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Purchase Agreement

 

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Title:

Purchase Agreement

Entities:

Utix Group Inc; Hodgson Russ LLP; Lowenstein Sandler PC

Date:

2006

Size:

Preview shows 6KB of 87KB total

Price:

$60

ID:

#2640051

 

 

► Purchase & Sale ► Purchase Agreements
► Services ► Legal

 

 

Start of Preview


                               PURCHASE AGREEMENT



THIS PURCHASE AGREEMENT ("Agreement") is made as of the ___ day of
November, 2006 by and among UTIX Group, Inc., a Delaware corporation (the
"Company"), and the Investors set forth on the signature pages affixed hereto
(each an "Investor" and collectively the "Investors").

RECITALS

A. The Company and the Investors are executing and delivering this
Agreement in reliance upon the exemption from securities registration afforded
by the provisions of Section 4(2) of the 1933 Act, or Regulation D ("Regulation
D") promulgated thereunder; and

B. The Investors wish to purchase from the Company, and the Company
wishes to sell and issue to the Investors, in one or more closings, upon the
terms and conditions stated in this Agreement, (i) up to an aggregate of
2,692,320 shares of the Company's Series B Convertible Preferred Stock, par
value $0.001 per share (the "Preferred Stock"), such shares of Preferred Stock
to have the relative rights, preferences and designations set forth in the
Certificate of Designations set forth in EXHIBIT A hereto (the "Certificate of
Designations"), at a purchase price of $1.30 per share (the "Per Share Purchase
Price"), and (ii) warrants to purchase up to an aggregate of 403,848 shares of
Common Stock (subject to adjustment) at an exercise price of $2.60 per share
(subject to adjustment) in the form attached hereto as EXHIBIT B; and

C. Contemporaneous with the sale of the Shares and the Warrants at the
first closing, the parties hereto will execute and deliver a Registration Rights
Agreement, in the form attached hereto as EXHIBIT C (the "Registration Rights
Agreement"), pursuant to which the Company will agree to provide certain
registration rights under the Securities Act of 1933, as amended, and the rules
and regulations promulgated thereunder, and applicable state securities laws.

In consideration of the mutual promises made herein and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

1. DEFINITIONS. In addition to those terms defined above and
elsewhere in this Agreement, for the purposes of this Agreement, the following
terms shall have the meanings set forth below:

"AFFILIATE" means, with respect to any Person, any other Person which
directly or indirectly through one or more intermediaries Controls, is
controlled by, or is under common control with, such Person.

"BUSINESS DAY" means a day, other than a Saturday or Sunday, on which
banks in New York City are open for the general transaction of business.


{PAGE}

"COMMON STOCK" means the Company's common stock, par value $0.001 per
share, and any securities into which the common stock may be reclassified.

"COMPANY'S KNOWLEDGE" means the actual knowledge of the executive
officers (as defined in Rule 405 under the 1933 Act) of the Company, after due
inquiry.

"CONFIDENTIAL INFORMATION" means trade secrets, confidential
information and know-how (including but not limited to ideas, formulae,
compositions, processes, procedures and techniques, research and development
information, computer program code, performance specifications, support
documentation, drawings, specifications, designs, business and marketing plans,
and customer and supplier lists and related information).

"CONTROL" (including the terms "controlling", "controlled by" or "under
common control with") means the possession, direct or indirect, of the power to
direct or cause the direction of the management and policies of a Person,
whether through the ownership of voting securities, by contract or otherwise.

"CONVERSION SHARES" means the shares of Common Stock issuable upon the
conversion of the Shares.

"EFFECTIVE DATE" means the date on which the initial Registration
Statement is declared effective by the SEC.

"EFFECTIVENESS DEADLINE" means the date on which the initial
Registration Statement is required to be declared effective by the SEC under the
terms of the Registration Rights Agreement.

"INTELLECTUAL PROPERTY" means all of the following: (i) patents, patent
applications, patent disclosures and inventions (whether or not patentable and
whether or not reduced to practice); (ii) trademarks, service marks, trade
dress, trade names, corporate names, logos, slogans and Internet domain names,
together with all goodwill associated with each of the foregoing; (iii)
copyrights and copyrightable works; (iv) registrations, applications and
renewals for any of the foregoing; and (v) proprietary computer software
(including but not limited to data, data bases and documentation).

"MATERIAL ADVERSE EFFECT" means a material adverse effect on (i) the
assets, liabilities, results of operations, condition (financial or otherwise),
business, or prospects of the Company and its Subsidiaries taken as a whole, or
(ii) the ability of the Company to perform its obligations under the Transaction
Documents.

"PERSON" means an individual, corporation, partnership, limited
liability company, trust, business trust, association, joint stock company,
joint venture, sole proprietorship, unincorporated organization, governmental

 

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