Exhibit 10.5
Purchase
Agreement – Madrona Ventures Inc.
MADRONA VENTURES,
INC.
PURCHASE
AGREEMENT
THIS PURCHASE AGREEMENT (as amended, modified,
supplemented or restated in accordance with its terms from time to
time, this “Agreement”), dated this 24
th day of August, 2009, is between MADRONA VENTURES,
INC., a Nevada corporation and its affiliates, as hereinafter
defined (the “Purchaser”), and John David Sinclair, his
successors and assigns (individually, a “Seller” and
together, the “Sellers”). Capitalized terms used but
not otherwise defined herein shall have the respective meanings set
forth in Article VI.
RECITALS
A. WHERAS
The Purchaser is a Nevada Corporation currently listed for
quotation on the Over-The-Counter Bulletin Board (OTC:BB) under the
symbol “MDRV”; and
B. WHERAS
the Seller is the owner of a European Patent (Application Number
06396001) EP 1681057B1 concerning eating disorders, a copy of which
has been attached hereto and incorporated herein by reference as
“Exhibit 1” and the Applicant for U.S. Patent
Application 11/031,534 a copy of which has been attached hereto and
incorporated herein by reference as “Exhibit 2”;
and
C.
Subject
to the terms and conditions set forth herein, the Purchaser desire
to purchase from the Seller, and the Seller desires to sell to the
Purchaser, all rights title and interest in the Patent and Patent
Applications including but not limited to all Intellectual Property
and knowhow and use associated therewith for shares of stock in
MDRV.
AGREEMENTS
In consideration of the recitals and the mutual
promises, covenants and agreements contained herein and other good
and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the parties hereto hereby agree as
follows:
ARTICLE I
AUTHORIZATION AND ISSUANCE TO
PURCHASE
1.
1
Authorization . The Purchaser has, prior to the date of this
Agreement, (i) authorized the purchase of the Patents, and (ii)
authorized the issuance of, and reserved for issuance shares of
Common Stock for the purchase of the patents.
1.2
Issuance of shares to the Sellers . Subject in all respects
to the satisfaction of the terms and conditions herein set forth
and in reliance upon the respective representations and warranties
of the parties set forth herein or in any document delivered
pursuant hereto, the Purchaser agrees to issue to Seller (and such
Seller agrees by executing and delivering a signature page hereto
to accept said shares) 20,333,333 shares of Restricted Common Stock
of MDRV, par value .001, in exchange for all rights, title and
interest in European Patent (Application Number 06396001) EP
1681057B1 concerning eating disorders, a copy of which has been
attached hereto and incorporated herein by reference as
“Exhibit 1” and the Applicant for U.S. Patent
Application 11/031,534 a copy of which has been attached hereto and
incorporated herein by reference as “Exhibit
2”.
Purchase
Agreement – Madrona Ventures Inc.
ARTICLE II
CONDITIONS TO
ISSUANCE
The obligation of the Sellers to accept the
shares is subject to the fulfillment to Seller’s
satisfaction, each of the following conditions:
2.1
Representations and Covenants . The representations and
warranties made by the Purchaser in Article III shall be true and
correct, and all covenants, agreements and conditions contained in
this Agreement to be performed or complied with by the Purchaser
shall have been performed or complied with.
2.2
Corporate Authorization . At or prior to the Closing, the
Purchaser shall have delivered to the Sellers copies of the
resolutions of the Board of Directors of the Purchaser approved by
the directors of the Purchaser, authorizing, (i) the execution,
delivery and performance of this Agreement and the Related
Agreements, and the transactions contemplated hereby and thereby,
and (ii) the reservation of shares of Common Stock issuable upon
execution if this Agreement.
2.3
Corporate Documents . At or prior to the Closing, the
Purchaser shall have delivered to the Sellers copies of the
Articles of Incorporation for the Purchaser, certified by the
Nevada Secretary of State on, or within five business days prior
to, the Closing, and copies of the By-Laws of the Purchaser
certified by an officer of the Purchaser as of the date of the
Closing.
2.4
Legal Compliance . As of the Closing, the issuance of the
shares shall be legally permitted by all laws and regulations to
which the Sellers and the Purchaser are subject.
2.5
Qualifications . As of the Closing, all authorizations,
approvals or permits of, or filings with, any governmental
authority that are required by law in connection with the lawful
sale and issuance of the Shares by the Purchaser shall have been
duly obtained by the Purchaser and shall be effective on and as of
the Closing.
2.6
Proceedings and Documents . All corporate and other
proceedings in connection with the transactions contemplated hereby
and by the Related Agreements, and all documents and instruments
incident to such transactions, shall be satisfactory in form and
substance to the Sellers, and each Seller shall have received at or
prior to the Closing all such documents as such Seller shall have
requested.
Purchase
Agreement – Madrona Ventures Inc.
ARTICLE III
REPRESENTATIONS AND
WARRANTIES OF THE
PURCHASER
The Purchaser hereby represents and warrants to
the Sellers as set forth below, and the Purchaser acknowledges that
the Sellers are entering into this Agreement in reliance on the
truth and accuracy of such representations and
warranties.
3.1
Organization and Standing . The Purchaser is a corporation
duly organized, validly existing and in good standing under the
laws of the State of Nevada. The Purchaser has the requisite legal
and corporate power to own all the properties owned by it, and to
conduct its business as presently being and as proposed to be
conducted by it.
3.2
Corporate Power . The Purchaser has all requisite legal and
corporate power to enter into this Agreement and the Related
Agreements to which it is a party and to carry out and perform its
obligations under the terms of this Agreement and the Related
Agreements to which it is a party. The Purchaser has the legal and
corporate power to issue the shares of Common Stock issuable upon
execution of this Agreement and transfer of ownership of the
Patents and all rights title and interest therein.
3.3
Authorization: Enforceability . All corporate action on the
part of the Purchaser, and its directors and shareholders,
necessary for the authorization, execution, delivery and
performance by the Purchaser of this Agreement and the Related
Agreements to which it is a party, and the consummation of the
transactions contemplated hereby and thereby, for the
authorization, issuance and delivery of the shares of Common Stock
issuable upon execution of this Agreement and transfer of ownership
of the Patents and all rights title and interest therein, has been
taken. This Agreement and the Related Agreements are legal, valid
and binding obligations of the Purchaser enforceable against the
Purchaser in accordance with their respective terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency
or other laws affecting creditors’ rights generally or by the
availability of equitable remedies.
3.4
Capitalization . As of the Closing, the Purchaser’s
authorized capital stock will consist of 200,000,000 shares of
Common Stock and ZERO shares of Preferred Stock. There
are no outstanding securities of the Purchaser which are
convertible into or exchangeable for any shares of the
Purchaser’s capital stock or containing any capital
appreciation or profit participation features, there is no existing
contract, option, warrant, call or other commitment or right of any
character granted or issued by the Purchaser calling for or
relating to the issuance or transfer of shares of capital stock or
any other securities of the Purchaser. The Purchaser is not subject
to any obligation (contingent or otherwise) to repurchase or
otherwise acquire or retire any shares of its capital stock or any
Notes, options or other rights to acquire its capital stock. There
are no statutory or contractual preemptive rights or rights of
refusal with respect to (i) the issuance of the Shares of Common
Stock hereunder, and there are no statutory or contractual
preemptive rights or rights or rights of first refusal with respect
to the issuance of any other shares of capital stock or other
securities or rights of the Purchaser.
Purchase
Agreement – Madrona Ventures Inc.
3.5
Validity of Shares . The shares of Common Stock issuable
upon execution of this Agreement and transfer of ownership of the
Patents and all rights title and interest therein, have been duly
and validly reserved by the Purchaser and, upon issuance will be
duly and validly issued, fully paid, non-assessable and free and
clear of all Liens.
3.6
Financial Statements . The financial statements of the
Company are available for review and examination on the Securities
and Exchange Commission’s (“SEC”) website at
www.sec.gov , EDGAR filing system.
3.7
Absence of Material Undisclosed Liabilities . The Purchaser
does not have any material liabilities (fixed or contingent, except
for payroll tax liabilities due or to become due) which are, or
indebtedness which is, not fully reflected or provided for in the
Balance Sheet, other than trade payables and accruals incurred in
the ordinary course of business since the date of the Balance Sheet
and executory contracts entered into in the ordinary course of
business.
3.8
Litigation . There are no material actions, suits,
proceedings or investigations pending or, to the Purchaser’s
knowledge, threatened against or affecting the Purchaser at law or
in equity, or before or by any federal, state, municipal or other
governmental department, commission, board, agency or
instrumentality, domestic or foreign. The Purchaser is not
operating under or subject to, nor in default with respect to, any
order, writ, injunction or decree of any court or federal, state,
municipal or other governmental department, commission, board,
agency or instrumentality, foreign or domestic, and the Purchaser
has not been charged or, to the Purchaser’s knowledge,
threatened with a charge of violation, or under investigation with
respect to possible violation, of any provision of any federal,
state or local law or administrative ruling or regulation relating
to the Purchaser or its business, affairs, assets, prospects,
operations, employee relations, rights or condition, financial or
otherwise.
3.9
Consents . All material consents, approvals, qualifications,
orders or authorizations of, or filings with, any governmental
authority, including state securities commissions, required in
connection with the Purchaser’s valid execution, delivery or
performance of this Agreement and the Related Agreements to which
it is a party, the offer, sale and issuance of the Shares and the
consummation of any other transaction contemplated on the part of
the Purchaser hereby or thereby have been obtained or
made.
Purchase
Agreement – Madrona Ventures Inc.
3.10
Compliance with Law and Other Instruments . The Purchaser is
not in violation of any term of its Articles of Incorporation or
By-Laws. The Purchaser is not in violation of the provisions of any
material note, bond, mortgage, indenture, loan, factoring
arrangement, license, agreement, lease or other instrument or
obligation to which the Purchaser is a party or by which it or any
of its assets may be bound. To the knowledge of the Purchaser, the
Purchaser has all material franchises, permits, licenses and
approvals necessary to conduct its respective business as presently
conducted. To the knowledge of the Purchaser, the Purchaser is not
in violation of any term or provision of any such material
franchise, permit, license or approval, or any-material law,
judgment, order, writ, injunction, decree, statute, rule or
regulation of any court, administrative agency, bureau, board,
commission, office, authority, department or other governmental
entity applicable to the Purchaser, or any of its
assets.
3.11
No Violation . None of the execution and delivery of this
Agreement and the Related Agreements, the consummation of the
transactions provided for herein and therein or contemplated hereby
and thereby, the fulfillment by the Purchaser of the terms hereof
or thereof, will (a) conflict with or result in a breach of any
provision of the Articles of Incorporation or By-Laws of the
Purchaser, (b) result in a default or breach, give rise to any
right of termination, cancellation or acceleration, or require any
consent or approval, under any of the terms, conditions or
provisions of any material note, bond, mortgage, indenture, loan,
factoring arrangement, license, agreement, lease or other
instrument or obligation to which the Purchaser is a party or by
which it or any of its respective assets may be bound or (c) to the
knowledge of the Purchaser, violate any material law (including,
but not limited to, any Environmental Law), judgment, order, writ,
injunction, decree, statute, rule or regulation of any court,
administrative agency, bureau, board, commission, office,
authority, department or other governmental entity applicable to
the Purchaser or any of its assets.
ARTICLE IV
REPRESENTATIONS AND WARRANTIES
OF THE SELLERS
Each Seller represents and warrants to the
Purchaser with respect to itself as follows:
4.1
Enforceability . This Agreement and the Related Agreements
are legal, valid and binding obligations of the Seller, enforceable
against such Seller in accordance with their terms.
4.2
Shares for Investment . The Seller will acquire the Common
Stock issuable upon execution of this Agreement and transfer of
ownership of the Patents and all rights title and interest therein,
for investment, and not with a view to distributing all or any part
thereof in any transaction, which would constitute a
“distribution” within the meaning of the Securities
Act. The Seller acknowledges that the Common Stock to be issued to
Seller has not been registered under the Securities Act and, except
as provided in Article VII hereto, the Purchaser is under no
obligation to file a registration statement with the Securities and
Exchange Commission with respect to the Common Stock issuable upon
execution of this Agreement.
Purchase
Agreement – Madrona Ventures Inc.
4.3
Purchaser Qualifications . The Seller (a) has such knowledge
and experience in financial and bu
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