Purchase Agreement Connected Media
Purchase Agreement Connected Media
Purchase Agreement Connected Media
PRELIMINARY STATEMENT
Seller desires to sell, and Buyer desires to purchase, all of the outstanding shares
(the "Shares") of Connected Media Technologies, Inc. a corporation organized under the
laws of Delaware (the "Company"), on the terms and subject to the conditions set forth in
this Agreement.
AGREEMENT
ARTICLE 1
DEFINITIONS
For the purposes of this Agreement, the following terms and variations on them
have the meanings specified in this Article 1:
"Closing" means the consummation and completion of the purchase and sale of
the Shares.
"Closing Date" means the date on which the Closing actually takes place.
"Company Contract" means any Contract (a) under which the Company has or
may acquire rights, (b) under which the Company is or may become subject to Liability
or (c) by which the Company or any of its assets is or may become bound.
(a) the act or omission would conflict with it, violate it, result in a breach or
violation of or failure to comply with it, or constitute a default under it;
(b) the act or omission would give any Governmental Body or other Person
the right to challenge, revoke, withdraw, suspend, cancel, terminate or modify it, to
exercise any remedy or obtain any relief under it, or to declare a default or accelerate the
maturity of any obligation under it; or
(c) the act or omission would result in the creation of an Encumbrance on the
stock or assets of the Company.
"Governmental Body" means any (a) nation, region, state, county, city, town,
village, district or other jurisdiction, (b) federal, state, local, municipal, foreign or other
government, (c) governmental or quasi-governmental authority of any nature (including
any governmental agency, branch, department or other entity and any court or other
tribunal), (d) multinational organization, (e) body exercising, or entitled to exercise, any
"Knowledge" means, with respect to Seller, the actual knowledge after reasonable
investigation of Seller or of the Company's directors, officers or senior managerial
employees.
"Law" means any constitution, law, statute, treaty, rule, regulation, ordinance,
code, binding case law, principle of common law or notice of any Governmental Body.
ARTICLE 2
2.1 SHARES
Upon the terms and subject to the conditions set forth in this Agreement, at the
Closing, Seller will sell and transfer the Shares to Buyer, and Buyer will purchase and
acquire the Shares from Seller.
The purchase price for the Shares (the "Purchase Price") will be paid by delivery
of the Buyer’s Shares to Seller at the Closing, subject to the Escrow agreement attached
hereto as “Exhibit C”.
2.3 CLOSING
The Closing will take place at the offices of Buyer, at 10:00 a.m. (local time) on
the date that is two business days following the satisfaction or waiver of each of the
conditions set forth in Articles 5 and 6, unless Buyer and Seller agree otherwise.
At the Closing:
ARTICLE 3
(a) Seller and the Company have the absolute and unrestricted right, power,
authority and capacity to execute and deliver this Agreement and to perform their
obligations under this Agreement. Assuming due authorization, execution and delivery
of this Agreement by Buyer, this Agreement constitutes the legal, valid and binding
obligation of Seller and the Company, enforceable against Seller and the Company in
accordance with its terms.
(b) Seller and the Company are not and will not be required to give any notice to
any Person or obtain any Consent or Governmental Authorization in connection with the
execution and delivery of this Agreement or the consummation or performance of any of
the Contemplated Transactions.
(c) Neither the execution and delivery of this Agreement nor the consummation
or performance of any of the Contemplated Transactions will directly or indirectly (with
or without notice or lapse of time) (i) Contravene any provision of the Governing
Documents of the Company, (ii) Contravene any Company Contract, Governmental
Authorization, Law or Order to which Company or Seller, or any of the assets owned or
used by the Company, may be subject, or (iii) result in the imposition or creation of any
Encumbrance upon or with respect to any of the assets owned or used by the Company.
The Company has no Liabilities except for Liabilities reflected or reserved against
in the Financial Statements, and current Liabilities incurred in the Ordinary Course of
Business since the respective dates thereof.
(iii) each Company Contract that was not entered into in the Ordinary
Course of Business and that involves the expenditure or receipt by the Company of an
amount or value in excess of $10,000.
(a) There exists no pending Proceedings (i) by or against the Company or that
otherwise relate to or may affect the business of, or any of the assets owned or used by,
the Company or (ii) that challenge, or that may have the effect of preventing, delaying,
making illegal or otherwise interfering with, any of the Contemplated Transactions. To
Seller's Knowledge, no other such Proceeding has been threatened, and no event has
occurred or circumstance exists that may give rise to or serve as a basis for the
commencement of any such Proceeding.
(b) There exists no pending Order to which the Company or any of the assets
owned or used by the Company, is or has been subject.
Seller is acquiring the Buyer’s Shares for her own account and not with a view to
distribution within the meaning of Section 2(11) of the Securities Act. Seller confirms
that Buyer has made available to Seller the opportunity to ask questions of the officers
and management employees of Buyer and to acquire such additional information about
the business and financial condition of Buyer as Seller has requested, and all such
information has been received. Seller understands that Buyer Shares shall be considered
"restricted securities" as that term is defined in Rule 144 promulgated under the
Securities Act and Buyer is under no obligation to cause the registration of the Buyer
Shares.
Seller has not incurred any Liability for brokerage or finders' fees or agents'
commissions or other similar payment in connection with the Contemplated Transactions.
ARTICLE 4
4.1 ORGANIZATION
Buyer is a corporation duly organized, validly existing and in good standing under
the laws of its jurisdiction of organization.
(a) Buyer has the absolute and unrestricted right, power and authority to execute
and deliver this Agreement and to perform its obligations under this Agreement, which
actions have been duly authorized and approved by all necessary corporate action of
Buyer. Assuming the execution and delivery of this Agreement by Seller, this
Agreement constitutes the legal, valid and binding obligation of Buyer, enforceable
against Buyer in accordance with its terms.
(b) Buyer is not and will not be required to obtain any Consent or Governmental
Authorization in connection with the execution and delivery of this Agreement or the
consummation or performance of any of the Contemplated Transactions.
(c) Neither the execution and delivery of this Agreement by Buyer nor the
consummation or performance of any of the Contemplated Transactions by Buyer will
give any Person the right to prevent, delay or otherwise interfere with any of the
Contemplated Transactions pursuant to (i) any provision of Buyer's Governing
Documents, (ii) any resolution adopted by the board of directors or the stockholders of
Buyer, (iii) any Law, Order or Governmental Authorization to which Buyer may be
subject or (iv) any Contract to which Buyer is a party or by which Buyer may be bound.
Buyer has not incurred any Liability for brokerage or finders' fees or agents'
commissions or other similar payment in connection with the Contemplated Transactions.
ARTICLE 5
Between the date of this Agreement and the Closing Date and upon reasonable
advance notice from Buyer, Seller will, and will cause the Company to, (a) afford Buyer
full and free access to Company’s personnel, properties, Contracts, books and records,
and other documents and data, (b) furnish such Persons with copies of all such Contracts,
books and records, and other documents and data as Buyer may reasonably request, and
(c) furnish such Persons with such additional financial, operating and other data and
information as Buyer may reasonably request.
Between the date of this Agreement and the Closing Date, Seller will, and will
cause the Company to, (a) conduct its business only in the Ordinary Course of Business,
(b) use their Best Efforts to preserve intact the current business organization of the
Company, keep available the services of the current officers, employees and agents of the
Company, and maintain relations and goodwill with suppliers, customers, landlords,
creditors, employees, agents and others having business relationships with the Company,
(c) confer with Buyer concerning operational matters of a material nature and
(d) otherwise report periodically to Buyer concerning the status of the business,
operations and finances of the Company.
As promptly as practicable after the date of this Agreement, Buyer and Seller will,
and Seller will cause the Company to, make all filings that they are required by Law to
make to consummate the Contemplated Transactions. Between the date of this
Agreement and the Closing Date, Buyer and Seller will, and Seller will cause the
Company to, (a) cooperate with the other Party with respect to all filings that such Party
elects to make or that such Party is required by Law to make in connection with the
Contemplated Transactions, and (b) cooperate with Buyer in obtaining any Governmental
Authorizations.
ARTICLE 6
Buyer's obligation to purchase the Shares and to take the other actions required to
be taken by Buyer at the Closing is subject to the satisfaction, on or before the Closing
Date, of each of the following conditions (any of which may be waived by Buyer, in
whole or in part):
All of the covenants and obligations that Seller and Company is required to
perform or to comply with under this Agreement on or before the Closing Date
(considered both collectively and individually) must have been duly performed and
complied with in all material respects.
ARTICLE 7
Seller's obligation to sell the Shares and to take the other actions required to be
taken by Seller at the Closing is subject to the satisfaction, on or before the Closing Date,
of each of the following conditions (any of which may be waived by Seller, in whole or
in part):
ARTICLE 8
TERMINATION
(d) by either Buyer or Seller if the Closing has not occurred (other than through
the failure of any party seeking to terminate this Agreement to comply fully with its
obligations under this Agreement) on or before February 15, 2010, or such later date as
Buyer and Seller may agree upon.
INDEMNIFICATION; REMEDIES
9.1 SURVIVAL
ARTICLE 10
GENERAL PROVISIONS
10.1 EXPENSES
Upon the request of any party to this Agreement, the other parties will (a) furnish
to the requesting party any additional information, (b) execute and deliver, at their own
expense, any other documents and (c) take any other actions as the requesting party may
reasonably require to more effectively carry out the intent of this Agreement and the
Contemplated Transactions.
This Agreement supersedes all prior agreements among the parties with respect to
its subject matter a complete and exclusive statement of the terms of the agreement
between the parties with respect to its subject matter. This Agreement may not be
amended, supplemented or otherwise modified except in a written document executed by
the party against whose interest the modification will operate.
10.4 SEVERABILITY
This Agreement will be governed by and construed under the laws of Nevada
without regard to conflicts of laws principles that would require the application of any
other law.
10.6 COUNTERPARTS
The parties have executed and delivered this Agreement as of the date indicated in
the first sentence of this Agreement.
By: _ _________________
President
Agreed to:
Connected Media Technologies, Inc.
__________________________
BY: President
DALDMS/540537.2 i
ARTICLE 7 CONDITIONS PRECEDENT TO SELLER'S OBLIGATION TO CLOSE.........9
7.1 ACCURACY OF REPRESENTATIONS..........................................................................9
7.2 BUYER’S PERFORMANCE..........................................................................................10
ARTICLE 8 TERMINATION..................................................................................................10
8.1 TERMINATION EVENTS..............................................................................................10
8.2 EFFECT OF TERMINATION.........................................................................................10
ARTICLE 9 INDEMNIFICATION; REMEDIES....................................................................11
9.1 SURVIVAL......................................................................................................................11
ARTICLE 10 GENERAL PROVISIONS...................................................................................11
10.1 EXPENSES......................................................................................................................11
10.2 FURTHER ACTIONS......................................................................................................11
10.3 ENTIRE AGREEMENT AND MODIFICATION..........................................................11
10.4 SEVERABILITY..............................................................................................................11
10.5 GOVERNING LAW........................................................................................................12
10.6 COUNTERPARTS...........................................................................................................12
DALDMS/540537.2 ii