementsofthe 1934Act and therulesandregulations of the SECpromulgated thereunder applicabletothe SECDocuments,andnone of the SECDocuments,at thetimetheywerefiled with the SEC,contained anyuntruestatement of amaterial factoromitted to state amaterialfact requiredtobestated therein ornecessary in order tomake thestatements therein, in lightof thecircumstances under which theywere made, notmisleading. None ofthestatementsmadeinanysuchSECDocumentsis, orhas been,requiredtobeamendedor updatedunderapplicable law(except forsuchstatements ashave beenamended orupdated in subsequentfilings prior thedate hereof). As of theirrespective dates, thefinancialstatements ofthe Company included in theSECDocuments complied astoforminallmaterial respectswithapplicable accounting requirementsand thepublished rules and regulations of the SECwithrespectthereto.Such financialstatementshavebeen prepared in accordance with United Statesgenerallyacceptedaccounting principles, consistently applied, during theperiods involved andfairlypresent in all material respects the consolidated financial position of theCompany and its consolidated Subsidiaries as ofthe dates thereof and the consolidated results oftheir operations and cashflows for theperiodsthenended (subject, in thecaseofunaudited statements, tonormal year-endaudit adjustments). Except as setforthin thefinancial statements ofthe Company included in the SECDocuments,theCompany has noliabilities, contingentorotherwise, other than (i)liabilities incurred in theordinary course ofbusiness subsequent toApril30, 2016,and(ii) obligationsunder contracts and commitmentsincurredin theordinarycourse ofbusiness and notrequiredunder generallyaccepted accounting principles tobereflected in suchfinancialstatements,which,individuallyorin theaggregate,arenotmaterialto thefinancialcondition oroperating results of theCompany. TheCompany is subjectto thereportingrequirementsof the 1934Act.
h. AbsenceofCertainChanges.SinceApril 30,2016,therehas beennomaterialadversechange and nomaterial adverse development in theassets,liabilities,business, properties, operations,financialcondition,results ofoperations,prospects or1934Act reporting status of theCompany oranyofitsSubsidiaries.
i. AbsenceofLitigation.There is noaction, suit,claim,proceeding, inquiryorinvestigation before orby any court,public board,government agency,self-regulatoryorganization orbodypendingor, to theknowledge of theCompany orany ofitsSubsidiaries, threatened against oraffecting theCompanyoranyofitsSubsidiaries, or theirofficers ordirectors in theircapacity as such, thatcouldhave aMaterialAdverseEffect,exceptassetforthin theSECDocuments..Schedule 3(i)contains acompletelist andsummary description ofanypending or,totheknowledge of theCompany, threatened proceeding (which wouldrequire disclosure ontheCompany’s SECDocuments) againstoraffecting theCompanyorany of itsSubsidiaries, withoutregard towhether itwould have aMaterial AdverseEffect.TheCompanyanditsSubsidiaries are unaware of anyfactsorcircumstances whichmightgiverisetoany of theforegoing.
j. Patents,Copyrights,etc.TheCompany and eachof itsSubsidiariesowns orpossesses therequisite licenses orrights touseallpatents, patent applications, patent rights, inventions, know-how,trade secrets, trademarks, trademark applications, service marks, service names, trade namesandcopyrights(“IntellectualProperty”) necessary to enable it toconductitsbusiness as now operated (and,aspresently contemplated tobeoperated in thefuture); there is noclaim oraction by anyperson pertaining to, orproceeding pending, or to theCompany’sknowledge threatened, whichchallengestheright of the Company or of aSubsidiary withrespect toany Intellectual Property necessary to enable it toconductitsbusiness as nowoperated (and, as presently contemplated tobeoperated in thefuture); to thebest of theCompany’sknowledge, theCompany’s oritsSubsidiaries’ currentandintended products, servicesand processesdo not infringe onany Intellectual Property or otherrights held by anyperson; and the Company isunawareof anyfacts orcircumstanceswhich mightgive rise toanyof theforegoing. TheCompany and eachofits Subsidiaries havetaken reasonable security measures toprotectthesecrecy,confidentiality andvalueof theirIntellectual Property.
k. NoMaterially AdverseContracts,Etc.Neitherthe Companynoranyof itsSubsidiariesis subject toany charter, corporateor otherlegalrestriction, or anyjudgment, decree, order, rule orregulation which in thejudgmentof theCompany’s officershasoris expected in thefuture tohave aMaterial Adverse Effect. Neither theCompany noranyofitsSubsidiaries is apartytoanycontractoragreementwhichinthejudgment ofthe Company’s officershas oris expected tohave aMaterial AdverseEffect.
l. TaxStatus. TheCompanyand each ofitsSubsidiarieshas madeorfiled all federal, stateandforeign income and all othertax returns, reportsand declarations required byanyjurisdictiontowhichitis subject(unlessand only to theextent that the Company
andeachof itsSubsidiarieshasset aside onits booksprovisions reasonably adequatefor thepayment ofall unpaidandunreported taxes)andhas paid all taxesand othergovernmental assessments and charges thatarematerialin amount,shown ordeterminedtobe due onsuch returns, reportsanddeclarations, except thosebeingcontested ingoodfaithandhasset aside onits booksprovisions reasonablyadequate for thepayment ofalltaxes forperiods subsequent to theperiods towhichsuch returns, reports ordeclarationsapply. There are nounpaid taxesin anymaterial amount claimed tobe due by the taxingauthority of anyjurisdiction,and theofficers of theCompanyknow of nobasisforany such claim.TheCompanyhasnotexecuted awaiverwithrespect to thestatute oflimitationsrelating to theassessment orcollection ofany foreign,federal,state orlocal tax. None ofthe Company’s tax returns is presentlybeingauditedby anytaxingauthority.
m. CertainTransactions.Exceptforarm’slength transactions pursuant towhich theCompanyoranyofits Subsidiariesmakes payments in the ordinary course ofbusinessuponterms nolessfavorablethanthe Companyorany ofitsSubsidiariescouldobtainfromthird parties and otherthan thegrant of stockoptionsdisclosed onSchedule 3(c),noneof theofficers, directors,oremployees oftheCompany ispresently a party to anytransaction withthe Companyorany ofitsSubsidiaries (otherthan forservicesas employees, officersanddirectors), including anycontract, agreement or other arrangementprovidingfor thefurnishing ofservicesto orby,providingforrental ofrealorpersonalpropertytoorfrom, orotherwise requiring paymentstoorfrom anyofficer, director orsuchemployee or, to theknowledge of theCompany, anycorporation, partnership, trust or otherentity inwhichanyofficer, director, oranysuchemployeehas asubstantial interest oris anofficer, director,trustee orpartner.
n. Disclosure.Allinformation relatingto orconcerningtheCompany orany ofitsSubsidiaries set forth in thisAgreementand provided totheBuyerpursuant toSection 2(d)hereofand otherwise in connectionwith thetransactions contemplatedhereby is trueandcorrect in all materialrespects and theCompanyhas notomittedto stateanymaterial factnecessaryin order tomake thestatementsmadeherein ortherein, in light of thecircumstancesunder which they weremade, notmisleading.No event orcircumstance has occurred orexistswithrespect to theCompany or any ofitsSubsidiaries oritsor theirbusiness, properties, prospects,operationsorfinancial conditions,which, underapplicablelaw, rule orregulation,requirespublic disclosure or announcement by theCompany butwhich has notbeensopubliclyannounced ordisclosed(assumingfor thispurposethat theCompany’sreports filedunder the 1934Act arebeingincorporated intoaneffective registration statementfiled by theCompanyunder the 1933Act).
o. AcknowledgmentRegarding Buyer’PurchaseofSecurities.TheCompany acknowledges and agrees that theBuyerisacting solely in thecapacity ofarm’s lengthpurchasers withrespect tothisAgreement and thetransactions contemplatedhereby.TheCompany further acknowledges that theBuyeris notactingasafinancial advisor orfiduciary of
theCompany (orin anysimilarcapacity) withrespecttothisAgreementandthetransactions contemplatedherebyandany statementmade by theBuyerorany ofitsrespectiverepresentatives oragents in connection withthis Agreementandthetransactions contemplated hereby is notadviceor arecommendation and ismerely incidentaltotheBuyer’purchase oftheSecurities. TheCompany furtherrepresents totheBuyer that theCompany’sdecision toenter intothisAgreementhas beenbasedsolelyon theindependentevaluationof theCompany and its representatives.
p. NoIntegratedOffering.NeithertheCompany, norany of itsaffiliates,noranyperson acting onitsor theirbehalf, hasdirectlyorindirectlymadeany offers or sales inany securityorsolicited anyoffers tobuy any security under circumstances thatwouldrequireregistrationunder the 1933Actofthe issuance of theSecuritiestotheBuyer. Theissuanceof theSecurities to theBuyer will notbeintegratedwithany otherissuance of theCompany’ssecurities (past,current orfuture) forpurposes of anyshareholder approval provisions applicable tothe Companyoritssecurities.
q. NoBrokers. The Companyhastakennoactionwhich would giverisetoanyclaimby anypersonforbrokerage commissions,transactionfees orsimilar payments relating tothis Agreementor thetransactionscontemplatedhereby.
r. Permits;Compliance.The Company and eachof itsSubsidiariesisin possession ofall franchises,grants, authorizations,licenses,permits, easements, variances,exemptions,consents,certificates,approvals and orders necessaryto own,leaseandoperateitspropertiesandtocarry onitsbusiness asit is nowbeingconducted(collectively, the“CompanyPermits”),andthere is noaction pending or, to theknowledgeof theCompany,threatenedregardingsuspension orcancellation ofany of theCompany Permits. Neither theCompany norany ofitsSubsidiariesisin conflict with, orin default orviolationof,any of the CompanyPermits, except for anysuch conflicts, defaults orviolationswhich,individually orintheaggregate,would notreasonablybeexpected tohaveaMaterialAdverseEffect.Since April 30,2016, neither theCompany nor any of itsSubsidiarieshasreceived anynotification withrespect topossible conflicts, defaults orviolations ofapplicablelaws,except fornoticesrelatingtopossible conflicts, defaults orviolations,which conflicts,defaults orviolationswould nothaveaMaterialAdverseEffect.
(i) Thereare,totheCompany’sknowledge,withrespect to theCompanyoranyofitsSubsidiariesorany predecessor of theCompany, nopastorpresent violations ofEnvironmentalLaws(as defined below),releases of anymaterialinto theenvironment, actions,activities, circumstances,conditions, events, incidents, orcontractual obligationswhichmay give rise toanycommon law environmental liability oranyliabilityundertheComprehensive Environmental Response, Compensation and Liability Act of 1980 orsimilar
federal,state,localorforeignlawsandneither the Company norany ofits Subsidiarieshas received anynotice withrespect toany of theforegoing,noris anyaction pending or, to theCompany’sknowledge, threatened in connectionwithany of theforegoing.The term“EnvironmentalLaws”means all federal, state,local orforeign laws relating topollutionorprotection ofhumanhealthor theenvironment (including, without limitation, ambient air, surface water, groundwater,landsurface orsubsurfacestrata), including, withoutlimitation,laws relating toemissions, discharges, releases orthreatenedreleases ofchemicals, pollutants contaminants, or toxic orhazardoussubstances orwastes(collectively,“Hazardous Materials”) intothe environment, orotherwise relating tothe manufacture, processing, distribution, use, treatment, storage,disposal, transport orhandling of HazardousMaterials,aswellasallauthorizations,codes, decrees, demandsordemandletters, injunctions, judgments, licenses, notices ornotice letters,orders, permits, plans orregulations issued, entered, promulgatedorapproved thereunder.
(ii) Otherthanthose that are orwere stored, used ordisposed ofincompliance withapplicable law, noHazardous Materials are contained onoraboutany realproperty currently owned,leasedorused by theCompanyorany ofits Subsidiaries,and noHazardousMaterialswere released onorabout anyreal propertypreviouslyowned,leased orused by theCompanyorany of itsSubsidiariesduring the period thepropertywas owned,leased orusedby theCompany orany ofitsSubsidiaries,exceptinthenormalcourse of theCompany’sorany ofitsSubsidiaries’ business.
(iii) There arenoundergroundstorage tanks on orunderanyreal property owned,leased orused by theCompanyoranyofitsSubsidiaries that are not incompliance withapplicablelaw.
t. TitletoProperty.The Company anditsSubsidiarieshavegoodandmarketable title infee simpleto allreal property and goodandmarketable title to allpersonal property owned bythemwhich ismaterialto thebusiness of theCompany and itsSubsidiaries,in each case free and clear ofall liens, encumbrancesanddefects except such as aredescribed in Schedule 3(t) orsuchas wouldnothave aMaterialAdverseEffect. Any realproperty andfacilitiesheldunderleaseby theCompany anditsSubsidiaries areheldby themunder valid, subsistingandenforceable leases withsuch exceptions aswould nothave aMaterial AdverseEffect.
u. Insurance.TheCompanyand each ofits Subsidiariesare insured byinsurers ofrecognizedfinancialresponsibilityagainst such lossesand risks andin such amounts asmanagement of theCompany believestobeprudentandcustomary in thebusinesses in which the Company andits Subsidiariesareengaged.Neither theCompanynorany suchSubsidiaryhasanyreason tobelieve that itwill notbe able torenew itsexisting insurance coverage as and when such coverage expires or toobtain similar coveragefromsimilar insurersas maybenecessarytocontinueitsbusiness at acost thatwould nothaveaMaterial Adverse
Effect.Uponwritten requesttheCompanywill provide to theBuyer trueandcorrectcopiesofallpolicies relating todirectors’andofficers’ liability coverage,errorsandomissions coverage,andcommercial general liability coverage.
v. Internal AccountingControls. Except as setforthin theSECDocuments,theCompany and each ofitsSubsidiaries maintain asystem ofinternal accounting controls sufficient, in thejudgment of theCompany’sboard ofdirectors, toprovidereasonable assurance that (i)transactionsare executed in accordance withmanagement’sgeneral orspecificauthorizations,(ii)transactions are recorded as necessarytopermitpreparation offinancialstatements in conformity withgenerallyacceptedaccounting principles and tomaintainassetaccountability, (iii)accesstoassetsis permittedonlyin accordance withmanagement’s general orspecificauthorizationand (iv) therecorded accountability forassetsiscomparedwith theexisting assets at reasonable intervalsandappropriate action is takenwithrespect to anydifferences.
w. ForeignCorruptPractices.Neither theCompany, noranyof itsSubsidiaries, norany director, officer, agent,employee or otherpersonacting onbehalf of theCompanyorany Subsidiary has, in thecourseofhisactions for, or on behalf of,the Company, used any corporatefunds for anyunlawful contribution,gift, entertainmentor otherunlawful expensesrelating topoliticalactivity; made anydirectorindirect unlawfulpayment toanyforeign ordomestic government official oremployeefromcorporate funds;violated orisinviolation ofany provision of the U.S. ForeignCorrupt Practices Act of 1977,as amended, or made anybribe, rebate,payoff,influence payment, kickback or otherunlawful payment to anyforeign or domestic governmentofficialoremployee.
| x. | [INTENTIONALLYDELETED]. |
y. NoInvestmentCompany.The Company is not,andupon theissuanceandsaleof theSecuritiesas contemplated by thisAgreementwill notbean “investmentcompany”requiredtobe registeredunder theInvestmentCompany Act of 1940(an“InvestmentCompany”).The Company is notcontrolled byanInvestmentCompany.
z. BreachofRepresentationsandWarranties by theCompany.IftheCompany breaches any of therepresentations orwarranties setforthin this Section 3,andinadditiontoanyotherremedies availableto theBuyer pursuant tothisAgreement,itwill beconsideredanEvent ofdefault underSection3.4of theNote.
a. Best Efforts.Thepartiesshallusetheir best efforts tosatisfy timelyeach of theconditionsdescribedin Section 6and 7 ofthisAgreement.
b. FormD;BlueSkyLaws.TheCompany agreestofileaForm D withrespect to theSecuritiesasrequiredunder Regulation Dandtoprovide a copythereoftotheBuyerpromptly after suchfiling,if deemed required.The Companyshall, on orbefore theClosing Date, takesuchaction as theCompanyshall reasonablydetermineisnecessarytoqualifytheSecurities forsale to theBuyerat theapplicableclosingpursuant tothisAgreement underapplicable securitiesor“bluesky” laws ofthestates of theUnited States (or toobtain anexemptionfromsuch qualification),andshall provide evidence ofanysuch action sotaken to theBuyeron or prior tothe Closing Date.
c. UseofProceeds.TheCompany shallusethe proceedsforgeneral working capitalpurposes.
e. Expenses.TheCompany’ssoleexpense withrespect to thistransaction is toreimburseBuyer’ expensesshall be$0.00.
f. FinancialInformation.Upon written requesttheCompanyagrees tosend ormake available thefollowing reports to theBuyer until theBuyer transfers, assigns, orsellsall of theSecurities:(i) within ten (10)days after thefilingwith the SEC, acopy of itsAnnual Report onForm 10-K its Quarterly Reports onForm10-Qand any Current Reports onForm 8-K; (ii)within one (1) dayafter release, copies ofallpress releases issuedby theCompanyoranyofitsSubsidiaries; and (iii)contemporaneously with themaking available orgivingtothe shareholders ofthe Company, copies of anynoticesor otherinformation theCompany makes availableorgives tosuchshareholders.
h. Listing. The Company shallpromptlysecurethelisting of theConversionShares uponeachnationalsecurities exchange orautomated quotation system,ifany, uponwhich shares ofCommon Stock are thenlisted (subject toofficial notice ofissuance)and, so longas the Buyer owns any of theSecurities,shallmaintain, so longasany othersharesofCommonStockshall be solisted,suchlisting of allConversion Sharesfrom time totime issuable upon conversion of theNote. TheCompany will obtainand, so longas the Buyerowns any of theSecurities, maintain thelisting and trading of its CommonStock on the OTCQBorany equivalent replacementexchangeorelectronic quotation system (including but not limitedtothePink Sheets electronic quotationsystem)and will complyin all respects with theCompany’sreporting,filingand otherobligationsunder the bylaws or rules ofthe Financial Industry Regulatory Authority (“FINRA”) and such exchanges, as applicable. The Company shallpromptlyprovide to the Buyercopies of anynotices it receivesfrom theOTCQB and any otherexchanges orelectronic quotationsystems onwhich the CommonStock is then quotedregarding
thecontinuedeligibility of theCommon Stock forlisting onsuch exchanges andquotationsystems.
i. CorporateExistence.Solongas theBuyerbeneficiallyownsanyNote, theCompany shallmaintainitscorporate existence andshall notsellallorsubstantially all oftheCompany’s assets,except in theeventof amergerorconsolidation orsale ofallorsubstantiallyallof theCompany’sassets, where the surviving orsuccessorentityin such transaction(i)assumes theCompany’sobligations hereunderandunder theagreementsandinstruments entered into in connection herewithand (ii)is a publiclytraded corporationwhoseCommon Stockislistedfortrading on thePink Sheets, OTCQX,OTCQB,Nasdaq, Nasdaq SmallCap, NYSEorAMEX.
j. NoIntegration.The Companyshallnotmakeany offers or sales ofany security (other than the Securities)under circumstances thatwouldrequire registrationof the Securitiesbeingofferedor soldhereunder under the 1933Actorcause the offering ofthe Securitiesto beintegrated with any otherofferingof securities by the Company for the purpose of anystockholder approval provision applicable to theCompanyor itssecurities.
k. BreachofCovenants. If theCompany breaches anyof thecovenants setforthin this Section 4,andin additiontoany otherremedies availabletothe BuyerpursuanttothisAgreement, it willbeconsideredanevent ofdefault under Section 3.4 of theNote.
l. FailuretoComplywith the 1934Act.Solongas theBuyerbeneficially owns theNote, theCompany shall comply with thereportingrequirements ofthe 1934Act;and theCompany shallcontinuetobesubject to thereportingrequirements of the 1934Act,providedthat theCompany’sfailure totimely filethe Company’squarterlyreport onForm 10-Qfor theperiodended July 31,2016aslong as it isfiled byDecember 14,2016,shall not bedeemed an Event ofDefault.
m. TradingActivities.NeithertheBuyer noritsaffiliateshasan open shortpositionin thecommon stock ofthe Company and theBuyer agree thatitshall not,and thatitwill causeitsaffiliatesnot to,engagein any shortsalesof orhedgingtransactions withrespect to thecommon stock oftheCompany.
5. Transfer AgentInstructions.TheCompanyshallissueirrevocable instructions toitstransfer agenttoissue certificates, registered in thename of theBuyeroritsnominee,for theConversion Shares in such amounts asspecifiedfromtimetotime by theBuyerto theCompany uponconversionofthe Notein accordance with theterms thereof (the“Irrevocable Transfer Agent Instructions”).In the event that theBorrower proposes toreplaceitstransfer agent, theBorrowershallprovide, prior to theeffective date ofsuch replacement, afullyexecutedIrrevocableTransfer Agent Instructions in aformas initially delivered pursuant to thePurchase Agreement (including but notlimited to the provisiontoirrevocably reserveshares ofCommon Stockin theReserved Amount)signed by thesuccessor transfer agent toBorrower
and the Borrower.Priorto registration of theConversion Shares under the 1933Actor thedate onwhich theConversion Shares may be soldpursuant to Rule 144without anyrestrictionastothenumber ofSecurities as of aparticular date thatcanthenbeimmediately sold,all suchcertificatesshallbeartherestrictive legend specified in Section2(g) of thisAgreement. TheCompany warrantsthat:(i)noinstruction otherthan theIrrevocableTransfer AgentInstructionsreferred tointhisSection 5,and stoptransferinstructions togiveeffecttoSection 2(f) hereof (in thecaseof theConversionShares, prior toregistration ofthe Conversion Shares under the 1933Act or thedate onwhichtheConversionShares maybesoldpursuant toRule 144 withoutany restriction as to thenumber ofSecurities as of aparticular date thatcan thenbe immediatelysold),will begiven by theCompanytoitstransfer agentandthatthe Securitiesshallotherwisebe freelytransferableon the booksandrecords of theCompany as and totheextentprovidedinthisAgreementandthe Note;(ii) it will notdirect itstransfer agent not totransfer ordelay, impair, and/or hinderitstransfer agent in transferring (orissuing)(electronically orin certificated form) any certificate forConversionSharestobeissued totheBuyer uponconversion of orotherwise pursuant to the Noteasandwhen required by the NoteandthisAgreement;and (iii) itwill notfailtoremove (ordirectsitstransferagentnottoremove orimpairs,delays,and/orhindersitstransfer agentfromremoving) any restrictivelegend (or towithdrawany stop transferinstructions in respect thereof) on anycertificateforanyConversion Sharesissuedto theBuyer uponconversionof orotherwise pursuant to the Noteas and when required by the NoteandthisAgreement.Nothingin thisSection shallaffect in any way theBuyer’sobligationsand agreement set forth in Section 2(g)hereof tocomplywithallapplicable prospectus deliveryrequirements,ifany, uponre-saleof theSecurities. If theBuyerprovides theCompany,atthecost of theBuyer, with (i)an opinion ofcounsel in form,substance andscope customary foropinions incomparabletransactions, to theeffectthat apublic saleortransferofsuch Securitiesmay bemadewithoutregistration under the 1933Actandsuch sale ortransfer is effected or (ii) theBuyerprovides reasonable assurances that theSecurities canbesold pursuant toRule 144(alongwithan opinion ofcounsel),theCompanyshallpermit thetransfer, and, in thecase of theConversionShares,promptly instructitstransferagent toissue one or morecertificates,freefromrestrictivelegend, in suchnameand in suchdenominationsasspecified by theBuyer. TheCompany acknowledges that abreach by it ofits obligationshereunderwillcause irreparableharm totheBuyer,byvitiating the intentandpurposeofthetransactionscontemplatedhereby.Accordingly, theCompany acknowledges that theremedy atlaw for abreach ofitsobligations under this Section 5maybeinadequateandagrees, in theeventof abreach orthreatenedbreachby theCompany of theprovisions ofthis Section, that theBuyershallbeentitled, in addition toallotheravailable remedies, toaninjunctionrestraining anybreach and requiring immediate transfer, without thenecessity ofshowingeconomic loss and withoutanybondor othersecuritybeingrequired.
6. ConditionstotheCompany’sObligationtoSell.Theobligation of theCompany hereundertoissueandsellthe Note to theBuyerat theClosingis subject to thesatisfaction, at orbefore theClosing Date ofeachofthefollowingconditions thereto,provided thattheseconditionsare for theCompany’s solebenefitandmaybewaived by theCompany atanytimein its solediscretion:
a. The Buyer shallhaveexecutedthisAgreementanddeliveredthe same to theCompany.
b. The Buyershallhavedelivered the Purchase Price inaccordancewithSection 1(b) above.
c. Therepresentations and warrantiesof theBuyer shall be trueand correct in allmaterialrespects as of thedatewhen madeand as of theClosing Date as thoughmadeat that time(exceptforrepresentations and warranties thatspeak as of aspecific date),and theBuyershall have performed, satisfied and complied in all material respects with thecovenants, agreementsandconditionsrequired bythisAgreement tobeperformed, satisfied orcompliedwith by theBuyerat or prior to theClosingDate.
d. No litigation,statute,rule,regulation, executive order, decree, ruling orinjunction shall havebeenenacted, entered,promulgated orendorsed by orinany court orgovernmentalauthority of competentjurisdiction orany self-regulatoryorganization having authority over thematters contemplatedhereby which prohibitstheconsummation ofany of thetransactionscontemplated by thisAgreement.
7. ConditionstoTheBuyer’sObligationtoPurchase.The obligation of theBuyerhereundertopurchase the Noteat theClosingis subject to thesatisfaction, at orbeforetheClosing Date ofeachof thefollowing conditions,providedthattheseconditionsarefor theBuyer’s solebenefitandmay bewaivedby theBuyer atanytimein itssolediscretion:
a. TheCompany shallhaveexecutedthisAgreementanddeliveredthesameto theBuyer.
b. TheCompany shall have deliveredtotheBuyerthedulyexecuted Note(insuch denominationsas theBuyer shallrequest) in accordancewithSection 1(b) above.
c. TheIrrevocableTransferAgentInstructions,informand substance satisfactoryto amajority-in-interestof theBuyer,shallhave beendelivered toandacknowledged in writing by theCompany’sTransferAgent.
d. Therepresentations andwarrantiesof theCompanyshallbe trueandcorrect in allmaterialrespects as ofthedatewhenmadeand as of theClosing Date as
thoughmadeatsuchtime (exceptforrepresentationsandwarranties thatspeak asof aspecific date)andtheCompany shall have performed, satisfiedandcomplied in all material respects with thecovenants, agreements and conditions required by thisAgreement tobeperformed, satisfied orcompliedwith by theCompany at or prior to theClosing Date.The Buyershall have received acertificate orcertificates, executed by thechief executive officer of theCompany,dated as of theClosingDate,to theforegoing effectand as tosuch othermatters asmaybe reasonablyrequested by theBuyerincluding, butnot limited tocertificates withrespect to theCompany’s Certificate ofIncorporation, By-laws and Board ofDirectors’ resolutions relating to thetransactionscontemplated hereby.
e. No litigation,statute,rule,regulation, executive order, decree, ruling orinjunctionshallhavebeenenacted,entered,promulgatedorendorsed by orin any court orgovernmentalauthority of competentjurisdiction oranyself-regulatoryorganizationhaving authority over thematters contemplatedhereby which prohibitstheconsummation ofanyof thetransactionscontemplated by thisAgreement.
f. Noeventshallhave occurredwhichcould reasonablybeexpectedtohaveaMaterial Adverse Effect on theCompany including but notlimited to achangein the 1934Actreportingstatus of theCompany or thefailureof theCompany tobe timelyinits 1934Actreportingobligations.
h. The Buyershallhavereceived anofficer’scertificate describedinSection 3(c) above, dated as of theClosingDate.
| 8. | GoverningLaw;Miscellaneous. |
a. GoverningLaw.ThisAgreementshall begoverned byandconstrued in accordance with thelawsoftheState ofNew York withoutregard toprinciples ofconflicts oflaws. Anyaction broughtby either partyagainst the otherconcerningthetransactions contemplated by thisAgreementshall bebroughtonlyin the statecourts ofNew York orin thefederalcourts located in the state andcounty ofNassau.ThepartiestothisAgreement hereby irrevocably waive anyobjectiontojurisdiction andvenueof anyaction institutedhereunderand shall notassert any defensebasedonlackofjurisdictionorvenue orbased uponforum nonconveniens.TheCompanyandBuyerwaive trialby jury.The prevailing party shall beentitledtorecoverfrom the other partyitsreasonableattorney'sfees and costs. In theevent thatanyprovision ofthis Agreement orany otheragreement delivered in connection herewith isinvalid orunenforceable under anyapplicable statute orruleoflaw,then such
provision shallbedeemed inoperativeto theextent that itmay conflict therewith and shall bedeemed modifiedtoconform withsuch statute or rule oflaw. Any such provisionwhichmay prove invalid orunenforceable underanylawshall notaffectthevalidityorenforceabilityofany otherprovision ofany agreement.Each partyhereby irrevocably waives personal service ofprocess andconsentstoprocess beingservedinany suit,action orproceeding in connectionwiththisAgreement or any otherTransaction Document bymailing acopythereofviaregisteredorcertified mail orovernight delivery (with evidence ofdelivery)to such partyat theaddress ineffectfor noticesto itunderthisAgreement andagrees that suchservice shallconstitute good andsufficient serviceofprocess andnotice thereof. Nothingcontained hereinshallbedeemed tolimit inanywayany right toserveprocess inany othermanner permitted bylaw.
b. Counterparts.ThisAgreementmaybeexecuted in one or morecounterparts,each ofwhichshallbedeemed an original butall ofwhich shall constitute oneand thesame agreement and shall become effective when counterparts have been signed by eachpartyanddeliveredto the otherparty.
c. Headings.Theheadingsofthis Agreement are forconvenienceofreferenceonlyandshall notformpartof, oraffect the interpretationof, thisAgreement.
d. Severability. Inthe event thatanyprovision ofthis Agreementisinvalid orunenforceable under anyapplicable statute or rule oflaw, then such provisionshallbedeemedinoperative totheextent thatit may conflicttherewith and shallbedeemed modifiedtoconform withsuch statute or rule oflaw.Any provision hereofwhich may proveinvalidorunenforceable under any lawshall not affect thevalidityorenforceability of any other provisionhereof.
e. EntireAgreement;Amendments.ThisAgreementand theinstrumentsreferencedherein contain theentireunderstandingofthe partieswithrespectto thematters coveredherein andtherein and, except as specifically setforthherein ortherein, neither theCompany nor theBuyer makes anyrepresentation, warranty, covenant orundertaking withrespecttosuchmatters. No provision of thisAgreement may bewaived oramendedother than byan instrument inwritingsigned by themajority ininterestoftheBuyer.
f. Notices.Allnotices, demands, requests, consents, approvals, andothercommunicationsrequired orpermitted hereundershall bein writing and, unless otherwise specifiedherein,shall be (i)personally served,(ii)deposited in themail,registered orcertified, return receipt requested, postage prepaid,(iii)deliveredbyreputable air courierservice withcharges prepaid, or (iv)transmitted byhand delivery, telegram, orfacsimile, addressed as setforthbelow or tosuchotheraddressassuch partyshallhavespecifiedmost recently by writtennotice. Any notice or othercommunication requiredorpermitted tobe givenhereundershall bedeemedeffective(a) uponhand delivery ordelivery byfacsimile,withaccurate confirmation
generatedby the transmittingfacsimile machine, at theaddressor numberdesignatedbelow(ifdelivered on abusiness dayduring normalbusinesshours wheresuchnoticeis tobereceived), or thefirst business dayfollowing such delivery (ifdelivered other than on abusinessday duringnormalbusinesshours where such notice istobereceived)or (b) on the second business dayfollowing thedateofmailing byexpress courier service,fully prepaid,addressedtosuch address, oruponactual receipt ofsuch mailing, whichever shall first occur. The addresses forsuchcommunications shall be:
If to the Company, to:
JAMMIN JAVA CORP.
730 Tejon St.
Denver, Colorado 80211
Attn: ANH TRAN, President
facsimile: [enter fax number]
Withacopybyfax onlyto(whichcopyshallnotconstitutenotice):
Attn:DavidM.Loev,Esq.
6300WestLoopSouth,Suite280
Bellaire, Texas77401
Phone: (713)524-4110
Fax: (713)524-4122
Email: dloev@loevlaw.com
Ifto theBuyer:
VISVIRESGROUP,INC.
111GreatNeckRoad–Suite 216, GreatNeck,NY 11021
Attn:CurtKramer,President
e-mail:info@visviresgroup.com
Withacopybyfax onlyto(whichcopyshallnotconstitutenotice):
Naidich WurmanLLP
111Great Neck Road –Suite 214
GreatNeck,NY11021
facsimile:516-466-3555
Eachpartyshall provide notice to the otherpartyof anychange in address.
g. Successors andAssigns.ThisAgreementshallbebindinguponand inuretothebenefit of theparties and theirsuccessorsand assigns. NeithertheCompany nor theBuyershall assignthis Agreement orany rights orobligationshereunder withoutthepriorwrittenconsent ofthe other. Notwithstanding theforegoing,subjecttoSection 2(f), theBuyer may assignitsrights hereundertoanyperson thatpurchases Securities inaprivate transactionfrom theBuyeror toanyof its“affiliates,”as thatterm isdefined under the 1934Act,without theconsentoftheCompany.
h. Third PartyBeneficiaries.ThisAgreement isintendedfor thebenefitof theparties heretoandtheir respective permitted successorsandassigns, and is notfor thebenefit of, normay any provisionhereof beenforcedby, any otherperson.
i. Survival.Therepresentationsandwarranties of theCompanyand theagreementsandcovenants setforthinthisAgreementshallsurvive theclosing hereunder notwithstandingany duediligenceinvestigationconductedby or onbehalfof theBuyer.TheCompany agrees toindemnifyandholdharmless theBuyerandall theirofficers, directors,employeesand agents forlossordamage arising as aresult of orrelated toany breach oralleged breach by theCompany ofanyofitsrepresentations, warrantiesandcovenants setforthinthisAgreementorany ofitscovenants and obligations under this Agreement, including advancement ofexpensesas theyare incurred.
j. Publicity.The Company,and theBuyershall have the righttoreview areasonableperiod oftime beforeissuance of anypress releases, SEC, OTCQB orFINRAfilings,oranyother publicstatementswithrespectto thetransactions contemplatedhereby;provided,however, that theCompany shall beentitled, without the priorapproval oftheBuyer,tomakeany pressreleaseor SEC,OTCQB (or otherapplicable trading market) orFINRAfilingswithrespect tosuchtransactions as is required byapplicablelawand regulations(althoughtheBuyershall beconsultedby theCompany in connection with any such pressreleaseprior toitsreleaseand shallbeprovided with a copythereofand begiven an opportunity tocomment thereon).
k. FurtherAssurances.Each partyshalldoand perform, orcause to bedone and performed, all such furtheracts andthings, and shall execute and deliver all such otheragreements, certificates,instrumentsand documents, as the otherparty may reasonablyrequest in order tocarry out theintentandaccomplish thepurposesofthis Agreementand theconsummationof the transactionscontemplatedhereby.
l. NoStrictConstruction.Thelanguage used in thisAgreementwillbedeemedtobethe language chosenby the parties toexpress theirmutual intent,andnorules ofstrictconstructionwill beapplied againstanyparty.
m. Remedies.TheCompany acknowledgesthat abreach by itof itsobligations hereunder will cause irreparableharm totheBuyer byvitiating the intentandpurpose of thetransaction contemplatedhereby.Accordingly, theCompany acknowledges thatthe remedy at law for abreach ofits obligationsunderthisAgreementwillbeinadequateand agrees,in theeventof abreach orthreatenedbreachby theCompany of theprovisions ofthis Agreement, that theBuyershallbeentitled,in addition toallotheravailable remedies atlaworin equity, and in addition to thepenaltiesassessableherein, to aninjunctionorinjunctions restraining, preventing orcuringanybreach ofthis Agreementand toenforce specifically theterms andprovisions hereof,without thenecessity of showingeconomicloss and withoutanybond or othersecurity beingrequired.
INWITNESS WHEREOF,theundersignedBuyer and theCompanyhavecausedthisAgreementtobe dulyexecuted as ofthe datefirstabove written.
JAMMINJAVACORP.
11/18/2016
VISVIRESGROUP,INC. By: _______________________________________ | |
Name:CurtKramer Title: President 111GreatNeckRoad–Suite 216, |
| GreatNeck,NY11021 |
AGGREGATE SUBSCRIPTIONAMOUNT: AggregatePrincipal AmountofNote: | $14,000.00 |
| AggregatePurchase Price: | $14,000.00 |
Tranche#3VVG-1273 (JAMNI)
November 15,2016
anh@jamminjavacoffee.com; anh@marleycoffee.com;dloev@loevlaw.com
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