NOTE AMENDMENT AND SECURITIES PURCHASE AGREEMENT
NOTE
AMENDMENT AND SECURITIES
PURCHASE
AGREEMENT
NOTE
AMENDMENT AND SECURITIES
PURCHASE AGREEMENT
(this
“Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC, a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc. (f/k/a Tribeworks, Inc.), a Delaware corporation (the
“Company”),
and
all of the Company’s subsidiaries: Atlas Technology Group Holdings Limited, a
Malta company, Atlas Technology Group (NZ) Limited, a New Zealand company,
Atlas
Technology Group Limited (f/k/a TakeCareofIT Limited), a Malta company, Atlas
Technology Group (US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
WHEREAS:
A. The
Company and Buyer are executing and delivering this Agreement in reliance upon
the exemption from securities registration afforded by Section 4(2) of the
Securities Act of 1933, as amended (the “1933
Act”),
and
Regulation D (“Regulation
D”),
promulgated by the Securities and Exchange Commission (the “SEC”)
under
the 1933 Act; and
B. The
Company, Subsidiaries and Buyer entered into that certain Securities Purchase
Agreement dated June 15, 2007 (the “Securities
Purchase Agreement”)
whereby ATG US issued to the Buyer two senior secured promissory notes dated
June 15, 2007 and July 11, 2007 (each, a “Promissory
Note,”
and
collectively, the “Promissory
Notes”),
common stock and warrants to the Buyer, and a portion of the purchase price
for
the Promissory Notes was deposited into an Escrow Account (as defined in Recital
G), to be released to the Company upon certain conditions being met;
and
C. Pursuant
to the Promissory Notes, the failure of the Company to enter into certain
contracts prior to 5:00 p.m. on December 31, 2007 constitutes an Event of
Default (as defined therein), and the parties hereto acknowledge that such
Events of Default have occurred under the Promissory Notes; and
D. In
consideration of (x) the Buyer’s agreeing to waive such Event of Default under
the Promissory Note dated July 11, 2007, (y) the Buyer’s agreeing to cancel and
return to the Company those certain warrants to purchase 6,500,000 shares of
Common Stock issued to Buyer in connection with the purchase of the Promissory
Notes (the “Warrants”),
and
(z) upon certain conditions being met as set forth herein, Buyer’s agreeing to
purchase 100,000 shares of Common Stock for $2.50 per share on or before July
14, 2008, the Company and ATG US desire to (i) amend and restate the Promissory
Note dated July 11, 2007, in substantially the form attached hereto as
Exhibit
A
(the
“Amended
and Restated Promissory
Note”);
and
(ii) issue a yield enhancement consisting of 3,500,000 shares (each, a
“Yield
Enhancement Share”)
of the
authorized but unissued shares of the Company’s common stock, $0.0004 par value
per share (including any securities into which such shares may be converted
or
for which such shares may be exchanged, pursuant to any stock dividend, stock
split, stock combination, recapitalization, reclassification, reorganization
or
other similar event) (the “Common
Stock”)
from
the Company; all upon the terms and subject to the conditions set forth in
this
Agreement; and
E. Contemporaneously
with the execution and delivery of this Agreement, the Company and Buyer are
executing and delivering that certain Amendment No. 1. to Registration Rights
Agreement, in substantially the form attached hereto as Exhibit
C
(the
“Amendment
No. 1 to Registration Rights Agreement”
and
collectively with the Amended and Restated Promissory Note, this Agreement,
and
each of the other agreements required to be entered into by parties hereto
in
connection with the transactions contemplated by this Agreement, the
“Transaction
Documents”);
and
F. The
Amended and Restated Promissory Note and the Yield Enhancement Shares are
collectively referred to herein as the “Securities”;
and
G. Prior
to
or at the Closing (as defined below), the Company and Buyer shall release to
the
Buyer $1,500,000 relating to the Promissory Note dated June 15, 2007, currently
in the escrow account at Xxxxx Fargo Bank, NA in Seattle, Washington (the
“Escrow
Agent”),
pursuant to that certain Escrow Agreement among the Company, the Buyer and
the
Escrow Agent, dated June 15, 2007 (the “Escrow
Agreement”)
which
shall be deemed a payment of principal amount under such Promissory Note; and
H. Due
to
the occurrence of the Event of Default as set forth above, as of December 31,
2007, interest on the Promissory Note dated June 15, 2007 shall begin to accrue
at the “Default Rate” as set forth in such Promissory Note, and the parties
hereby agree to extend the Maturity Date of such Promissory Note to December
31,
2008.
NOW,
THEREFORE,
the
Company and Buyer hereby agree as follows:
1. |
AMENDMENT
AND RESTATEMENT OF PROMISSORY NOTE AND PURCHASE AND SALE OF YIELD
ENHANCEMENT SHARES; SUPPLEMENTAL SHARE PURCHASE.
|
(a) Purchase
Price.
Subject
to and in reliance upon the representations and warranties set forth in
Section
3
below,
and the satisfaction (or waiver) of the conditions set forth in Sections
6 and 7
below,
(i) the Company and ATG US, as applicable, shall deliver to Buyer on the Closing
Date the Amended and Restated Promissory Note from ATG US; (ii) the Company
shall issue and sell to Buyer, and Buyer agrees to purchase, 3,500,000 Yield
Enhancement Shares (the “Yield
Enhancement Shares”)
from
the Company; and (iii) the Buyer shall deliver to the Company the cancelled
Warrants, each on the Closing Date. The aggregate purchase price of the Amended
and Restated Promissory Note, the Yield Enhancement Shares and the cancelled
Warrants shall be equal to $2,500,000 (the “Purchase
Price”).
The
delivery of the Amended and Restated Promissory Note, the purchase and sale
of
the Yield Enhancement Shares and the cancellation of the Warrants by Buyer
and
the Company (the “Closing”)
shall
occur at the offices of Xxxxxx and Xxxx LLP, 0000 Xxxx Xxxxxx, Xxxxxx, Xxxxx
00000 on December 31, 2007 (the “Closing
Date”)
at
6:00 p.m. PST.
(b) At
Closing, (i) Buyer shall instruct the Escrow Agent to release the Purchase
Price
to the Company for the Amended and Restated Promissory Note, by wire transfer
of
immediately available funds in accordance with the Company’s written wire
instructions; (ii) the Company shall deliver to Buyer (A) the Amended and
Restated Promissory Note, duly executed on behalf of the Company and registered
in the name of Buyer or its designee; and (B) a stock certificate representing
the Yield Enhancement Shares which Buyer is purchasing, duly executed on behalf
of the Company and registered in the name of Buyer, (iii) Buyer shall deliver
the Warrants to the Company, and (iv) the Company and Buyer shall amend the
Promissory Note issued June 15, 2007 to extend the Maturity Date (as defined
therein) to December 31, 2008.
(c)
Supplemental
Share Purchase.
Subject
to and in reliance upon the representations and warranties set forth in
Section
3
below
and the satisfaction (or waiver) of the conditions set forth in Sections
6 and 7
below,
each of which shall be “brought down” and reaffirmed by the Buyer, the Company
and the Subsidiaries on the date of purchase, provided that the Company has
met
the conditions set forth on Schedule 1(b), within 10 business days following
such conditions having been met, Buyer agrees to purchase an additional 100,000
shares of Common Stock (the “Supplemental Shares”)
at a
purchase price of $2.50 per share. The purchase and sale of the Supplemental
Shares shall occur at the offices of Xxxxxx and Xxxx LLP, 0000 Xxxx Xxxxxx,
Xxxxxx, Xxxxx 00000, consistent with the terms hereof.
2
2.
|
BUYER’S
REPRESENTATIONS AND WARRANTIES.
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Buyer
represents and warrants with respect to only itself that:
(a) Organization
of Buyer.
Buyer
is a limited liability company duly formed, validly existing, and in good
standing under the laws of Delaware.
(b) Authorization
of Transaction.
All
limited liability company action on the part of Buyer that is necessary for
the
authorization, execution, delivery and performance by Buyer of the Transaction
Documents to which it is a party, and the consummation of the transactions
contemplated herein and therein, has been taken. When executed and delivered
by
Buyer, each of the Transaction Documents to which it is a party will constitute
the legal, valid and binding obligation of Buyer, enforceable against Buyer
in
accordance with its terms, except as such obligation may be limited by
bankruptcy, insolvency, reorganization or other laws affecting creditors’ rights
generally and by general equitable principles. Buyer has all requisite limited
liability company power and authority to enter into each of the Transaction
Documents to which it is a party, and to carry out and perform its obligations
under the terms hereof and thereof.
(c) No
Conflicts.
The
execution, delivery and performance by Buyer of the Transaction Documents to
which it is a party, and the consummation by Buyer of the transactions
contemplated hereby and thereby, will not (i) result in a violation of Buyer’s
organizational documents; (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, indenture or instrument to which Buyer is a
party; or (iii) result in a violation of any law, rule, regulation, order,
judgment or decree (including federal and state securities laws) applicable
to
Buyer or by which any property or asset of Buyer is bound or
affected.
(d) Consents.
All
consents, approvals, orders and authorizations required on the part of Buyer
in
connection with the execution, delivery or performance by Buyer of the
Transaction Documents to which it is a party and the consummation of the
transactions contemplated herein by Buyer have been obtained and are effective
as of the date hereof.
(e) No
Public Sale or Distribution.
Buyer
is acquiring the Securities for its own account and not with a view towards,
or
for resale in connection with, the public sale or distribution thereof in a
manner that would violate the 1933 Act, except pursuant to sales registered
or
exempted under the 1933 Act; provided,
however,
that by
making the representations herein, Buyer does not agree to hold any of the
Securities for any minimum or other specific term, and reserves the right to
dispose of the Securities at any time in accordance with or pursuant to the
Registration Rights Agreement, a registration statement or an exemption under
the 1933 Act. Buyer is acquiring the Securities hereunder in the ordinary
course of its business. Buyer does not presently have any agreement or
understanding, directly or indirectly, with any Person to distribute any of
the
Securities.
(f) Investor
Status.
Buyer
is an “accredited investor” as that term is defined in Rule 501(a) of Regulation
D. Buyer’s financial condition is such that it is able to bear the risk of
holding the Securities for an indefinite period of time and the risk of loss
of
its entire investment. Buyer has sufficient knowledge and experience in
financial and business matters and in investing in companies similar to the
Company so as to be able to evaluate the risks and merits of its investment
in
the Company. Buyer fully understands that the Securities are speculative
investments which involve a high degree of risk of loss of Buyer’s entire
investment and Buyer is able to bear the economic risks of an investment in
the
Company. Buyer is fully informed as to the business conducted by the Company.
3
(g) Reliance
on Exemptions.
Buyer
understands that the Securities are being offered and sold to it in reliance
on
specific exemptions from the registration requirements of United States federal
and state securities laws and that the Company is relying in part upon the
truth
and accuracy of, and Buyer’s compliance with, the representations, warranties,
agreements, acknowledgments and understandings of Buyer set forth herein in
order to determine the availability of such exemptions and the eligibility
of
Buyer to acquire the Securities.
(h) Information.
Buyer
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 which have been requested by Buyer. Buyer
and its advisors, if any, have been afforded the opportunity to ask questions
of
the Company. Buyer has sought such accounting, legal and tax advice as it
has considered necessary to make an informed investment decision with respect
to
its acquisition of the Securities.
(i) No
Governmental Review.
Buyer
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 or the fairness or suitability of the investment
in the Securities, nor have such authorities passed upon or endorsed the merits
of the offering of the Securities.
(j) Transfer
or Resale.
Buyer
may not transfer or offer to transfer the Amended and Restated Promissory Note.
Buyer understands that except as provided in the Registration Rights Agreement,
the offer and sale of the Securities have not been and are not being registered
under the 1933 Act or any state securities laws, and the Securities may not
be
offered for sale, sold, assigned or transferred unless (i) the resale of the
Securities has subsequently been registered thereunder; (ii) Buyer shall have
delivered to the Company an opinion of counsel, in a generally acceptable form,
to the effect that such Yield Enhancement Shares to be sold, assigned or
transferred may be sold, assigned or transferred pursuant to an exemption from
such registration; or (iii) Buyer provides the Company with reasonable assurance
that such Securities can be sold, assigned or transferred pursuant to Rule
144
or Rule 144A promulgated under the 1933 Act (or, in each case, a successor
rule
thereto).
(k) Legends.
Buyer
understands that the certificates or other instruments representing the Yield
Enhancement Shares, until removed in accordance with Section 3(k) of the
Registration Rights Agreement, and except as set forth below, shall bear any
legend as required by the “blue sky” laws of any state and a restrictive legend
in substantially the following form (and a stop-transfer order may be placed
against transfer of such stock certificates):
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS.
THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I)
IN
THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE SECURITIES UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS,
OR
(B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION
IS
NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS
SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT.
4
The
legend set forth above shall be removed and the Company shall issue a
certificate without such legend to the holder of the Securities upon which
it is
stamped, if (i) such Yield Enhancement Shares are registered for resale under
the 1933 Act, and Buyer has complied with Section 3(k) of the Registration
Rights Agreement; (ii) in connection with a sale, assignment or other transfer,
such holder provides the Company with an opinion of counsel, in a generally
acceptable form, to the effect that such sale, assignment or transfer of the
Securities may be made without registration under the applicable requirements
of
the 1933 Act; or (iii) such Securities are sold, assigned or transferred
pursuant to Rule 144, or such holder provides the Company with reasonable
assurance that the Securities can be sold, assigned or transferred pursuant
to
Rule 144(k).
Buyer
understands that the Amended and Restated Promissory Note shall bear the
following restrictive legend:
THIS
NOTE
HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, SECTION
25102(F) OF THE CALIFORNIA CORPORATIONS CODE AND THE REGULATIONS PROMULGATED
THEREUNDER,
OR THE
SECURITIES LAWS OF ANY OTHER STATE. THIS NOTE MAY NOT BE SOLD, PLEDGED,
HYPOTHECATED OR OTHERWISE TRANSFERRED.
(l) Intentionally
Omitted.
(m) Affiliations
with Broker-Dealers.
Buyer
is not itself, or is not otherwise an affiliate of, a broker-dealer registered
pursuant to Section 15 of the Securities Exchange Act of 1934, as amended,
and
the rules and regulations adopted by the SEC thereunder (the “Exchange
Act”);
provided,
however,
that if
Buyer is itself, or is otherwise an affiliate of, a broker-dealer, then Buyer,
at the time of purchase of the Securities, did not have any direct or indirect
agreements or understandings with any Person (as that term is defined in
Section
3(q)
of this
Agreement) to distribute the Amended and Restated Promissory Note or Yield
Enhancement Shares. For purposes of the preceding sentence, an affiliate of
a
broker-dealer is any Person that, directly or indirectly, through one or more
intermediaries, controls, is controlled by, or is under common control with,
a
broker-dealer, and does not include any individuals employed by such
broker-dealer or its affiliates.
(n) Short
Sales and Confidentiality Prior to Effective Date.
During
the last thirty (30) days prior to the Closing Date, neither Buyer nor any
affiliate of Buyer, foreign or domestic, has, directly or indirectly, effected
or agreed to effect any short sale (as defined in Rule 200 of Regulation SHO
under the Exchange Act), whether or not against the box, established any “put
equivalent position” (as defined in Rule 16a-1(h) under the Exchange Act) with
respect to the Common Stock, borrowed or pre-borrowed any shares of Common
Stock, or granted any other right (including, without limitation, any put or
call option) with respect to the Common Stock or with respect to any security
that includes, relates to or derived any significant part of its value from
the
Common Stock or otherwise sought to hedge its position in the Common Stock
or
other securities purchased pursuant to this Agreement. Buyer has maintained
the
confidentiality of all disclosures made to it in connection with this
transaction (including the existence and terms of this transaction) other than
to other Persons that are a party to this Agreement.
(o) No
Representations, Guaranties or Warranties.
Other
than as set forth herein, there have been no representations, guaranties, or
warranties made to Buyer by the Company, its Subsidiaries, or its agents or
employees, or by any other person, expressly or by implication, with respect
to
(i) the approximate length of time that Buyer will be required to remain an
owner of the Securities; (ii) the percentage of profit and/or amount of or
type
of consideration, profit, or loss (including, without limitation, tax benefits)
to be realized, if any, as a result of investment in the Securities; and (iii)
the possibility that the past performance or experience on the part of any
officer or director of the Company, or of any other person, might in any way
indicate the predictable results of operations of the Company, or of ownership
of the Securities. Buyer knows of no breach of any representation or warranty
of
the Company as of the date hereof.
5
3.
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REPRESENTATIONS
AND WARRANTIES OF THE COMPANY.
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As
an
inducement to Buyer to enter into this Agreement and to consummate the
transactions contemplated hereby, the Company and its Subsidiaries represent
and warrant to Buyer that each and all of the following representations and
warranties made by the Company or the Subsidiaries, where applicable (as
modified by the disclosure schedules delivered to Buyer contemporaneously with
the execution and delivery of this Agreement (the “Schedules”)),
are
true and correct as of the date of this Agreement. The Schedules shall be
arranged by the Company in paragraphs corresponding to the sections and
subsections contained in this Section
3.
(a) Organization
and Qualification.
The
Company and each Subsidiary is duly organized and validly existing in good
standing under the laws of the jurisdiction in which it is formed, and has
the
requisite power and authorization to own its properties and to carry on its
business as now being conducted. The Company and each Subsidiary is duly
qualified as a foreign entity to do business and is in good standing in every
jurisdiction in which its ownership of property or the nature of the business
conducted by it makes such qualification necessary, except to the extent that
the failure to be so qualified or be in good standing would not have a Material
Adverse Effect. As used in this Agreement, “Material
Adverse Effect”
means
any material adverse effect on the business, properties, assets, operations,
results of operations, condition (financial or otherwise) or prospects of the
Company, taken as whole, or on the transactions contemplated hereby and by
the
other Transaction Documents, or on the authority or ability of the Company
or
its Subsidiaries to perform its obligations under the Transaction Documents.
The
Company has no subsidiaries except those that are a party to this
Agreement.
(b) Authorization;
Enforcement; Validity.
The
Company and each Subsidiary has the requisite power and authority to enter
into
and perform its obligations under the Transaction Documents and to issue the
Securities in accordance with the terms hereof and thereof. The execution and
delivery of the Transaction Documents by the Company and each Subsidiary has
been duly authorized by the board of directors of the Company and each
Subsidiary, and the consummation by the Company and each Subsidiary of the
transactions contemplated hereby and thereby, including, without limitation,
the
issuance of the Securities, have been duly authorized by the board of directors
of the Company and (other than the filing with the SEC of a Form D and one
or
more Registration Statements in accordance with the requirements of the
Registration Rights Agreement, and other than filings with “Blue Sky”
authorities as required therein) no further filing, consent, or authorization
is
required by the Company, any Subsidiary or their respective boards of directors
or stockholders. This Agreement and the other Transaction Documents of even
date
herewith have been duly executed and delivered by the Company and each
Subsidiary, and constitute the legal, valid and binding obligations of the
Company and each Subsidiary, enforceable against the Company and each Subsidiary
in accordance with their respective terms, except as such enforceability may
be
limited by general principles of equity or applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation or similar laws relating to, or
affecting generally, the enforcement of applicable creditors’ rights and
remedies.
(c) Issuance
of Securities.
The
issuance of the Securities is duly authorized and free from all taxes, liens
and
charges with respect to the issue thereof. Upon issuance on the Closing Date,
the Yield Enhancement Shares will be validly issued, fully paid and
nonassessable and free from all preemptive or similar rights, taxes, liens
and
charges with respect to the issue thereof, with the holders being entitled
to
all rights accorded to a holder of Common Stock. Assuming the accuracy of the
representations made by Buyer in Section
2,
the
offer and issuance by the Company of the Securities is exempt from registration
under the 1933 Act.
6
(d) No
Conflicts.
The
execution, delivery and performance of this Agreement and the other Transaction
Documents by the Company and each Subsidiary and the consummation by the Company
and each Subsidiary of the transactions contemplated hereby and thereby
(including, without limitation, the issuance of the Securities) will not (i)
result in a violation of the Company’s Articles of Incorporation, the Company’s
Bylaws, or the governing documents of any of the Subsidiaries or the terms
of
any capital stock of the Company or any of its Subsidiaries; (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, indenture or
instrument to which the Company or any Subsidiary is a party; or (iii) result
in
a violation of any law, rule, regulation, order, judgment or decree (including
federal and state securities laws) applicable to the Company or any of its
Subsidiaries or by which any property or asset of the Company or any of its
Subsidiaries is bound or affected.
(e) Consents.
The
Company and its Subsidiaries are not required to obtain any consent,
authorization or order of, or make any filing or registration with, any court,
governmental agency or any regulatory or self-regulatory agency or any other
Person in order for it to execute, deliver or perform any of its obligations
under or contemplated by the Transaction Documents, in each case in accordance
with the terms hereof or thereof (other than (x) filing with the SEC of a Form
8-K, Form D and one or more Registration Statements in accordance with the
requirements of the Registration Rights Agreement, (y) filings with “Blue Sky”
authorities, and (z) filings required by the Security Agreement). All consents,
authorizations, orders, filings and registrations which the Company and the
Subsidiaries are required to obtain pursuant to the preceding sentence have
been
obtained or effected on or prior to the Closing Date, and the Company and each
Subsidiary is unaware of any facts or circumstances which might prevent the
Company and its Subsidiaries from obtaining or effecting any of the
registrations, applications or filings pursuant to the preceding sentence.
The Company is not in violation of its reporting requirements under the 1933
Act
and has no knowledge of any facts which would reasonably lead to suspension
of
the quotation of its Common Stock on the NASD Over-the-Counter Bulletin Board
(the “OTCBB”)
in the
foreseeable future.
(f) Acknowledgment
Regarding Buyer’s Purchase of Securities.
The
Company acknowledges and agrees that Buyer is acting solely in the capacity
of
an arm’s length purchaser with respect to this Agreement and the other
Transaction Documents and the transactions contemplated hereby and thereby
and
that Buyer is not an officer or director of the Company or any Subsidiary.
Company further acknowledges that Buyer not is acting as a financial advisor
or
fiduciary of the Company or any Subsidiary (or in any similar capacity) with
respect to this Agreement and the other Transaction Documents and the
transactions contemplated hereby and thereby, and any advice given by Buyer
or
any of its representatives or agents in connection with this Agreement and
the
other Transaction Documents and the transactions contemplated hereby and thereby
is merely incidental to Buyer’s purchase of the Securities. The Company further
represents to Buyer that the Company’s and the Subsidiaries’ decisions to enter
into this Agreement and the other Transaction Documents have been based solely
on the independent evaluation by the Company, the Subsidiaries and their
respective representatives.
(g) No
Integrated Offering.
Neither
the Company, nor its Subsidiaries, nor any of their affiliates or any Person
acting on their behalf has, directly or indirectly, made any offers or sales
of
any security or solicited any offers to buy any security, under circumstances
that would require registration of any of the Securities under the 1933 Act
or
cause this offering of the Securities to be integrated with prior offerings
by
the Company for purposes of the 1933 Act or any applicable stockholder approval
provisions, including, without limitation, under the rules and regulations
of
any exchange or automated quotation system on which any of the securities of
the
Company are listed or designated. None of the Company, its Subsidiaries, their
affiliates or any Person acting on their behalf will take any action or steps
referred to in the preceding sentence that would require registration of any
of
the Securities under the 1933 Act or cause the offering of the Securities to
be
integrated with other offerings. All
offers or sales by the Company or its Subsidiaries set forth on Schedule
3(g)
hereto
were made to “accredited investors” (as such term is defined in the 1933 Act) in
compliance with Rule 506 of the 1933 Act.
7
(h) U.S.
Real Property Holding Corporation.
The
Company is not, nor has it ever been, a U.S. real property holding corporation
within the meaning of Section 897 of the Internal Revenue Code of 1986, as
amended, and the Company will so certify upon the request of Buyer.
(i) Application
of Takeover Protections; Rights Agreement.
The
Company and its Board of Directors have taken all necessary action, if any,
in
order to render inapplicable any control share acquisition, business
combination, poison pill (including any distribution under a rights agreement)
or other similar anti-takeover provision under the Company’s Articles of
Incorporation or the laws of the jurisdiction of its formation which is or
could
become applicable to Buyer as a result of the transactions contemplated by
this
Agreement, including, without limitation, the Company’s issuance of the
Securities and Buyer’s ownership of the Securities. The Company has not adopted
a stockholder rights plan or similar arrangement relating to accumulations
of
beneficial ownership of Common Stock or a change in control of the
Company.
(j) SEC
Documents; Financial Statements.
The
Company has filed all reports, schedules, forms, statements and other documents
required to be filed by it with the SEC pursuant to the reporting requirements
of the Exchange Act (all of the foregoing filed prior to the date hereof and
all
exhibits included therein and financial statements, notes and schedules thereto
and documents incorporated by reference therein being hereinafter referred
to as
the “SEC
Documents”).
As of
their respective dates, or as subsequently amended, the SEC Documents complied
in all material respects with the requirements of the Exchange 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, as amended, 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).
(k) Absence
of Certain Changes.
Except
as disclosed in the Company’s Quarterly Report on Form 10-Q for the period ended
September 30, 2007, since September 30, 2007, there has been no material adverse
change and no material adverse development in the business, assets, properties,
operations, condition (financial or otherwise), results of operations or
prospects of the Company or its Subsidiaries. Since September 30, 2007, the
Company has not (i) declared or paid any dividends; (ii) sold any assets; or
(iii) had capital expenditures, individually or in the aggregate, in excess
of
$100,000, other than in the ordinary course of business. Neither the Company
nor
any of its Subsidiaries has taken any steps to seek protection pursuant to
any
bankruptcy law, nor does the Company or any of its Subsidiaries 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. Neither the Company nor any of its
Subsidiaries, as of the Closing or Second Tranche Closing, and after giving
effect to the transactions contemplated hereby to occur at the Closing or Second
Tranche Closing, will be Insolvent (as defined below). For purposes of this
Section
3(k),
“Insolvent”
means,
with respect to the Company or any Subsidiary, (i) the present fair saleable
value of the Company’s or any Subsidiary’s assets is less than the amount
required to pay the Company’s or any Subsidiary’s total Indebtedness (as defined
in Section
3(q)),
as
applicable; (ii) the Company or any Subsidiary is unable to pay its debts and
liabilities, subordinated, contingent or otherwise, as such debts and
liabilities become absolute and matured; (iii) the Company or any Subsidiary
intends to incur or believes that it will incur debts that would be beyond
its
ability to pay as such debts mature; or (iv) the Company or any Subsidiary
has
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be
conducted.
8
(l) No
Undisclosed Events, Liabilities, Developments or Circumstances.
Except
for the transaction contemplated by the Transaction Documents, no event,
liability, development or circumstance has occurred or exists, or is
contemplated to occur with respect to the Company, its Subsidiaries or their
respective businesses, properties, prospects, operations or financial
conditions, that would be required to be disclosed by the Company under
applicable securities laws on a registration statement on Form SB-2, filed
with
the SEC, relating to an issuance and sale by the Company of its Common Stock
and
which has not been publicly announced.
(m) Conduct
of Business; Regulatory Permits.
Neither
the Company nor its Subsidiaries is in violation of any term of or in default
under its Articles or Certificates of Incorporation or Bylaws or other governing
documents. Neither the Company nor any of its Subsidiaries is in violation
of
any judgment, decree or order, or any statute, ordinance, rule or regulation
applicable to the Company or its Subsidiaries. Without limiting the generality
of the foregoing, the Company has no knowledge of any facts or circumstances
that would reasonably lead to delisting or suspension of the Common Stock.
During the one (1) year period prior to the date hereof, (i) trading in the
Common Stock has not been suspended by the SEC; and (ii) the Company has
received no communication, written or oral, from the SEC regarding the
suspension or delisting of the Common Stock. The Company and its Subsidiaries
possess all certificates, authorizations and permits issued by the appropriate
regulatory authorities necessary to conduct their respective businesses, and
during the one (1) year period prior to the date hereof, neither the Company
nor
any of its Subsidiaries has received any notice of proceedings relating to
the
revocation or modification of any such certificate, authorization or permit.
(n) Xxxxxxxx-Xxxxx
Act.
The
Company is in compliance with any and all applicable requirements of the
Xxxxxxxx-Xxxxx Act of 2002, and any and all applicable rules and regulations
promulgated by the SEC thereunder, except where the failure to be in compliance
would not have a Material Adverse Effect.
(o) Transactions
With Affiliates.
Except
as set forth in the SEC Documents filed at least ten days prior to the date
hereof, none of the officers, directors or employees of the Company or any
of
its Subsidiaries is presently a party to any transaction with the Company or
any
of its Subsidiaries (other than for ordinary course services as employees,
officers or directors), including any contract, agreement or other arrangement
providing for the furnishing of services to or by, providing for rental of
real
or personal property to or from, or otherwise requiring payments to or from
any
such officer, director or employee or, to the knowledge of the Company or any
of
its Subsidiaries, any corporation, partnership, trust or other entity in which
any such officer, director, or employee has a substantial interest or is an
officer, director, trustee or partner.
9
(p) Equity
Capitalization.
As of
the date hereof, the authorized capital stock of the Company consists of (x)
200,000,000 shares of Common Stock, of which, as of the date hereof,
36,013,949 shares
are issued and outstanding, 7,016,284 shares of the Company’s outstanding shares
are reserved for issuance pursuant to the Company’s stock option and purchase
plans listed in Schedule
3(p),
and
803,000 shares are reserved for issuance upon the exercise of warrants subject
to the warrant agreements listed in Schedule
3(p)
and
(y) 10,000,000 shares of preferred stock, par value $0.0001 per share, of
which as of the date hereof, zero shares are issued and outstanding. All of
the
outstanding shares of the Company have been validly issued and are fully paid
and nonassessable. The authorized capital stock of Atlas Technology Group
Holdings Limited consists of 50,000 shares, of which, as of the date hereof,
10,000 shares are issued and outstanding and zero shares are issued or reserved
for issuance pursuant to stock options or warrants. The authorized capital
stock
of Atlas Technology Group (NZ) Limited consists of 100 shares, of which, as
of
the date hereof, 100 shares are issued and outstanding and zero shares are
reserved for issuance pursuant to stock options or warrants. The authorized
capital stock of Atlas Technology Group Limited consists of 50,000 shares,
of
which, as of the date hereof, 10,000 shares are issued and outstanding and
zero
shares are issued or reserved for issuance pursuant to stock options or
warrants. The authorized capital stock of ATG US consists of 1,000 shares,
of
which, as of the date hereof, 1,000 shares are issued and outstanding and zero
shares are issued or reserved for issuance pursuant to stock options or
warrants. The authorized capital stock of Atlas Technology Group Consulting,
Inc. consists of 1,000 shares, of which, as of the date hereof, 1,000 shares
are
issued and outstanding and zero shares are issued or reserved for issuance
pursuant to stock options or warrants. The authorized capital stock of BLive
Networks, Inc. consists of 100 shares, of which, as of the date hereof, 100
shares are issued and outstanding and zero shares are reserved for issuance
pursuant to stock options or warrants. Except as disclosed in the SEC Documents
or Schedule
3(p):
(i)
none of the Company’s or its Subsidiaries’ share capital is subject to
preemptive rights or any other similar rights or any liens or encumbrances
suffered or permitted by the Company; (ii) there are no outstanding options,
warrants, scrip, rights to subscribe to, calls or commitments of any character
whatsoever relating to, or securities or rights convertible into, or exercisable
or exchangeable for, any share capital of the Company or any Subsidiary, or
contracts, commitments, understandings or arrangements by which the Company
or
any Subsidiary is or may become bound to issue additional share capital of
the
Company or any Subsidiary or any options, warrants, scrip, rights to subscribe
to, calls or commitments of any character whatsoever relating to, or securities
or rights convertible into, or exercisable or exchangeable for, any share
capital of the Company or any Subsidiary; (iii) there are no outstanding debt
securities, notes, credit agreements, credit facilities or other agreements,
documents or instruments evidencing Indebtedness of the Company or any
Subsidiary or by which Company or any Subsidiary is or may become bound; (iv)
there are no financing statements securing obligations in any material amounts,
either singly or in the aggregate, filed in connection with the Company or
any
Subsidiary; (v) there are no agreements or arrangements under which the Company
or any Subsidiary is obligated to register the sale of any of its securities
under the 1933 Act (except the Registration Rights Agreement); (vi) there are
no
outstanding securities or instruments of the Company or any Subsidiary which
contain any redemption or similar provisions, and there are no contracts,
commitments, understandings or arrangements by which the Company or any
Subsidiary is or may become bound to redeem a security of the Company; (vii)
there are no securities or instruments containing anti-dilution or similar
provisions that will be triggered by the issuance of the Securities; (viii)
the
Company and its Subsidiaries have no stock appreciation rights or “phantom
stock” plans or agreements or any similar plan or agreement; and (ix) the
Company and its Subsidiaries have no liabilities or obligations required to
be
disclosed in the SEC Documents but not so disclosed in the SEC Documents, other
than those incurred in the ordinary course of the Company’s or it Subsidiaries’
businesses. Schedule
3(p)
contains
true, correct and complete copies of (1) the Company’s Articles of
Incorporation, as amended and as in effect on the date hereof (“the Company’s
Articles of Incorporation”)
and
(2) the Company’s Bylaws, as amended and as in effect on the date hereof
(“the Company’s Bylaws”).
10
(q) Indebtedness
and Other Contracts.
Except
as disclosed in the SEC Documents or Schedule
3(q),
neither
the Company nor any of its Subsidiaries (i) has any outstanding Indebtedness;
(ii) is a party to any contract, agreement or instrument, the violation of
which, or default under which, by the other party or parties to such contract,
agreement or instrument would result in a Material Adverse Effect; (iii) is
in
violation of any term of or in default under any contract, agreement or
instrument relating to any Indebtedness; or (iv) is a party to any contract,
agreement or instrument relating to any Indebtedness, the performance of which,
in the judgment of the Company’s officers, has or is expected to have a Material
Adverse Effect, except as otherwise disclosed in Schedule
3(q).
For
purposes of this Agreement: (x) “Indebtedness”
of
any
Person means, without duplication, (A) all indebtedness for borrowed money,
(B)
all obligations issued, undertaken or assumed as the deferred purchase price
of
property or services (including, without limitation, “capital leases” in
accordance with generally accepted accounting principles) (other than trade
payables entered into in the ordinary course of business), (C) all reimbursement
or payment obligations with respect to letters of credit, surety bonds and
other
similar instruments, (D) all obligations evidenced by notes, bonds, debentures
or similar instruments, including obligations so evidenced incurred in
connection with the acquisition of property, assets or businesses, (E) all
indebtedness created or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either case with respect
to
any property or assets acquired with the proceeds of such indebtedness (even
though the rights and remedies of the seller or bank under such agreement in
the
event of default are limited to repossession or sale of such property), (F)
all
monetary obligations under any leasing or similar arrangement which, in
connection with generally accepted accounting principles, consistently applied
for the periods covered thereby, is classified as a capital lease, (G) all
indebtedness referred to in clauses (A) through (F) above secured by (or for
which the holder of such Indebtedness has an existing right, contingent or
otherwise, to be secured by) any mortgage, lien, pledge, charge, security
interest or other encumbrance upon or in any property or assets (including
accounts and contract rights) owned by any Person, even though the Person which
owns such assets or property has not assumed or become liable for the payment
of
such indebtedness, and (H) all Contingent Obligations in respect of indebtedness
or obligations of others of the kinds referred to in clauses (A) through (G)
above; (y) “Contingent
Obligation”
means,
as to any Person, any direct or indirect liability, contingent or otherwise,
of
that Person with respect to any indebtedness, lease, dividend or other
obligation of another Person if the primary purpose or intent of the Person
incurring such liability, or the primary effect thereof, is to provide assurance
to the obligee of such liability that such liability will be paid or discharged,
or that any agreements relating thereto will be complied with, or that the
holders of such liability will be protected (in whole or in part) against loss
with respect thereto; and (z) “Person”
means
an individual, a limited liability company, a partnership, a joint venture,
a
corporation, a trust, an unincorporated organization and a government or any
department or agency thereof.
(r) Absence
of Litigation.
Except
as disclosed in the SEC Documents or in writing to Buyer, there is no action,
suit, proceeding, inquiry or investigation before or by any court, public board,
government agency (including the SEC), self-regulatory organization or body
pending or, to the knowledge of the Company, threatened against the Company,
the
Common Stock or any of its Subsidiaries or any of the Company’s or its
Subsidiaries’ officers or directors.
(s) Insurance.
The
Company and each of its Subsidiaries are insured by insurers of recognized
financial responsibility against such losses and risks and in such amounts
as
management of the Company believes to be prudent and customary in the businesses
in which the Company and its Subsidiaries are engaged. In the past one (1)
year,
neither the Company nor any Subsidiary has been refused any insurance coverage
sought or applied for and neither the Company nor any such Subsidiary has any
reason to believe that it will not be able to renew its existing insurance
coverage as and when such coverage expires or to obtain similar coverage from
similar insurers as may be necessary to continue its business at a cost which
would not have a Material Adverse Effect.
11
(t) Employee
Relations.
Neither
Company nor any of its Subsidiaries is a party to any collective bargaining
agreement or employs any member of a union. Company and its Subsidiaries believe
that their relations with their employees are good. No executive officer
of Company or any of its Subsidiaries has notified Company or any such
Subsidiary that such officer intends to leave Company or any such Subsidiary
or
otherwise terminate such officer’s employment with Company or any such
Subsidiary. No executive officer of Company or any of its Subsidiaries, to
the
knowledge of Company or any such Subsidiary, is in violation of any material
term of any employment contract, confidentiality, disclosure or proprietary
information agreement, non-competition agreement, or any other contract or
agreement or any restrictive covenant. Company and its Subsidiaries are in
compliance with all federal, state, local and foreign laws and regulations
respecting labor, employment and employment practices and benefits, terms and
conditions of employment and wages and hours, except where failure to be in
compliance would not, either individually or in the aggregate, reasonably be
expected to result in a Material Adverse Effect.
(u) Title.
The
Company and its Subsidiaries have good and marketable title to all real property
and good and marketable title to all personal property owned by them which
is
material to the business of the Company and its Subsidiaries, in each case
free
and clear of all liens, encumbrances and defects except Permitted Liens (as
such
term is defined in the Amended and Restated Promissory Note) and such as do
not
materially affect the value of such property and do not interfere with the
use
made and proposed to be made of such property by the Company and any of its
Subsidiaries. Any real property and facilities held under lease by the Company
and any of its Subsidiaries are held by them under valid, subsisting and
enforceable leases with such exceptions as are not material and do not interfere
with the use made and proposed to be made of such property and facilities by
the
Company and its Subsidiaries.
(v) Intellectual
Property Rights.
The
Company and its Subsidiaries own or possess adequate rights or licenses to
use
all trademarks, trade names, service marks, service xxxx 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. Neither
the
Company’s nor any of its Subsidiaries’ Intellectual Property Rights have expired
or terminated, or are expected to expire or terminate, within three years from
the date of this Agreement. The Company has no 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 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 properties.
(w) Environmental
Laws.
The
Company and its Subsidiaries (i) are in compliance with any and all
Environmental Laws (as hereinafter defined); (ii) have received all permits,
licenses or other approvals required of them under applicable Environmental
Laws
to conduct their respective businesses; and (iii) are in compliance with all
terms and conditions of any such permit, license or approval where, in each
of
the foregoing clauses (i), (ii) and (iii), the failure to so comply could be
reasonably expected to have, individually or in the aggregate, a Material
Adverse Effect. The term “Environmental
Laws”
means
all federal, state, local or foreign laws relating to pollution or protection
of
human health or the environment (including, without limitation, ambient air,
surface water, groundwater, land surface or subsurface strata), including,
without limitation, laws relating to emissions, discharges, releases or
threatened releases of chemicals, pollutants, contaminants, or toxic or
hazardous substances or wastes (collectively, “Hazardous
Materials”)
into
the environment, or otherwise relating to the manufacture, processing,
distribution, use, treatment, storage, disposal, transport or handling of
Hazardous Materials, as well as all authorizations, codes, decrees, demands
or
demand letters, injunctions, judgments, licenses, notices or notice letters,
orders, permits, plans or regulations issued, entered, promulgated or approved
thereunder.
12
(x) Subsidiary
Rights.
Company
or one of its Subsidiaries has the unrestricted right to vote, and (subject
to
limitations imposed by applicable law) to receive dividends and distributions
on, all capital securities of its Subsidiaries as owned by Company or such
Subsidiary.
(y) Investment
Company.
Neither
the Company nor its Subsidiaries is, or is an affiliate of, an “investment
company” within the meaning of the Investment Company Act of 1940, as
amended.
(z) Tax
Status.
The
Company and each of its Subsidiaries (i) has made or filed all foreign, federal
and state income and all other tax returns, reports and declarations required
by
any jurisdiction to which it is subject; (ii) has paid all taxes and other
governmental assessments and charges that are material in amount, shown or
determined to be due on such returns, reports and declarations, except those
being contested in good faith; and (iii) has set aside on its books provisions
reasonably adequate for the payment of all taxes for periods subsequent to
the
periods to which such returns, reports or declarations apply. There are no
unpaid taxes in any material amount claimed to be due by the taxing authority
of
any jurisdiction, and the officers of the Company know of no basis for any
such
claim.
(aa) Internal
Accounting and Disclosure Controls.
The
Company maintains a system of internal accounting controls sufficient to provide
reasonable assurance that (i) transactions are executed in accordance with
management’s general or specific authorizations; (ii) transactions are recorded
as necessary to permit preparation of financial statements in conformity with
generally accepted accounting principles and to maintain asset and liability
accountability; (iii) access to assets or incurrence of liabilities is permitted
only in accordance with management’s general or specific authorization; and (iv)
the recorded accountability for assets and liabilities is compared with the
existing assets and liabilities at reasonable intervals and appropriate action
is taken with respect to any difference. The Company maintains disclosure
controls and procedures (as such term is defined in Rule 13a-15 under the 0000
Xxx) that are effective in ensuring that information required to be disclosed
by
the Company in the reports that it files or submits under the 1934 Act is
recorded, processed, summarized and reported, within the time periods specified
in the rules and forms of the SEC, including, without limitation, controls
and
procedures designed to ensure that information required to be disclosed by
the
Company in the reports that it files or submits under the 1934 Act is
accumulated and communicated to the Company ’s management, including its
principal executive officer or officers and its principal financial officer
or
officers, as appropriate, to allow timely decisions regarding required
disclosure. Except as otherwise disclosed in the SEC Documents, during the
twelve months prior to the date hereof, neither the Company nor any of its
Subsidiaries have received any notice or correspondence from any accountant
relating to any potential material weakness in any part of the system of
internal accounting controls of the Company or any of its
Subsidiaries.
(bb) Off
Balance Sheet Arrangements.
There
is no transaction, arrangement, or other relationship between the Company or
any
Subsidiary and an unconsolidated or other off balance sheet entity that is
required to be disclosed by the Company in its Exchange Act filings and is
not
so disclosed or that otherwise would be reasonably likely to have a Material
Adverse Effect.
(cc) Ranking
of Amended and Restated Promissory Note.
Except
as permitted by the Amended and Restated Promissory Note, no Indebtedness of
the
Company will rank senior to or pari
passu
with the
Amended and Restated Promissory Note.
13
(dd) Transfer
Taxes.
On the
Closing Date, all stock transfer or other taxes (other than income or similar
taxes) which are required to be paid in connection with the sale and transfer
of
the Securities to be sold to Buyer hereunder will be, or will have been, fully
paid or provided for by the Company and all laws imposing such taxes will be
or
will have been complied with.
(ee) Manipulation
of Price.
The
Company has not, and to its knowledge no one acting on its behalf has (i) taken,
directly or indirectly, any action designed to cause or to result in the
stabilization or manipulation of the price of any security of the Company to
facilitate the sale or resale of any of the Securities; (ii) sold, bid for,
purchased, or paid any compensation for soliciting purchases of, any of the
Securities (except for customary placement fees payable in connection with
this
transaction); or (iii) paid or agreed to pay to any Person any compensation
for
soliciting another to purchase any other securities of the Company (except
for
customary placement fees payable in connection with this
transaction).
(ff) Commission
and Brokers.
Other
than the commission paid to Equity Source Partners as set forth on Schedule
3(ff),
no
commission has been charged or shall be payable to any person with respect
to
the issuance and sale by the Company to Buyer of the Securities or the
completion of any other transaction contemplated by this Agreement as a result
of any action or agreement on the part of Company, and Company has not retained,
utilized or been represented by any other broker or finder in connection with
the transactions contemplated by this Agreement. The Company shall be
responsible for the payment of any placement agent’s fees, financial advisory
fees, or brokers’ commissions (other than for Persons engaged by Buyer or its
investment advisor) relating to or arising out of the transactions contemplated
hereby. The Company shall pay, and hold Buyer harmless against, any liability,
loss or expense (including, without limitation, attorney’s fees and
out-of-pocket expenses) arising in connection with any such
claim.
(gg) Foreign
Corrupt Practices.
Neither
Company, nor any of its Subsidiaries, nor any director, officer, agent, employee
or other Person acting on behalf of Company or any of its Subsidiaries has,
in
the course of its actions for, or on behalf of, Company or any of its
Subsidiaries (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.
(hh) No
General Solicitation; Placement Agent’s Fees.
Neither
the Company, nor its Subsidiaries, nor any of its or their affiliates, nor
any
Person acting on its or their behalf, has engaged in any form of general
solicitation or general advertising (within the meaning of Regulation D) in
connection with the offer or sale of the Securities. The Company shall be
responsible for the payment of any placement agent’s fees, financial advisory
fees, or brokers’ commissions (other than for Persons engaged by the Buyer or
their investment advisors) relating to or arising out of the transactions
contemplated hereby. The Company shall pay, and hold Buyer harmless against,
any
liability, loss or expense (including, without limitation, attorney’s fees and
out-of-pocket expenses) arising in connection with any such claim.
(ii) Disclosure.
The
Company understands and confirms that Buyer will rely on the foregoing
representations in effecting transactions in securities of the Company. All
disclosure provided to Buyer, relating to the Company’s business and the
transactions contemplated hereby, including the Schedules to this Agreement,
furnished by or on behalf of the Company, is true and correct and does not
contain any untrue statement of a material fact or omit to state any material
fact necessary in order to make the statements made therein, in the light of
the
circumstances under which they were made, not misleading. The Company knows
of
no breach of any representation or warranty of Buyer as of the date
hereof.
14
4.
|
COVENANTS.
|
(a) Commercially
Reasonable Efforts.
Each
party shall use commercially reasonable efforts timely to satisfy each of the
conditions to be satisfied by it as provided in Sections
6 and 7
of this
Agreement.
(b) Form
D
and Blue Sky.
The
Company agrees to file a Form D with respect to the Securities as required
under
Regulation D and to provide a copy thereof to Buyer promptly after such filing.
The Company shall, on or before the Closing Date, take such action as the
Company shall reasonably determine is necessary in order to obtain an exemption
for, or to qualify the Securities for, sale to Buyer at the Closing pursuant
to
this Agreement under applicable securities or “Blue Sky” laws of the states of
the United States (or to obtain an exemption from such qualification), and
shall
provide evidence of any such action so taken to Buyer on or prior to the Closing
Date. The Company shall make all filings and reports relating to the offer
and
sale of the Securities required under applicable securities or “Blue Sky” laws
of the states of the United States following the Closing Date.
(c) Reporting
Status.
Until
the date on which the Investors (as that term is defined in the Registration
Rights Agreement) shall have sold all the Yield Enhancement Shares and the
Amended and Restated Promissory Note is no longer outstanding (the “Reporting
Period”),
the
Company shall file all reports required to be filed with the SEC pursuant to
the
Exchange Act, and the Company shall not terminate its status as an issuer
required to file reports under the Exchange Act even if the Exchange Act or
the
rules and regulations thereunder would otherwise permit such termination.
(d) Use
of
Proceeds.
The
Company will use the proceeds from the sale of the Securities for (1) the fees
and expenses associated with the sale of the Securities; and (2) general
corporate purposes.
(e) Financial
Information.
The
Company agrees to send the following to each Investor during the Reporting
Period: (i) unless filed with the SEC through XXXXX and available to the
public through the XXXXX system, within one business day after the filing
thereof with the SEC, a copy of all Annual Reports on Form 10-K or 10-KSB,
any
interim reports or any consolidated balance sheets, income statements,
stockholders’ equity statements and/or cash flow statements for any period other
than annual, any Current Reports on Form 8-K and any registration statements
(other than on Form S-8) or amendments filed pursuant to the 1933 Act of the
Company; (ii) on the same day as the release thereof, copies of all press
releases issued by Company or any of its Subsidiaries; and (iii) copies of
any
notices and other information made available or given to the stockholders of
Company generally, contemporaneously with the making available or giving thereof
to the stockholders.
(f) Listing.
To the
extent the Registrable Securities (as defined in the Registration Rights
Agreement) are listed upon a national securities exchange or automated quotation
system that provides for the listing of securities, the Company shall promptly
secure the listing of all of the Registrable Securities upon each national
securities exchange and automated quotation system, if any, upon which the
Common Stock is then listed (subject to official notice of issuance) and shall
maintain such listing of all Registrable Securities from time to time issuable
under the terms of the Transaction Documents. The Company shall not take any
action which would be reasonably expected to result in the delisting or
suspension of the Common Stock. The Company shall pay all fees and expenses
in
connection with satisfying its obligations under this Section
4(f).
15
(g) Fees.
The
Company shall reimburse Buyer or its designee(s) for reasonable and documented
costs and expenses incurred in connection with the transactions contemplated
by
the Transaction Documents (including reasonable legal fees and disbursements
in
connection therewith, documentation and implementation of the transactions
contemplated by the Transaction Documents and due diligence in connection
therewith) up to an amount not to exceed $15,000, which amount shall be withheld
by Buyer from at the Closing. The Company shall be responsible for the payment
of, and shall pay, any placement agent’s fees, financial advisory fees, or
broker’s commissions (other than for Persons engaged by Buyer or its investment
advisors) relating to or arising out of the transactions contemplated hereby,
and shall hold Buyer harmless against, any liability, loss or expense
(including, without limitation, reasonable attorney’s fees and out-of-pocket
expenses) arising in connection with any claim relating to any such
payment.
(h) Disclosure
of Transactions and Other Material Information.
On or
before 5:30 p.m., Washington, D.C. time, on the fourth business day following
the date of this Agreement, the Company shall file a Current Report on Form
8-K
describing the terms of the transactions contemplated by the Transaction
Documents in the form required by the Exchange Act and attaching the material
Transaction Documents (including, without limitation, this Agreement and the
form of Amended and Restated Promissory Note) (including all attachments, the
“8-K
Filing”).
Any
material, non-public information provided by the Company to Buyer in connection
with this transaction shall be included by the Company within the aforementioned
8-K Filing. From and after the filing of the 8-K Filing with the SEC, the
Company represents and acknowledges that Buyer shall not be in possession of
any
material, nonpublic information received from the Company or any of its
Subsidiaries, or any of their respective officers, directors, employees or
agents, that is not disclosed in the 8-K Filing. The Company shall not,
and shall cause each of its Subsidiaries and each of its and their respective
officers, directors, employees and agents not to, provide Buyer with any
material, nonpublic information regarding the Company or any of its Subsidiaries
from and after the filing of the 8-K Filing with the SEC without the express
written consent of Buyer. In the event of a breach of the foregoing covenant
by
the Company, any of its Subsidiaries, or any of its or their respective
officers, directors, employees or agents, in addition to any other remedy
provided herein or in the Transaction Documents, Buyer shall, to the extent
it
becomes aware of such breach, notify the Company of such breach and the
material, nonpublic information the receipt of which resulted in such breach.
Within two business days of receipt of such notice, the Company shall either
(a)
deliver a notice to Buyer certifying that such material, non-public information
has already been publicly disclosed by the Company or (b) make a public
disclosure, in the form of a press release, public advertisement or otherwise,
of such material, nonpublic information. Subject to the foregoing, neither
the Company, nor its Subsidiaries, nor Buyer shall issue any press releases
or
any other public statements with respect to the transactions contemplated
hereby; provided,
however,
that
the Company shall be entitled, without the prior approval of Buyer, to make
any
press release or other public disclosure with respect to such transactions
(i)
in substantial conformity with the 8-K Filing and contemporaneously therewith;
and (ii) as is required by applicable law and regulations (provided that in
the
case of clause (i), Buyer shall be consulted by the Company in connection with
any such press release or other public disclosure prior to its release). Without
the prior written consent of Buyer (which consent shall not be unreasonably
withheld, delayed or conditioned), Company shall not disclose the name of Buyer
or its affiliates in any filing, announcement, release or otherwise except
in
the 8-K Filing.
(i) Incurrence
of Liens.
So long
as the Amended and Restated Promissory Note is outstanding, the Company shall
not, directly or indirectly, allow or suffer to exist any Lien, other than
Permitted Liens (as defined in the Amended and Restated Promissory Note), upon
any property or assets (including accounts and contract rights) owned by the
Company.
16
(j) Conduct
of Business.
The
business of the Company and its Subsidiaries shall not be conducted in violation
of any law, ordinance or regulation of any governmental entity, except where
such violations would not result, either individually or in the aggregate,
in a
Material Adverse Effect.
(k) Allocation
of Purchase Price for Federal Income Tax Purposes.
In
accordance with Treasury regulations Section 1.1273-2(h), the Company shall
allocate the Purchase Price between the Amended and Restated Promissory Note
and
the Yield Enhancement Shares based upon their relative fair market value. In
making such allocation, the parties hereto shall agree, based upon the advice
of
their financial advisors, upon the appropriate methodology to be used for
determining the relative fair market values of the Amended and Restated
Promissory Note and the Yield Enhancement Shares. For
the
avoidance of doubt, it is the intention of each of the Buyer and the Company
to
treat the transactions consummated by this Agreement as a new lending
arrangement or as significantly modifying the original transaction consummated
pursuant to the Securities Purchase Agreement.
(l) No
Short Sales Permitted.
Beginning on the Closing Date and until such time as the Amended and Restated
Promissory Note has been fully repaid by the Company, Buyer and its affiliates,
whether foreign or domestic, will not, directly or indirectly, effect or agree
to effect any short sale (as defined in Rule 200 of Regulation SHO under the
Exchange Act), whether or not against the box, establish any “put equivalent
position” (as defined in Rule 16a-1(h) under the Exchange Act) with respect to
the Common Stock, borrow any shares of Common Stock, or grant any other right
(including, without limitation, any put or call option) with respect to the
Common Stock or with respect to any security that includes, relates to or
derived any significant part of its value from the Common Stock or otherwise
sought to hedge its position in the Common Stock or other securities purchased
pursuant to this Agreement.
(m) Pro
Rata Participation.
(i) As
long
as Buyer holds at least 1,000,000 shares of Common Stock of the Company, the
Company shall permit Buyer to purchase its pro rata share of New Securities
(as
defined below) on terms and conditions that are equal to those offered by the
Company in a subsequent sale of New Securities after the date of this Agreement.
Buyer’s pro rata share, for purposes of this Section
4(m),
is
equal to the ratio of (a) the number of shares of Common Stock owned by Buyer
immediately prior to the issuance of New Securities to (b) the total number
of
shares of Common Stock outstanding. Buyer may assign its right of participation
hereunder to any person to which Buyer may transfer registration rights pursuant
to the terms of the Registration Rights Agreement. “New
Securities”
shall
mean any capital stock of the Company whether now authorized or not, and rights,
convertible securities, options or warrants to purchase such capital stock,
and
securities of any type whatsoever that are, or may become, exercisable or
convertible into capital stock; provided
that the
term “New Securities” does not include: (A) the Yield Enhancement Shares issued
pursuant to this Agreement; (B) shares of Common Stock and options, warrants
or
other rights to purchase Common Stock issued to employees, officers or directors
of, or consultants or advisors to, the Company or any Subsidiary pursuant to
restricted stock purchase agreements, stock option plans or similar arrangements
approved by the Board of Directors; (C) securities issued pursuant to the
conversion or exercise of any convertible securities, options or warrants
outstanding as of this date of this Agreement; (D) securities issued pursuant
to
a qualified public offering; (E) shares of Common Stock issued or issuable
pursuant to the acquisition of another corporation or entity by the Company
by
merger, purchase of substantially all of the assets or other reorganization
or
to a joint venture agreement, provided,
that
such issuances are approved by the Board of Directors of the Company; or
(F) shares of Common Stock issued or issuable to suppliers or third party
service providers in connection with the provision of goods or services pursuant
to transactions approved by the Board of Directors of the Company.
17
(ii) In
the
event the Company proposes to undertake an issuance of New Securities, it shall
give Buyer written notice of its intention, describing the type of New
Securities, and their price and the general terms upon which the Company
proposes to issue the same. Buyer shall have twenty (20) days after any such
notice is mailed or delivered to agree to purchase Buyer’s pro rata share of
such New Securities and to indicate whether such Buyer desires to exercise
its
option for the price and upon the terms specified in the notice by giving
written notice to the Company, stating therein the quantity of New Securities
to
be purchased.
(n) Corporate
Existence.
So long
as Buyer beneficially owns any Securities, the Company shall not be party to
any
Fundamental Transaction (as defined in the Notes) unless the Company is in
compliance with the applicable provisions governing Fundamental Transactions
set
forth in the Notes.
5. |
TRANSFER
AGENT INSTRUCTIONS.
|
(a) Registers.
The
Company’s transfer agent is Registrar and Transfer Company. The Company’s
transfer agent maintains a register for the Common Stock in which it records
the
name and address of each Person in whose name the Common Stock has been issued,
and will keep such register open and available at all times during business
hours for inspection by Buyer or its legal representatives.
(b) Transfer
Agent Instructions.
The
Company shall issue irrevocable instructions to its transfer agent, and any
subsequent transfer agent, to issue certificates or credit shares to the
applicable balance accounts at The Depository Trust Company (“DTC”),
registered in the name of Buyer or its respective nominee(s), for the Yield
Enhancement Shares in such amounts as specified from time to time by Buyer
to
the Company in the form of Exhibit
G
attached
hereto (the “Irrevocable
Transfer Agent Instructions”).
The
Company warrants that no instruction other than the Irrevocable Transfer Agent
Instructions referred to in this Section
5(b),
and
stop transfer instructions to give effect to Sections
2(j) and
2(k)
hereof,
will be given by the Company to its transfer agent with respect to the Yield
Enhancement Shares and that the Yield Enhancement Shares shall otherwise be
freely transferable (subject to applicable federal and state securities laws)
on
the books and records of the Company, as applicable, and to the extent provided
in this Agreement and the other Transaction Documents. If Buyer effects a
sale, assignment or transfer of Yield Enhancement Shares in accordance with
Sections
2(j) and 2(k),
the
Company shall permit the transfer and shall promptly instruct its transfer
agent
to issue one or more certificates or credit shares to the applicable balance
accounts at DTC in such name and in such denominations as specified by Buyer
to
effect such sale, transfer or assignment (subject to applicable federal and
state securities laws). In the event that such sale, assignment or
transfer involves Yield Enhancement Shares sold, assigned or transferred
pursuant to an effective registration statement or pursuant to Rule 144, the
transfer agent shall issue such Yield Enhancement Shares to Buyer, assignee
or
transferee, as the case may be, without any restrictive legend. The Company
acknowledges that a breach by it of its obligations hereunder will cause
irreparable harm to Buyer.
6. |
CONDITIONS
TO THE COMPANY’S OBLIGATIONS.
|
(a) The
obligations of the Company hereunder to issue the Amended and Restated
Promissory Note and to issue and sell the Yield Enhancement Shares to Buyer
at
the Closing is subject to the satisfaction, at or before the Closing Date,
of
each of the following conditions, provided that these conditions are for the
Company’s sole benefit and may be waived by the Company at any time in its sole
discretion by providing Buyer with prior written notice thereof:
18
(i) Buyer
shall have executed each of the Transaction Documents to which it is a party
and
delivered the same to the Company.
(ii) Buyer
shall have instructed the Escrow Agent to deliver to the Company the Purchase
Price (less the amounts withheld by it pursuant to Section
4(g))
by wire
transfer of immediately available funds pursuant to the wire instructions
provided by the Company.
(iii) [Reserved].
(iv) The
representations and warranties of Buyer shall be true and correct in all
material respects as of the date when made and as of the Closing Date as though
made at that time (except for representations and warranties that speak as
of a
specific date), and Buyer shall have performed, satisfied and complied in all
material respects with the covenants, agreements and conditions required by
this
Agreement to be performed, satisfied or complied with by Buyer at or prior
to
the Closing Date. Company shall have received certificates, executed by an
authorized representative of the Buyer, dated as of the Closing Date, to the
foregoing effect and as to such other matters as may be reasonably requested
by
Buyer, in substantially the form attached hereto as Exhibit
H.
(b) [Reserved].
7. |
CONDITIONS
TO BUYER’S OBLIGATIONS.
|
(a) The
obligation of Buyer hereunder to waive the Event of Default under the Amended
and Restated Promissory Note, and to purchase the Yield Enhancement Shares
at
the Closing, is subject to the satisfaction, at or before the Closing Date,
of
each of the following conditions, provided that these conditions are for Buyer’s
sole benefit and may be waived by Buyer at any time in its sole discretion
by
providing the Company with prior written notice thereof:
(i) The
Company shall have executed and delivered to Buyer (A) each of the Transaction
Documents, (B) the Amended and Restated Promissory Note, and (C)
the stock certificates representing the Yield Enhancement Shares being purchased
by Buyer at the Closing pursuant to this Agreement.
(ii) [Reserved].
(iii) [Reserved].
(iv) [Reserved].
(v) [Reserved].
(vi) The
Company shall have delivered to Buyer a copy of the Irrevocable Transfer Agent
Instructions attached hereto as Exhibit
G,
which
instructions shall have been delivered to and acknowledged in writing by the
Company’s transfer agent.
(vii) The
Company shall have delivered to Buyer a certificate evidencing the formation
and
good standing of the Company and each of its Subsidiaries in such entity’s
jurisdiction of formation issued by the Secretary of State (or comparable
office) of such jurisdiction, as of a date reasonably proximate to the Closing
Date.
19
(viii) The
Company shall have delivered to Buyer a certificate evidencing the Company’s
qualification as a foreign corporation and good standing issued by the Secretary
of State (or comparable office) of each jurisdiction in which the Company
conducts business, as of a date reasonably proximate to Closing
Date.
(ix) The
Company shall have delivered to Buyer a certificate evidencing, for each of
the
Company’s Subsidiaries, its qualification as a foreign corporation and good
standing issued by the Secretary of State (or comparable office) of each
jurisdiction in which such Subsidiary conducts business, as of a date reasonably
proximate to Closing Date.
(x) [Reserved].
(xi) [Reserved].
(xii) The
Company shall have delivered to Buyer a certificate, executed by the Secretary
of the Company and dated as of the Closing Date, in substantially the form
attached hereto as Exhibit
M,
as to
(A) the resolutions consistent with Section
3(b)
as
adopted by the Company’s Board of Directors, in a form reasonably acceptable to
Buyer, (B) the Company’s Articles of Incorporation and (C) the Company’s Bylaws,
each as in effect at the Closing.
(xiii) The
Company shall have delivered to Buyer certificates, executed by the Secretary
(or comparable officer or manager) of each of the Company’s Subsidiaries and
dated as of the Closing Date, substantially in the form attached hereto as
Exhibit
M,
as to
(A) the resolutions consistent with Section
3(b)
as
adopted by such Subsidiary’s Board of Directors (or other governing body), in a
form reasonably acceptable to Buyer, (B) such Subsidiary’s Articles of
Incorporation (or other formation documents) and (C) such Subsidiary’s Bylaws
(or other operating agreements), each as in effect at the Closing.
(xiv) The
representations and warranties of the Company and its Subsidiaries shall be
true
and correct as of the date when made and as of the Closing Date as though made
at that time (except for representations and warranties that speak as of a
specific date, which shall be true and correct as of such specific date), and
the Company and its Subsidiaries shall have performed, satisfied and complied
in
all respects with the covenants, agreements and conditions required by the
Transaction Documents to be performed, satisfied or complied with by the Company
at or prior to the Closing Date. Buyer shall have received certificates,
executed by the Chief Executive Officer (or duly authorized officer or director
for foreign Subsidiaries) of the Company and its Subsidiaries, dated as of
the
Closing Date, to the foregoing effect and as to such other matters as may be
reasonably requested by Buyer, substantially in the form attached hereto as
Exhibit
N.
(xv) [Reserved].
(xvi) The
Company shall have obtained all governmental, regulatory or third party consents
and approvals, if any, necessary for the sale of the Securities.
(xvii) Each
of
the Subsidiaries shall have executed and delivered to Buyer this
Agreement.
(xviii) [Reserved].
(xix) [Reserved].
20
(xx) [Reserved].
(xxi) [Reserved].
(xxii) [Reserved].
(xxiii) The
Company shall have delivered to Buyer such other documents relating to the
transactions contemplated by this Agreement as Buyer or its counsel may
reasonably request.
(xxiv) There
is
a valid exemption under the 1933 Act regarding the offering and sale of the
Yield Enhancement Shares.
(xxv) [Reserved].
(xxvi) There
have been no material adverse changes in the business condition (financial
or
otherwise), earnings or properties of the Company.
(xxvii) There
has
been no material disruption in the market for Common Stock (including, but
not
limited to, a material decrease in the trading price or trading volume of the
Common Stock) or the U.S. stock markets as a whole.
(b) [Reserved].
8. |
TERMINATION.
|
(a) Closing.
In the
event that the Closing shall not have occurred with respect to Buyer on or
before five business days from the date hereof due to the Company’s or Buyer’s
failure to satisfy the conditions set forth in Sections
6(a) and 7(a)
above
(and the nonbreaching party’s failure to waive such unsatisfied condition(s)),
the nonbreaching party shall have the option to terminate this Agreement with
respect to such breaching party at the close of business on such date without
liability of any party to any other party.
(b) [Reserved].
9. |
MISCELLANEOUS.
|
(a) Governing
Law; Jurisdiction.
All
questions concerning the construction, validity, enforcement and interpretation
of this Agreement shall be governed by the internal laws of the State of
Delaware, without giving effect to any choice of law or conflict of law
provision or rule (whether of the State of Delaware or any other jurisdictions)
that would cause the application of the laws of any jurisdictions other than
the
State of Delaware. Each party hereby irrevocably submits to the exclusive
jurisdiction of the state and federal courts sitting in Delaware, for the
adjudication of any dispute hereunder or in connection herewith or with any
transaction contemplated hereby or discussed herein, and hereby irrevocably
waives, and agrees not to assert in any suit, action or proceeding, any claim
that it is not personally subject to the jurisdiction of any such court, that
such suit, action or proceeding is brought in an inconvenient forum or that
the
venue of such suit, action or proceeding is improper. Each party hereby
irrevocably waives personal service of process and consents to process being
served in any such suit, action or proceeding by mailing a copy thereof to
such
party at the address for such notices to it under this Agreement and agrees
that
such service shall constitute good and sufficient service of process and notice
thereof. Nothing contained herein shall be deemed to limit in any way any right
to serve process in any manner permitted by law.
21
(b) Counterparts.
This
Agreement may be executed in two or more identical counterparts, all of which
shall be considered one and the same agreement and shall become effective when
counterparts have been signed by each party and delivered to each other party;
provided that a facsimile signature shall be considered due execution and shall
be binding upon the signatory thereto with the same force and effect as if
the
signature were an original, not a facsimile signature.
(c) Headings.
The
headings of this Agreement are for convenience of reference and shall not form
part of, or affect the interpretation of, this Agreement.
(d) Severability.
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 in that jurisdiction or
the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.
(e) Entire
Agreement; Amendments.
This
Agreement and the other Transaction Documents supersede all other prior oral
or
written agreements between Buyer, the Company, the Company’s Subsidiaries, and
their affiliates and Persons acting on their behalf with respect to the matters
discussed herein, and this Agreement, the other Transaction Documents and the
instruments referenced herein and therein contain the entire understanding
of
the parties with respect to the matters covered herein and therein and, except
as specifically set forth herein or therein, neither the Company, nor the
Company’s Subsidiaries, nor Buyer makes any representation, warranty, covenant
or undertaking with respect to such matters. No provision of this
Agreement may be amended other than by an instrument in writing signed by the
Company and Buyer. No provision hereof may be waived other than by an
instrument in writing signed by the party against whom enforcement is
sought. No such amendment shall be effective to the extent that it applies
to less than all of the holders of the applicable Securities then outstanding.
The Company has not, directly or indirectly, made any agreements with Buyer
relating to the terms or conditions of the transactions contemplated by the
Transaction Documents except as set forth in the Transaction Documents. Without
limiting the foregoing, the Company confirms that, except as set forth in this
Agreement, Buyer has not made any commitment or promise or has any other
obligation to provide any financing to the Company or otherwise.
(f) Notices.
Any
notices, consents, waivers or other communications required or permitted to
be
given under the terms of this Agreement must be in writing and will be deemed
to
have been delivered: (i) upon receipt, when delivered personally; (ii) upon
receipt, when sent by facsimile (provided that
confirmation
of transmission is mechanically or electronically generated and kept on file
by
the sending party); or (iii) one business day after deposit with an overnight
courier service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall
be:
If
to the
Company: Atlas
Technology Group, Inc.
0000
000xx Xxxxxx XX
Xxxxxxx,
Xxxxxxxxxx 00000
Attn:
Xxxxx X. Xxxxxxxx
Facsimile:
(000) 000-0000
22
With
a
copy (which shall not constitute notice) sent to:
Xxxxxx
& Xxxx, LLP
0000
Xxxx
Xxxxxx, Xxxxx 0000
Xxxxxx,
Xxxxx 00000
Attn:
I.
Xxxxx Xxxxxxxx, Partner
Facsimile:
(000) 000-0000
If
to
Buyer: West
Coast Opportunity Fund, LLC
0000
Xxxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxxx,
XX 00000
Attn:
Atticus Xxxx, CFA
Facsimile:
(000) 000-0000
With
a
copy (which shall not constitute notice) sent to:
XxXxxxxxx
Will & Xxxxx LLP
000
Xxxxxxx Xxxxxx
Xxx
Xxxx,
XX 00000
Attn:
Xxxxxxx Older, Esq.
Xxxx
X.
Xxxxxxxx, Esq.
Facsimile:
(000) 000-0000
or
to
such other address and/or facsimile number and/or to the attention of such
other
Person as the recipient party has specified by written notice given to each
other party five days prior to the effectiveness of such change. Written
confirmation of receipt (A) given by the recipient of such notice, consent,
waiver or other communication, (B) mechanically or electronically generated
by
the sender’s facsimile machine containing the time, date, recipient facsimile
number and an image of the first page of such transmission or (C) provided
by an
overnight courier service shall be rebuttable evidence of personal service,
receipt by facsimile or receipt from an overnight courier service in accordance
with clauses (i), (ii) or (iii) above, respectively.
(g) Successors
and Assigns.
This
Agreement shall be binding upon and inure to the benefit of the parties and
their respective successors and assigns. Neither party may assign this Agreement
without the prior written consent of the other party, provided,
however,
that
Buyer may assign some or all of its rights hereunder in connection with the
transfer of any of its Securities pursuant to the terms contemplated herein
without the consent of the Company.
(h) No
Third Party Beneficiaries.
This
Agreement is intended for the benefit of the parties hereto and their respective
permitted successors and assigns, and is not for the benefit of, nor may any
provision hereof be enforced by, any other Person.
(i) Survival.
Unless
this Agreement is terminated under Section
8,
the
representations and warranties of the Company and Buyer contained in
Sections
2 and 3
and the
agreements and covenants set forth in Sections 4,
5 and 9
shall
survive the Closing.
(j) Further
Assurances.
Each
party shall do and perform, or cause to be done and performed, all such further
acts and things, and shall execute and deliver all such other agreements,
certificates, instruments and documents, as any other party may reasonably
request in order to carry out the intent and accomplish the purposes of this
Agreement and the consummation of the transactions contemplated
hereby.
23
(k) Indemnification.
Buyer
agrees to indemnify, defend and hold harmless the Company and its officers,
directors, Subsidiaries and affiliates from and against all damages, losses,
costs and expenses (including reasonable attorneys' fees) which Company may
incur by reason of Buyer’s failure to fulfill any of the terms or conditions of
this Agreement, or by reason of any breach of the representations and warranties
made by Buyer herein. The Company hereby agrees to indemnify, defend and hold
harmless Buyer and its officers, directors, subsidiaries and affiliates from
and
against all damages, losses, costs, and expenses (including reasonable
attorneys' fees) which Buyer may incur by reason of the Company's failure to
fulfill any of the terms or conditions of this Agreement, or by reason of any
breach of the representations and warranties made by the Company
herein.
(l) No
Strict Construction.
The
language used in this Agreement will be deemed to be the language chosen by
the
parties to express their mutual intent, and no rules of strict construction
will
be applied against any party.
(m) Remedies.
Buyer
and each holder of the Securities shall have all rights and remedies set forth
in the Transaction Documents and all rights and remedies which such holders
have
been granted at any time under any other agreement or contract and all of the
rights which such holders have under any law. Any Person having any rights
under
any provision of this Agreement shall be entitled to enforce such rights
specifically (without posting a bond or other security), to recover damages
by
reason of any breach of any provision of this Agreement and to exercise all
other rights granted by law.
(n) Payment
Set Aside.
To the
extent that the Company makes a payment or payments to Buyer hereunder or
pursuant to any of the other Transaction Documents or Buyer enforces or
exercises its rights hereunder or thereunder, and such payment or payments
or
the proceeds of such enforcement or exercise or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside,
recovered from, disgorged by or are required to be refunded, repaid or otherwise
restored to the Company, a trustee, receiver or any other Person under any
law
(including, without limitation, any bankruptcy law, foreign, state or federal
law, common law or equitable cause of action), then to the extent of any such
restoration, the obligation or part thereof originally intended to be satisfied,
shall be revived and continued in full force and effect as if such payment
had
not been made or such enforcement or setoff had not occurred.
[Signature
Pages Follow]
24
IN
WITNESS WHEREOF,
Buyer,
the Company and the Subsidiaries have caused their respective signature page
to
this Note Amendment and Securities Purchase Agreement to be duly executed as
of
the date first written above.
COMPANY: | ||
ATLAS TECHNOLOGY GROUP, INC. | ||
By: | /s/ Xxxxx X. Xxxxxxxx | |
Name: Xxxxx X. Xxxxxxxx | ||
Title: Chief Executive Officer |
SUBSIDIARIES: | ||
ATLAS TECHNOLOGY GROUP HOLDINGS LIMITED | ||
By: | /s/ B.S.P. Xxxxx | |
Name: | B.S.P. Xxxxx | |
Title: | Director and Chief Financial Officer |
ATLAS TECHNOLOGY GROUP (NZ) LIMITED | ||
By: | /s/ B.S.P. Xxxxx | |
Name: | B.S.P. Xxxxx | |
Title: | Director and Chief Financial Officer |
ATLAS TECHNOLOGY GROUP LIMITED | ||
By: | /s/ B.S.P. Xxxxx | |
Name: | B.S.P. Xxxxx | |
Title: | Director and Chief Financial Officer |
ATLAS TECHNOLOGY GROUP (US), INC. | ||
By: | /s/ Xxxxx X. Xxxxxxxx | |
Name: | Xxxxx X. Xxxxxxxx | |
Title: | President |
ATLAS
TECHNOLOGY GROUP CONSULTING INC.
|
||
By:
|
/s/ Xxxxxxx X. Xxxxxx | |
Name: | Xxxxxxx X. Xxxxxx | |
Title: | President |
BLIVE NETWORKS INC. | ||
By:
|
/s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx | |
Title:
|
Director and Chief Financial Officer |
BUYER: | ||
WEST
COAST OPPORTUNITY FUND, LLC
|
||
By: |
/s/
Atticus Xxxx
|
|
Name: |
Atticus
Xxxx
|
|
Title: | Chief Investment Officer |
EXHIBIT
A
AMENDED
AND RESTATED PROMISSORY NOTE
EXHIBIT
B
[RESERVED]
EXHIBIT
C
AMENDMENT
NO. 1 TO REGISTRATION RIGHTS AGREEMENT
EXHIBIT
D
[RESERVED]
EXHIBIT
E
[RESERVED]
EXHIBIT
F
[RESERVED]
EXHIBIT
G
0000
000xx
Xxxxxx XX
Xxxxxxx,
Xxxxxxxxxx 00000
December
31, 2007
VIA
EMAIL
XXXXXX
XXXXXXXXX,
Transfer Agent
Registrar
and Transfer Company
00
Xxxxxxxx Xxxxx
Xxxxxxxx,
XX 00000
800-866-1340
ext. 2509
000-000-0000
fax
xxxxxxxxxx@xxxx.xxx
Re:
|
Issuance
of a total of 3,500,000 shares of
common stock, par value $0.0004 per share (“Common
Stock”),
of Atlas Technology Group, Inc., a Delaware corporation (the “Company”),
to West Coast Opportunity Fund, LLC, a Delaware limited liability
corporation (“West
Coast”)
|
Dear
Xxxxxx:
Please
accept this letter as my authorization to you to issue 3,500,000 shares of
Common Stock of the Company to West Coast as referenced above. You have
confirmed to me that you have received all other necessary documentation,
including opinion letter from our counsel, Xxxxxxxxxxx & Xxxxxxxx Xxxxxxx
Xxxxx Xxxxx LLP, in order to be able to complete the issuance of these
shares.
Sincerely,
|
|
/s/
Xxxxx X. Xxxxxxxx
|
|
Xxxxx
X. Xxxxxxxx,
|
|
Chief
Executive Officer
|
EXHIBIT
H
CLOSING
CERTIFICATE
Reference
is made to the Note Amendment and Securities Purchase Agreement, dated as
of
December 31, 2007 (the “Agreement”),
by
and among Atlas Technology Group, inc. (f/k/a Tribeworks, Inc.), a Delaware
corporation, (the “Company”);
all
of its subsidiaries: Atlas Technology Group Holdings Limited, a Malta company
(“ATG
Malta”),
Atlas
Technology Group (NZ) Limited, a New Zealand company (“ATG
NZ”),
Atlas
Technology Group Limited (f/k/a TakeCareofIT Limited), a Malta company
(“TakeCareofIT”),
Atlas
Technology Group (US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting Inc., a Delaware corporation (“ATG
Consulting”),
BLive
Networks Inc., a British Columbia corporation (“BLive”
and
collectively with ATG Malta, ATG NZ, TakeCarofIT, ATG US and ATG Consulting,
the
“Subsidiaries”);
and
West Coast Opportunity Fund, LLC, a Delaware limited liability company, (the
“Buyer”).
Capitalized
terms used herein that are not otherwise defined have the meanings ascribed
to
such terms in the Agreement. This
Closing Certificate is being delivered to satisfy the Closing Deliveries
set
forth in Section 6(a)(iv) of the Agreement.
In
connection with the Closing under the Agreement, the undersigned on behalf
of
the Buyer hereby certifies as follows:
1. All
representations and warranties of the Buyer contained in the Agreement are
true
and correct in all respects as of the Closing.
2. The
Buyer
has performed, satisfied and complied in all respects with the covenants,
agreements and conditions required by the Transaction Documents to be performed,
satisfied or complied with by the Buyer at or prior to the
Closing.
[Remainder
of this page intentionally left blank.]
IN
WITNESS WHEREOF, the undersigned has executed this certificate to be effective
as of December 31, 2007.
WEST
COAST OPPORTUNITY FUND, LLC
|
||
By:
|
/s/
Atticus Xxxx
|
|
Name:
|
Atticus
Xxxx
|
|
Title:
|
Chief
Investment Officer
|
EXHIBIT
I
[RESERVED]
EXHIBIT
J
[RESERVED]
EXHIBIT
K
[RESERVED]
EXHIBIT
L
[RESERVED]
EXHIBIT
M
SECRETARY’S
CERTIFICATE
OF
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC, a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation (the
“Company”),
and
all of the Company’s subsidiaries: Atlas Technology Group Holdings Limited, a
Malta company, Atlas Technology Group (NZ) Limited, a New Zealand company,
Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company, Atlas
Technology Group (US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting, Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the meanings
ascribed to such terms in the Agreement. This Secretary’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(A)(xii)
of
the Purchase Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
Secretary of the Company. I further certify to Buyer, on behalf of the Company,
that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Articles of Incorporation of the Company, and
all
amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Bylaws of the Company in effect on the date
hereof.
(c) Attached
hereto as Exhibit
C
is a
true and complete copy of the Resolutions of the Board of Directors of the
Company approving the Agreement, the related documents, all other agreements
and
documents contemplated thereby and the consummation of the transactions
contemplated thereby.
(d) Attached
hereto as Exhibit
D
is a
true and complete copy of the Certificate of Existence and Good Standing of
the
Company.
(e) The
persons listed below are duly qualified and acting officers of the Company,
have
been authorized to sign on behalf of the Company, and as of the date hereof,
hold the offices specified with the Company, and the signature set forth beside
each person’s name is the true signature of that person.
Name:
|
Title:
|
Signature:
|
Xxxxx
X. Xxxxxxxx
|
Chief
Executive Officer
|
/s/
Xxxxx X. Xxxxxxxx
|
B.S.P.
Xxxxx
|
Secretary
|
/s/
B.S.P. Xxxxx
|
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK.]
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company, as
of
the date first set forth above.
|
|
|
By: |
/s/
B.S.P. Xxxxx
|
|
Name:
|
B.S.P. Xxxxx |
|
Title: | Secretary |
EXHIBIT
A
ARTICLES
OF INCORPORATION
EXHIBIT
B
BYLAWS
EXHIBIT
C
RESOLUTIONS
EXHIBIT
D
CERTIFICATES
OF EXISTENCE AND GOOD STANDING
SECRETARY’S
CERTIFICATE
OF
ATLAS
TECHNOLOGY GROUP (US), INC.
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC, a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company, Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company, Atlas
Technology Group (US), Inc., a Delaware corporation (the “Company”),
Atlas
Technology Group Consulting, Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the meanings
ascribed to such terms in the Agreement. This Secretary’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(a)(xii)
of
the Purchase Agreement.
I,
Xxxxx
X. Xxxxxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
Secretary of the Company. I further certify to Buyer, on behalf of the Company,
that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Articles of Incorporation of the Company, and
all
amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Bylaws of the Company in effect on the date
hereof.
(c) Attached
hereto as Exhibit
C
is a
true and complete copy of the Certificate of Existence and Good Standing of
the
Company.
(d) The
persons listed below are duly qualified and acting officers of the Company,
have
been authorized to sign on behalf of the Company, and as of the date hereof,
hold the offices specified with the Company, and the signature set forth beside
each person’s name is the true signature of that person.
Name:
|
Title:
|
Signature:
|
Xxxxx
X. Xxxxxxxx
|
Chief
Executive Officer and
Secretary
|
/s/
Xxxxx X. Xxxxxxxx
|
B.S.P.
Xxxxx
|
Chief
Financial Officer
|
/s/
B.S.P. Xxxxx
|
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company, as
of
the date first set forth above.
ATLAS
TECHNOLOGY GROUP (US), INC.
|
||
|
|
|
By: | /s/ Xxxxx X. Xxxxxxxx | |
Name:
|
Xxxxx X. Xxxxxxxx |
|
Title: | Secretary |
EXHIBIT
A
ARTICLES
OF INCORPORATION
EXHIBIT
B
BYLAWS
EXHIBIT
C
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
SECRETARY’S
CERTIFICATE
OF
ATLAS
TECHNOLOGY GROUP CONSULTING, INC.
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC, a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company, Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company, Atlas
Technology Group (US), Inc., a Delaware corporation, Atlas Technology Group
Consulting, Inc., a Delaware corporation (the “Company”),
and
BLive Networks, Inc., a British Columbia corporation (collectively, the
“Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the meanings
ascribed to such terms in the Agreement. This Secretary’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(a)(xii)
of
the Purchase Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
Secretary of the Company. I further certify to Buyer, on behalf of the Company,
that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Articles of Incorporation of the Company, and
all
amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Bylaws of the Company in effect on the date
hereof.
(c) Attached
hereto as Exhibit
C
is a
true and complete copy of the Certificate of Existence and Good Standing
of the
Company.
(d) The
persons listed below are duly qualified and acting officers of the Company,
have
been authorized to sign on behalf of the Company, and as of the date hereof,
hold the offices specified with the Company, and the signature set forth
beside
each person’s name is the true signature of that person.
Name:
|
Title:
|
Signature:
|
Xxxxxxx
X. Xxxxxx
|
President
and Chief Executive Officer
|
/s/
Xxxxxxx X. Xxxxxx
|
B.S.P.
Xxxxx
|
Secretary
|
/s/
B.S.P. Xxxxx
|
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company,
as of
the date first set forth above.
ATLAS
TECHNOLOGY GROUP CONSULTING, INC.
|
||
|
|
|
By: | /s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx |
|
Title: | Secretary |
EXHIBIT
A
ARTICLES
OF INCORPORATION
EXHIBIT
B
BYLAWS
EXHIBIT
C
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
DIRECTOR’S
CERTIFICATE
OF
ATLAS
TECHNOLOGY GROUP HOLDINGS LIMITED
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC,
a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company (the “Company”),
Atlas
Technology Group (NZ) Limited, a New Zealand company, Atlas Technology
Group
Limited, f/k/a TakeCareofIT Limited, a Malta company, Atlas Technology
Group
(US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting, Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the
meanings
ascribed to such terms in the Agreement. This Secretary’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(a)(xii)
of
the Purchase Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
duly
elected and appointed Director of the Company. I further certify to Buyer,
on
behalf of the Company, that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Memorandum of Association of the Company,
and all
amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Certificate of Existence and Good Standing
of the
Company.
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company,
as of
the date first set forth above.
ATLAS
TECHNOLOGY GROUP HOLDINGS LIMITED
|
||
|
|
|
By: | /s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx |
|
Title: | Director |
EXHIBIT
A
MEMORANDUM
OF ASSOCIATION
EXHIBIT
B
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
DIRECTOR’S
CERTIFICATE
OF
ATLAS
TECHNOLOGY GROUP (NZ) LIMITED
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC,
a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company (the
“Company”),
Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company,
Atlas
Technology Group (US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting, Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the
meanings
ascribed to such terms in the Agreement. This Director’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(a)(xii)
of
the Purchase Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
duly
elected and appointed Director of the Company. I further certify to Buyer,
on
behalf of the Company, that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Certificate of Incorporation of the Company,
and
all amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Certificate of Existence and Good Standing
of the
Company.
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company,
as of
the date first set forth above.
ATLAS
TECHNOLOGY GROUP (NZ) LIMITED
|
||
|
|
|
By: | /s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx |
|
Title: | Director |
EXHIBIT
A
CERTIFICATE
OF INCORPORATION
EXHIBIT
B
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
DIRECTOR’S
CERTIFICATE
OF
ATLAS
TECHNOLOGY GROUP LIMITED
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC,
a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company, Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company (the
“Company”),
Atlas
Technology Group (US), Inc., a Delaware corporation (“ATG
US”),
Atlas
Technology Group Consulting, Inc., a Delaware corporation, and BLive Networks,
Inc., a British Columbia corporation (collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the
meanings
ascribed to such terms in the Agreement. This Certificate is being delivered
to
satisfy the conditions precedent set forth in Section 7(a)(xii) of the
Purchase
Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
duly
elected and appointed Director of the Company. I further certify to Buyer,
on
behalf of the Company, that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Memorandum of Association of the Company,
and all
amendments thereto as in effect on the date hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Certificate of Existence and Good Standing
of the
Company.
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company,
as of
the date first set forth above.
ATLAS
TECHNOLOGY GROUP LIMITED
|
||
|
|
|
By: | /s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx |
|
Title: | Director |
EXHIBIT
A
MEMORANDUM
OF ASSOCIATION
EXHIBIT
B
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
OFFICER’S
CERTIFICATE
OF
BLIVE
NETWORKS, INC.
December
31, 2007
Reference
is made to that certain Note Amendment & Securities Purchase Agreement (the
“Purchase
Agreement”),
dated
as of December 31, 2007, by and among West Coast Opportunity Fund, LLC,
a
Delaware limited liability company (the “Buyer”),
Atlas
Technology Group, Inc., f/k/a Tribeworks, Inc., a Delaware corporation
(“Atlas”),
and
all of Atlas’ subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company,
Atlas
Technology Group Limited, f/k/a TakeCareofIT Limited, a Malta company,
Atlas
Technology Group (US), Inc., a Delaware corporation, Atlas Technology
Group
Consulting, Inc., a Delaware corporation, and BLive Networks, Inc., a
British
Columbia corporation (the “Company”)
(collectively, the “Subsidiaries”).
Capitalized
terms used in this Certificate that are not otherwise defined have the
meanings
ascribed to such terms in the Agreement. This Officer’s Certificate is being
delivered to satisfy the conditions precedent set forth in Section 7(a)(xii)
of
the Purchase Agreement.
I,
B.S.P.
Xxxxx, hereby certify to Buyer, on behalf of the Company, that I am the
duly
elected and appointed Officer of the Company. I further certify to Buyer,
on
behalf of the Company, that:
(a) Attached
hereto as Exhibit
A
is a
true and complete copy of the Articles of the Company in effect on the
date
hereof.
(b) Attached
hereto as Exhibit
B
is a
true and complete copy of the Certificate of Existence and Good Standing
of the
Company.
[THE
REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT BLANK].
IN
WITNESS WHEREOF, I have hereunto signed my name on behalf of the Company,
as of
the date first set forth above.
BLIVE
NETWORKS, INC.
|
||
|
|
|
By: | /s/ B.S.P. Xxxxx | |
Name:
|
B.S.P. Xxxxx |
|
Title: | Officer |
EXHIBIT
A
ARTICLES
EXHIBIT
B
CERTIFICATE
OF EXISTENCE AND GOOD STANDING
EXHIBIT
N
CLOSING
CERTIFICATE
Reference
is made to the Note Amendment and Securities Purchase Agreement, dated as
of
December 31, 2007 (the “Agreement”),
by
and among Atlas Technology Group, inc. (f/k/a Tribeworks, Inc.), a Delaware
corporation, (the “Company”),
all
of the Company’s subsidiaries: Atlas Technology Group Holdings Limited, a Malta
company, Atlas Technology Group (NZ) Limited, a New Zealand company, Atlas
Technology Group Limited (f/k/a TakeCareofIT Limited), a Malta company, Atlas
Technology Group (US), Inc., a Delaware corporation, Atlas Technology Group
Consulting Inc., a Delaware corporation, and BLive Networks Inc., a British
Columbia corporation (collectively, the “Subsidiaries”),
and
West Coast Opportunity Fund, LLC, a Delaware limited liability company, (the
“Buyer”).
Capitalized
terms used herein that are not otherwise defined have the meanings ascribed
to
such terms in the Agreement. This
Closing Certificate is being delivered to satisfy the Closing Deliveries
set
forth in Section 7(a)(xiv) of the Agreement.
In
connection with the Closing under the Agreement, the undersigned on behalf
of
the Buyer hereby certifies as follows:
1. All
representations and warranties of the Company and its Subsidiaries contained
in
the Agreement are true and correct in all respects as of the Closing
Date.
2. The
Company has performed, satisfied and complied in all respects with the
covenants, agreements and conditions required by the Transaction Documents
to be
performed, satisfied or complied with by the Buyer at or prior to the
Closing.
3. The
Buyer
has received certificates, executed by the Chief Executive Officer (or duly
authorized officer or director for foreign Subsidiaries) of the Company and
its
Subsidiaries, dated as of the Closing Date, certifying those matters required
to
be certified under the Agreement and such other matters as reasonably requested
by the Buyer.
[Remainder
of this page intentionally left blank.]
IN
WITNESS WHEREOF, the undersigned has executed this certificate to be effective
as of December 31, 2007.
ATLAS
TECHNOLOGY GROUP, INC.
|
|||
By:
|
/s/
Xxxxx X. Xxxxxxxx
|
||
Name:
|
Xxxxx
X. Xxxxxxxx
|
||
Title:
|
Chief
Executive Officer
|
EXHIBIT
O
[RESERVED]
EXHIBIT
P
[RESERVED]
EXHIBIT
Q
[RESERVED]