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Exhibit 10.4
WARRANT PURCHASE AGREEMENT
WARRANT PURCHASE AGREEMENT, dated April 11, 2005, by and
between
SIRICOMM, INC., a Delaware corporation having its principal
office at 2900 Davis
Boulevard, Suite 130, Joplin, Missouri 64804 (the "Company") and
Sunflower
Capital, LLC, having an office at 10801 Mastin, Suite 920,
Overland Park, Kansas
(the "Purchaser").
BACKGROUND INFORMATION
This Agreement sets forth the terms and conditions upon which
Purchaser
is acquiring from the Company and the Company is selling and
delivering to the
Purchaser, Four Hundred Thirteen Thousand Six Hundred and Five
(413,605)
five-year warrants to purchase a like number of shares of the
Company's common
stock for $3.00 per share (the "Warrants").
OPERATIVE PROVISIONS
ARTICLE 1
Purchase and Sale of Shares
1.1 Warrants to be Sold. Subject to the terms and conditions of
this
Agreement, at the Closing referred to in Section 1.4 hereof, the
Company shall
sell and deliver to the Purchaser good, valid and marketable
title to the
Warrants by delivering to the Purchaser the Warrants registered
in the name of
the Purchaser and executed by the Company.
1.2 Purchase Price of the Shares. The purchase price to be paid
by the
Purchaser to the Company for the Warrants shall be Fifty Three
Thousand Three
Hundred and Thirty Three and No/100 Dollars ($53,333.00) (the
"Purchase Price").
1.3 Payment of Purchase Price. Subject to the terms and
conditions of
this Agreement, in reliance on the representations, warranties
and agreements of
the Company contained herein, and in consideration of the sale
and delivery of
the Warrants, the Purchaser shall pay the Purchase Price at the
Closing by
delivery of a certified or cashier's check, made payable to the
Company, or by
wire transfer to a bank account designated by the Company.
1.4 Closing. The closing of the sale and purchase of the
Warrants shall
take place at such time and place as may be agreed to by the
parties but no
later than April 15, 2005 (the "Closing"). At the Closing, the
Company shall
deliver to the Purchaser the Warrants. Simultaneously with such
delivery, the
Purchaser shall deliver the Purchase Price to the Company. Each
party shall be
responsible for all fees and costs incurred by it or on its
behalf in connection
with the negotiation of this Agreement and the Closing.
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If at the Closing the Company shall fail to tender the Warrants,
or if
any of the conditions specified hereunder shall not have been
fulfilled, the
Purchaser shall, at its option, be relieved of its obligations
under this
Agreement without thereby waiving any rights it may have by
reason of such
failure or non-fulfillment. Conversely, if the Purchaser fails
to close the
transactions herein contemplated for any reason other than a
default or breach
occasioned by the Company under the terms hereof, or a failure
of performance of
any of the conditions recited in Article 2 below, the Company
may pursue any
legal rights or remedies then available to it, expressly
including the right to
require the Purchaser's specific performance of this
Agreement.
ARTICLE 2
Representations and Warranties of the Company
The Company represents, warrants and agrees as follows:
2.1 Organization and Standing of the Company. The Company is
a
corporation duly organized, validly existing and in good
standing under the laws
of the State of Delaware and has all requisite corporate power
and authority to
own and operate its properties and to carry on its business as
now conducted and
as proposed to be conducted.
2.2 Authorization. When executed and delivered by the Company,
this
Agreement will constitute the valid and binding obligation of
the Company,
enforceable in accordance with its terms.
2.3 Securities Exchange Act Reports. All reports filed by the
Company
pursuant to Section 13 or 15(d) of the Securities Exchange Act
of 1934, as
amended, are true and correct and contain no material
misstatements or
omissions.
2.4 Consent. No consent, approval or authorization of or
registration,
qualification, designation, declaration or filing with any
governmental
authority or private person or entity on the part of the Company
is required in
connection with the execution and delivery of this Agreement or
the consummation
of any other transaction contemplated hereby, except as shall
have been duly
taken or effected prior to the Closing.
2.5 Reservation and Authorization of Warrants and Common Stock.
The
Warrants have been duly authorized and upon payment of Purchase
Price will be
validly issued, fully paid and non-assessable. The shares of
Common Stock
underlying the Warrants have been duly authorized and, upon
payment of the
exercise price will be validly issued, fully paid and
non-assessable. From and
after the Closing, the Company shall at all times reserve and
keep available for
issue upon the exercise of the Warrants such number of its
authorized but
unissued shares of Common Stock as will be sufficient to permit
the exercise in
full of the Warrants.
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2.6 Compliance with Laws. The Company is and will be at Closing
in
compliance with all applicable federal, state and local laws and
the Company is
current in all of its reports required to be filed pursuant to
Section 13 or
15(d) of the Securities Exchange Act of 1934, as amended.
2.7 Litigation. Except as otherwise disclosed in the Company's
reports
filed pursuant to Section 13 or 15(d) of the Securities Exchange
Act of 1934, as
amended, the Company is not a party or is not threatened to be
made a party to
any action, suit, proceeding, hearing, or investigation of, in,
or before any
court or agency of any federal, state or local jurisdiction or
before any
arbitrator.
2.8 SEC Filings. The Company has furnished or made available to
the
Buyer true and correct copies of the SEC Documents. The SEC
Documents are the
only filings made by the Company since January 1, 2003 pursuant
to Sections
13(a), 13(c), 14 and 15(d) of the Exchange Act or pursuant to
the Securities
Act. The Company has filed all reports, schedules, forms,
statements and other
documents required to be filed by it under Sections 13(a),
13(c), 14 and 15(d)
of the Exchange Act since January 1, 2003 and prior to the date
of this
Agreement.
2.9 Available Information. The Company has not provided to the
Buyer
any information which according to applicable law, rule or
regulation, should
have been disclosed publicly prior to the date hereof by the
Company but which
has not been so disclosed. As of their respective dates, the SEC
Documents
complied, and all similar documents filed with the SEC prior to
the Closing will
comply, in all material respects with the requirements of the
Securities Act or
the Exchange Act, as the case may be, and rules and regulations
of the SEC
promulgated thereunder and other federal, state and local laws,
rules and
regulations applicable to such SEC Documents, and no document
similar to the SEC
Documents filed by the Company with the SEC prior to the Closing
will contain,
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
Documents, as of the dates thereof, complied, and all similar
documents filed
with the SEC prior to the Closing will comply, as to form in all
material
respects with applicable accounting requirements and the
published rules and
regulations of the SEC and other applicable rules and
regulations with respect
thereto. Such financial statements were prepared in accordance
with generally
accepted accounting principles applied on a consistent basis
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 not include footnotes or may be condensed or
summary statements
as permitted by Form 10-Q as promulgated by the SEC) and fairly
present in all
material respects the financial position of the Company and its
consolidated
subsidiaries as of the dates thereof and the consolidated
results of operations
and cash flows for the periods then ended (subject, in the case
of unaudited
statements, to normal year-end audit adjustments)
2.10 Taxes.
(i) All federal, state, local and foreign tax returns and
reports required to be filed to date, and which are
properly open for examination under applicable
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statutes of limitation, with respect to the operation
of the Company have been accurately prepared and duly
filed, and all taxes shown as payable on such returns
and report have been paid when due, including,
without limitation income, withholding, payroll,
sales and use, and real and personal property taxes;
and
(ii) The Company has not executed or filed with any taxing
authority any agreement extending the period for
assessment or collection of any tax to a date
subsequent to the date hereof; and
(iii) No issue has been raised by any federal, state, local
or foreign taxing authority in connection with an
audit or examination of the tax returns, business or
properties of the Company that has not been settled
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