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Title: |
Securities Purchase Agreement |
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Date: |
2005 |
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Preview shows 15KB of 109KB total |
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$45 |
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ID: |
#1535852 |
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SECURITIES PURCHASE AGREEMENT
This Securities Purchase Agreement (this "AGREEMENT") is dated as of
February ___, 2005 by and between Utix Group, Inc., a Delaware corporation (the
"COMPANY"), and each purchaser who has executed this Agreement on the signature
page hereto (each, a "PURCHASER" and collectively, the "PURCHASERS").
WHEREAS, subject to the terms and conditions set forth in this Agreement
and pursuant to Section 4(2) of the Securities Act of 1933, as amended, the
Company desires to issue and sell to each Purchaser, and each Purchaser,
severally and not jointly, desires to purchase from the Company, certain
securities of the Company as more fully described in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained in
this Agreement, and for other good and valuable consideration the receipt and
adequacy of which are hereby acknowledged, the Company and each of the
Purchasers agree as follows:
ARTICLE I
DEFINITIONS
1.1 DEFINITIONS. In addition to the terms defined elsewhere in this
Agreement, the following terms have the meanings indicated:
1.1.1 "AFFILIATE" means any Person that, directly or
indirectly through one or more intermediaries, controls or is controlled by or
is under common control with a Person, as such terms are used in and construed
under Rule 144.
1.1.2 "BUSINESS DAY" means any day other than Saturday, Sunday
or other day on which commercial banks in The City of New York are authorized or
required by law to remain closed.
1.1.3 "COMMISSION" OR "SEC" means the United States Securities
and Exchange Commission.
1.1.4 "COMMON STOCK" means the common stock of the Company,
par value $0.001 per share.
1.1.5 "COMMON STOCK EQUIVALENTS" means, collectively, Options
and Convertible Securities.
1.1.6 "COMPANY COUNSEL" means Gersten Savage Kaplowitz Wolf &
Marcus LP.
1.1.7 "CONVERSION SHARES" means any Common Stock issuable upon
conversion of the Notes.
1.1.8 "EFFECTIVE DATE" means the date that the Registration
Statement is first declared effective by the Commission.
<PAGE>
1.1.9 "ELIGIBLE MARKET" means any of the New York Stock
Exchange (the "NYSE"), the American Stock Exchange (the "AMEX"), the Nasdaq
National Market ("NASDAQ NNM"), the Nasdaq Small Cap Market ("NASDAQ SCM") or
the National Association of Securities Dealers, Inc. OTC Bulletin Board (the
"OTC BULLETIN BOARD").
1.1.10 "EXCHANGE ACT" means the Securities Exchange Act of
1934, as amended.
1.1.11 "LIEN" means any lien, charge, claim, security interest,
encumbrance, right of first refusal or other restriction.
1.1.12 "LOSSES" means any and all losses, claims, damages,
liabilities, settlement costs and expenses, including, without limitation, costs
of preparation and reasonable attorneys' fees.
1.1.13 "NOTES" means one or more 5% convertible promissory
notes aggregating $1,000,000 in principal amount, to be purchased at par by the
Purchasers on the Notes Closing Date; which Notes shall be in the form of
SCHEDULE 1.1.13.
1.1.14 "NOTES CLOSING DATE" means the date of closing of the
purchase of not less than $1,000,000 of the Notes, pursuant to Section 2.1.1.
1.1.15 "PERSON" means any individual or corporation,
partnership, trust, incorporated or unincorporated association, joint venture,
limited liability company, joint stock company, government (or an agency or
subdivision thereof) or any court or other federal, state, local or other
governmental authority or other entity of any kind.
1.1.16 "PURCHASER DESIGNEE" shall mean Great Court Capital,
LLC, a New York limited liability company, or any other Person designated in
writing from time to time by the holders of a majority of the Notes and who
shall be reasonably acceptable to the Company.
1.1.17 "PROCEEDING" means an action, claim, suit, investigation
or proceeding (including, without limitation, an investigation or partial
proceeding, such as a deposition), whether commenced or threatened.
1.1.18 "PROSPECTUS" means the prospectus included in the
Registration Statement (including, without limitation, a prospectus that
includes any information previously omitted from a prospectus filed as part of
an effective registration statement in reliance upon Rule 430A promulgated under
the Securities Act), as amended or supplemented by any prospectus supplement,
with respect to the terms of the offering of any portion of the Registrable
Securities covered by the Registration Statement, and all other amendments and
supplements to the Prospectus, including post-effective amendments, and all
material incorporated by reference or deemed to be incorporated by reference in
such Prospectus.
1.1.19 "REGISTRABLE SECURITIES" means: (i) any Common Stock
issuable upon conversion of the Notes; and (ii) any securities issued or
issuable upon any stock split, dividend or other distribution, recapitalization
or similar event with respect to the foregoing.
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<PAGE>
1.1.20 "REGISTRATION STATEMENT" means the registration
statement required to be filed under Article VI below, including (in each case)
the Prospectus, amendments and supplements to such registration statement or
Prospectus, including pre- and post-effective amendments, all exhibits thereto,
and all material incorporated by reference or deemed to be incorporated by
reference in such registration statement.
1.1.21 "REQUIRED EFFECTIVENESS DATE" means April 15, 2005,
unless such date shall be extended by mutual agreement of the Purchasers and the
Company.
1.1.22 "RULE 144," "RULE 415," and "RULE 424" means Rule 144,
Rule 415 and Rule 424, respectively, promulgated by the Commission pursuant to
the Securities Act, as such Rules may be amended from time to time, or any
similar rule or regulation hereafter adopted by the Commission having
substantially the same effect as such Rule.
1.1.23 "SECURITIES" means the collective reference to the Notes
and the Conversion Shares.
1.1.24 "SECURITIES ACT" means the Securities Act of 1933, as
amended.
1.1.25 "SUBSIDIARY" means any Person in which the Company,
directly or indirectly, owns capital stock or holds an equity or similar
interest.
1.1.26 "TRADING DAY" means (a) any day on which the Common
Stock is listed or quoted and traded on any Eligible Market.
1.1.27 "TRADING MARKET" means any Eligible Market on which the
Common Stock is then listed or quoted.
1.1.28 "TRANSACTION DOCUMENTS" means this Agreement, the Notes
and any other documents or agreements executed in connection with the
transactions contemplated hereunder.
ARTICLE II
PURCHASE AND SALE OF SECURITIES
2.1 PURCHASE AND SALE OF THE NOTES.
2.1.1 NOTES CLOSING. Subject to the terms and conditions set
forth herein:
(a) On the Notes Closing Date, the Company shall
issue to each of those Purchasers listed on and who shall have executed the
signature page to this Agreement entitled "PURCHASERS SIGNATURE PAGE," and each
of such Purchasers shall purchase from the Company, severally and not jointly,
such principal amount of Notes as is indicated below such Purchaser's name on
the Purchasers Signature Page. On such Notes Closing Date, $1,000,000 in
principal amount of Notes shall be purchased and paid for by the Purchasers. The
closings of the sale of the Notes (collectively, the "NOTES CLOSING") shall take
place at the offices of Gersten Savage Kaplowitz Wolf & Marcus LP, 101 East 52nd
Street, New York, New York 10022, or at
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<PAGE>
such other location or time as all parties may agree, on the date set forth in
Section 2.1.1(b) below.
(b) On a date that shall be not later than February
11, 2005 (the "NOTES CLOSING DATE") an aggregate of $1,000,000 in principal
amount of Notes shall be purchased and paid for by the Purchasers.
2.1.2 NOTES CLOSING DELIVERABLES.
(a) On the Notes Closing Date, the Company shall
deliver or cause to be delivered to each Purchaser, against payment by such
Purchaser of an amount in immediately available funds to an account designated
in writing by the Company equal to the principal amount of Notes purchased, the
following documents:
(i) Notes aggregating $1,000,000 in
principal amount, free and clear of all restriction and other legends (except as
expressly provided in Section 4.1.2);
(ii) a signed legal opinion of Company
Counsel, substantially in the form of SCHEDULE 2.1.2(b), adapted to reflect
transactions occurring on the Initial Notes Closing Date.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
3.1 REPRESENTATIONS AND WARRANTIES OF THE COMPANY. The Company
hereby represents and warrants to each of the Purchasers as follows:
3.1.1 SUBSIDIARIES. The Company has one Subsidiary, Corporate
Sports Incentives, Inc.
3.1.2 ORGANIZATION AND QUALIFICATION. The Company is an entity
duly organized, validly existing and in good standing under the laws of the
jurisdiction of its incorporation or organization (as applicable), with the
requisite power and authority to own and use its properties and assets and to
carry on its business as currently conducted. The Company is not in violation of
any of the provisions of its respective certificate or articles of
incorporation, bylaws or other organizational or charter documents. The Company
is duly qualified to do business and is in good standing as a foreign
corporation or other entity in each jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary,
except where the failure to be so qualified or in good standing, as the case may
be, could not, individually or in the aggregate, (i) adversely affect the
legality, validity or enforceability of any Transaction Document, (ii) have or
result in a material adverse effect on the results of operations, assets,
prospects, business or condition (financial or otherwise) of the Company, taken
as a whole, or (iii) adversely impair the Company's ability to perform fully on
a timely basis its obligations under any of the Transaction Documents (any of
(i), (ii) or (iii), a "MATERIAL ADVERSE EFFECT").
3.1.3 AUTHORIZATION; ENFORCEMENT. The Company has the
requisite corporate power and authority to enter into and to consummate the
transactions contemplated by each of
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<PAGE>
the Transaction Documents and otherwise to carry out its obligations hereunder
and thereunder. The execution and delivery of each of the Transaction Documents
by the Company and the consummation by it of the transactions contemplated
hereby and thereby have been duly authorized by all necessary action on the part
of the Company and no further consent or action is required by the Company, its
Board of Directors or its stockholders. Each of the Transaction Documents has
been (or upon delivery will be) duly executed by the Company and is, or when
delivered in accordance with the terms hereof, will constitute, the valid and
binding obligation of the Company enforceable against the Company in accordance
with its terms.
3.1.4 NO CONFLICTS. The execution, delivery and performance of
the Transaction Documents by the Company and the consummation by the Company of
the transactions contemplated hereby and thereby do not and will not (i)
conflict with or violate any provision of the Company's certificate or articles
of incorporation, bylaws or other organizational or charter documents, (ii)
conflict with, or constitute a default (or an event that 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 (with or without notice,
lapse of time or both) of, any agreement, credit facility, debt or other
instrument (evidencing a Company debt or otherwise) or other understanding to
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