COMMON STOCK
PURCHASE
AGREEMENT
This Common Stock Purchase Agreement (the
"Agreement") is dated as of March 11, 200
by and among OTR Media, Inc., a corporation organized under the
laws of the State of Nevada (the "Company") and Limelight Media
Group, Inc. (the "Purchaser").
WHEREAS, the
parties desire that, upon the terms and subject to the conditions
contained herein, the Company shall issue and sell to the Purchaser
and the Purchaser shall purchase ten million two hundred thousand
(10,200,000) shares of the Company's common stock (the "Common
Stock"); and
WHEREAS, such
purchase and sale will be made in reliance upon the provisions of
Section 4(2) and Rule 506 of Regulation D ("Regulation D") of the
United States Securities Act of 1933, as amended, and the rules and
regulations promulgated thereunder (the "Securities Act"), or upon
such other exemption from the registration requirements of the
Securities Act as may be available with respect to any or all of
the purchases of Common Stock to be made hereunder.
NOW, THEREFORE, in consideration of the mutual
promises and covenants contained herein, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:
ARTICLE
I
Purchase and Sale of
Stock
Section 1.1 Purchase and Sale of Common Shares
. Upon the following terms and
subject to the conditions contained herein, the Company shall, on
the date hereof, issue and sell to the Purchaser, and the Purchaser
shall purchase from the Company, an aggregate of ten million two
hundred thousand shares of Common Stock (the "Common Shares"). As
consideration, the Purchaser shall assume financial and operational
responsibility of the Company and perform certain terms and
conditions as detailed in an agreement between the Purchaser and
the Company dated March 11, 2005.
Section 1.2 Closing . The closing of the purchase and sale of the
Common Shares (the "Closing") to be acquired by the Purchaser
from the Company shall take place at the offices of Seller on
the date hereof (the "Closing Date").
ARTICLE
II
Representations and
Warranties
Section 2.1 Representations and Warranties of the
Company . In order to
induce the Purchaser to enter into this Agreement and to purchase
the Common Shares, the Company hereby makes the following
representations and warranties to the Purchaser:
(a) Organization, Good Standing and Power
. The Company is a corporation duly
incorporated, validly existing and in good standing under the laws
of the jurisdiction of its incorporation or organization
and has the requisite corporate power to
own, lease and operate its properties and assets and to
conduct its business as it is now being conducted and to enter into
this Agreement and to perform its obligations hereunder.
(b) Authorization; Enforcement
. The Company has the requisite
corporate power and authority to enter into and perform this
Agreement and to issue and sell the Common Shares in accordance
with the terms hereof. The execution, delivery and performance of
this Agreement by the Company and the consummation by it of the
transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action, and no further
consent or authorization of the Company or its Board of Directors
or stockholders is required. This Agreement has been duly executed
and delivered by the Company. This Agreement constitutes a valid
and binding obligation of the Company enforceable against the
Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship,
receivership or similar laws relating to, or affecting generally
the enforcement of, creditor’s rights and remedies or by
other equitable principles of general application.
(c) Issuance of Shares . The Common Shares to be issued at the Closing
have been duly authorized by all necessary corporate action and,
when paid for or issued in accordance with the terms hereof, the
Common Shares shall be validly issued and outstanding, fully paid
and nonassessable.
(d) No Conflicts . The execution, delivery and performance of
this Agreement by the Company and the consummation by the Company
of the transactions contemplated herein and therein do not and will
not (i) violate any provision of the Company’s Certificate of
Incorporation ("Articles") or Bylaws, (ii) conflict with, or
constitute a default (or an event which with notice or lapse of
time or both would become a default) under, or give to others any
rights of termination, amendment, acceleration or cancellation of,
any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the
Company is a party or by which any of its properties or assets are
bound, (iii) create or impose a lien, mortgage, security interest,
charge or encumbrance of any nature whatsoever on any property of
the Company under any agreement or any commitment to which the
Company is a party or by which the Company is bound or by which any
of its properties or assets are bound, or (iv) result in a
violation of any rule, regulation, order, judgment or decree
applicable to the Company or by which any property or asset of the
Company is bound or affected, except, in all cases other than
violations pursuant to clause (i) above, for such conflicts,
defaults, terminations, amendments, acceleration, cancellations and
violations as would not, individually or in the aggregate, have a
Material Adverse Effect. "Material Adverse Effect" shall mean any
effect on the business, operations, properties, prospects, or
financial condition of the Company that is material and adverse to
the Company and its subsidiaries and affiliates, taken as a
whole.
(f) Certain Fees . The Company has not employed any broker or
finder or incurred any liability for any brokerage or investment
banking fees, commissions, finders' or structuring fees, financial
advisory fees or other similar fees in connection with this
Agreement.
Section 2.2 Representations and Warranties of the
Purchaser . The Purchaser
hereby makes the following representations and warranties to the
Company:
(a) Organization and Standing of the
Purchaser . The Purchaser
is a corporation purchasing these shares to expand its business
operations.
(b) Authorization and Power . The Purchaser has the requisite power and
authority to enter into and perform this Agreement and to purchase
the Common Shares being sold to it hereunder. The execution,
delivery and performance of this Agreement by the Purchaser and the
consummation by it of the transactions contemplated hereby have
been duly authorized by all necessary corporate action and no
further consent or authorization of the Purchaser or its Board of
Directors, stockholders, members, managers or partners, as the case
may be, is required. This Agreement has been duly executed and
delivered by the Purchaser on the Closing Date. This Agreement
constitutes a valid and binding obligation of the Purchaser
enforceable against the Purchaser in accordance with its terms,
except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, liquidation,
conservatorship, or similar laws relating to, or affecting
generally the enforcement of, creditors' rights or remedies or by
other equitable principles of general application.
(c) No Conflicts . The execution, delivery and performance of
this Agreement and the consummation by the Purchaser of the
transactions contemplated herein do not and will not (i) result in
a violation of the Purchaser’s charter documents,
bylaws, partnership agreement, operating agreement or other
organizational documents, or (ii) conflict with, constitute a
default (or an event which with notice or lapse of time or both
would become a default) under, or give to others any rights
of termination, amendment, acceleration or cancellation of any
agreement, indenture or instrument to which the Purchaser is a
party of by which the Purchaser is bound, or result in a violation
of any law, rule, or regulation, or any order, judgment or decree
of any court or governmental agency applicable to the Purchaser or
its properties (except for such conflicts, defaults and violations
as would not, individually or in the aggregate, have a material
adverse effect on the Purchaser).
(d) Acquisition for Investment
. The Purchaser is purchasing the
Common Shares solely for its own account for the purpose of
investment and not with a view to or for sale in connection with
distribution. The Purchaser does not have a present intention to
sell the Common Shares, nor a present arrangement (whether or not
legally binding) or intention to effect any distribution of the
Common Shares to or through any person or entity; provided ,
however , that (a) by making the representations herein and
subject to Section 2.2(f) below, the Purchaser does not agree to
hold the Common Shares for any minimum or other specific term and
reserves the right to dispose of the Common Shares at any time in
accordance with federal securities laws applicable to such
disposition. The Purchaser acknowledges that it is able to bear the
financial risks associated with an investment in the Common Shares
and that it has been given full access to such records of the
Company and to the officers of the Company as it has deemed
necessary or appropriate to conduct its due diligence
investigation.
(e) Accredited Purchasers . The Purchaser is an "accredited investor" as
defined in Regulation D promulgated under the Securities Act and is
a resident of Tennessee. The Purchaser has such knowledge and
experience in financial and business matters that the Purchaser is
capable of evaluating the merits and risks of the Purchaser's
investment in the Company.
(f) No Public Market . The Purchaser understands that the Common
Shares are shares in a private company and is not traded in a
publicly traded exchange. Therefore, the shares may be held
indefinitely until as such time that a public market may be made
available for the shares.
(g) No Broker-Dealer Affiliation
. The Purchasers is not a
broker-dealer registered with the Commission or an affiliate (as
such term is defined in Rule 144(a) promulgated under the
Securities Act) of a broker-dealer registered with the
Commission.
(h) General . The Purchaser understands that the Common
Shares are being offered and sold in reliance on a transactional
exemption from the registration requirement of federal and state
securities laws and the Company is relying upon the truth and
accuracy of the representations, warranties, agreements,
acknowledgments and understandings of the Purchaser set forth
herein in order to determine the applicability of such exemptions
and the suitability of such Purchaser to acquire the Common Shares.
The Purchaser understands that no United States federal or state
agency or any government or governmental agency has passed upon or
made any recommendation or endorsement of the Common
Shares.
(i) No General Solicitation . The Purchaser acknowledges that the Common
Shares were not offered to the Purchaser by means of any form of
general or public solicitation or general advertising, or publicly
disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published
in any newspaper, magazine, or similar media, or broadcast
over television or radio, or (ii) any seminar or meeting to which
the Purchaser was invited by any of the foregoing means of
communications.
(j) No Commissions or Similar Fees
. In connection with the purchase of
the Common Shares by the Purchaser, the Purchaser has not and will
not pay, and has no knowledge of the payment of, any commission or
other direct or indirect remuneration to any person or entity for
soliciting or otherwise coordinating the purchase of such
securities, except to such persons or entities as are duly licensed
and/or registered to engage in securities offering and selling
activities (or are exempt from such licensing and/or registration
requirements) under applicable federal laws and the laws of the
state(s) in which such activities have taken place in connection
with the transaction contemplated by this Agreement.
ARTICLE
III
Registration
Rights
Section 3.1 Registration Rights . There are no piggy back registration rights to
this purchase agreement.
ARTICLE
IV
Stock Certificate
Legend
Section 4.1 Legend . Each certificate representing the Common
Shares, as applicable and appropriate, shall be stamped or
otherwise imprinted with a legend in substantially the following
form (in addition to any legend required by applicable federal,
provincial or state securities or "blue sky" laws):
THE SECURITIES
REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"SECURITIES ACT") OR STATE SECURITIES LAWS AND MAY NOT BE SOLD,
TRANSFERRED, ASSIGNED, PLEDGED OR HYPOTHECATED OR OTHERWISE
DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT AND UNDER
APPLICABLE STATE SECURITIES LAWS OR OTR MEDIA, INC. (THE "COMPANY")
SHALL HAVE RECEIVED AN OPINION IN FORM, SCOPE AND SUBSTANCE
REASONABLY ACCEPTABLE TO THE COMPANY, OF COUNSEL, WHO IS REASONABLY
ACCEPTABLE TO THE COMPANY, THAT REGISTRATION OF SUCH SECURITIES
UNDER THE SECURITIES ACT AND UNDER THE PROVISIONS OF APPLICABLE
FEDERAL AND STATE SECURITIES LAWS IS NOT REQUIRED.
ARTICLE
V
Termination
This Agreement may be not be terminated with the
exception of provisions in Paragraph 2 “Transition
Period” in Attached Agreement (“Exhibit
“A”).
ARTICLE
VI
Miscellaneous
Section 6.1 Fees and Expenses . The Company shall not pay the fees and
expenses of Purchaser for its advisors, counsel, accountants and
other experts, if any, and all other expenses, incurred by such
party incident to the negotiation, preparation, execution, delivery
and performance of this Agreement.
Section 6.2 Consent to Jurisdiction . Each of the Company and the Purchaser (i)
hereby irrevocably submits to the jurisdiction of the United States
District Court sitting in the District of West Tennessee and the
courts of the State of Tennessee located in Shelby county for the
purposes of any suit, action or proceeding arising out of or
relating to this Agreement or the transactions contemplated
hereunder or thereunder and (ii) hereby waives, and agrees not to
assert in any such suit, action or proceeding, any claim that it is
not personally subject to the jurisdiction of such court, that the
suit, action or proceeding is brought in an inconvenient forum or
that the venue of the suit, action or proceeding is improper.
Each of the Company and the Purchaser consents to process being
served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it
under this Agreement and agrees that such service shall constitute
good and sufficient service of process and notice thereof. Nothing
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