FORM OF SECURITIES PURCHASE AGREEMENT
Exhibit 4.2
FORM
OF
THIS
SECURITIES PURCHASE AGREEMENT,
dated as of __________, _________, is entered into by and between Provectus
Pharmaceuticals, Inc., a Nevada corporation, with headquarters
located at 0000 Xxx Xxxxx Xxxxxxx, Xxxxx X, Xxxxxxxxx, XX 00000 (the “Company”),
and __________ (the "Purchaser").
R
E C I T A L S :
WHEREAS,
the Company
and the Purchaser are executing and delivering this Agreement in accordance
with
and in reliance upon the exemption from securities registration for offers
and
sales to accredited investors afforded, inter alia, by Rule 506 under Regulation
D (“Regulation D”) as promulgated by the United States Securities and Exchange
Commission (the “SEC”) under the Securities Act of 1933, as amended (the “1933
Act”), and/or Section 4(2) of the 1933 Act; and
WHEREAS,
the Company
wishes to sell to the Purchaser and the Purchaser wish to buy from the Company
shares of the Common Stock, $.001 par value, of the Company (the "Common
Stock"), for the purchase of shares of Common Stock;
NOW
THEREFORE, in
consideration of the premises and the mutual covenants contained herein and
other good and valuable consideration, the receipt and sufficiency of which
are
hereby acknowledged, the parties agree as follows:
1. AGREEMENT
TO PURCHASE; PURCHASE PRICE.
a. Purchase.
(i) Subject
to the terms and conditions of this Agreement and the other Transaction
Agreements (as defined below), the Purchaser hereby agree to pay to the Company
a purchase price of $_________ per share of Common Stock for __________
(_________) shares (the "Shares"), for a total purchase price of _________
($_________) (the "Purchase Price"). The Purchase Price shall be paid
within five (5) days of the Closing Date (as defined below). The
Company shall issue Certificates (as defined below) representing the
Shares.
(ii) The
Purchase Price shall be payable in United States Dollars.
b. Certain
Definitions. As used
herein, each of the following terms has the meaning set forth below, unless
the
context otherwise requires:
(i) "1933
Act" means the Securities Act of 1933.
(ii) "1934
Act" means the Securities Act of 1934.
(iii) “Affiliate”
means, with respect to a specific Person referred to in the relevant provision,
another Person who or which controls or is controlled by or is under common
control with such specified Person.
(iv) "Broker"
means __________.
(v) “Certificates”
means the Shares, each duly executed by the Company and issued on the Closing
Date in the name of the Purchaser.
(vi) “Closing
Date” means the date of the closing of the purchase and sale of the Shares, as
provided herein.
(vii) “Company
Control Person” means each director, executive officer, promoter, and such other
Persons as may be deemed in control of the Company pursuant to Rule 405 under
the 1933 Act or Section 20 of the 1934 Act.
(vii
b)
“Effective Date” means the effective date of the Registration Statement covering
the Registrable Securities.
(viii) “Holder”
means the Person holding the relevant Securities at the relevant
time.
(ix) “Last
Audited Date” means December 31, 2005.
(x) “Material
Adverse Effect” means an event or combination of events, which individually or
in the aggregate, would reasonably be expected to (w) adversely affect the
legality, validity or enforceability of the Securities or any of the Transaction
Agreements, (x) have or result in a material adverse effect on the results
of
operations, assets, prospects, or condition (financial or otherwise) of the
Company and its subsidiaries, taken as a whole, (y) adversely impair the
Company's ability to perform fully on a timely basis its obligations under
any
of the Transaction Agreements or the transactions contemplated thereby, or
(z)
materially and adversely affect the value of the rights granted to the Purchaser
in the Transaction Agreements.
(xi) “Person”
means any living person or any entity, such as, but not necessarily limited
to,
a corporation, partnership or trust.
(xii) “Principal
Trading Market” means The Over the Counter Bulletin Board.
(xiii) “Purchaser
Control Person” means each director, executive officer, promoter, and such other
Persons as may be deemed in control of the relevant Purchaser pursuant to Rule
405 under the 1933 Act or Section 20 of the 1934 Act.
(xiv) “Registrable
Securities” has the meaning set forth in the Registration Rights Agreement, in
the form annexed hereto as Annex IV, as executed by each Purchaser and the
Company simultaneously with the execution of this Agreement.
(xv) “Registration
Rights Agreement” means the Registration Rights Agreement.
(xvi) “Registration
Statement” has the meaning set forth in the Registration Rights
Agreement.
(xvii) “Securities”
means the Shares.
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(xviii) “State
of
Incorporation” means Nevada.
(xix) “Trading
Day” means any day during which the Principal Trading Market shall be open for
business.
(xx) “Transaction
Agreements” means this Securities Purchase Agreement, the Common Stock
Certificate, the Registration Rights Agreement, and includes all ancillary
documents referred to in those agreements.
c. Form
of Payment; Delivery of Certificates.
(i) On
the
Payment Date, the Purchaser shall pay the Purchase Price by delivering
immediately available good funds in United States Dollars to the
Company.
(ii) No
later
than the Payment Date, but in any event promptly following payment by the
Purchaser to the Company of the Payment, the Company shall deliver the
Certificate, each duly executed on behalf of the Company and issued in the
name
of the Purchaser, to the Purchaser. The Common Stock Certificate on
the Payment Date shall be for __________ (___________) Shares.
d. Method
of Payment. Payment shall be made by via check or wire transfer
to:
Provectus
Pharmaceuticals,
Inc.
0000
Xxx Xxxxx Xxxxxxx
Xxxxxxxxx,
XX 00000
Attn: Xxxxx
X.
Xxxxxxxxx
2. PURCHASER
REPRESENTATIONS, WARRANTIES, ETC.; ACCESS TO INFORMATION; INDEPENDENT
INVESTIGATION.
The
Purchaser represents and warrants
to, and covenants and agrees with, the Company as follows:
a. Without
limiting Purchaser's right to sell the Shares pursuant to the Registration
Statement or otherwise to sell any of the Securities in compliance with the
1933
Act, the Purchaser is purchasing the Securities and will be acquiring the Shares
for its own account for investment only and not with a view towards the public
sale or distribution thereof and not with a view to or for sale in connection
with any distribution thereof.
b. The
Purchaser is (i) an “accredited investor” as that term is defined in Rule 501 of
the General Rules and Regulations under the 1933 Act by reason of Rule
501(a)(3), (ii) experienced in making investments of the kind described in
this
Agreement and the related documents, (iii) able, by reason of the business
and
financial experience of its officers (if an entity) and professional advisors
(who are not affiliated with or compensated in any way by the Company or any
of
its Affiliates or selling agents), to protect its own interests in connection
with the transactions described in this Agreement, and the related documents,
and (iv) able to afford the loss of the entire Purchase Price.
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c. All
subsequent offers and sales of the Securities by the Purchaser shall be made
pursuant to registration of the Shares under the 1933 Act or pursuant to an
exemption from registration.
d. The
Purchaser understands that the Securities are being offered and sold to it
in
reliance on specific exemptions from the registration requirements of the 1933
Act and state securities laws and that the Company is relying upon the truth
and
accuracy of, and the Purchaser's compliance with, the representations,
warranties, agreements, acknowledgments and understandings of the Purchaser
set
forth herein in order to determine the availability of such exemptions and
the
eligibility of the Purchaser to acquire the Securities.
e. The
Purchaser and its advisors, if any, have been furnished with all materials
relating to the business, finances and operations of the Company and materials
relating to the offer and sale of the Securities and the offer of the Shares
which have been requested by the Purchaser, including those set forth on Annex
VI hereto. The Purchaser and its advisors, if any, have been afforded the
opportunity to ask questions of the Company and have received complete and
satisfactory answers to any such inquiries. Without limiting the
generality of the foregoing, the Purchaser has also had the opportunity to
obtain and to review the Company's filings on XXXXX listed on Annex VII hereto
(the documents listed on such Annex VII, to the extent available on XXXXX or
otherwise provided to the Purchaser as indicated on said Annex VII,
collectively, the “Company's SEC Documents”).
f. The
Purchaser understands that its investment in the Securities involves a high
degree of risk.
g. The
Purchaser hereby represents that, in connection with its purchase of the
Securities, it has not relied on any statement or representation by the Company
or any of its officers, directors and employees or any of its attorneys or
agents, except as specifically set forth herein.
h. The
Purchaser understands that no United States federal or state agency or any
other
government or governmental agency has passed on or made any recommendation
or
endorsement of the Securities.
i. This
Agreement and the other Transaction Agreements to which the Purchaser is a
party, and the transactions contemplated thereby, have been duly and validly
authorized, executed and delivered on behalf of the Purchaser and are valid
and
binding agreements of the Purchaser enforceable in accordance with their
respective terms, subject as to enforceability to general principles of equity
and to bankruptcy, insolvency, moratorium and other similar laws affecting
the
enforcement of creditors' rights generally.
j. The
Purchaser has taken no action which would give rise to any claim by any Person
for brokerage commission other than ___________, Broker's fees or similar
payments by the Company relating to this Agreement or the transactions
contemplated hereby. The Company shall have no obligation with
respect to such fees or with respect to any claims made by or on behalf of
other
Persons for fees of a type contemplated in this paragraph that may be due in
connection with the transactions contemplated hereby. The Purchaser
shall indemnify and hold harmless each of the Company, its employees, officers,
directors, agents, and partners, and their respective Affiliates, from and
against all claims, losses, damages, costs (including the costs of preparation
and attorney's fees) and expenses suffered in respect of any such claimed or
existing fees, as and when incurred.
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k. The
Purchaser hereby covenants and warrants that, between the Closing Date and
the
date on which he or she no longer holds any of the Securities, Purchaser will
not engage in any hedging transactions or shorting transactions in any
securities of the Company, including the Securities.
l. The
Purchaser hereby covenants and warrants that he or she is not acting as a
"group" for purposes of Section 13 of the Securities Exchange Act of
1934.
3. COMPANY
REPRESENTATIONS, ETC. The Company represents and warrants to
the Purchaser as of the date hereof and as of the Closing Date that, except
as
otherwise provided in the Annex VI hereto or in the Company’s SEC
Documents:
a. Rights
of Others Affecting the Transactions. There are no preemptive
rights of any shareholder of the Company, as such, to acquire the
Shares. No party has a currently exercisable right of first refusal
which would be applicable to any or all of the transactions contemplated by
the
Transaction Agreements.
b. Status. The
Company is a corporation duly organized, validly existing and in good standing
under the laws of the State of Incorporation and has the requisite corporate
power to own its properties and to carry on its business as now being
conducted. The Company is duly qualified as a foreign corporation to
do business and is in good standing in each jurisdiction where the nature of
the
business conducted or property owned by it makes such qualification necessary,
other than those jurisdictions in which the failure to so qualify would not
have
or result in a Material Adverse Effect. The Company has registered
its stock and is obligated to file reports pursuant to Section 12 or Section
15(d) of the Securities Exchange Act of 1934, as amended (the “1934
Act”). The Common Stock is listed and quoted on the Principal Trading
Market. The Company has received no notice, either oral or written,
with respect to the continued eligibility of the Common Stock for such listing
and quotation on the Principal Trading Market, and the Company has maintained
all requirements on its part for the continuation of such listing and
quotation.
c. Authorized
Shares. The authorized capital stock of the Company consists of
(i) 100,000,000 shares of Common Stock, $.001 par value per share, of which
approximately 38,058,205 shares are outstanding as of June 30, 2006, and (ii)
25,000,000 shares of Preferred Stock, $.001 par value per share, of which no
shares are outstanding as of the date hereof. All issued and
outstanding shares of Common Stock have been duly authorized and validly issued
and are fully paid. The Company has sufficient authorized and
unissued shares of Common Stock as may be necessary to effect the issuance
of
the Securities. The Securities have been duly authorized and, when issued,
in
accordance with their terms, will be duly and validly issued, fully paid and
non-assessable and, except to the extent, if any, provided by the law of the
State of Incorporation, will not subject the Holder thereof to personal
liability by reason of being such Holder.
d. Transaction
Agreements and Stock. This Agreement and each of the other
Transaction Agreements, and the transactions contemplated thereby, have been
duly and validly authorized by the Company, this Agreement has been duly
executed and delivered by the Company and this Agreement is, and the
Certificates and each of the other Transaction Agreements, when executed and
delivered by the Company, will be, valid and binding agreements of the Company
enforceable in accordance with their respective terms, subject as to
enforceability to general principles of equity and to bankruptcy, insolvency,
moratorium, and other similar laws affecting the enforcement of creditors'
rights generally.
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e. Non-contravention. The
execution and delivery of this Agreement and each of the other Transaction
Agreements by the Company, the issuance of the Securities, and the consummation
by the Company of the other transactions contemplated by this Agreement, the
Certificates and the other Transaction Agreements do not and will not conflict
with or result in a breach by the Company of any of the terms or provisions
of,
or constitute a default under (i) the certificate of incorporation or by-laws
of
the Company, each as currently in effect, (ii) any indenture, mortgage, deed
of
trust, or other material agreement or instrument to which the Company is a
party
or by which it or any of its properties or assets are bound, including any
listing agreement for the Common Stock except as herein set forth, or (iii)
to
its knowledge, any existing applicable law, rule, or regulation or any
applicable decree, judgment, or order of any court, United States federal or
state regulatory body, administrative agency, or other governmental body having
jurisdiction over the Company or any of its properties or assets, except where
such conflict, breach or default which would not have or result in a Material
Adverse Effect.
f. Approvals. No
authorization, approval or consent of any court, governmental body, regulatory
agency, self-regulatory organization, or stock exchange or market or the
shareholders of the Company is required to be obtained by the Company for the
issuance and sale of the Securities to the Purchaser as contemplated by this
Agreement, except such authorizations, approvals and consents that have been
obtained.
g. Filings. None
of the Company’s SEC Documents contained, at the time they were filed, any
untrue statement of a material fact or omitted to state any material fact
required to be stated therein or necessary to make the statements made therein
in light of the circumstances under which they were made, not
misleading. Since March 1, 2002, the Company has timely filed all
requisite forms, reports and exhibits thereto required to be filed by the
Company with the SEC.
h. Absence
of Certain Changes. Since the Last Audited Date, there has been
no material adverse change and no Material Adverse Effect, except as disclosed
in the Company’s SEC Documents. Since the Last Audited Date, except as provided
in the Company’s SEC Documents, the Company has not (i) incurred or become
subject to any material liabilities (absolute or contingent) except liabilities
incurred in the ordinary course of business consistent with past practices;
(ii)
discharged or satisfied any material lien or encumbrance or paid any material
obligation or liability (absolute or contingent), other than current liabilities
paid in the ordinary course of business consistent with past practices; (iii)
declared or made any payment or distribution of cash or other property to
shareholders with respect to its capital stock, or purchased or redeemed, or
made any agreements to purchase or redeem, any shares of its capital stock;
(iv)
sold, assigned or transferred any other tangible assets, or canceled any debts
or claims, except in the ordinary course of business consistent with past
practices; (v) suffered any substantial losses or waived any rights of material
value, whether or not in the ordinary course of business, or suffered the loss
of any material amount of existing business; (vi) made any changes in employee
compensation, except in the ordinary course of business consistent with past
practices; or (vii) experienced any material problems with labor or management
in connection with the terms and conditions of their employment.
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i. Full
Disclosure. There is no fact known to the Company (other than
general economic conditions known to the public generally or as disclosed in
the
Company’s SEC Documents) that has not been disclosed in writing to the Purchaser
that would reasonably be expected to have or result in a Material Adverse
Effect.
j. Absence
of Litigation. There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board or body pending or, to the
knowledge of the Company, threatened against or affecting the Company before
or
by any governmental authority or nongovernmental department, commission, board,
bureau, agency or instrumentality or any other person, wherein an unfavorable
decision, ruling or finding would have a Material Adverse Effect or which would
adversely affect the validity or enforceability of, or the authority or ability
of the Company to perform its obligations under, any of the Transaction
Agreements. The Company is not aware of any valid basis for any such
claim that (either individually or in the aggregate with all other such events
and circumstances) could reasonably be expected to have a Material Adverse
Effect. There are no outstanding or unsatisfied judgments, orders, decrees,
writs, injunctions or stipulations to which the Company is a party or by which
it or any of its properties is bound, that involve the transaction contemplated
herein or that, alone or in the aggregate, could reasonably be expect to have
a
Material Adverse Effect.
k. Absence
of Certain Company Control Person Actions or Events. None of the
following has occurred during the past ten (10) years with respect to a Company
Control Person:
(1) A
petition under the federal bankruptcy laws or any state insolvency law was
filed
by or against, or a receiver, fiscal agent or similar officer was appointed
by a
court for the business or property of such Company Control Person, or any
partnership in which he was a general partner at or within two years before
the
time of such filing, or any corporation or business association of which he
was
an executive officer at or within two years before the time of such
filing;
(2) Such
Company Control Person was convicted in a criminal proceeding or is a named
subject of a pending criminal proceeding (excluding traffic violations and
other
minor offenses);
(3) Such
Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any court of competent
jurisdiction, permanently or temporarily enjoining him from, or otherwise
limiting, the following activities:
(i) acting,
as an investment advisor, underwriter, broker or dealer in securities, or as
an
affiliated person, director or employee of any investment company, bank, savings
and loan association or insurance company, as a futures commission merchant,
introducing broker, commodity trading advisor, commodity pool operator, floor
broker, any other Person regulated by the Commodity Futures Trading Commission
(“CFTC”) or engaging in or continuing any conduct or practice in connection with
such activity;
(ii) engaging
in any type of business practice; or
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(iii) engaging
in any activity in connection with the purchase or sale of any security or
commodity or in connection with any violation of federal or state securities
laws or federal commodities laws;
(4) Such
Company Control Person was the subject of any order, judgment or decree, not
subsequently reversed, suspended or vacated, of any federal or state authority
barring, suspending or otherwise limiting for more than 60 days the right of
such Company Control Person to engage in any activity described in paragraph
(3)
of this item, or to be associated with Persons engaged in any such activity;
or
(5) Such
Company Control Person was found by a court of competent jurisdiction in a
civil
action or by the CFTC or SEC to have violated any federal or state securities
law, and the judgment in such civil action or finding by the CFTC or SEC has
not
been subsequently reversed, suspended, or vacated.
l. Prior
Issues. During the twelve (12) months preceding the date hereof,
the Company has not issued any stock option grants, convertible securities
or
any shares of its Common Stock, except as disclosed in Annex VI hereto or in
the
Company's SEC Documents.
m. No
Undisclosed Liabilities or Events. The Company has no liabilities
or obligations other than those disclosed in the Transaction Agreements or
the
Company's SEC Documents or those incurred in the ordinary course of the
Company's business since the Last Audited Date, or which individually or in
the
aggregate, do not or would not have a Material Adverse Effect. No event or
circumstances has occurred or exists with respect to the Company or its
properties, business, operations, condition (financial or otherwise), or results
of operations, which, under applicable law, rule or regulation, requires public
disclosure or announcement prior to the date hereof by the Company but which
has
not been so publicly announced or disclosed. There are no proposals
currently under consideration or currently anticipated to be under consideration
by the Board of Directors or the executive officers of the Company which
proposal would (X) change the certificate of incorporation or other charter
document or by-laws of the Company, each as currently in effect, with or without
shareholder approval, which change would reduce or otherwise adversely affect
the rights and powers of the shareholders of the Common Stock or (Y) materially
or substantially change the business, assets or capital of the Company,
including its interests in subsidiaries.
n. No
Default. Neither the Company nor any of its subsidiaries is in
default in the performance or observance of any material obligation, agreement,
covenant or condition contained in any material indenture, mortgage, deed of
trust or other material instrument or agreement to which it is a party or by
which it or its property is bound.
o. No
Integrated Offering. Neither the Company nor any of its
Affiliates nor any person acting on its or their behalf has, directly or
indirectly, at any time since September 1, 2006, made any offer or sales of
any
security or solicited any offers to buy any security under circumstances that
would eliminate the availability of the exemption from registration under
Regulation D in connection with the offer and sale of the Securities as
contemplated hereby.
p. Fees
to Brokers, and Others. Except for payment of fees and
commissions to the Broker, payment of which is the sole responsibility of the
Company, the Company has taken no action which would give rise to any claim
by
any Person for brokerage commission, Broker's fees or similar payments by
Purchaser relating to this Agreement or the transactions contemplated
hereby. Purchaser shall have no obligation with respect to such fees
or with respect to any claims made by or on behalf of other Persons for fees
of
a type contemplated in this paragraph that may be due in connection with the
transactions contemplated hereby. The Company shall indemnify and
hold harmless each Purchaser, its employees, officers, directors, agents, and
partners, and their respective Affiliates, from and against all claims, losses,
damages, costs (including the costs of preparation and attorney's fees) and
expenses suffered in respect of any such claimed or existing fees, as and when
incurred.
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4. CERTAIN
COVENANTS AND ACKNOWLEDGMENTS.
a. Transfer
Restrictions. The Purchaser acknowledges that (1) the Securities
have not been and are not being registered under the provisions of the 1933
Act
and, except as provided in the Registration Rights Agreement or otherwise
included in an effective registration statement, the Shares have not been and
are not being registered under the 1933 Act, and may not be transferred unless
(A) subsequently registered thereunder or (B) the Purchaser shall have delivered
to the Company an opinion of counsel, reasonably satisfactory in form, scope
and
substance to the Company, to the effect that the Securities to be sold or
transferred may be sold or transferred pursuant to an exemption from such
registration; (2) any sale of the Securities made in reliance on Rule 144
promulgated under the 1933 Act may be made only in accordance with the terms
of
said Rule and further, if said Rule is not applicable, any resale of such
Securities under circumstances in which the seller, or the Person through whom
the sale is made, may be deemed to be an underwriter, as that term is used
in
the 1933 Act, may require compliance with some other exemption under the 1933
Act or the rules and regulations of the SEC thereunder; and (3) neither the
Company nor any other Person is under any obligation to register the Securities
(other than pursuant to the Registration Rights Agreement) under the 1933 Act
or
to comply with the terms and conditions of any exemption
thereunder.
b. Restrictive
Legend. The Purchaser acknowledges and agrees that, until such
time as the Common Stock has been registered under the 1933 Act as contemplated
by the Registration Rights Agreement and sold in accordance with an effective
Registration Statement or otherwise in accordance with another effective
registration statement, the certificates and other instruments representing
any
of the Securities (including the Warrant Shares) shall bear a restrictive legend
in substantially the following form (and a stop-transfer order may be placed
against transfer of any such Securities):
THESE
SECURITIES HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR THE SECURITIES
LAWS
OF ANY STATE AND MAY NOT BE SOLD OR OFFERED FOR SALE IN THE ABSENCE OF AN
EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES OR AN OPINION OF COUNSEL
OR
OTHER EVIDENCE ACCEPTABLE TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED.
c. Filings. The
Company undertakes and agrees to make all necessary filings in connection with
the sale of the Securities to the Purchaser under any United States laws and
regulations applicable to the Company, or by any domestic securities exchange
or
trading market, and to provide a copy thereof to the Purchaser promptly after
such filing.
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d. Reporting
Status. So long as the Purchaser beneficially owns any of the
Securities, the Company shall file all reports required to be filed with the
SEC
pursuant to Section 13 or 15(d) of the 1934 Act, shall take all reasonable
action under its control to ensure that adequate current public information
with
respect to the Company, as required in accordance with Rule 144(c)(2) of the
1933 Act, is publicly available, and shall not terminate its status as an issuer
required to file reports under the 1934 Act even if the 1934 Act or the rules
and regulations thereunder would permit such termination. The Company
1), will take all reasonable action under its control to maintain the continued
listing and quotation and trading of its Common Stock (including, without
limitation, all Registrable Securities) on the Principal Trading Market or
a
listing on the NASDAQ/Small Cap or National Markets and 2), to the extent
applicable to it, will comply in all material respects with the Company’s
reporting, filing and other obligations under the by-laws or rules of the
Principal Trading Market and/or the National Association of Securities Dealers,
Inc., as the case may be.
e. Use
of
Proceeds. The Company shall use the proceeds received hereunder
as follows:
(i) payment
of certain fees to the Broker as described below in Section 4(i);
and
(ii) the
remainder shall be used for general corporate purposes.
f. Publicity,
Filings, Releases, Etc. Each of the parties agrees that it will
not disseminate any information relating to the Transaction Agreements or the
transactions contemplated thereby, including issuing any press releases, holding
any press conferences or other forums, or filing any reports (collectively,
“Publicity”), without giving the other party reasonable advance notice and an
opportunity to comment on the contents thereof. Neither party will
include in any such Publicity any statement or statements or other material
to
which the other party reasonably objects. Notwithstanding the
foregoing, each of the parties hereby consents to the inclusion of the text
of
the Transaction Agreements in filings made with the SEC.
g. Broker
Fees. The Company shall pay to the Broker a commission in the
form of cash equal in value to __________ percent (___%) of the gross proceeds
from the sale of the Common Stock under this Agreement, _________ percent (___%
) unaccountable, as well as __________ percent (___%) in common
stock. Such commission is more fully described in the Broker
Commission Agreement between the Company and the Broker of even date
herewith.
h. Attorneys'
Fees. The Company shall bear its legal fees and expenses incurred
in connection with the preparation and negotiation of the documents contemplated
by this transaction. Other than the amounts contemplated in the
immediately preceding sentence, each party shall pay the fees and expenses
of
its advisers, 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
5. TRANSFER
AGENT INSTRUCTIONS.
a. The
Company warrants that, with respect to the Securities, other than the stop
transfer instructions to give effect to Section 4(a) hereof, it will give its
transfer agent no instructions inconsistent with instructions to issue Common
Stock from time to time bearing the restrictive legend specified in Section
4(b)
of this Agreement prior to registration of the Shares under the 1933 Act,
registered in the name of the Purchaser or its nominee and in such denominations
to be specified by the Purchaser. Except as so provided, the Shares
shall otherwise be freely transferable on the books and records of the Company
as and to the extent provided in this Agreement and the Registration Rights
Agreement. Nothing in this Section shall affect in any way the
Purchaser's obligations and agreement to comply with all applicable securities
laws upon resale of the Securities. If the Purchaser provides the
Company with an opinion of counsel reasonably satisfactory to the Company that
registration of a resale by the Purchaser of any of the Securities in accordance
with clause (1)(B) of Section 4(a) of this Agreement is not required under
the
1933 Act, the Company shall (except as provided in clause (2) of Section 4(a)
of
this Agreement) permit the transfer of the Securities, promptly instruct the
Company's transfer agent to issue one or more certificates for Common Stock
without legend in such name and in such denominations as specified by the
Purchaser.
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b. In
lieu
of delivering physical certificates representing the Securities, provided the
Company’s transfer agent is participating in the Depository Trust Company
(“DTC”) Fast Automated Securities Transfer program, upon request of the Holder
and its compliance with the provisions contained in this paragraph, so long
as
the certificates therefor do not bear a legend and the Holder thereof is not
obligated to return such certificate for the placement of a legend thereon,
the
Company shall use its best efforts to cause its transfer agent to electronically
transmit the Common Stock issuable to the Holder by crediting the account of
Holder’s Prime Broker with DTC through its Deposit Withdrawal Agent Commission
system.
6. CLOSING
DATE.
a. The
Closing Date shall occur when each payment is received by the
Company.
7. INDEMNIFICATION.
The
Company agrees to indemnify and hold harmless each Purchaser and its officers,
directors, employees, and agents, and each Purchaser Control Person from and
against any losses, claims, damages, liabilities or expenses incurred
(collectively, “Damages”), joint or several, and any action in respect thereof
to which Purchaser, its partners, Affiliates, officers, directors, employees,
and duly authorized agents, and any such Purchaser Control Person becomes
subject to, resulting from, arising out of or relating to any misrepresentation,
breach of warranty or nonfulfillment of or failure to perform any covenant
or
agreement on the part of Company contained in this Agreement, as such Damages
are incurred, except to the extent such Damages result primarily from
Purchaser's failure to perform any covenant or agreement contained in this
Agreement or Purchaser's or its officers', directors', employees', agents'
or
Purchaser Control Persons' negligence, recklessness or bad faith in performing
its obligations under this Agreement.
8. JURY
TRIAL WAIVER. The
Company and the Purchaser hereby waive a trial by jury in any action, proceeding
or counterclaim brought by either of the Parties hereto against the other in
respect of any matter arising out or in connection with the Transaction
Agreements.
11
9. GOVERNING
LAW: MISCELLANEOUS.
a. This
Agreement shall be governed by and interpreted in accordance with the laws
of
the State of New York for contracts to be wholly performed in such state and
without giving effect to the principles thereof regarding the conflict of
laws. The Company and each Purchaser hereby submit to the
jurisdiction of any state court of competent jurisdiction in and for New York
County, New York, or in the United States District Court for the Southern
District of New York sitting at New York City in any action or proceeding
arising out of or relating to this Agreement and agree that all claims in
respect of the action or proceeding may be heard and determined in any such
court; agree not to bring any action or proceeding arising out of or
relating to this Agreement in any other court; waive any defense of
inconvenient forum to the maintenance of any action or proceeding so brought
and
waive any bond, surety, or other security that might be required of any other
party with respect thereto; and agree that a final judgment in any action
or proceeding so brought shall be conclusive and may be enforced by suit on
the
judgment or in any other manner provided by law or in equity.
b. Failure
of any party to exercise any right or remedy under this Agreement or otherwise,
or delay by a party in exercising such right or remedy, shall not operate as
a
waiver thereof.
c. This
Agreement shall inure to the benefit of and be binding upon the successors
and
assigns of each of the parties hereto.
d. All
pronouns and any variations thereof refer to the masculine, feminine or neuter,
singular or plural, as the context may require.
e. A
facsimile transmission of this signed Agreement shall be legal and binding
on
all parties hereto.
f. This
Agreement may be signed in one or more counterparts, each of which shall be
deemed an original.
g. The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.
h. If
any
provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement or the validity or
enforceability of this Agreement in any other jurisdiction.
i. This
Agreement may be amended only by an instrument in writing signed by the party
to
be charged with enforcement thereof.
j. This
Agreement supersedes all prior agreements and understandings among the parties
hereto with respect to the subject matter hereof.
10. NOTICES. Any
notice required or permitted hereunder shall be given in writing (unless
otherwise specified herein) and shall be deemed effectively given on the
earliest of:
12
(a) the
date
delivered, if delivered by personal delivery as against written receipt therefor
or by confirmed facsimile transmission,
(b) the
seventh business day after deposit, postage prepaid, in the United States Postal
Service by registered or certified mail, or
(c) the
third
business day after mailing by domestic or international express courier, with
delivery costs and fees prepaid,
in
each
case, addressed to each of the other parties thereunto entitled at the following
addresses (or at such other addresses as such party may designate by ten (10)
days’ advance written notice similarly given to each of the other parties
hereto):
Company: PROVECTUS
PHARMACEUTICALS, INC.
at
its address at the head of this
Agreement
Attn:
Xxx Xxxxx
Telephone
No.: (000)
000-0000
Telecopier
No.: (000)
000-0000
with
a copy to:
Xxxxx
Xxxxxx
Baker,
Donelson, Bearman, Xxxxxxxx
& Xxxxxxxxx, P.C.
000
Xxxxxxxxxxx Xxxx
Xxxx
Xxxxxx Xxx 0000 XXX
Xxxxxxx
Xxxx, XX 00000
Telephone
No.: (000)
000-0000
Telecopier
No.: (000)
000-0000
Purchaser:
|
To
the addresses set forth on the Investor Questionnaires attached hereto
as
Annex IX.
|
|
with
a copy to:
_______________________
_______________________
_______________________
Attn: __________________
11. SURVIVAL
OF REPRESENTATIONS AND WARRANTIES. The Company’s and the
Purchaser' representations and warranties herein shall survive the execution
and
delivery of this Agreement and the delivery of the Certificates and the payment
of the Purchase Price, and shall inure to the benefit of the Purchaser and
the
Company and their respective successors and assigns.
13
IN
WITNESS WHEREOF,
this Securities Purchase Agreement has been duly executed by the Purchaser
as of
the date set forth below.
___________________________________________
Date: ,
_________ By:_________________________________________________
Its:_________________________________________________
As
of the
date set forth below, the undersigned hereby accepts this Agreement and
represents that the foregoing statements are true and correct and that it has
caused this Securities Purchase Agreement to be duly executed on its
behalf.
PROVECTUS
PHARMACEUTICALS, INC.
By:
Title:
Date: ,
__________
14
ANNEX
I
PAYMENT
SCHEDULE
Payment
Date………………..
|
When
payment is received by Company
|
15
ANNEX
II
FORM
OF COMMON STOCK CERTIFICATE
To
be
provided upon issuance of stock certificate after payment received by
Company.
16
ANNEX
III
Intentionally
Left Blank
17
ANNEX
IV
REGISTRATION
RIGHTS AGREEMENT
18
ANNEX
V
Reserved
– N/A
19
ANNEX
VI
COMPANY
DISCLOSURE MATERIALS
None.
20
ANNEX
VII
COMPANY’S
SEC DOCUMENTS AVAILABLE ON XXXXX
21
ANNEX
VIII
Intentionally
Left Blank
22
ANNEX
IX
INVESTOR
QUESTIONNAIRE
FORM
OF INVESTOR QUESTIONNAIRE
PART
I. INVESTOR
IDENTIFICATION
1. Name
of
Investor:
2. Number
of shares of Common Stock Investor wishes to purchase:
3. Total
Investment Amount:
$ ________________________________________________________
(______
multiplied by the number of
shares)
4. Manner
in which title is to be held (please check one):
_____________ Individual ___________________Partnership
or
LLC __________________Corporation ____________________ Trust
5. Address:
Telephone Numbers:
____________________________________
Home (_____) _____-_______________
Street
__________________________________________________
Business (_____) _____-_______________
City
State
Zip Code
6. Investor
is a resident or domiciliary of the State of:
_________________________
23
PART
II. INVESTOR SUITABILITY REPRESENTATIONS
The
Investor understands that the
Common Stock (the "Securities") offered by the Company will not be registered
under the Securities Act of 1933, as amended (the “1933 Act”), or any state
securities laws.
The
Investor understands that the Company will sell the Securities only to persons
whom it believes to be “accredited investors,” as defined by Regulation D
promulgated by the Securities and Exchange Commission under the 1933 Act
(“Accredited Investors”). The Investor understands that he, she, or
it must, therefore, provide information to the Company which will enable the
Company to determine whether the Investor qualifies as an Accredited
Investor.
The
Investor represents and warrants to
the Company that the Investor is an Accredited Investor for the following reason
(Please xxxx the appropriate paragraph; only one paragraph need be
marked):
_______ 1. Individual
Net Worth Suitability:
|
The
Investor's individual net worth or joint net worth with his spouse
exceeds
$1,000,000. (Note: This suitability requirement may be selected
only by a natural person, and NOT by a
corporation, partnership, limited liability company, trust, estate,
unincorporated association or other
entity.
|
|
OR
|
_______ 2. Individual
Net Income Suitability:
|
The
Investor's individual net income was in excess of $200,000 in each
of the
two most recent years, or his or her joint income with his spouse
was in
excess of $300,000 in each of those years, and he reasonably expects
his
net income or joint net income with his spouse to reach such level
in the
current year. (Note: This suitability requirement may be
selected only by a natural person, and NOT by a
corporation, partnership, limited liability company, trust, estate,
unincorporated association or other
entity.
|
OR
_______ 3. Certain
Qualified Organizations:
|
The
Investor is (check one):
|
|
______
|
a.
|
A
corporation, partnership, limited liability company, business trust
or an
organization described in Section 501(c)(3) of the Internal Revenue
Code
(tax exempt organization), not formed for the specific purpose of
acquiring the securities offered, having total assets in excess of
$5,000,000.
|
|
______
|
b.
|
A
trust, with total assets in excess of $5,000,000, not formed for
the
specific purpose of acquiring the Securities, whose purchase is directed
by a Sophisticated Investor who has such knowledge and experience
in
financial and business matters that he or she is capable of evaluating
the
merits and risks of an investment in the
Securities.
|
|
______
|
c.
|
A
bank, savings and loan association or other similar institution (as
defined in Sections 3(a)(2) and 3(a)(5)(A) of the 1933
Act).
|
|
______
|
d.
|
An
insurance company (as defined in Section 2(13) of the 1933
Act).
|
______ e. An
investment company registered under the Investment Company Act of
1940.
|
______
|
f.
|
A
business development company as defined in Section 2(a)(48) of the
Investment Company Act of 1940 or private business development company
as
defined in Section 202(a)(22) of the Investment Advisers Act of
1940.
|
|
______
|
g.
|
A
Small Business Investment Company licensed by the U.S. Small Business
Administration under Sections 301(c) or (d) of the Small Business
Investment Act of 1958.
|
OR
_______ 4. Other
Entity Suitability:
|
The
Investor is a corporation, a partnership, a limited liability company,
an
unincorporated association or other similar entity, and that each
owner of
an equity interest in the entity satisfies the suitability requirements
of
paragraph (1), (2) or (3) above.
|
|
[Remainder
of page is blank]
|
24
SIGNATURE
PAGE
Investor
represents and warrants that
(a) all the information contained herein is complete and accurate and contains
no material omissions and may be relied upon by the Company, and (b) Investor
will notify the Company in writing immediately of any change in any of such
information.
IN
WITNESS WHEREOF, Investor has
executed this Subscription Agreement on the date set forth below.
Dated: ________________,
_________
SIGNATURE
FOR
INDIVIDUALS SIGNATURE
FOR ENTITIES
(if
filing a joint investment execute
signature
lines for each investor)
_______________________________
__________________________________
(Signature) (Print
Name of Entity)
____________________________________ By:_____________________________________
(Print
name of
Individual) (Signature)
________________________________
(Print
Name of Person
Signing)
____________________________________
(Signature) Its:_____________________________________
(Title)
____________________________________
Address:______________________________
(Print
Name of
Individual) ______________________________
______________________________
Address:_____________________________
_________________________
_________________________
25