EXHIBIT 10.2
SECURITIES PURCHASE
AGREEMENT
This SECURITIES PURCHASE AGREEMENT
(this "Agreement"), dated as of July
29, 2009, by and among Senesco Technologies, Inc., a Delaware
corporation (the "Company"), and Cato Holding Company, a North
Carolina corporation ( the "Purchaser").
W
I T N
E S S E T H
:
WHEREAS , the Company is currently indebted to Purchaser
in an amount in excess of one hundred seventy-five thousand dollars
(US$175,000); and
WHEREAS , the Purchaser is willing to purchase certain
securities from the Company in exchange for the indebtedness and
the Company is willing to issue such securities pursuant to the
terms of this Agreement; ;
NOW, THEREFORE , in consideration of the promises and the
mutual covenants contained herein, the parties hereto, intending to
be legally bound, hereby agree as follows:
SECTION I
PURCHASE AND SALE OF THE
SECURITIES
A.
Purchase and Sale . Subject to the terms and
conditions of this Agreement and on the basis of the
representations, warranties, covenants and agreements herein
contained, the Purchaser agrees to purchase at the Closing and the
Company hereby agrees to sell and issue to the Purchaser at the
Closing the following securities: (a) one hundred
ninety-four thousand four hundred forty-four (194,444) shares (the
"Shares") of the Company's common stock, $0.01 par value per share
(the "Common Stock"); (b) a warrant to purchase one hundred
seventy-five thousand (175,000) shares of Common Stock at an
exercise price of $0.01 per share (“Warrant A”); and
(c) a warrant to purchase one hundred seventy-seven thousand, four
hundred thirty-one (177,431) shares of Common Stock at an exercise
price of $0.60 per share (“Warrant B” and collectively
with Warrant A, the
"Warrants"). The Warrants, together with the
Shares, shall be referred to herein collectively as the
"Securities."
B.
Price . The purchase price for the Securities
shall be one hundred seventy-five thousand dollars
(US$175,000).
C.
Warrant A . Warrant A shall (i) be in the form of
Exhibit A attached hereto, (ii) have a seven (7)
year term, (iii) be exercisable immediately, and (iv) entitle the
Purchaser and/or its designees, as the case may be, to
purchase an aggregate of 175,000 shares of the Company’s
Common Stock at an exercise price of $0.01 per share.
D.
Warrant B . Warrant B shall (i) be in the form of
Exhibit B attached hereto, (ii) have a seven (7) year term,
(iii) be exercisable in full beginning six (6) months from the date
of issuance, and (iv) entitle the Purchaser and/or its designees,
as the case may be, to purchase an aggregate of 177,431 shares of
the Company’s Common Stock at an exercise price of $0.60 per
share..
SECTION II
REPRESENTATIONS, WARRANTIES,
COVENANTS
AND AGREEMENTS OF THE
COMPANY
Except as disclosed in the Schedules attached
hereto (“Schedules”) or as disclosed in, and reasonably
apparent from, any report, schedule, form or other document filed
with, or furnished to, the U.S. Securities and Exchange Commission
(“SEC”) and publicly available prior to the date of
this Agreement, the Company represents and warrants to, and
covenants and agrees with, the Purchaser, as of the date hereof,
that:
A.
Organization; Good Standing . The Company is a
corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has full corporate
power and authority to own its properties and to conduct the
business in which it is now engaged.
B.
Authority . Except as set forth on Schedule IIB,
the Company has the full corporate power, authority and legal right
to execute and deliver this Agreement and to perform all of its
obligations and covenants hereunder, and no consent or approval of
any other person or governmental authority is required
therefore. The execution and delivery of this Agreement
by the Company, the performance by the Company of its obligations
and covenants hereunder and the consummation by the Company of the
transactions contemplated hereby have been duly authorized by all
necessary corporate action. This Agreement constitutes a
valid and legally binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as the
enforceability thereof may be limited by bankruptcy, insolvency or
other similar laws affecting the enforceability of creditors'
rights in general or by general principles of equity.
C.
No Legal Bar; Conflicts . Neither the execution
and delivery of this Agreement, nor the consummation of the
transactions contemplated hereby, violates any provision of the
Certificate of Incorporation, as amended, or By-Laws of the Company
or any law, statute, ordinance, regulation, order, judgment or
decree of any court or governmental agency, or conflicts with or
results in any breach of any of the terms of or constitutes a
default under or results in the termination of or the creation of
any lien pursuant to the terms of any contract or agreement to
which the Company is a party or by which the Company or any of its
assets is bound.
D.
Non-Assessable Shares . The Securities being
issued hereunder, subject to the Company’s receipt of
stockholder approval for an increase in the number of its
authorized shares, will be duly authorized and, the Shares, when
issued to the Purchaser for the consideration herein provided, and
the shares of Common Stock issued upon the proper exercise of the
Warrants, will be validly issued, fully paid and
non-assessable.
E.
SEC Documents; Financial Statements . During the
two years prior to the date hereof, the Company has timely filed
all reports, schedules, forms, statements and other documents
required to be filed by it with the the SEC pursuant to the
reporting requirements of the Securities Exchange Act of 1934 (the
“1934 Act”) (all of the foregoing filed prior to the
date
hereof or prior
to the Closing Date, and all exhibits included therein and
financial statements and schedules thereto and documents
incorporated by reference therein being hereinafter referred to as
the "SEC Documents"). The Company has made available to
the Purchaser or their respective representatives true, correct and
complete copies of the SEC Documents not available on the EDGAR
system. As of their respective dates, the SEC Documents
complied in all material respects with the requirements of the 1934
Act and the rules and regulations of the SEC promulgated thereunder
applicable to the SEC Documents, and none of the SEC Documents, at
the time they were filed with the SEC, 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 the light of the circumstances under which
they were made, not misleading. As of their respective
dates, the financial statements of the Company included in the SEC
Documents complied as to form in all material respects with
applicable accounting requirements and the published rules and
regulations of the SEC with respect thereto. Such
financial statements have been prepared in accordance with
generally accepted accounting principles, consistently applied,
during the periods involved (except (i) as may be otherwise
indicated in such financial statements or the notes thereto, or
(ii) in the case of unaudited interim statements, to the extent
they may exclude footnotes or may be condensed or summary
statements) and fairly present in all material respects the
financial position of the Company as of the dates thereof and the
results of its operations and cash flows for the periods then ended
(subject, in the case of unaudited statements, to normal year-end
audit adjustments). No other information provided by or
on behalf of the Company to the Purchaser which is not included in
the SEC Documents, including, without limitation, information
provided to any Purchaser by the Company in anticipation of this
transaction, contains any untrue statement of a material fact or
omits to state any material fact necessary in order to make the
statements therein, in the light of the circumstance under which
they are or were made, not misleading.
F.
Absence of Certain Changes . Except in the
ordinary course of business, since July 28, 2009, there has been no
material adverse change and no material adverse development in the
business, properties, operations, condition (financial or
otherwise), results of operations or prospects of the Company or
its subsidiaries. Since July 28, 2009, the Company has
not (i) declared or paid any dividends, (ii) sold any assets,
individually or in the aggregate, in excess of $500,000 outside of
the ordinary course of business or (iii) had capital expenditures,
individually or in the aggregate, in excess of
$500,000. The Company has not taken any steps to seek
protection pursuant to any bankruptcy law nor does the Company have
any knowledge or reason to believe that its creditors intend to
initiate involuntary bankruptcy proceedings or any actual knowledge
of any fact which would reasonably lead a creditor to do
so.
G.
No Undisclosed Events, Liabilities, Developments or
Circumstances . Except as set forth on Schedule IIG,
no event, liability, development or circumstance has occurred or
exists, or is contemplated to occur, with respect to the Company or
its subsidiaries or their respective business, properties,
prospects, operations or financial condition, that would be
required to be disclosed by the Company under applicable securities
laws on a registration statement on Form S-1 filed with the SEC
relating to an issuance and sale by the Company of its Common Stock
and which has not been publicly announced.
H.
Foreign Corrupt Practices . Neither the Company,
nor any of its subsidiaries, nor any director, officer, agent,
employee or other person acting on behalf of the Company or any
of
its
subsidiaries has, in the course of its actions for, or on behalf
of, the Company (i) used any corporate funds for any unlawful
contribution, gift, entertainment or other unlawful expenses
relating to political activity; (ii) made any direct or indirect
unlawful payment to any foreign or domestic government official or
employee from corporate funds; (iii) violated or is in violation of
any provision of the U.S. Foreign Corrupt Practices Act of 1977, as
amended; or (iv) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment to any foreign or
domestic government official or employee.
I.
Sarbanes-Oxley Act . The Company is in compliance
with any and all applicable requirements of the Sarbanes-Oxley Act
of 2002 that are effective as of the date hereof, and any and all
applicable rules and regulations promulgated by the SEC thereunder
that are effective as of the date hereof, except where such
noncompliance would not have, individually or in the aggregate, a
material adverse effect.
J.
Intellectual Property Rights . The Company and
its subsidiaries own or possess adequate rights or licenses to use
all trademarks, trade names, service marks, service mark
registrations, service names, patents, patent rights, copyrights,
inventions, licenses, approvals, governmental authorizations, trade
secrets and other intellectual property rights ("Intellectual
Property Rights") necessary to conduct their respective businesses
as now conducted. None of the Company's Intellectual
Property Rights have expired or terminated, or are expected to
expire or terminate within three years from the date of this
Agreement, except for rights which are not necessary to conduct its
business as now conducted. The Company does not have any
knowledge of any infringement by the Company or its subsidiaries of
Intellectual Property Rights of others. There is no
claim, action or proceeding being made or brought, or to the
knowledge of the Company, being threatened, against the Company or
any of its subsidiaries regarding its Intellectual Property
Rights. The Company is unaware of any facts or
circumstances which might give rise to any of the foregoing
infringements or claims, actions or proceedings. The
Company and its subsidiaries have taken reasonable security
measures to protect the secrecy, confidentiality and value of all
of their Intellectual Property Rights.
SECTION III
REPRESENTATIONS, WARRANTIES,
COVENANTS
AND AGREEMENTS OF THE
PURCHASER
The Purchaser represents and warrants to, and
covenants and agrees with, the Company, as of the date hereof,
that:
A.
Organization . The Purchaser is, and as of the
Closing will be, duly organized, validly existing and in good
standing under the laws of its jurisdiction of
organization.
B.
Authorization . The Purchaser has, and as of the
Closing will have, all requisite power and authority to execute,
deliver and perform this Agreement and to consummate the
transactions contemplated hereby. The execution,
delivery and performance of this Agreement, and the consummation of
the transactions contemplated hereby, have been duly and validly
authorized by all necessary action on the part of the
Purchaser. This Agreement has been duly executed and
delivered by the Purchaser and constitutes its legal, valid and
binding obligation, enforceable against the Purchaser in accordance
with its terms, except as the enforceability
thereof may be
limited by bankruptcy, insolvency or other similar laws affecting
the enforceability of creditors' rights in general or by general
principles of equity.
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