SECURITIES PURCHASE AGREEMENT Among (“Buyer”), MDI, INC. (“Seller”), Dated as of August __, 2009
Among
214
INVESTMENTS, INC., and
(“Buyer”),
(“Seller”),
Dated as
of August __, 2009
TABLE OF
CONTENTS
Page
|
ARTICLE
I. PURCHASE AND SALE OF THE SECURITIES[INSERT
PAGE NUMBER]
|
|
1.1.
|
Purchase
and Sale of the Securities
|
|
1.2.
|
Consideration.
|
|
ARTICLE
II. CLOSING[INSERT PAGE
NUMBER]
|
|
2.1.
|
Closing.
|
|
2.2.
|
Deliveries
at Closing
|
|
ARTICLE
III. REPRESENTATIONS AND WARRANTIES OF SELLER[INSERT PAGE
NUMBER]
|
|
3.1.
|
Organization,
Good Standing and Qualification
|
|
3.2.
|
Authorization
|
|
3.3.
|
Capitalization
of Monitor and Structure
|
|
3.4.
|
Title
to Assets
|
|
ARTICLE
IV. REPRESENTATIONS AND WARRANTIES OF BUYER[INSERT PAGE
NUMBER]
|
|
4.1.
|
Organization,
Good Standing and Qualification
|
|
4.2.
|
Authorization
|
|
ARTICLE
V. COVENANTS[INSERT PAGE
NUMBER]
|
|
5.1.
|
Tax
Matters
|
|
5.2.
|
Inter-company
Accounts
|
|
ARTICLE
VI. CONDITIONS TO CLOSING[INSERT PAGE
NUMBER]
|
|
6.1.
|
Conditions
to Obligations of Seller
|
|
6.2.
|
Conditions
to Obligations of Buyer
|
|
ARTICLE
VII. TERMINATION[INSERT PAGE
NUMBER]
|
|
7.1.
|
Termination.
|
|
7.2.
|
In
the Event of Termination.
|
|
ARTICLE
VIII. MISCELLANEOUS[INSERT PAGE
NUMBER]
|
|
8.1.
|
Defined
Terms
|
|
8.2.
|
Notices.
|
|
8.3.
|
Non
Survival of Representations and Warranties
|
|
8.4.
|
Rules
of Construction
|
|
8.5.
|
Titles
|
|
8.6.
|
Entire
Agreement
|
|
8.7.
|
Assignment
|
|
8.8.
|
Amendment
or Modification
|
|
8.9.
|
Waiver
|
|
8.10.
|
Severability
|
|
8.11.
|
Burden
and Benefit
|
|
8.12.
|
Governing
Law
|
|
8.13.
|
Consent
to Jurisdiction
|
|
8.14.
|
Waiver
of Trial by Jury
|
|
8.15.
|
Legal
Fees
|
|
8.16.
|
Specific
Performance
|
|
8.17.
|
Cumulative
Remedies
|
|
8.18.
|
Expenses
|
|
8.19.
|
Representation
by Counsel
|
|
8.20.
|
Execution
and Counterparts
|
Exhibit
A Convertible
Promissory Note
AUS:617676.6
LA\1784513.11
This
Securities Purchase Agreement (the “Agreement”)
is made as of the ____ day of August, 2009 by and among 214 Investments, Inc., a
Delaware corporation (the “Buyer”),
and MDI, Inc., a Delaware corporation, (“Seller”).
RECITALS
A. Seller
owns all of the issued and outstanding shares of capital stock of Monitor
Dynamics, Inc., a Texas corporation and a wholly owned subsidiary of the Seller
(“Monitor”),
and all of issued and outstanding membership interests of Structure REDS, LLC, a
Texas limited liability company and a wholly owned subsidiary of the Seller
(“Structure”
and collectively with Monitor, the “Subs”).
B. Buyer
desires to purchase from Seller, and Seller desires to sell to Buyer all of the
shares of Monitor and all of the membership interests of Structure
(collectively, the “Securities”),
all upon the terms and subject to the conditions hereinafter set forth (the
“Acquisition”).
C. The
boards of directors (or managers, as applicable) of each of Buyer and Seller
have determined that the Acquisition is advisable and in the best interests of
their respective companies and stockholders or members.
D. Buyer,
Seller and the Subs desire to make certain representations, warranties,
covenants and agreements in connection with the Acquisition and to prescribe
various conditions to the Acquisition.
AGREEMENT
In
consideration of the mutual covenants and promises contained in this Agreement
and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties to this Agreement agree as
follows:
ARTICLE
I.
PURCHASE AND SALE OF
THE
SECURITIES
1.1. Purchase and Sale of the
Securities
. Upon
the terms and subject to the conditions contained herein, on the Closing Date,
Seller hereby agrees to sell, convey, transfer, assign and deliver to Buyer, and
Buyer hereby agrees to purchase, acquire and accept from Seller the Securities,
constituting: (i) all of the issued and outstanding shares of the common stock
of Monitor, no par value (the “Monitor
Shares”); and (ii) all of the issued and outstanding units of the
membership interests of Structure (the “Structure
Interests”).
1.2. Consideration.
Upon
the terms and subject to the conditions contained herein, in consideration for
the transfer of the Securities pursuant to Section 1.1 hereof,
Buyer shall issue to Seller a convertible promissory note in the form attached
hereto as Exhibit
A (the “Note” or
the “Consideration.”)
ARTICLE
II.
CLOSING
2.1. Closing.
The
closing of the transactions contemplated herein (the “Closing”) may occur
simultaneously at 10:00 a.m. local time at the offices of Xxxxxxx Xxxxx LLP, 000
Xxxxxxxx Xxxxxx, Xxxxx 0000, Xxxxxx, Xxxxx 00000 or the offices of Seller at
00000 Xxxxxxx Xxxx., Xxx Xxxxxxx, Xxxxx on August , 2009 or at such other time,
date and location as the parties hereto agree in writing (the “Closing
Date”).
2.2. Deliveries at
Closing
.
(a) Deliveries by
Buyer. Upon the terms and subject to the conditions set forth
in this Agreement, in reliance on the representations, warranties and agreements
of Seller contained herein, in consideration of the sale, conveyance, transfer,
assignment and delivery of the Securities, Buyer agrees to deliver to Seller at
the Closing on the Closing Date the following:
(i) the
Note;
(ii) a
certificate executed by the Secretary of Buyer certifying as of the Closing Date
(A) a true and complete copy of the Organizational Documents of Buyer certified
as of a recent date by the Secretary of State of Delaware, (B) a true and
complete copy of the resolutions of the board of directors and stockholders of
Buyer authorizing the execution, delivery and performance of this Agreement and
the consummation of the transactions contemplated hereby and (C) incumbency
matters;
(iii) a
certificate of good standing and/or subsistence of Buyer, dated as of a recent
date prior to the Closing, issued by the Secretary of State of
Delaware;
(iv) a
certificate executed by the Chief Executive Officer of Buyer certifying as of
the Closing Date all of the matters set forth in Section 6.1(a)
hereof.
(b) Deliveries by
Seller. Upon the terms and subject to the conditions set forth
in this Agreement, in reliance upon the representations, warranties and
agreements of Buyer contained herein and the issuance and delivery of the Note,
Seller agrees to deliver (or cause to be delivered) to Buyer the
following:
(i) share
certificates representing the Monitor Shares, and if certificated, certificates
representing the Structure Interests, duly endorsed or accompanied by duly
executed instruments of transfer;
(ii) a
certificate executed by the Secretary of the Seller certifying as of the Closing
Date (A) a true and complete copy of the Organizational Documents of the Seller
certified as of a recent date by the Secretary of State of Delaware, (B) a true
and complete copy of the resolutions of the board of directors of the Seller
authorizing the execution, delivery and performance of this Agreement and the
consummation of the transactions contemplated hereby and (C) incumbency
matters;
(iii) a
certificate of good standing and/or subsistence of Seller, dated as of a recent
date prior to the Closing, issued by the Secretary of State of
Delaware;
(iv) a
certificate executed by the Chief Executive Officer of Seller certifying as of
the Closing Date all of the matters set forth in Section 6.2(a)
hereof.
ARTICLE
III.
REPRESENTATIONS AND
WARRANTIES OF SELLER
Seller
hereby represents and warrants to Buyer as follows, except as otherwise set
forth on the Seller Disclosure Schedules, which representations and warranties
are, as of the date hereof, and will be, as of the Closing Date, true and
correct:
3.1. Organization, Good Standing
and Qualification
. The
Seller is a corporation duly organized, validly existing and in good standing
under the laws of the State of Delaware and has all requisite corporate power
and authority to enter into the Transaction Documents. Monitor is a corporation
duly organized, validly existing and in good standing under the laws of the
State of Texas. Structure is a limited liability company duly organized, validly
existing and in good standing under the laws of the State of Texas.
3.2. Authorization
. All
corporate action on the part of Seller, its officers, directors and
stockholders, necessary for the authorization, execution and delivery of the
Transaction Documents, the performance of all obligations of Seller hereunder
and thereunder and the transfer of the Securities to Buyer has been taken or
will be taken prior to the Closing, and the Transaction Documents, when executed
and delivered by the Seller, shall constitute valid and legally binding
obligations of Seller, enforceable against Seller in accordance with their
respective terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of
general application relating to or affecting the enforcement of creditors’
rights generally, or (ii) as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable
remedies.
3.3. Capitalization of Monitor
and Structure»
. The
Monitor Shares have been validly issued, are fully paid and non-assessable, and
constitute all of the issued and outstanding shares of Monitor. The Structure
Interests have been validly issued, are fully paid and non-assessable, and
constitute all of the issued and outstanding membership interests of Structure.
MDI owns the Monitor Shares and the Structure Interests, free and clear of all
liens, charges, security interests, encumbrances, restrictions and claims, and
upon the Closing, MDI will transfer the Monitor Shares and the Structure
Interests, free and clear of all liens, charges, security interests,
encumbrances, restrictions and claims.
3.4. Title to Assets»
. Each of
Monitor and Structure will, on the Closing Date, have good and marketable title
to all of their respective assets, free and clear of all liabilities, liens,
claims and encumbrances (except liens for taxes not yet due).
ARTICLE
IV.
REPRESENTATIONS AND
WARRANTIES OF BUYER
Buyer
hereby represents and warrants to the Seller as follows, except as is set forth
on the Buyer Disclosure Schedules, which representations and warranties are, as
of the date hereof, and will be, as of the Closing Date, true and
correct:
4.1. Organization, Good Standing
and Qualification
. The
Buyer is a corporation duly organized, validly existing and in good standing
under the laws of the State of Texas and has all requisite corporate power and
authority to carry on its business as presently conducted and as currently
proposed to be conducted.
4.2. Authorization
. All
corporate action on the part of the Buyer, its officers, directors and
stockholders necessary for the authorization, execution and delivery of the
Transaction Documents, the performance of all obligations of the Buyer hereunder
and thereunder and the authorization, issuance and delivery of the Note has been
taken or will be taken prior to the Closing, and the Transaction Documents, when
executed and delivered by the Buyer, shall constitute valid and legally binding
obligations of the Buyer, enforceable against the Buyer in accordance with their
respective terms except (i) as limited by applicable bankruptcy,
insolvency, reorganization, moratorium, fraudulent conveyance, or other laws of
general application relating to or affecting the enforcement of creditors’
rights generally, or (ii) as limited by laws relating to the availability
of specific performance, injunctive relief, or other equitable
remedies.
ARTICLE
V.
COVENANTS
Each of
Seller and Buyer covenant and agree with the other as follows:
5.1. Tax
Matters
.
(a) Tax
Records. The Buyer and the Seller agree (i) to retain all
books and records with respect to Tax matters pertinent to the Subs, their
assets or business relating to any Taxable period beginning before the Closing
Date until the expiration of the statute of limitations (and, to the extent
notified by the Buyer, any extensions thereof) of the respective Taxable
periods, and to abide by all record retention agreements entered into with any
Taxing Authority, and (ii) to give the Buyer reasonable written notice prior to
transferring, destroying or discarding any such books and records and, if the
Buyer so requests, the Seller shall allow the Buyer to take possession of such
books and records at the Buyer’s expense.
(b) Transfer
Taxes. All sales and transfer taxes, deed taxes, conveyance
fees, recording charges and similar taxes imposed as a result of the
transactions contemplated by this Agreement, together with any interest,
penalties or additions to such transfer taxes, shall be borne by the
Buyer.
5.2. Inter-company
Accounts»
. At the
Closing, all inter-company accounts other than the Note, between Monitor and
Structure, on the one hand, and MDI on the other hand, will be cleared at no
expense to any of the entities.
ARTICLE
VI.
CONDITIONS TO CLOSING
6.1. Conditions to Obligations of
Seller
. The
obligations of Seller to consummate the transactions provided for hereby are
subject, in the discretion of Seller, to the satisfaction, on or prior to the
Closing Date, of each of the following conditions, any of which may be waived by
Seller:
(a) Representations, Warranties
and Covenants
. All
representations and warranties of the Buyer contained in this Agreement shall be
true and correct in all material respects at and as of the date of this
Agreement and at and as of the Closing Date and the Buyer shall have performed
and satisfied in all material respects all agreements and covenants required
hereby to be performed by it prior to or on the Closing Date.
(b) No Actions or Court
Orders. No suit, action, investigation, inquiry or other
proceeding by any governmental body or other Person or legal or administrative
proceeding shall have been instituted or threatened which seeks to restrain,
enjoin, prevent the consummation of or otherwise affect the transactions
contemplated by the Transaction Documents or which questions the validity or
legality of the transactions contemplated hereby or thereby or the ability of
Seller to transfer the Securities free and clear of any
Encumbrances.
(c) Authorization. Seller
shall have received from Buyer a copy of resolutions adopted by the board of
directors of Buyer approving the Transaction Documents to which Buyer is a party
and the transactions contemplated hereby or thereby, certified by Buyer’s
corporate secretary.
(d) Other
Deliveries. Buyer shall have delivered to the Seller each of
the items set forth in Section 2.2(a)
hereof.
6.2. Conditions to Obligations of
Buyer
. The
obligations of Buyer to consummate the transactions provided for hereby are
subject, in the discretion of Buyer, to the satisfaction, on or prior to the
Closing Date, of each of the following conditions, any of which may be waived by
Buyer:
(a) Representations, Warranties
and Covenants
. All
representations and warranties of the Seller contained in this Agreement shall
be true and correct in all material respects at and as of the date of this
Agreement and at and as of the Closing Date and the Seller shall have performed
and satisfied in all material respects all agreements and covenants required
hereby to be performed by them prior to or on the Closing Date.
(b) No Actions or Court
Orders. No suit, action, investigation, inquiry or other
proceeding by any governmental body or other Person or legal or administrative
proceeding shall have been instituted or threatened which seeks to restrain,
enjoin, prevent the consummation of or otherwise affect the transactions
contemplated by the Transaction Documents or which questions the validity or
legality of the transactions contemplated hereby.
(c) Authorization. Buyer
shall have received from the Seller a copy of the resolutions adopted by its
board of directors approving the Transaction Documents and the transactions
contemplated thereby, certified by its corporate secretary.
(d) Other
Deliveries. Buyer shall have received from the Seller, or such
other parties, as applicable, each of the items set forth in Section 2.2(b)
hereof.
ARTICLE
VII.
TERMINATION
7.1. Termination.
This
Agreement may be terminated at any time prior to Closing:
(a) By mutual
written consent of Buyer and Seller;
(b) By Buyer
if there is a material breach of any representation or warranty set forth in
Article III
hereof or any covenant or agreement to be complied with or performed by the
Seller pursuant to the terms of this Agreement or the failure of a condition set
forth in Section
6.2 to be satisfied (and such condition is not waived in writing by
Buyer) on or prior to the Closing Date, or the occurrence of any event which
results or would result in the failure of a condition set forth in Section 6.2 hereof to
be satisfied on or prior to the Closing Date, provided that Buyer
may not terminate this Agreement prior to the Closing if Seller has not had an
adequate opportunity to cure such failure; or
(c) By Seller
if there is a material breach of any representation or warranty set forth in
Article IV
hereof or of any covenant or agreement to be complied with or performed by Buyer
pursuant to the terms of this Agreement or the failure of a condition set forth
in Section 6.1
hereof to be satisfied (and such condition is not waived in writing by Seller)
on or prior to the Closing Date, or the occurrence of any event which results or
would result in the failure of a condition set forth in Section 6.1 hereof to
be satisfied on or prior to the Closing Date; provided that Seller
may not terminate this Agreement prior to the Closing if Buyer has not had an
adequate opportunity to cure such failure.
7.2. In the Event of
Termination.
In
the event of termination of this Agreement:
(a) Each
party will destroy or redeliver all documents, work papers and other material of
any other party relating to the transactions contemplated hereby, whether so
obtained before or after the execution hereof, to the party furnishing the
same;
(b) No party
hereto shall have any Liability to any other party to this Agreement, except as
stated in subsections (a), (b) and (c) of this Section 7.2 and
except for any breach of this Agreement occurring prior to the proper
termination of this Agreement.
The
foregoing provisions shall not limit or restrict the availability of specific
performance or other injunctive relief to the extent that specific performance
or such other relief would otherwise be available to a party
hereunder.
ARTICLE
VIII.
MISCELLANEOUS
8.1. Defined
Terms
. As
used herein, the terms below shall have the following meanings. Any
such term, unless the context otherwise requires, may be used in the singular or
plural, depending upon the reference.
“Affiliate” shall have
the meaning set forth in the Securities Exchange Act of 1934, as amended, and
the rules and regulations promulgated thereunder.
“Business Day” shall
mean a day other than Saturday, Sunday or any day on which banks located in the
State of Texas are authorized or obligated to close.
“Encumbrance” shall
mean any claim, lien, pledge, option, charge, community property interest,
equitable interest, right of first refusal or restriction of any kind, easement,
security interest, deed of trust, mortgage, pledge, hypothecation, right-of-way,
encroachment, building or use restriction, conditional sales agreement,
encumbrance or other right of third parties, whether voluntarily incurred or
arising by operation of law, and includes, without limitation, any agreement to
give any of the foregoing in the future, and any contingent sale or other title
retention agreement or lease in the nature thereof.
“Governmental Entity”
shall mean any government or any court of competent jurisdiction, regulatory or
administrative agency or commission or other governmental entity or
instrumentality, whether federal, state, local, domestic or
foreign.
“Organizational
Documents” shall mean (a) the articles or certificate of incorporation,
all certificates of determination and designation, and the bylaws of a
corporation; (b) the partnership agreement and any statement of partnership of a
general partnership; (c) the limited partnership agreement and the certificate
or articles of limited partnership of a limited partnership; (d) the operating
agreement, limited liability company agreement and the certificate or articles
of organization or formation of a limited liability company; (e) any charter or
similar document adopted or filed in connection with the creation, formation or
organization of any other Person; and (f) any amendment to any of the
foregoing.
“Person” shall mean
any individual, corporation (including any non-profit corporation), general or
limited partnership, limited liability company, joint venture, estate, trust,
association, organization, labor union, or other entity or governmental
body.
“Representative” shall
mean any officer, director, principal, attorney, agent, employee or other
representative.
“Tax” shall mean any
and all Taxes, including, without limitation, any net income, alternative or
add-on minimum, gross income, gross receipts, sales, use, ad valorem, value
added, transfer, franchise, profits, license, registration, recording,
documentary, conveyancing, gains, withholding, payroll, employment, excise,
severance, stamp, occupation, premium, property, environmental or windfall
profit, custom duty or other Tax, governmental fee or other like assessment or
charge of any kind whatsoever, together with any interest, penalty, addition to
Tax or additional amount imposed by any governmental authority responsible for
the imposition of any such Tax (United States (federal, state or local) or
foreign), whether disputed or not. “Tax Return” shall
mean any return, report, information return or other document (including
schedules thereto, other attachments thereto, amendments thereof, or any related
or supporting information) filed or required to be filed with any Taxing
Authority in connection with the determination, assessment or collection of any
Tax or the administration of any laws, regulations or administrative
requirements relating to any Tax.
“Taxing Authority”
shall mean, with respect to any Tax, the Governmental Entity or political
subdivision thereof that imposes such Tax, and the agent (if any) charged with
the collection of such Tax for such Governmental Entity or
subdivision.
“Transaction
Documents” shall mean the Agreement and Note.
8.2. Notices.
All
notices, requests, demands, Claims and other communications which are required
or may be given under this Agreement shall be in writing and shall be deemed to
have been duly given when received if personally delivered; when transmitted if
transmitted by electronic mail or confirmed facsimile with a copy sent by
another means specified herein; the Business Day after it is sent if sent for
next day delivery to a domestic address by recognized overnight delivery service
(e.g. Federal Express); and five Business Days after the date mailed by
certified or registered mail, postage prepaid, if sent by certified or
registered mail, return receipt requested. In each case notice shall
be sent to:
If to the
Seller prior to the Closing or Seller, addressed to:
00000
Xxxxxxx Xxxx., Xxxxx 000
Xxx
Xxxxxxx, Xxxxx 00000
Attn: President
Telephone: ()
[]
Fax: ()
[]
Email: []
If to
Buyer, addressed to:
214
Investments, Inc.
[]
[]
Attn: []
Telephone: ()
[]
Fax: ()
]
Email: ]
[]
or to
such other place and with such other copies as either party may designate as to
itself by written notice to the others.
8.3. Non Survival of
Representations and Warranties»
. The
representations and warranties in this Agreement and in any instrument delivered
pursuant hereto shall terminate at the Closing Date; provided, however, that
this Section 8.3 shall not limit any covenant or agreement of the parties which
by its terms contemplates performance after the Closing.
8.4. Rules of
Construction
. The
parties agree that they have been represented by counsel during the negotiation
and execution of this Agreement and, therefore, waive the application of any
law, regulation, holding or rule of construction providing that ambiguities in
any agreement or other document will be construed against the party drafting
such agreement or document.
8.5. Titles
. The
titles, captions or headings of the Articles and Sections herein are inserted
for convenience of reference only and are not intended to be a part of or to
affect the meaning or interpretation of this Agreement.
8.6. Entire
Agreement
. This
Agreement, including the Exhibits hereto constitute the entire agreement and
understanding and supersede all other prior covenants, agreements, undertakings,
obligations, promises, arrangements, communications, representations and
warranties, whether oral or written, by any party hereto or by any director,
officer, employee, agent, Affiliate or Representative of any party
hereto. There are no covenants, agreements, undertakings or
obligations with respect to the subject matter of this Agreement other than
those expressly set forth or referred to herein, and no representations or
warranties of any kind or nature whatsoever, express or implied, including any
implied warranties of merchantability or fitness for a particular purpose, are
made or shall be deemed to be made herein by the parties hereto except those
expressly made herein.
8.7. Assignment
. Neither
this Agreement nor any of the rights or obligations hereunder may be assigned by
Seller without the prior written consent of Buyer, or assigned by Buyer without
the prior written consent of Seller.
8.8. Amendment or
Modification
. This
Agreement may not be amended except in an instrument in writing signed on behalf
of each of the parties hereto. No amendment, supplement, modification
or waiver of this Agreement shall be binding unless executed in writing by the
party to be bound thereby.
8.9. Waiver
. Except
where a specific period for action or inaction is provided herein, neither the
failure nor any delay on the part of any party in exercising any right, power or
privilege under this Agreement or the documents referred to in this Agreement
shall operate as a waiver thereof, nor shall any waiver on the part of any party
of any such right, power or privilege, nor any single or partial exercise of any
such right, power or privilege, preclude any other or further exercise thereof
or the exercise of any other such right, power or privilege. The
failure of a party to exercise any right conferred herein within the time
required shall cause such right to terminate with respect to the transaction or
circumstances giving rise to such right, but not to any such right arising as a
result of any other transactions or circumstances.
8.10. Severability
. If
any term or other provision of this Agreement is invalid, illegal or incapable
of being enforced as a result of any rule of law or public policy, all other
terms and other provisions of this Agreement shall nevertheless remain in full
force and effect so long as the economic or legal substance of the transactions
contemplated by this Agreement is not affected in any manner materially adverse
to any party. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto
shall negotiate in good faith to modify this Agreement so as to effect the
original intent of the parties as closely as possible in an acceptable manner to
the end that the transactions contemplated by this Agreement are fulfilled to
the greatest extent possible.
8.11. Burden and
Benefit
. This
Agreement shall be binding upon and shall inure to the benefit of, the parties
hereto and their respective successors and permitted assigns. This
Agreement and all of its conditions and provisions are for the sole and
exclusive benefit of the parties hereto and their respective successors and
permitted assigns, and nothing in this Agreement, express or implied, is
intended to confer upon any Person other than the parties hereto any rights or
remedies of any nature whatsoever under or by reason of this Agreement or any
provision hereof.
8.12. Governing
Law
. This
Agreement (and any claim or controversy arising out of or relating to this
Agreement) shall be governed by the law of the State of Texas without regard to
conflict of law principles that would result in the application of any law other
than the law of the State of Texas.
8.13. Consent to
Jurisdiction
. Each
party to this Agreement hereby irrevocably and unconditionally submits, for
itself and its property, to the exclusive jurisdiction of the courts of the
State of Texas, or Federal court of the United States of America, sitting in
Bexar County, Texas, and any appellate court from any thereof, in any action or
proceeding arising out of or relating to this Agreement or the agreements
delivered in connection herewith or the transactions contemplated hereby or
thereby or for recognition or enforcement of any judgment relating thereto, and
each of the parties hereby irrevocably and unconditionally (a) agrees not
to commence any such action or proceeding except in such courts, (b) agrees
that any claim in respect of any such action or proceeding may be heard and
determined in such Texas State court or, to the extent permitted by law, in such
Federal court, (c) waives, to the fullest extent it may legally and
effectively do so, any objection which it may now or hereafter have to the
laying of venue of any such action or proceeding in any such Texas State or
Federal court, and (d) waives, to the fullest extent permitted by law, the
defense of an inconvenient forum to the maintenance of such action or proceeding
in any such Texas State or Federal court. Each of the parties hereto
agrees that a final judgment in any such action or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on the judgment or
in any other manner provided by law. Each party to this Agreement
irrevocably consents to service of process in the manner provided for notices in
Section 8.2. Nothing
in this Agreement will affect the right of any party to this Agreement to serve
process in any other manner permitted by law.
8.14. Waiver of Trial by
Jury
. EACH
PARTY TO THIS AGREEMENT ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY
ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE COMPLICATED AND DIFFICULT
ISSUES, AND THEREFORE IT HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT
IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR
INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT AND ANY OF THE
AGREEMENTS DELIVERED IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED
HEREBY OR THEREBY. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT
(A) NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS
REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO ENFORCE EITHER OF SUCH WAIVERS, (B) IT
UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF SUCH WAIVERS, (C) IT
MAKES SUCH WAIVERS VOLUNTARILY, AND (D) IT HAS BEEN INDUCED TO ENTER INTO
THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN
THIS SECTION 8.14.
8.15. Legal
Fees
. If
any party to this Agreement brings an action to enforce its rights under this
Agreement, the prevailing party shall be entitled to recover its costs and
expenses, including without limitation reasonable legal fees, incurred in
connection with such action, including any appeal of such action.
8.16. Specific
Performance
. Each
of the parties hereto acknowledges and agrees that the other parties would be
damaged irreparably, and in a manner for which monetary damages would not be an
adequate remedy, in the event any of the provisions of this Agreement are not
performed in accordance with its specific terms or otherwise are
breached. Accordingly, each of the parties hereto agrees that the
other parties shall be entitled to an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce specifically this
Agreement and the terms and provisions hereof in any action instituted in any
court of the United States or any state thereof having jurisdiction over the
parties and the matter, in addition to any other remedy to which they may be
entitled, at law or in equity.
8.17. Cumulative
Remedies
. All
rights and remedies of either party hereto are cumulative of each other and of
every other right or remedy such party may otherwise have at law or in equity,
and the exercise of one or more rights or remedies shall not prejudice or impair
the concurrent or subsequent exercise of other rights or remedies.
8.18. Expenses
. Except
as otherwise expressly provided herein, whether or not the transactions
contemplated herein are consummated, all costs and expenses incurred in
connection with this Agreement and the transactions contemplated herein shall be
paid by the party incurring such expenses.
8.19. Representation by
Counsel
. Each
party hereto represents and agrees with each other that it has been represented
by or had the opportunity to be represented by, independent counsel of its own
choosing, and that it has had the full right and opportunity to consult with its
respective attorney(s), that to the extent, if any, that it desired, it availed
itself of this right and opportunity, that it or its authorized officers (as the
case may be) have carefully read and fully understand this Agreement in its
entirety and have had it fully explained to them by such party’s respective
counsel, that each is fully aware of the contents thereof and its meaning,
intent and legal effect, and that it or its authorized officer (as the case may
be) is competent to execute this Agreement and has executed this Agreement free
from coercion, duress or undue influence.
8.20. Execution and
Counterparts
. This
Agreement may be executed in one or more counterparts, each of which when
executed shall be deemed an original and all of which together shall constitute
one and the same instrument. The parties agree that this Agreement
shall be legally binding upon the electronic transmission, including by
facsimile or email, by each party of a signed signature page to this Agreement
to the other party.
[Signature Page Follows]
AUS:617676.6
LA\1784513.11
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly
executed on their respective behalf, by their respective officers thereunto duly
authorized, all as of the day and year first set forth above.
214 INVESTMENTS, INC.
By:
Name: []
Title: []
By:
Name:
Title:
EXHIBIT
A
CONVERTIBLE
PROMISSORY NOTE