Exhibit
10.1
PURCHASE AGREEMENT
THIS PURCHASE AGREEMENT , dated as of June 17, 2009, is entered into by
and among Beyond Commerce, Inc., a Nevada corporation with
headquarters located at 9029 South Pecos, Suite 2800, Henderson,
Nevada 89074 (the “Company”), and OmniReliant Holdings,
Inc. (the “Purchaser”).
W I T N E S S E T H
:
WHEREAS , pursuant to a certain purchase agreement dated
April 9, 2009, the Company drew upon a first tranche of financing
from the Purchaser in which the Purchaser purchased from the
Company a secured original discount promissory note in the
principal amount of $550,000 with the Company receiving proceeds of
$500,000;
WHEREAS, the Company has determined it to be in the best
interest of the Company to draw upon a second tranche by selling to
the Purchaser a second original discount promissory note in the
principal amount of $575,000, with the Company receiving proceeds
of $500,000, with aggregate proceeds of $1,000,000;
WHEREAS , the Company and the Purchaser are executing
and delivering this Agreement in accordance with and in reliance
upon the exemption from securities registration for offers and
sales to accredited investors afforded, inter alia ,
by Rule 506 under Regulation D (“Regulation D”) as
promulgated by the United States Securities and Exchange Commission
(the “SEC”) under the Securities Act of 1933, as
amended (the “1933 Act”), and/or Section 4(2) of the
1933 Act; and
WHEREAS , the Purchaser wishes to purchase a Secured
Original Issue Discount Promissory Note of the Company (the
“Note”) and warrants to purchase shares of the
Company’s common stock (the “Warrant”), subject
to and upon the terms and conditions of this
Agreement and acceptance of this Agreement by the Company, on the
terms and conditions referred to herein; and
WHEREAS, the Company’s obligations to repay the
Note will be secured by certain stock (the “Pledged
Shares”) of the Company pledged by Linlithgow Holdings LLC
(the “Pledgor”) pursuant to a Security Interest and
Pledge Agreement (the “Pledge Agreement”).
NOW THEREFORE , in consideration of the premises and the
mutual covenants contained herein and other good and valuable
consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties agree as follows:
1. AGREEMENT
TO PURCHASE; PURCHASE PRICE.
(i) Subject
to the terms and conditions of this Agreement and the other
Transaction Agreements, the Purchaser hereby agrees to purchase the
Note for the sum of $500,000 (the “Purchase
Amount”).
(ii) The
Note referred to herein shall be in the form of Annex I
annexed hereto. The Note will be secured by a pledge of
the Pledged Shares under the terms of the Pledge Agreement, which
Pledge Agreements shall be substantially in the form of Annex
III hereto, which the Company will acknowledge.
(iii) In
consideration for the Purchaser agreeing to Purchase the Note, the
Company agrees to issue to the Purchaser a warrant (the
“Warrant”), substantially in the form of Annex
II, attached hereto. Additional
provisions relating to the Warrant are provided below.
(iv) The
purchase of the Note and the issuance of the Warrant to the
Purchaser and the other transactions contemplated hereby are
sometimes referred to herein and in the other Transaction
Agreements as the purchase and sale of the Securities (as defined
below), and are referred to collectively as the
“Transactions”.
b.
Certain Definitions.
As
used herein, each of the following terms has the meaning set forth
below, unless the context otherwise requires:
“Affiliate” means, with
respect to a specific Person referred to in the relevant provision,
another Person who or which controls or is controlled by or is
under common control with such specified Person.
“Certificate” means the original
ink-signed Note duly executed by the Company.
“Closing Date” means the date of the
closing of the Transactions, as provided herein.
“Common Stock” means the common
stock, $0.001 par value, of the Company.
“Common Stock Equivalents”
means any securities of the Company or the Subsidiaries which would
entitle the holder thereof to acquire at any time Common Stock,
including without limitation, any debt, preferred stock, rights,
options, warrants or other instrument that is at any time
convertible into or exchangeable for, or otherwise entitles the
holder thereof to receive, Common Stock.
“Company Control Person”
means each director, executive officer, promoter, and
such other Persons as may be deemed in control of the Company
pursuant to Rule 405 under the 1933 Act or Section 20 of the 1934
Act (as defined below).
“Disclosure Annex” means Annex
V to this Agreement; provided, however, that the Disclosure
Annex shall be arranged in sections corresponding to the identified
Sections of this Agreement, but the disclosure in any such section
of the Disclosure Annex shall qualify other provisions in this
Agreement to the extent that it would be readily apparent to an
informed reader from a reading of such section of the Disclosure
Annex that it is also relevant to other provisions of this
Agreement.
“Escrow Agreement” means the escrow
agreement entered into concurrently herewith between the Purchaser,
the Company and Sichenzia Ross Friedman Ference.
“Exchange Act” means the Securities
Exchange Act of 1934, as amended.
“Holder” means the Person holding
the relevant Securities at the relevant time.
“Last Audited Date” means December
31, 2008.
“Purchaser Control Person” means
each director, executive officer, promoter, and such other Persons
as may be deemed in control of the Purchaser pursuant to Rule 405
under the 1933 Act or Section 20 of the 1934 Act.
“Liens” means a lien, charge,
security interest, encumbrance, right of first refusal, preemptive
right or other restriction.
“Material Adverse Effect” means an
event or combination of events, which individually or in the
aggregate, would reasonably be expected to (w) adversely affect the
legality, validity or enforceability of the Securities or any of
the Transaction Agreements, (x) have or result in a
material adverse effect on the results of operations, assets,
prospects, or condition (financial or otherwise) of the Company and
its subsidiaries, taken as a whole, (y) adversely impair the
Company's ability to perform fully on a timely basis its
obligations under any of the Transaction Agreements or the
transactions contemplated thereby, or (z) materially and adversely
affect the value of the rights granted to the Purchaser in the
Transaction Agreements.
“Person” means any living person or
any entity, such as, but not necessarily limited to, a corporation,
partnership or trust.
“Principal Trading Market” means the
Over the Counter Bulletin Board markets or such other market on
which the Common Stock is principally traded at the relevant
time.
“Registrable Securities” means all
of the following: (i) the Warrant Shares, and (ii) any shares of
the Company’s common stock that are issued to the Purchaser
in connection with any other agreements between the parties hereto,
except to the extent such shares can then be sold by the Holder
without volume or other restrictions or limits.
“Registration Rights Provisions”
means the piggy-back registration rights contemplated by the terms
of this Agreement, if any, including, but not necessarily limited
to, Section 4(g) hereof, and of the other Transaction
Agreements.
“Registration Statement” means an
effective registration statement under the 1933 Act covering the
Registrable Securities.
“Securities” means the Note, the
Warrant, the shares underlying the Note, the shares underlying the
Warrant, and any shares of common stock of the Company that may be
issued to the Purchaser in connection with any other agreements
between the parties.
“Shares” means the shares of
representing any or all of the Warrant Shares and, where relevant,
the Pledged Shares.
“State of Incorporation” means
Nevada.
“Subsidiary” means any subsidiary of
the Company as set forth on the Disclosure Annex.
“Trading
Day” means any day during which the Principal Trading Market
shall be open for business.
“Transaction Fees” means legal and
due diligence fees incurred by the Purchaser.
“Transfer Agent” means, at any time,
the transfer agent for the Company’s Common Stock.
“Transaction Agreements” means this
Purchase Agreement, the Note, the Pledge Agreement, the Warrant and
includes all ancillary documents referred to in those
agreements.
“VWAP” means, for any date, the
price determined by the first of the following clauses that
applies: (a) if the Common Stock is then listed or quoted on a
Trading Market, the daily volume weighted average price of the
Common Stock for such date (or the nearest preceding date) on the
primary Trading Market on which the Common Stock is then listed or
quoted as reported by Bloomberg Financial L.P. (based on a Trading
Day from 9:30 a.m. EST to 4:02 p.m. Eastern Time) using the VAP
function; (b) if the Common Stock is not then listed or quoted
on the Trading Market and if prices for the Common Stock are then
reported in the “Pink Sheets” published by the Pink
Sheets, LLC (or a similar organization or agency succeeding to its
functions of reporting prices), the most recent bid price per share
of the Common Stock so reported; or (c) in all other cases,
the fair market value of a share of Common Stock as determined by a
nationally recognized-independent appraiser selected in good faith
by Holders holding a majority of the principal amount of Notes then
outstanding.
“Warrant Shares” means shares of
Common Stock underlying the Warrant.
c.
Form of Payment; Delivery of Certificates.
(i) The
Purchaser shall pay the Purchase Amount by delivering immediately
available good funds in United States Dollars to the Company on the
Closing Date.
(ii) On
the Closing Date, the Company shall deliver the Certificates, each
duly executed on behalf of the Company to the Purchaser.
(iii) By
signing this Agreement, each of the Purchaser and the Company
agrees to all of the terms and conditions of the Transaction
Documents, all of the provisions of which are incorporated herein
by this reference as if set forth in full.
d.
Method of Payment. Payment of the Purchase
Amount shall be made by wire transfer of fund pursuant to the terms
of the Escrow Agreement
2. PURCHASER REPRESENTATIONS,
WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT
INVESTIGATION.
The Purchaser represents and warrants to, and
covenants and agrees with, the Company as follows:
a. Without
limiting Purchaser's right to sell the Securities pursuant to an
effective registration statement or otherwise in compliance with
the 1933 Act, the Purchaser is purchasing the Securities for its
own account for investment only and not with a view towards the
public sale or distribution thereof and not with a view to or for
sale in connection with any distribution thereof.
b. The
Purchaser is (i) an “accredited investor” as that term
is defined in Rule 501 of the General Rules and Regulations under
the 1933 Act by reason of Rule 501(a)(3), (ii) experienced in
making investments of the kind described in this Agreement and the
related documents, (iii) able, by reason of the business and
financial experience of its officers (if an entity) and
professional advisors (who are not affiliated with or compensated
in any way by the Company or any of its Affiliates or selling
agents), to protect its own interests in connection with the
transactions described in this Agreement, the other Transaction
Documents and the related documents, and to evaluate the merits and
risks of an investment in the Securities, and (iv) able to afford
the entire loss of its investment in the Securities.
c. All
subsequent offers and sales of the Securities by the Purchaser
shall be made pursuant to registration of the relevant Securities
under the 1933 Act or pursuant to an exemption from
registration.
d. The
Purchaser understands that the Securities are being offered and
sold to it in reliance on specific exemptions from the registration
requirements of the 1933 Act and state securities laws and that the
Company is relying upon the truth and accuracy of, and the
Purchaser's compliance with, the representations, warranties,
agreements, acknowledgments and understandings of the Purchaser set
forth herein in order to determine the availability of such
exemptions and the eligibility of the Purchaser to acquire the
Securities.
e. The
Purchaser and its advisors, if any, have been furnished with or
have been given access to all materials relating to the business,
finances and operations of the Company and materials relating to
the offer and sale of the Securities which have been requested by
the Purchaser, including those set forth on in any annex attached
hereto. The Purchaser and its advisors, if any, have been afforded
the opportunity to ask questions of the Company and its management
and have received complete and satisfactory answers to any such
inquiries. Without limiting the generality of the
foregoing, the Purchaser has also had the opportunity to obtain and
to review the Company's filings on EDGAR, (the documents, to the
extent available on EDGAR or otherwise provided to the Purchaser as
indicated on said Annex IV, collectively, the “Company's SEC
Documents”).
f. The
Purchaser understands that its investment in the Securities
involves a high degree of risk.
g. The
Purchaser hereby represents that, in connection with its purchase
of the Securities, it has not relied on any statement or
representation by the Company or any of its officers, directors and
employees or any of their respective attorneys or agents, except as
specifically set forth herein.
h. The
Purchaser understands that no United States federal or state agency
or any other government or governmental agency has passed on or
made any recommendation or endorsement of the
Securities.
i. This
Agreement and the other Transaction Agreements to which the
Purchaser is a party, and the transactions contemplated thereby,
have been duly and validly authorized, executed and delivered on
behalf of the Purchaser and are valid and binding agreements of the
Purchaser enforceable in accordance with their respective terms,
subject as to enforceability to general principles of equity and to
bankruptcy, insolvency, moratorium and other similar laws affecting
the enforcement of creditors' rights generally.
3.
COMPANY REPRESENTATIONS, ETC. The Company
represents and warrants to the Purchaser as of the date hereof and
as of the Closing Date that, except as otherwise provided in the
Disclosure Annex:
a.
Rights of Others Affecting the Transactions.
There are no preemptive rights of any shareholder of the Company,
as such, to acquire the Note. No party other than a
Purchaser has a currently exercisable right of first refusal which
would be applicable to any or all of the transactions contemplated
by the Transaction Agreements.
b.
Status. The Company is a corporation duly
organized, validly existing and in good standing under the laws of
the State of Incorporation and has the requisite corporate power to
own its properties and to carry on its business as now being
conducted. The Company is duly qualified as a foreign
corporation to do business and is in good standing in each
jurisdiction where the nature of the business conducted or property
owned by it makes such qualification necessary, other than those
jurisdictions in which the failure to so qualify would not have or
result in a Material Adverse Effect. The Company has
registered its stock and is obligated to file reports pursuant to
Section 12 or Section 15(d) of the Securities and Exchange Act of
1934, as amended (the “1934 Act”). The
Common Stock is, or immediately following the Closing Date will be,
quoted on the Principal Trading Market. The Company has
received no notice, either oral or written, with respect to the
continued eligibility of the Common Stock for such quotation on the
Principal Trading Market, and the Company has maintained all
requirements on its part for the continuation of such
quotation.
(i) The
authorized capital stock of the Company consists of 200,000,000
shares of Common Stock, $0.001 par value, 45,036,760
of which are outstanding as of the date hereof.
(ii) All
issued and outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid and
non-assessable. The Company has sufficient authorized
and unissued shares of Common Stock as may be necessary to affect
the issuance of the Shares on the Closing Date.
(iii) As
of the Closing Date, the Shares shall have been duly authorized by
all necessary corporate action on the part of the Company, and,
when issued on the Closing Date or pursuant to other relevant
provisions of the Transaction Agreements, in each case in
accordance with their respective terms, will be duly and validly
issued, fully paid and non-assessable and will not subject the
Holder thereof to personal liability by reason of being such
Holder.
d.
Transaction Agreements and Stock. This Agreement
and each of the other Transaction Agreements, and the transactions
contemplated thereby, have been duly and validly authorized by the
Company, this Agreement has been duly executed and delivered by the
Company and this Agreement is, and the Note and each of the other
Transaction Agreements, when executed and delivered by the Company,
will be, valid and binding agreements of the Company enforceable in
accordance with their respective terms, subject as to
enforceability to general principles of equity and to bankruptcy,
insolvency, moratorium, and other similar laws affecting the
enforcement of creditors' rights generally.
e.
Non-contravention. The execution and delivery of
this Agreement and each of the other Transaction Agreements by the
Company, the issuance of the Securities, and the consummation by
the Company of the other transactions contemplated by this
Agreement, each of the Notes and the other Transaction Agreements
do not and will not conflict with or result in a breach by the
Company of any of the terms or provisions of, or constitute a
default under (i) the certificate of incorporation or by-laws of
the Company, each as currently in effect, (ii) any indenture,
mortgage, deed of trust, or other material agreement or instrument
to which the Company is a party or by which it or any of its
properties or assets are bound, including any listing agreement for
the Common Stock except as herein set forth, or (iii) to its
knowledge, any existing applicable law, rule, or regulation or any
applicable decree, judgment, or order of any court, United States
federal or state regulatory body, administrative agency, or other
governmental body having jurisdiction over the Company or any of
its properties or assets, except such conflict, breach or default
which would not have or result in a Material Adverse
Effect.
f.
Approvals. No authorization, approval or consent
of any court, governmental body, regulatory agency, self-regulatory
organization, or stock exchange or market or the shareholders of
the Company is required to be obtained by the Company for the
issuance and sale of the Securities to the Purchaser as
contemplated by this Agreement, except such authorizations,
approvals and consents that have been obtained.
g.
Filings. None of the Company’s SEC
Documents contained, at the time they were filed, any untrue
statement of a material fact or omitted to state any material fact
required to be stated therein or necessary to make the statements
made therein in light of the circumstances under which they were
made, not misleading. Since December 31, 2008, the
Company has timely filed all requisite forms, reports and exhibits
thereto, if any, required to be filed by the Company with the
SEC.
h.
Absence of Certain Changes. Since the Last
Audited Date, there has been no material adverse change and no
Material Adverse Effect, except as disclosed in the Company’s
SEC Documents and Financial Statements. Since the Last Audited
Date, except as provided in the Company’s SEC Documents, the
Company has not (i) incurred or become subject to any material
liabilities (absolute or contingent) except liabilities incurred in
the ordinary course of business consistent with past practices;
(ii) discharged or satisfied any material lien or encumbrance or
paid any material obligation or liability (absolute or contingent),
other than current liabilities paid in the ordinary course of
business consistent with past practices; (iii) declared or made any
payment or distribution of cash or other property to shareholders
with respect to its capital stock, or purchased or redeemed, or
made any agreements to purchase or redeem, any shares of its
capital stock; (iv) sold, assigned or transferred any other
tangible assets, or canceled any debts owed to the Company by any
third party or claims of the Company against any third
party, except in the ordinary course of business consistent with
past practices; (v) waived any rights of material value, whether or
not in the ordinary course of business, or suffered the loss of any
material amount of existing business; (vi) made any increases in
employee compensation, except in the ordinary course of business
consistent with past practices; or (vii) experienced any material
problems with labor or management in connection with the terms and
conditions of their employment.
i.
Full Disclosure. To the best of the
Company’s knowledge, there is no fact known to the Company
(other than general economic conditions and financial market
conditions known to the public generally or as disclosed in the
Company’s SEC Documents) that has not been disclosed in
writing to the Purchaser that would reasonably be expected to have
or result in a Material Adverse Effect.
j.
Absence of Litigation. There is no action, suit,
proceeding, inquiry or investigation before or by any court, public
board or body pending or, to the knowledge of the Company,
threatened against or affecting the Company before or by any
governmental authority or nongovernmental department, commission,
board, bureau, agency or instrumentality or any other person,
wherein an unfavorable decision, ruling or finding would have a
Material Adverse Effect or which would adversely affect the
validity or enforceability of, or the authority or ability of the
Company to perform its obligations under, any of the Transaction
Agreements. The Company is not aware of any valid basis
for any such claim that (either individually or in the aggregate
with all other such events and circumstances) could reasonably be
expected to have a Material Adverse Effect. There are no
outstanding or unsatisfied judgments, orders, decrees, writs,
injunctions or stipulations to which the Company is a party or by
which it or any of its properties is bound, that involve the
transaction contemplated herein or that, alone or in the aggregate,
could reasonably be expect to have a Material Adverse
Effect.
k.
Absence of Events of Default. Except as set
forth in Section 3(e) and 3(g) hereof, (i) neither the Company nor
any of its subsidiaries is in default in the performance or
observance of any material obligation, agreement, covenant or
condition contained in any material indenture, mortgage, deed of
trust or other material agreement to which it is a party or by
which its property is bound, and (ii) no Event of Default (or its
equivalent term), as defined in the respective agreement to which
the Company or its subsidiary is a party, and no event which, with
the giving of notice or the passage of time or both, would become
an Event of Default (or its equivalent term) (as so defined in such
agreement), has occurred and is continuing, which would have a
Material Adverse Effect.
l.
Absence of Certain Company Control Person Actions or Events.
To the Company’s knowledge, none of the following
has occurred during the past five (5) years with respect to a
Company Control Person:
(1) A petition
under the federal bankruptcy laws or any state insolvency law was
filed by or against, or a receiver, fiscal agent or similar officer
was appointed by a court for the business or property of such
Company Control Person, or any partnership in which he was a
general partner at or within two years before the time of such
filing, or any corporation or business association of which he was
an executive officer at or within two years before the time of such
filing;
(2) Such
Company Control Person was convicted in a criminal proceeding or is
a named subject of a pending criminal proceeding (excluding traffic
violations and other minor offenses);
(3) Such
Company Control Person was the subject of any order, judgment or
decree, not subsequently reversed, suspended or vacated, of any
court of competent jurisdiction, permanently or temporarily
enjoining him from, or otherwise limiting, the following
activities:
(i) acting, as
an investment advisor, underwriter, broker or dealer in securities,
or as an affiliated person, director or employee of any investment
company, bank, savings and loan association or insurance company,
as a futures commission merchant, introducing broker, commodity
trading advisor, commodity pool operator, floor broker, any other
Person regulated by the Commodity Futures Trading Commission
("CFTC") or engaging in or continuing any conduct or practice in
connection with such activity;
(ii) engaging in any type of business
practice; or
(iii) engaging
in any activity in connection with the purchase or sale of any
security or commodity or in connection with any violation of
federal or state securities laws or federal commodities
laws;
(4) Such
Company Control Person was the subject of any order, judgment or
decree, not subsequently reversed, suspended or vacated, of any
federal or state authority barring, suspending or otherwise
limiting for more than 60 days the right of such Company Control
Person to engage in any activity described in paragraph (3) of this
item, or to be associated with Persons engaged in any such
activity; or
(5) Such
Company Control Person was found by a court of competent
jurisdiction in a civil action or by the CFTC or SEC to have
violated any federal or state securities law, and the judgment in
such civil action or finding by the CFTC or SEC has not been
subsequently reversed, suspended, or vacated.
m.
No Undisclosed Liabilities or Events. To the
best of the Company’s knowledge, the Company has no
liabilities or obligations other than those disclosed in the
Transaction Agreements or the Company's SEC Documents or those
incurred in the ordinary course of the Company's business since the
Last Audited Date, or which individually or in the aggregate, do
not or would not have a Material Adverse Effect. No event or
circumstances has occurred or exists with respect to the Company or
its properties, business, operations, condition (financial or
otherwise), or results of operations, which, under applicable law,
rule or regulation, requires public disclosure or announcement
prior to the date hereof by the Company but which has not been so
publicly announced or disclosed. There are no proposals
currently under consideration or currently anticipated to be under
consideration by the Board of Directors or the executive officers
of the Company which proposal would (x) change the articles or
certificate of incorporation or other charter document or by-laws
of the Company, each as currently in effect, with or without
shareholder approval, which change would reduce or otherwise
adversely affect the rights and powers of the shareholders of the
Common Stock or (y) materially or substantially change the
business, assets or capital of the Company, including its interests
in subsidiaries.
n.
No Integrated Offering. Neither the Company nor
any of its Affiliates nor any Person acting on its or their behalf
has, directly or indirectly, at any time, made any offer or sales
of any security or solicited any offers to buy any security under
circumstances that would eliminate the availability of the
exemption from registration under Regulation D in connection with
the offer and sale of the Securities as contemplated
hereby.
o.
Dilution. Shares issued pursuant to the
conversion of the Note or the exercise of the Warrant may have a
dilutive effect on the ownership interests of the other
shareholders (and Persons having the right to become shareholders)
of the Company. The Company's executive officers and
directors have studied and fully understand the nature of the
Securities being sold hereby and recognize that they have such a
potential dilutive effect. The board of directors of the
Company has concluded, in its good faith business judgment that
such issuance is in the best interests of the Company.
p.
Recognition of Pledge Agreements and Pledged Shares.
The Company acknowledges that the execution and
delivery of the Pledge Agreement, and the fulfillment o f the terms
thereof, is a condition to the closing of the
Transactions. The Company will recognize the terms of
the Pledge Agreement and, as provided therein, the transfer of the
Pledged Shares to the Purchasers and will take no position or give
the Transfer Agent any instructions which would be inconsistent
with the rights of the Purchasers to have the Pledged Shares
transferred to the Purchasers in accordance with the terms of the
Pledge Agreement.
q.
Fees to Brokers, Finders and Others. Except for
payment to Midtown Partners, the Company has taken no action which
would give rise to any claim by any Person for brokerage
commission, finder's fees or similar payments by Purchaser relating
to this Agreement or the transactions contemplated
hereby. Purchaser shall have no obligation with respect
to such fees or with respect to any claims made by or on behalf of
other Persons for fees of a type contemplated in this paragraph
that may be due in connection with the transactions contemplated
hereby. The Company shall indemnify and hold harmless
each of Purchaser, its employees, officers, directors, agents, and
partners, and their respective Affiliates, from and against all
claims, losses, damages, costs (including the costs of preparation
and attorney's fees) and expenses suffered in respect of any such
claimed or existing fees, as and when incurred.
r.
Confirmation. The Company confirms that all
statements of the Company contained herein shall survive acceptance
of this Agreement by the Purchaser. The Company agrees
that, if any events occur or circumstances exist prior to the
Closing Date or the release of the Purchase Amount to the Company
which would make any of the Company’s representations,
warranties, agreements or other information set forth herein
materially untrue or materially inaccurate as of such date, the
Company shall immediately notify the Purchaser (directly or through
its counsel, if any) in writing prior to such date of such fact,
specifying which representation, warranty or covenant is affected
and the reasons therefor.
s.
Authorization; Enforcement. The Company has the
requisite corporate power and authority to enter into and to
consummate the transactions contemplated by each of the Transaction
Agreements and otherwise to carry out its obligations
thereunder. The execution and delivery of each of the
Transaction Agreements by the Company and the consummation by it of
the transactions contemplated thereby have been duly authorized by
all necessary action on the part of the Company and no further
action is required by the Company in connection therewith other
than in connection with the Required Approvals. Each
Transaction Agreement has been (or upon delivery will have been)
duly executed by the Company and, when delivered in accordance with
the terms hereof, will constitute the valid and binding obligation
of the Company enforceable against the Company in accordance with
its terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium and other laws of general
application affecting enforcement of creditors’ rights
generally and (ii) as limited by laws relating to the availability
of specific performance, injunctive relief or other equitable
remedies.
t.
SEC Reports; Financial Statements. Other than as
previously disclosed to the Purchaser, the Company has filed all
reports required to be filed by it under the Securities Act and the
Exchange Act, including pursuant to Section 13(a) or 15(d) thereof,
for the two years preceding the date hereof (or such shorter period
as the Company was required by law to file such material) (the
foregoing materials, including the exhibits thereto, being
collectively referred to herein as the “ SEC Reports
”) on a timely basis or has received a valid extension of
such time of filing and has filed any such SEC Reports prior to the
expiration of any such extension. As of their respective
dates, the SEC Reports complied in all material respects with the
requirements of the Securities Act and the Exchange Act and the
rules and regulations of the Commission promulgated thereunder, and
none of the SEC Reports, when filed, contained any untrue statement
of a material fact or omitted to state a material fact required to
be stated therein or necessary in order to make the statements
therein, in light of the circumstances under which they were made,
not misleading. The financial statements of the Company
included in the SEC Reports complied in all material respects with
applicable accounting requirements and the rules and regulations of
the Commission with respect thereto as in effect at the time of
filing. Such financial statements have been prepared in
accordance with United States generally accepted accounting
principles applied on a consistent basis during the periods
involved (“ GAAP ”), except as may be otherwise
specified in such financial statements or the notes thereto and
except t