COMMON STOCK PURCHASE AGREEMENT
COMMON
STOCK PURCHASE AGREEMENT
This
Common Stock Purchase Agreement (the "Agreement") is dated as of March 11,
200 by and among OTR Media, Inc., a corporation organized under the laws of the
State of Nevada (the "Company") and Limelight Media Group, Inc. (the
"Purchaser").
WHEREAS,
the parties desire that, upon the terms and subject to the conditions contained
herein, the Company shall issue and sell to the Purchaser and the Purchaser
shall purchase ten million two hundred thousand (10,200,000) shares of the
Company's common stock (the "Common Stock"); and
WHEREAS,
such purchase and sale will be made in reliance upon the provisions of Section
4(2) and Rule 506 of Regulation D ("Regulation D") of the United States
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder (the "Securities Act"), or upon such other exemption from the
registration requirements of the Securities Act as may be available with respect
to any or all of the purchases of Common Stock to be made
hereunder.
NOW,
THEREFORE, in consideration of the mutual promises and covenants contained
herein, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto hereby agree as follows:
ARTICLE
I
Purchase
and Sale of Stock
Section
1.1
Purchase
and Sale of Common Shares. Upon
the following terms and subject to the conditions contained herein, the Company
shall, on the date hereof, issue and sell to the Purchaser, and the Purchaser
shall purchase from the Company, an aggregate of ten million two hundred
thousand shares of Common Stock (the "Common Shares"). As
consideration, the Purchaser shall assume financial and operational
responsibility of the Company and perform certain terms and conditions as
detailed in an agreement between the Purchaser and the Company dated March 11,
2005.
Section
1.2
Closing. The
closing of the purchase and sale of the Common Shares (the "Closing") to be
acquired by the Purchaser from the
Company shall take place at the offices of Seller on the date
hereof (the "Closing Date").
ARTICLE
II
Representations
and Warranties
Section
2.1
Representations
and Warranties of the Company. In
order to induce the Purchaser to enter into this Agreement and to purchase the
Common Shares, the Company hereby makes the following representations and
warranties to the Purchaser:
1
(a) Organization,
Good Standing and Power. The
Company is a corporation duly incorporated, validly existing and in good
standing under the laws of the jurisdiction of its incorporation or
organization and has
the requisite corporate power to own, lease and operate its properties and
assets and to
conduct
its business as it is now being conducted and to enter into this Agreement and
to perform its obligations hereunder.
(b) Authorization;
Enforcement. The
Company has the requisite corporate power and authority to enter into and
perform this Agreement and to
issue and sell the Common Shares in accordance with the terms hereof. The
execution, delivery and performance of this Agreement by the Company and the
consummation by it of the transactions contemplated hereby have been duly and
validly authorized by all necessary corporate action, and no further consent or
authorization of the Company or its Board of Directors or stockholders is
required. This Agreement has been duly executed and delivered by the Company.
This Agreement constitutes a valid and binding obligation of the Company
enforceable against the Company in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, receivership or
similar laws relating to, or affecting generally the enforcement of, creditor’s
rights and remedies or by other equitable principles of general
application.
(c) Issuance
of Shares. The
Common Shares to be issued at the Closing have been duly authorized by all
necessary corporate action and, when paid for or issued in accordance with the
terms hereof, the Common Shares shall be validly issued and outstanding, fully
paid and nonassessable.
(d) No
Conflicts. The
execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated herein and therein
do not and will not (i) violate any provision of the Company’s Certificate of
Incorporation ("Articles") or Bylaws, (ii) conflict with, or constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination, amendment,
acceleration or cancellation of, any agreement, mortgage, deed of trust,
indenture, note, bond, license, lease agreement, instrument or obligation to
which the Company is a party or by which any of its properties or assets are
bound, (iii) create or impose a lien, mortgage, security interest, charge or
encumbrance of any nature whatsoever on any property of the Company under any
agreement or any commitment to which the Company is a party or by which the
Company is bound or by which any of its properties or assets are bound, or (iv)
result in a violation of any rule, regulation, order, judgment or decree
applicable to the Company or by which any property or asset of the Company is
bound or affected, except, in all cases other than violations pursuant to clause
(i) above, for such conflicts, defaults, terminations, amendments, acceleration,
cancellations and violations as would not, individually or in the aggregate,
have a Material Adverse Effect.
"Material Adverse Effect" shall mean any effect on the business, operations,
properties, prospects, or financial condition of the Company that is material
and adverse to the Company and its subsidiaries and affiliates, taken as a
whole.
(f) Certain
Fees. The
Company has not employed any broker or finder or incurred any liability for any
brokerage or investment banking fees, commissions, finders' or structuring fees,
financial advisory fees or other similar fees in connection with this
Agreement.
2
Section
2.2
Representations
and Warranties of the Purchaser. The
Purchaser hereby makes the following representations and warranties to the
Company:
(a) Organization
and Standing of the Purchaser.
The
Purchaser is a corporation purchasing these shares to expand its business
operations.
(b) Authorization
and Power. The
Purchaser has the requisite power and authority to enter into and perform this
Agreement and to purchase the Common Shares being sold to it hereunder. The
execution, delivery and performance of this Agreement by the Purchaser and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate action and no further consent or
authorization of the Purchaser or its Board of Directors, stockholders,
members, managers or partners, as the case may be, is required. This Agreement
has been duly executed and delivered by the Purchaser on the Closing Date. This
Agreement constitutes a valid and binding obligation of the Purchaser
enforceable against the Purchaser in accordance with its terms, except as such
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation, conservatorship, or similar laws
relating to, or affecting generally the enforcement of, creditors' rights or
remedies or by other equitable principles of general application.
(c) No
Conflicts. The
execution, delivery and performance of this Agreement and the
consummation by the Purchaser of the transactions contemplated herein do not and
will not (i) result in a violation of the
Purchaser’s charter documents, bylaws, partnership agreement, operating
agreement or other organizational documents, or (ii) conflict with, constitute a
default (or an event which with notice or lapse of time or both would become a
default) under, or give to others any rights of termination,
amendment, acceleration or cancellation of any agreement, indenture or
instrument to which the Purchaser is a party of by which the Purchaser is bound,
or result in a violation of any law, rule, or regulation, or any order, judgment
or decree of any court or governmental agency applicable to the Purchaser or its
properties (except for such conflicts, defaults and violations as would not,
individually or in the aggregate, have a material adverse effect on the
Purchaser).
(d) Acquisition
for Investment. The
Purchaser is purchasing the Common Shares solely for its own account for the
purpose of investment and not with a view to or for sale in connection with
distribution. The Purchaser does not have a present intention to sell the Common
Shares, nor a present arrangement (whether or not legally
binding) or intention to effect any distribution of the Common Shares to or
through any person or entity; provided,
however, that
(a) by making the representations herein and subject to Section 2.2(f) below,
the Purchaser does not agree to hold the Common Shares for any minimum or other
specific term and reserves the right to dispose of the Common Shares at any time
in accordance with federal securities laws applicable to such disposition. The
Purchaser acknowledges that it is able to bear the financial risks associated
with an investment in the Common Shares and that it has been given full access
to such records of the Company and to the officers of the Company as it has
deemed necessary or appropriate to conduct its due diligence
investigation.
(e) Accredited
Purchasers. The
Purchaser is an "accredited investor" as defined in Regulation D promulgated
under the Securities Act and is a resident of Tennessee.
The Purchaser has such knowledge and experience in financial and business
matters that the Purchaser is capable of evaluating the merits and risks of the
Purchaser's investment in the Company.
3
(f) No
Public Market. The
Purchaser understands that the Common Shares are shares in a private company and
is not traded in a publicly traded exchange. Therefore, the shares may be held
indefinitely until as such time that a public market may be made available for
the shares.
(g) No
Broker-Dealer Affiliation. The
Purchasers is not a broker-dealer registered with the Commission or an affiliate
(as such term is defined in Rule 144(a) promulgated under the Securities Act) of
a broker-dealer registered with the Commission.
(h) General. The
Purchaser understands that the Common Shares are being offered and sold in
reliance on a transactional exemption from the registration requirement of
federal
and state securities laws and the Company is relying upon the truth and accuracy
of the representations, warranties, agreements, acknowledgments and
understandings of the Purchaser set forth herein in order to determine the
applicability of such exemptions and the suitability of such Purchaser to
acquire the Common Shares. The Purchaser understands that no United States
federal or state agency or any government or governmental agency has passed upon
or made any recommendation or endorsement of the Common Shares.
(i) No
General Solicitation. The
Purchaser acknowledges that the Common Shares were not offered to the Purchaser
by means of any form of general or public solicitation or general advertising,
or publicly disseminated advertisements or sales literature, including (i) any
advertisement, article, notice or other communication published in any
newspaper, magazine, or similar media, or broadcast over television or radio, or
(ii) any seminar or meeting to which the Purchaser was invited by any of the
foregoing means of communications.
(j) No
Commissions or Similar Fees. In
connection with the purchase of the Common Shares by the Purchaser, the
Purchaser has not and will not pay, and has no knowledge of the payment of, any
commission or other direct or indirect remuneration to any person or entity for
soliciting or otherwise coordinating the purchase of such securities, except to
such persons or entities as are duly licensed and/or registered to engage in
securities offering and selling activities (or are exempt from such licensing
and/or registration requirements) under applicable federal laws and the laws of
the state(s) in which such activities have taken place in connection with the
transaction contemplated by this Agreement.
4
ARTICLE
III
Registration
Rights
Section
3.1
Registration
Rights. There are
no piggy back registration rights to this purchase agreement.
ARTICLE
IV
Stock
Certificate Legend
Section
4.1
Legend. Each
certificate representing the Common Shares, as applicable and appropriate, shall
be stamped or otherwise imprinted with a legend in substantially the following
form (in addition to any legend required by applicable federal, provincial or
state securities or "blue sky" laws):
THE
SECURITIES REPRESENTED BY THIS CERTIFICATE (THE "SECURITIES") HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT")
OR STATE SECURITIES LAWS AND MAY NOT BE SOLD, TRANSFERRED, ASSIGNED, PLEDGED OR
HYPOTHECATED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT
AND UNDER APPLICABLE STATE SECURITIES LAWS OR OTR MEDIA, INC. (THE "COMPANY")
SHALL HAVE RECEIVED AN OPINION IN FORM, SCOPE AND SUBSTANCE REASONABLY
ACCEPTABLE TO THE COMPANY, OF COUNSEL, WHO IS REASONABLY ACCEPTABLE TO THE
COMPANY, THAT REGISTRATION OF SUCH SECURITIES UNDER THE SECURITIES ACT AND UNDER
THE PROVISIONS OF APPLICABLE FEDERAL AND STATE SECURITIES LAWS IS NOT
REQUIRED.
ARTICLE
V
Termination
This
Agreement may be not be
terminated with the exception of provisions in Paragraph 2 “Transition Period”
in Attached Agreement (“Exhibit “A”).
ARTICLE
VI
Miscellaneous
Section
6.1
Fees
and Expenses. The
Company shall not pay the fees and expenses of Purchaser for its advisors,
counsel, accountants and other experts, if any, and all other expenses, incurred
by such party incident to the negotiation, preparation, execution, delivery and
performance of this Agreement.
5
Section
6.2
Consent
to Jurisdiction. Each of
the Company and the Purchaser (i) hereby irrevocably submits to the jurisdiction
of the United States District Court sitting in the District of West Tennessee
and the courts of the State of Tennessee located in Shelby county for the
purposes of any suit, action or proceeding arising out of or relating to this
Agreement or the transactions contemplated hereunder or thereunder and (ii)
hereby waives, and agrees not to assert in any such suit, action or proceeding,
any claim that it is not personally subject to the jurisdiction of such court,
that the suit, action or proceeding is brought in an inconvenient forum or that
the venue of the suit,
action or proceeding is improper. Each of the Company and the Purchaser consents
to process being served in any such suit, action or proceeding by mailing a copy
thereof to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing in this Section 6.2 shall affect
or limit any right to serve process in any other manner permitted by
law.
Section
6.3
Entire
Agreement; Amendment. This
Agreement contains the entire understanding and agreement of the parties with
respect to the matters covered hereby and, except as specifically set forth
herein, neither the Company nor the Purchaser makes any representation,
warranty, covenant or undertaking with respect to such
matters, and they supersede all prior understandings and agreements with respect
to said subject matter, all of which are merged herein. No provision of this
Agreement may be waived or
amended, except by a written instrument signed by the Company and the
Purchaser.
Section
6.4
Notices. Any
notice, demand, request, waiver or other communication required or permitted to
be given hereunder shall be in writing and shall be effective (a) upon hand
delivery by telex (with correct answer back received), telecopy or facsimile at
the address or number
designated below (if delivered on a business day during normal business hours
where such notice is to be received), or the first business day following such
delivery (if delivered other than on a business day during normal business hours
where such notice is to be received) or (b) on the
second business day following the date of mailing by express courier service,
fully prepaid,
addressed to such address, or upon actual receipt of such mailing, whichever
shall first occur. The addresses for such communications shall be:
If
to the Purchaser: |
|
Limelight
Media Group, Inc |
|
0000
Xxxxxxxxxx Xxxxxxx, Xxxxx 000 |
|
Xxxxxxx,
XX 00000 |
Telephone: |
000-000-0000 |
Facsimile: |
000-000-0000 |
If
to the Company: |
|
OTR
Media, Inc. |
|
0000
Xxxxxxx Xxxxx |
|
Xxxxxxx
Xxxxx, XX 00000 |
|
Telephone
: 000-000-0000 |
|
Fax:
000-000-0000 |
6
Any party
hereto may from time to time change its address for notices by giving at least
ten (10) days written notice of such changed address to the other party
hereto.
Section
6.5
Waivers. No
waiver by either party of any default with respect to any provision, condition
or requirement of this Agreement shall be deemed to be a continuing waiver
in the
future or a waiver of any other provisions, condition or requirement hereof, nor
shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.
Section
6.6
Headings. The
article, section and subsection headings in this Agreement are for convenience
only and shall not constitute a part of this Agreement for any other purpose and
shall not be deemed to limit or affect any of the provisions
hereof.
Section
6.7
Successors
and Assigns. This
Agreement shall be binding upon and inure to the benefit of the parties and
their successors and assigns. No rights or obligations hereunder may be assigned
by either party hereto, except that the rights and obligations of the Company
may be assigned.
Section
6.8
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.
Section
6.9
Governing
Law. This
Agreement shall be governed by and construed in accordance with the internal
laws of the State of Tennessee, without giving effect to the choice of law
provisions. This
Agreement shall not be interpreted or construed with any presumption against the
party causing this Agreement to be drafted.
Section
6.10
Survival. The
representations, warranties, agreements and covenants set forth in this
Agreement shall survive the execution and delivery hereof and the Closing
hereunder indefinitely.
Section
6.11
Counterparts. This
Agreement may be executed in any number of counterparts, all of which taken
together shall constitute one and the same instrument and shall become effective
when counterparts have been signed by each party and delivered to the other
parties hereto, it being understood that all parties need not sign the same
counterpart.
Facsimile execution shall be deemed originals.
Section
6.12
Severability. The
provisions of this Agreement are severable and, in the event that any court of
competent jurisdiction shall determine
that any one or more of the provisions or part of the provisions contained in
this Agreement shall, for any reason, be held to be invalid, illegal or
unenforceable in any respect, such invalidity, illegality or unenforceability
shall not affect any other provision or part of a provision of this Agreement,
and this Agreement shall be reformed and construed as if such invalid or illegal
or unenforceable provision,
or part of such provision, had never been contained herein, so that such
provisions would be valid, legal and enforceable to the maximum extent
possible.
7
Section
6.13
Further
Assurances. From
and after the date of this Agreement, upon the request of the Purchaser or the
Company, each of the Company and the Purchaser shall execute and deliver such
instruments, documents and other writings as may be reasonably necessary or
desirable to confirm and carry out and to effectuate fully the intent and
purposes of this Agreement.
IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed by
their respective authorized officer as of the date first above
written.
OTR Media, Inc. | ||
|
|
|
By: | /s/ Xxx Xxxxxxxxx | |
Name: Xxx Xxxxxxxxx | ||
Title: President |
Limelight
Media Group, Inc. | ||
|
|
|
By: | /s/ Xxxxx X. Xxxx | |
Name: Xxxxx X. Xxxx | ||
Title: President/ CEO |
8
Exhibit
“A”
STRICTLY
PRIVATE AND CONFIDENTIAL
The
Shareholders and Directors
Xxx
Xxxxxxxxx, President
OTR
Media, Inc.
0000
Xxxxxxx Xxxxx
Xxxxxxx
Xxxxx, XX 00000
Gentlemen,
The
LIMELIGHT GROUP, trading under the symbol OTCBB:LMMG, directly (“LIMELIGHT
GROUP”) hereby extends this final agreement to acquire the majority interest in
the business of OTR Media, Inc. and all of its subsidiaries (“OTR”).on the terms
and subject to the conditions hereinafter set forth (the “Acquisition”). With
the execution of this agreement the acquisition will deemed to be completed and
the respective companies will set in motion the transfer of the business assets
and operations to LIMELIGHT GROUP as provided herein.
Acquisition
of Business
The
LIMELIGHT GROUP agrees to acquire a majority interest of OTR as the initial
phase of its business strategy to acquire and partner with other similar
businesses and to grow to significant size within the next couple of years. The
business will focus on the digital delivery of video content with a focus on
content and network management in multiple industries, and add vertical markets
in other out-of-home media markets. However, the acquisition of OTR is following
a corporate philosophy to diversify within the media industry. The company’s
strategy will be executed within the public company of Limelight and will use
the public company stock as part of its currency for growth. LIMELIGHT GROUP has
been created specifically to achieve the objectives of building the group to a
sufficient size which is capable of becoming a NASDAQ SC or AMEX company within
as few months as possible. The plan is intended to provide attractive liquidity
and growth prospects for shareholders, management, and employees, and to do so
fairly and consistently so that all participants in the plan realize these
benefits in a consistent manner.
9
A. |
DealStructure |
Item
1. OTR represents that it is a corporation duly formed in the State of
Nevada, with an authorization limit of 10 million shares of common stock and 1
million shares of Preferred Stock (which may be converted into commons stock at
the ratio of 1:1 according to the terms of an OTR Private Placement Memorandum
dated Feb 12, 2003).
Item
2. OTR represents that it has issued as of the date of this agreement
8,089,870 shares of common stock, 747,363 shares of Preferred Stock and 528,500
options to purchase common stock.
Item
3. OTR represents that All American Investors Group, a\k\a Xxx Xxxxxxxxx,
owns 3,000,000 shares of the OTR common stock and P and C United, LLC owns
3,000,000 shares.
Item
4. OTR represents that it owes approximately $143,032.96 in various notes
bearing interest, payables and secured debts.
Item
5. OTR represents that it has a minimum of three carrier lines under
contract for display of truck side advertising and that a number of carriers are
available for contract.
Item
6. OTR represents it has developed a program called “Rigs for Kids” and
this owns the exclusive rights to the trademark and program.
Item
7. OTR represents that it has developed a proprietary GPS tracking system
with supporting software that is owned exclusively by OTR and that intellectual
property rights have been established for this product and software. A division
entitled “OberonGPS” has been created to market the products.
Item
8. OTR owns the trademarks and domain names for OTR Media, OberonGPS and
Rigs for Kids.
B.
|
Terms |
LIMELIGHT
GROUP shall acquire a majority interest in OTR Media under the following
terms:
10
1. |
OTR
Media shall make application to the State of Nevada to increase the common
share authorization to 20 million shares of common stock at $.001 par
value. At the execution of this agreement this has been completed.
|
2. |
After
the execution of this agreement, All American Investors shall return 2.5
million shares to the treasury of OTR Media. P and C United, LLC shall
return 2.5 million shares to the treasury of OTR Media.
|
3. |
With
the execution of this agreement, the Board of Directors of OTR has
accepted the appointment of Xxxxx X. Xxxx as Director and President of OTR
Media and all of its subsidiaries. |
4. |
With
the execution of this agreement, the Board of Directors has approved the
issuance of ten million two hundred thousand shares of common stock par
value $.001 (10,200,000) to LIMELIGHT
GROUP. |
5. |
With
the execution of this agreement the Board of Directors has accepted the
resignation of Xxx Xxxxxxxxx as the sole Director and Officer of
OTR |
6. |
Upon
receipt of the stock ledger and shareholder list, Xxxxx X. Xxxx will
redistribute shares above to existing shareholders as
follows: |
a. |
Each
common shareholder shall receive 1.5 shares of common stock of OTR Media
(par value $.001) in exchange for each 1.0 shares of common stock (no par
value) in OTR Media. |
b. |
Each
preferred shareholder shall receive 4.5 shares of common stock of OTR
Media (par value $.001) in exchange for each 1.0 shares of preferred stock
($3.00 par value) of OTR Media. |
c. |
After
this redistribution common shareholders with a cost basis of $1.00 shall
have a new cost basis of $0.66 per share and preferred shareholders with
an original cost basis of $3.00 shall have a new cost basis of
$0.66. |
7. |
Option
holders in OTR Media own the rights to purchase up to 558,500 shares of
common stock in OTR Media. Each option holder shall be given a one-time
offer to exercise their options prior to April 1, 2005. If the option
holder exercises their option rights prior to April 1, 2005 and OTR Media
has received full payment in good funds for the shares prior to April 1,
2005, then the option holder will be allowed the conversion rights to the
common stock holders as defined in 6(a) above. Therefore, any option
shares purchased prior to April 1, 2005 will receive 1.5 shares of common
stock at par value $.001 in exchange for the option share which is a
common stock no par value. Options exercised after April 1, 2005 will
entitle the option holder to only the shares purchased in OTR Media on a
1:1 conversion ratio. |
8. |
OTR
shall assign to LIMELIGHT GROUP, Inc. the shareholder list, all contracts,
all trademarks, all tangible and intangible assets, all title and rights
and all other items that OTR Media has developed, originated, contracted
or established that would be construed as the business of OTR Media no
later than April 1, 2005. |
9. |
OTR
shall cause the removal of Xxx Xxxxxxxxx from all bank accounts, notes,
credit cards and contracts. The outstanding American Express Credit Card
with an outstanding balance of $234.50 shall be paid in full at the
execution of this agreement and the account closed. The outstanding Xxxxx
Fargo Credit Card with an outstanding balance of $427.68 shall be paid in
full at the execution of this contract and the account closed. Neither
Limelight Media Group, Inc, Xxx Xxxxxxxxx nor OTR Media shall have any
further responsibility toward payment on the above mentioned credit cards
after paying these sums in full. US Bank, not bearing Xxx Xxxxxxxxx’x
guaranty, shall remain in force. The single Ford Credit note, bearing Xxx
Xxxxxxxxx’x guaranty as co-signer, shall be kept in force by OTR Media
until the truck bearing the note is sold. |
11
10. |
OTR
Media shall contact the three separate noteholders with the company which
are Xx. Xxxxxx, Xx. Xxxxxxxx and Xx. Xxxxxxx and arrange the replacement
of Xx. Xxx Xxxxxxxxx as the guarantor of the notes. Limelight Media Group,
Inc as the parent company to OTR Media shall assume the guarantor position
on these three notes. This shall be accomplished prior to April 1, 2005.
This provision is subject to the approval of the noteholders.
|
11. |
OTR
Media, Inc. and Limelight Media Group, Inc shall provide an indemnity to
Xxx Xxxxxxxxx from any liability under the accounts listed above that have
been fully disclosed prior to this closing with the exception of any
pending lawsuit that addresses Xxx Xxxxxxxxx or other parties directly.
This exception specifically applies to any shareholder action due to
initial fund raising. |
12. |
OTR
shall transfer the financials and accounting books and support
documentation to Limelight Media to cause an audit of the financial books
of XXX. |
00. |
Upon
completion of the audit, Xxx Xxxxxxxxx, President of Allied Energy Group,
shall convert an outstanding indebtedness as confirmed by the audit owed
to Allied Energy Group as represented by a promissory note for monies
advanced to OTR at the rate of one share of common stock per $1.00 of
indebtedness or other consideration as may mutually be agreed up between
the parties. Allied Energy Group will be entitled to the share
distribution to current shareholders as defined in Par 6 above. The
conversion notice shall be completed no later than 90 days after the audit
is completed. |
14. |
OTR
shall transfer physical possession of all intellectual and tangible
property to the possession of LIMELIGHT
GROUP. |
15. |
OTR
Media shall hire Xxxxxxx Xxxxxx as President of OTR to begin service no
later than April 1, 2005. |
16. |
LIMELIGHT
GROUP assumes full responsibility for the necessary financing of OTR
operations and business development including all existing debt.
|
17. |
At
LIMELIGHT GROUP’s sole discretion, LIMELIGHT GROUP shall extend an offer
to the private shareholders of OTR to convert their private shares into
LIMELIGHT GROUP stock at a ratio to be determined at the time of the
conversion notice so as to maintain the cost basis of original investment
of each private shareholder of OTR. This provision is contingent upon
compliance with all SEC, Federal, State and Local Securities Laws
regarding the conversion of OTR shares to LIMELIGHT GROUP shares.
|
18. |
LIMELIGHT
GROUP, at its sole discretion, shall retain the right to separate the
OberonGPS into a separate subsidiary which will be owned in the same
proportion as OTR. In this case, each shareholder of OTR as of April 15,
2005 shall receive a like amount of shares in OberonGPS, with the
exception of shares issued to Allied Energy Group pursuant to Paragraph 13
above which shall be entitled to these shares upon completion of the
audit. |
C.
|
Non-Compete
Agreements. |
With the
execution of the Agreement, the Shareholders holding 5.1% or more of equity in
OTR (common or preferred stock) shall have deemed to have executed a non-compete
agreements, providing, among others things, that the Shareholders may not,
without the prior written consent of OTR or LIMELIGHT GROUP, signed by the
relevant CEO, directly or indirectly
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1. engage
in, become associated with, or be employed in a competitive business anywhere in
the USA for a period of three years following the Closing Date, except for any
employment with OTR or LIMELIGHT GROUP; or
2.
Otherwise interfere with OTR or LIMELIGHT GROUP’s (or their affiliates’)
business.
D.
|
Management
Conduct. |
By
executing and delivering this agreement as provided above, Management and
Shareholders owning 5.1% or more of equity in OTR agree as follows to the
following conduct provision.
1. Not to
supply any non-public information concerning OTR’s business, properties or
assets to anyone who may be contemplating being involved in the business of OTR
or LIMELIGHT GROUP, or disclose to anyone (other than representatives and legal
or accounting advisers on a “need-to-know” basis) the existence or terms of this
letter. .
2. Will
cause OTR to conduct its business only in the ordinary course, and will not
enter into, or cause or permit OTR to enter into any compensation arrangements
with any key employees, directors or officers of OTR except in the ordinary
course of business, or unless approved in writing by LIMELIGHT
GROUP.
3. Will
not, and will not cause or permit OTR to, take any action that could reasonably
be expected to adversely affect the Business or financial condition or prospects
of XXX.
00
0.
|
Transition
Period |
OTR and
LIMELIGHT GROUP agree to a transition period that begins with the execution of
this agreement and concludes no later than April 15, 2005. Any delay by either
party to complete the transition of management and operational control may be
damaging to the business of OTR Media and neither party shall interfere with the
transition. If after the transition period, Xxx Xxxxxxxxx determines that any of
the above representations of LIMELIGHT GROUP are not completed then Xxx
Xxxxxxxxx shall provide LIMELIGHT GROUP a written notice of default. Upon the
written notice of default, Xxx Xxxxxxxxx shall be vested the voting rights over
OTR Media stock owned LIMELIGHT GROUP. This voting right does not permit Xxx
Xxxxxxxxx to alter the re-capitalization of OTR or alter the ownership interests
of LIMELIGHT GROUP. If the default is not corrected with 14 days of receipt of
the notice of default then LIMELIGHT GROUP agrees to return all shares to Xxx
Xxxxxxxxx and rescind this agreement with no liability by either party toward
the other party. Upon cure of the default and written notice to OTR of the cure,
the voting interest of the LIMELIGHT GROUP shares shall return to LIMELIGHT
GROUP.
3.
|
Full
Access |
Xxx
Xxxxxxxxx will cause OTR to furnish, and LIMELIGHT GROUP and its representatives
shall have full and unrestricted access upon reasonable notice to, all assets,
properties, operations, books, records, contracts and documents (including
financial, tax basis, budget, projections, auditors’ work papers, and other
information as LIMELIGHT GROUP may request) pertaining to OTR, and to OTR’s
personnel, customers, suppliers and independent auditors, and LIMELIGHT GROUP
shall be entitled to obtain full possession of all such materials. This shall be
all accomplished prior to May 15, 2005.
4.
|
Transaction
Expenses |
Each
party shall bear its expenses and costs relating to the execution of this letter
and the consummation of the transactions contemplated by this letter, including
the fees of any legal advisors retained by it.
5.
|
Brokerage.
|
Each
party shall represent and warrant to the other party that there are no
obligations or liabilities for brokerage or finders fees or agents’ commissions
or like payment in connection with the transactions contemplated by this letter.
If these fees or obligation arise they are strictly the responsibility of the
contracting party.
6. |
Counterparts.
|
This
letter may be executed in multiple counterparts, any one of which need not
contain the signature of more than one party, but all of which counterparts,
taken together, shall constitute one and the same agreement. Signatures may be
exchanged by telecopy, with original signatures to follow. Each party hereto
agrees to be bound by his or its own telecopied signature and that he or it
accepts the telecopied signature of the other hereto.
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7.
|
No
Strict Construction. |
The
language used in this letter shall be deemed to be the language chosen by the
parties to express their mutual intent, and no rule of strict construction shall
be applied against any person.
8. |
Preparation
of Documents. |
OTR and
LIMELIGHT GROUP hereto agree to use their good faith best efforts to
expeditiously prepare on or before April 15, 2005 all documentation necessary to
consummate the transfer of management and operations of OTR and other related
transactions contemplated by this letter, containing customary indemnities,
representations and warranties as soon as is reasonably practicable.
9. |
Public
Announcements. |
Except as
required by law or by regulation of the US Securities and Exchange Commission,
neither party will disclose the existence of terms of the transactions
contemplated hereby without the prior written consent of the other
party.
10 |
Binding
Effect. |
This
agreement shall be binding upon, and shall ensure for the benefit of, the
parties hereto, and their respective successors and assigns according to the
terms of this agreement.
11. |
Entire
Agreement. |
This
letter agreement, combined with the confidentiality agreement signed,
constitutes the entire agreement among the parties hereto as to the subject
matter hereto, and supersedes all prior negotiations, understanding and
agreements related to the subject matter hereof.
15
If you
are in agreement with the terms of this letter, please sign in the space
provided below and return a signed copy to the undersigned prior to the close of
business on
Mar 10,
2005 via fax and original copy by overnight delivery.
Very
truly yours
/s/ Xxxxx
X. Xxxx
Xxxxx X.
Xxxx
President,
CEO
Limelight
Media Group, Inc
0000
Xxxxxxxxxx Xxxxxxx, Xxxxx 000
Xxxxxxx,
XX 00000
000-000-0000
fax
000-000-0000
(signature
page to follow)
16
Accepted
and agreed to
This
March _11__, 2005
For LIMELIGHT GROUP | ||
|
|
|
By: | /s/ Xxxxx X. Xxxx | |
Xxxxx X. Xxxx | ||
Title: President |
For OTR Media, Inc. | ||
|
|
|
By: | /s/ Xxx Xxxxxxxxx | |
Xxx Xxxxxxxxx | ||
Title: Chairman |
17