Document:

drsv_ex417.htm

Exhibit 4.17

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES ACT"). THESE SECURITIES HAVE BEEN ACQUIRED FOR INVESTMENT AND NOT WITH A VIEW TO, OR IN CONNECTION WITH, THE DISTRIBUTION THEREOF. THESE SECURITIES MAY NOT BE OFFERED, SOLD, PLEDGED OR TRANSFERRED UNLESS (1) A REGISTRATION STATEMENT UNDER THE ACT IS IN EFFECT AS TO THESE SECURITIES OR (2) THERE IS AN OPINION OF COUNSEL, SATISFACTORY TO THE CORPORATION, THAT AN EXEMPTION THEREFROM IS AVAILABLE (PROVIDED THAT NO SUCH OPINION OF COUNSEL SHALL BE REQUIRED FOR SALES PURSUANT TO RULE 144 UNDER THE ACT).

 

DEBT RESOLVE, INC.

 

WARRANT

to Purchase Common Stock

 

THIS WARRANT IS TO CERTIFY THAT     (the “Purchaser"), is entitled to purchase from Debt Resolve, Inc., a Delaware corporation (the "Company"),   shares of the Company's Common Stock, par value $.001 per share (the "Common Stock"), at the Exercise Price.

 

SECTION 1.  Certain Definitions.

 

As used in this Warrant, unless the context otherwise requires:

 

"Charter" shall mean the Certificate of Incorporation of the Company, as in effect from time to time.

 

"Exercise Price" shall mean $0.30 per share of Common Stock.

 

"Securities Act" shall mean the Securities Act of 1933, as amended.

 

"Warrant" shall mean this Warrant and all additional or new warrants issued upon division or combination of, or in substitution for, this Warrant. All such additional or new warrants shall at all times be identical as to terms and conditions and date, except as to the number of shares of Warrant Stock for which they may be exercised.

 

"Warrantholder" shall mean the Purchaser, as the initial holder of this Warrant, and its nominees, successors or assigns, including any subsequent holder of this Warrant to whom it has been legally transferred.

 

"Warrant Stock" shall mean the shares of the Company's Common Stock purchasable by the holder of this Warrant upon the exercise of such Warrant.

 

  

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SECTION 2.  Exercise of Warrant.

 

(a)           At any time after the Effective Date (as hereinafter defined) but prior to the date which is five years next following the Effective Date (the "Expiration Date"), the Purchaser may at any time and from time to time exercise this Warrant, in whole or in part.  The “Effective Date” shall mean the date upon which the Company consummates a public offering of the Common Stock.

 

(b)           (i)  The Warrantholder shall exercise this Warrant by means of delivering to the Company at its office identified in Section 14 hereof (i) a written notice of exercise, including the number of shares of Warrant Stock to be delivered pursuant to such exercise, (ii) this Warrant and (iii) payment equal to the Exercise Price in accordance with Section 3(b)(ii). In the event that any exercise shall not be for all shares of Warrant Stock purchasable hereunder, a new Warrant registered in the name of the Warrantholder, of like tenor to this Warrant and for the remaining shares of Warrant Stock purchasable hereunder, shall be delivered to the Warrantholder within ten (10) days of any such exercise. Such notice of exercise shall be in the Subscription Form set out at the end of this Warrant.

 

(ii)  The Warrantholder shall pay the Exercise Price to the Company either by cash, certified check or wire transfer.

 

(c)           Upon exercise of this Warrant and delivery of the Subscription Form with proper payment relating thereto, the Company shall cause to be executed and delivered to the Warrantholder a certificate or certificates representing the aggregate number of fully-paid and nonassessable shares of Warrant Stock issuable upon such exercise.

 

(d)           The stock certificate or certificates for Warrant Stock to be delivered in accordance with this Section 2 shall be in such denominations as may be specified in said notice of exercise and shall be registered in the name of the Warrantholder or such other name or names as shall be designated in said notice. Such certificate or certificates shall be deemed to have been issued and the Warrantholder or any other person so designated to be named therein shall be deemed to have become the holder of record of such shares, including to the extent permitted by law the right to vote such shares or to consent or to receive notice as stockholders, as of the time said notice is delivered to the Company as aforesaid.

 

(e)           The Company shall pay all expenses payable in connection with the preparation, issue and delivery of stock certificates under this Section 2.

 

(f)           All shares of Warrant Stock issuable upon the exercise of this Warrant in accordance with the terms hereof shall be validly issued, fully paid and nonassessable, and free from all liens and other encumbrances thereon, other than liens or other encumbrances created by the Warrantholder.

 

(g)           In no event shall any fractional share of Warrant Stock of the Company be issued upon any exercise of this Warrant. If, upon any exercise of this Warrant, the Warrantholder would, except as provided in this paragraph, be entitled to receive a fractional share of Warrant Stock, then the Company shall either (a) deliver in cash to such holder an amount equal to such fractional interest, or (b) issue a full share in lieu of such fractional share.

 

  

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SECTION 3.  Division and Combination.

 

This Warrant may be divided or combined with other Warrants upon presentation at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Warrantholder or its agent or attorney.  The Company shall pay all expenses in connection with the preparation, issue and delivery of Warrants under this Section 4.  The Company agrees to maintain at its aforesaid office books for the registration of the Warrants.

 

SECTION 4.  Reclassification, Etc.

 

In case of any reclassification or change of the outstanding Warrant Stock of the Company (other than as a result of a subdivision, combination or stock dividend), or in case of any consolidation of the Company with, or merger of the Company into, another corporation or other business organization (other than a consolidation or merger in which the Company is the continuing corporation and which does not result in any reclassification or change of the outstanding Warrant Stock of the Company) at any time prior to the Expiration Date, then, as a condition of such reclassification, reorganization, change, consolidation or merger, lawful provision shall be made, and duly executed documents evidencing the same from the Company or its successor shall be delivered to the Warrantholder, so that the Warrantholder shall have the right prior to the Expiration Date to purchase, at a total price not to exceed that payable upon the exercise of this Warrant, the kind and amount of shares of stock and other securities and property receivable upon such reclassification, reorganization, change, consolidation or merger by a holder of the number of shares of Warrant Stock of the Company which might have been purchased by the Warrantholder immediately prior to such reclassification, reorganization, change, consolidation or merger, and in any such case appropriate provisions shall be made with respect to the rights and interest of the Warrantholder to the end that the provisions hereof (including provisions for the adjustment of the Exercise Price and of the number of shares purchasable upon exercise of this Warrant) shall thereafter be applicable in relation to any shares of stock and other securities and property thereafter deliverable upon exercise hereof.

 

SECTION 5.  Reservation and Authorization of Capital Stock.

 

The Company shall, at all times on and after the date hereof, reserve and keep available for issuance such number of its authorized but unissued shares of Common Stock as will be sufficient to permit the exercise in full of all outstanding Warrants.

 

  

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SECTION 6.  Rights of Stockholders.

 

Nothing contained herein be construed to confer upon the holder of this Warrant, as such, any of the rights of a stockholder of the Company or any right to vote for the election of directors or upon any matter submitted to stockholders at any meeting thereof, or to give or withhold consent to any corporate action (whether upon any recapitalization, issuance of stock, reclassification of stock, change of par value or change of stock to no par value, consolidation, merger, conveyance, or otherwise) or to receive notice of meetings, or to receive dividends or subscription rights or otherwise until the Warrant shall have been exercised and the certificates representing the Warrant Stock shall have been issued, as provided herein.

 

SECTION 7.  Stock and Warrant Books.

 

The Company will not at any time, except upon dissolution, liquidation or winding up, close its stock books or warrant books so as to result in preventing or delaying the exercise of any Warrant.

 

SECTION 8.   Limitation of Liability.

 

No provisions hereof, in the absence of affirmative action by the Warrantholder to purchase Warrant Stock hereunder, shall give rise to any liability of the Warrantholder to pay the Exercise Price or as a stockholder of the Company (whether such liability is asserted by the Company or creditors of the Company).

 

SECTION 9.  Transfer.

 

This Warrant may be transferred only upon the written consent of the Company, which approval shall not be unreasonably withheld or delayed. Any Warrants issued upon the transfer of this Warrant shall be numbered and shall be registered in a Warrant Register as they are issued. The Company shall be entitled to treat the registered holder of any Warrant on the Warrant Register as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to, or interest in, such Warrant on the part of any other person, and shall not be liable for any registration of transfer of Warrants that are registered or to be registered in the name of a fiduciary or the nominee of a fiduciary unless made with the actual knowledge that a fiduciary or nominee is committing a breach of trust in requesting such registration or transfer, or with the knowledge of such facts that its participation therein amounts to bad faith. This Warrant shall be transferable only on the books of the Company upon delivery thereof duly endorsed by the Holder or by his duly authorized attorney or representative, or accompanied by proper evidence of succession, assignment, or authority to transfer. In all cases of transfer by an attorney, executor, administrator, guardian, or other legal representative, duly authenticated evidence of his or its authority shall be produced. Upon any registration of transfer, the Company shall deliver a new Warrant or Warrants to the person entitled thereto. This Warrant may be exchanged, at the option of the Holder thereof, for another Warrant, or other Warrants of different denominations, of like tenor and representing in the aggregate a like amount, upon surrender to the Company or its duly authorized agent. Notwithstanding the foregoing, the Company shall have no obligation to cause Warrants to be transferred on its books to any person if, in the opinion of counsel to the Company, such transfer does not comply with the provisions of the Securities Act and the rules and regulations thereunder.

 

  

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SECTION 10. Investment Representations; Restrictions on Warrant Stock.

 

Unless a current registration statement under the Securities Act shall be in effect with respect to the Warrant Stock to be issued upon exercise of this Warrant, the Warrantholder, by accepting this Warrant, covenants and agrees that, at the time of exercise hereof, and at the time of any proposed transfer of Warrant Stock acquired upon exercise hereof, such Warrantholder will deliver to the Company a written statement that the securities acquired by the Warrantholder upon exercise hereof are for the account of the Warrantholder or are being held by the Warrantholder as trustee, investment manager, investment advisor or as any other fiduciary for the account of the beneficial owner or owners for investment and are not acquired with a view to, or for sale in connection with, any distribution thereof (or any portion thereof) and with no present intention (at any such time) of offering and distributing such securities (or any portion thereof).

 

SECTION 11. Loss, Destruction of Warrant Certificates.

 

Upon receipt of evidence satisfactory to the Company of the loss, theft, destruction or mutilation of any warrant and, in the case of any such loss, theft or destruction, upon receipt of indemnity and/or security satisfactory to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company will make and deliver, in lieu of such lost, stolen, destroyed or mutilated Warrant, a new Warrant of like tenor and representing the right to purchase the same aggregate number of shares of Warrant Stock.

 

SECTION 12. Amendments.

 

The terms of this Warrant may be amended, and the observance of any term herein may be waived, but only with the written consent of the Company and the Warrantholder.

 

SECTION 13. Notices Generally.

 

Any notice, request, consent, other communication or delivery pursuant to the provisions hereof shall be in writing and shall be sent by one of the following means: (i) by registered or certified first class mail, postage prepaid, return receipt requested; (ii) by facsimile transmission with confirmation of receipt; (iii) by overnight courier service; or (iv) by personal delivery, and shall be properly addressed to the Warrantholder at the last known address or facsimile number appearing on the books of the Company, or, except as herein otherwise expressly provided, to the Company at its principal executive office at Debt Resolve, Inc., 150 White Plains Road, Suite 108, Tarrytown, NY 10591 (fax: (914) 428-3044), Attention: Mr. David M. Rainey, President and Chief Financial Officer; with a copy to: Spencer G. Feldman, Esq., Greenberg Traurig, LLP, MetLife Building, 200 Park Avenue, New York, NY 10166 (fax: (212) 801-6400), or such other address or facsimile number as shall have been furnished to the party giving or making such notice, demand or delivery.

 

  

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SECTION 14. Successors and Assigns.

 

This Warrant shall bind and inure to the benefit of and be enforceable by the parties hereto and their respective permitted successors and assigns. These Warrants may be assigned in whole or in part by the investor to accredited investors subject to approval by Debt Resolve, which approval shall not be unreasonably withheld.

 

SECTION 15. Governing Law.

 

In all respects, including all matters of construction, validity and performance, this Warrant and the obligations arising hereunder shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts made and performed in such State.

 

  

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IN WITNESS WHEREOF, and effective as of the Effective Date the Company has caused this Warrant to be signed in its name by its duly authorized officer.

 

	 	DEBT RESOLVE, INC.	 
	 	 	 	 
	
Dated: January __, 2011

	
By: 

	 /s/ David M. Rainey	 
	 	 	David M. Rainey	 
	 	 	President and Chief Financial Officer	 
	 	 	 	 

 

 7drsv_ex418.htm

EXHIBIT 4.18

 

SECURITIES PURCHASE AGREEMENT

 

This SECURITIES PURCHASE AGREEMENT (this “Agreement”) is made and entered into as of June ___, 2011, by and between Debt Resolve, Inc., a Delaware corporation (the “Company”), and ________ (the “Investor”).

 

WHEREAS, the Investor desires to purchase from the Company, and the Company desires to sell and issue to the Investor, Common Stock of the Company (“Stock”) upon the terms and conditions set forth in this Agreement; and

 

WHEREAS, in connection with the Investor’s purchase of the Stock, the Investor will receive certain rights, and will be subject to certain restrictions on the transfer of the Stock, all as more fully set forth in this Agreement.

 

NOW, THEREFORE, in consideration of the mutual terms, conditions and other agreements set forth herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto hereby agree to the sale and purchase of the Stock as set forth herein.

 

	
1.

	
Definitions.

 

For purposes of this Agreement, the terms set forth below shall have the corresponding meanings provided below.

 

“Affiliate” shall mean, with respect to any specified Person, (i) if such Person is an individual, the spouse, heirs, executors, or legal representatives of such individual, or any trusts for the benefit of such individual or such individual’s spouse and/or lineal descendants, or (ii) otherwise, another Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is under common control with, the Person specified.  As used in this definition, “control” shall mean the possession, directly or indirectly, of the sole and unilateral power to cause the direction of the management and policies of a Person, whether through the ownership of securities or by contract or other written instrument.

 

“Business Day” shall mean any day on which banks located in New York City are not required or authorized by law to remain closed.

 

“Shares” shall mean the shares issued at the time of the investment.

 

“Person” shall mean an individual, entity, corporation, partnership, association, limited liability company, limited liability partnership, joint-stock company, trust or unincorporated organization.

 

  

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“Transfer” shall mean any sale, transfer, assignment, conveyance, charge, pledge, mortgage, encumbrance, hypothecation, security interest or other disposition, or to make or effect any of the above.

 

“Underwriting Documents” shall mean an underwriting agreement in customary form and all other agreements and other documents reasonably requested by an underwriter in connection with an underwritten public offering of equity securities (including, without limitation, questionnaires, powers of attorney, indemnities, custody agreements and lock-up agreements).

 

	
2.

	
Sale and Purchase of Stock.

 

2.1.           Purchase of Stock by Investor.  Subject to the terms and conditions of this Agreement, the Investor hereby agrees to purchase the Stock from the Company, and the Company hereby agrees to issue and execute the Stock to the Investor, with a price of $0.10 per share, for an aggregate purchase price of $____________ (the “Consideration”).

 

2.2.           Closing; Deliveries.

 

(a)           The closing of the acquisition of the Stock (the “Closing”) shall take place at the offices of Debt Resolve, Inc., the Company, at 150 White Plains Rd., Suite 108, Tarrytown, New York 10591, or at such other place as the parties may mutually agree upon, at such date and time on which the parties may mutually agree (the “Closing Date”).

 

(b)           At the Closing, the Company shall deliver to the Investor, against delivery by the Investor of the Consideration (as provided below), duly issued Shares.  The Consideration shall be paid by (i) certified check, or (ii) wire transfer of immediately available funds in accordance with wire transfer instructions which will be provided by the Company upon the Investor’s request.

 

	
3.

	
Representations, Warranties and Acknowledgments of the Investor.

 

The Investor hereby represents, warrants and acknowledges to the Company as follows:

 

3.1.           Execution, Delivery and Performance.

 

The Investor has full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder and this Agreement has been duly authorized, executed and delivered by it and is valid, binding and enforceable against it in accordance with its terms.

 

3.2.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Investor will conflict with, or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Investor is a party or by which the Investor is bound.

 

  

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3.3.           Investment Representations.

 

(a)           The Investor understands that the offering and sale of the Stock is intended to be exempt from registration under the Securities Act of 1933, as amended (the “Securities Act”), by virtue of the provisions of Section 4(2) of the Securities Act and Regulation D adopted thereunder (“Regulation D”).  The Investor is acquiring the Stock solely for purposes of investment and with no present intention to distribute such Stock.  The Investor is an “accredited investor,” as defined in Rule 501 of Regulation D, and it has such knowledge and experience in financial and business affairs as to be capable of evaluating the merits and risks of an investment in the Company pursuant to the terms of this Agreement.

 

(b)           The Investor understands that (i) the purchase of the Stock is a speculative investment which involves a high degree of risk of loss including a complete loss of such Investor's investment therein, (ii) there are substantial restrictions on the transferability of the Stock under the terms hereof and the provisions of the Securities Act and (iii) for an indefinite period following the Closing there may be a limited public market for the Stock and, accordingly, it may not be possible to liquidate its investment in the Company in case of emergency or otherwise.

 

3.4.           Access to Information; Reliance.

 

The Investor has been provided an opportunity to ask questions of, and has received answers thereto satisfactory to it from, the Company and its representatives concerning the Company and the Investor’s investment therein, and the Investor has been provided with such information as it has requested from the Company concerning the same.  The Investor is relying on no representations or warranties concerning the Stock or the Company except those set forth in this Agreement.  The Investor has sought independent legal, investment and tax advice to the extent that it has deemed necessary or appropriate in connection with its decision to invest in the Company.

 

3.5.           Investor Information.

 

The information concerning the Investor set forth on the signature page hereof is true and correct.  The Investor shall promptly notify the Company and provide the Company with corrected information should any of such Investor information cease to be correct following the date hereof.

 

  

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4.

	
Representations and Warranties of the Company.

 

The Company represents and warrants to the Investor as follows:

 

4.1.           Execution, Delivery and Performance.

 

The Company has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement has been duly authorized, executed and delivered by the Company and is valid, binding and enforceable against the Company in accordance with its terms.

 

4.2.           Conversion Shares Duly Authorized.

 

The Stock to be issued to each such Investor upon investment pursuant to this Agreement, when issued and delivered in accordance with the terms of this Agreement, will be duly and validly issued and will be fully paid and non-assessable.

 

4.3.           No Conflicts.

 

None of the execution, delivery and performance of this Agreement by the Company will conflict with the Company's Certificate of Incorporation, as amended, or By-laws or result in a breach of any terms or provisions of, or constitute a default under, any material contract, agreement or instrument to which the Company is a party or by which the Company is bound.

 

4.4.           Capitalization.

 

(a)           As of May 14, 2011, the authorized capital stock of the Company consists of (i) 200,000,000 shares of Common Stock, of which 80,222,515 shares are currently issued and outstanding. As of March 31, 2011 warrants of 49,717,195 and options of 15,929,934 outstanding, and convertible notes of $1,347,000 convertible to up to 9,888,334 shares and (ii) 10,000,000 shares of preferred stock, par value $.001 per share, of which no shares are issued and outstanding.  Except as described above, in the SEC Documents (as such term is defined below) and in Sections 4.4(b) and 9.2, the Company will not, upon the consummation of the transactions contemplated hereby (1) have outstanding any capital stock or securities convertible into or exchangeable for any shares of its capital stock and no person will have any right to subscribe for or to purchase, or any options for the purchase of, or any agreements providing for the issuance of, any calls, commitments or other claims relating to, any capital stock or any securities convertible into or exchangeable for any capital stock of the Company or (2) be subject to any obligation to repurchase or otherwise acquire or retire any shares of its capital stock or any convertible securities, rights or options of the type described in clause (1) above.

 

(b)           Notwithstanding the provisions of Section 4.4(a), the Investor acknowledges that the Company may issue Notes or Common Stock to additional investors on potentially different terms in one or more subsequent transactions, whether to individual investors, institutions or otherwise.

 

  

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4.5.           Information.

 

(a)           The Company has delivered to the Investor true, accurate and complete copies of the Company's Annual Report on Form 10-K for the fiscal year ended December 31, 2010 and the Quarterly Report on Form 10-Q for the three months ended March 31, 2011 (the "SEC Documents").  None of the SEC Documents nor any other form, statement, notice, report or document filed by the Company with the SEC prior to the date hereof contained, as of their respective dates, any untrue statement of a material fact or omitted to state a material fact necessary in order to make the statements contained therein not misleading.

 

(b)           Except as publicly filed with the SEC, the Company has not filed, and nothing has occurred with respect to which the Company would be required to file, any report on Form 8-K since April 1, 2011.  Prior to and until the Closing, the Company will provide to the Investor copies of any and all reports filed by the Company after April 1, 2011 with the SEC and any and all reports or notices delivered to the stockholders of the Company concurrently with the filing or delivery thereof.

 

(c)           The shares of Common Stock are currently listed on the Over-the-Counter Bulletin Board.

 

	
5. 

	
Transfer Restrictions.

 

5.1.           Securities Act Restrictions.

 

Notwithstanding anything to the contrary in this Agreement, the Investor may not Transfer any of the Stock unless and until (a) the Company has received an opinion of counsel reasonably satisfactory to it that the Stock may be sold pursuant to an exemption from registration under the Securities Act, the availability of which is established to the reasonable satisfaction of the Company or (b) a registration statement relating to the Stock has been filed by the Company and declared effective by the SEC.

 

5.2.           Restrictions in Connection with Underwritten Offerings.

 

Notwithstanding anything to the contrary in this Agreement, the Investor may not Transfer the Stock for such time before or following the effective date of a registration statement with respect to a public offering of securities of the Company as may be reasonably requested by an underwriter of such securities and agreed to by the Company.

 

5.3.           Non-Compliant Transfers.

 

Any Transfer or purported Transfer made in violation of the provisions of this Section 6 or Section 9.7 shall be null and void and without effect.

 

  

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6.

	
Conditions to Closing of the Investor.

 

The obligations of the Investor to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

	
  

	
6.1.

	
Representations and Warranties.

 

The representations and warranties made by the Company in Section 4 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

	
  

	
6.2.

	
Approvals.

 

All authorizations, approvals or permits, if any, of any governmental authority or regulatory body that are required in connection with the lawful issuance of the Stock by the Company pursuant to this Agreement, shall have been duly obtained by the Company and shall be effective on and as of the Closing Date.

 

	
  

	
6.3.

	
Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Company in connection with the transactions contemplated hereby shall have occurred and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Investor.

 

	
7.

	
Conditions to Closing of the Company.

 

The obligations of the Company to effect the transactions contemplated by this Agreement are subject to the fulfillment at or prior to the Closing Date of the conditions listed below.

 

	
  

	
7.1.

	
Representations and Warranties.

 

The representations and warranties made by the Investor in Section 3 shall be true and correct in all material respects at the time of Closing as if made on and as of such date.

 

	
  

	
7.2.

	
Corporate Proceedings.

 

All corporate and other proceedings required to be undertaken by the Investor in connection with the transactions contemplated hereby shall have occurred and all documents and instruments incident to such proceedings shall be reasonably satisfactory in substance and form to the Company.

 

  

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8. 

	
Miscellaneous.

 

8.1.          Restrictive Legend.

 

The Stock shall bear a legend containing a disclosure statement in substantially the following form:

 

The securities represented by this certificate (the “Stock”) have not been registered under the Securities Act of 1933, as amended (the “Securities Act”).  The Stock may not be offered for sale, sold, transferred or otherwise disposed of except pursuant to (a) an effective registration statement under the Securities Act or (b) an exemption from registration under the Securities Act, which exemption is confirmed in an opinion of counsel satisfactory to the Company.  The sale, transfer or other disposition of the Stock is restricted by the provisions of the Securities Purchase Agreement, dated as of June ___, 2011, in respect of the Shares, a copy of which may be obtained at no cost by written request made by the holder of record of this certificate to the Company at its principal executive offices.

 

8.3.          Notices.

 

All notices, requests, demands and other communications provided in connection with this Agreement shall be in writing and shall be deemed to have been duly given at the time when hand delivered, delivered by express courier, or sent by facsimile (with receipt confirmed by the sender’s transmitting device) in accordance with the contact information provided below or such other contact information as the parties may have duly provided by notice.

 

The Company:

 

	Debt Resolve, Inc.	 	 
	150 White Plains, Suite 108	 	 
	Tarrytown, New York 10591	 	 
	
Telephone:  914-949-5500

	 	 
	
Facsimile:  914-428-3044

	 	 
	
Attn: Mr. David M. Rainey,

	 	 
	    President	 	 

 

  

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The Investor:

 

As per the contact information provided on the signature page hereof.

 

8.4           Survival of Representations and Warranties.

 

Each party hereto covenants and agrees that the representations and warranties of such party contained in this Agreement shall survive the Closing.

 

8.5.           Entire Agreement.

 

This Agreement contains the entire agreement between the parties hereto in respect of the subject matter contained herein and supersedes all prior agreements and understandings of the parties, oral and written, with respect to the subject matter contained herein.

 

8.6.           Assignment.

 

This Agreement, and the rights and obligations of a party hereunder, may not be assigned or Transferred by the Investor without the prior written consent of the Company.

 

8.7.           Transferee’s Adherence to Certain Provisions.

 

Notwithstanding anything to the contrary in this Agreement, prior to the six month anniversary of the Closing Date, no Shares shall be Transferred to any Person who does not provide the Company with a written instrument pursuant to which such Transferee agrees to be bound by the provisions of Section 6.  Any Transfer or purported Transfer made in violation of this Section 9.8 shall be null and void and without effect.

 

8.8.           Confidentiality.

 

The Investor shall use its best efforts to prevent the disclosure of any Confidential Information to any third party, other than its Affiliates or professional advisors who have a need to know such Confidential Information in connection with the review or monitoring of the Investor’s investment in the Company and who have been advised of and agree to comply with the restrictions upon such Confidential Information set forth in this Agreement.  Notwithstanding the foregoing, the Investor may disclose such Confidential Information (a) in connection with a proposed Transfer of Shares provided that any potential Transferee executes and delivers to the Company a confidentiality agreement containing the restrictions set forth in this Section 9.8 and (b) to the extent necessary to comply with an order of a court of competent jurisdiction or other competent governmental authority, provided that the Investor shall promptly inform the Company of any such order and provide such cooperation as the Company may reasonably request in order to obtain an appropriate protective order with respect to such Confidential Information.  As used in this Agreement, “Confidential Information” shall mean (i) any information concerning the existence or terms and conditions of the transactions contemplated hereby, (ii) any technical information concerning the Company or its intellectual property or (iii) any financial, tax or commercial information concerning the Company, provided that the term Confidential Information shall not include any information (A) of which the Investor shall have had knowledge prior to the date hereof, (B) that has entered the public domain through no fault of the Investor or (C) of which the Investor shall have learned from a third party in such a manner that such it reasonably believed that such third party was not prohibited from disclosing such information.

 

  

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8.9.          Binding Effect; Benefits.

 

This Agreement and all the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns; nothing in this Agreement, expressed or implied, is intended to confer on any persons other than the parties hereto or their respective successors and permitted assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement.

 

	
  

	
8.10.

	
Amendment; Waivers.

 

All modifications or amendments to this Agreement shall require the written consent of both the Company and the Investor.  No waiver of any breach, noncompliance or nonfulfillment of any of the provisions of this Agreement shall be effective unless set forth in a written instrument executed by the party against whom such waiver is sought; and no waiver of any such breach, noncompliance or nonfulfillment shall be construed to be a waiver of any other or subsequent breach, noncompliance or nonfulfillment.

 

	
  

	
8.11.

	
Applicable Law; Disputes.

 

This Agreement shall be governed by and construed in accordance with the laws of the State of New York without giving effect to the conflict of law provisions thereof, and the parties hereto irrevocably submit to the exclusive jurisdiction of the United States District Court for the Southern District of New York, or, if jurisdiction in such court is lacking, the Supreme Court of the State of New York, New York County, in respect of any dispute or matter arising out of or connected with this Agreement.

 

	
  

	
8.12.

	
Further Assurances.

         

Each party hereto shall do and perform or cause to be done and performed all such further acts and shall execute and deliver all such other agreements, certificates, instruments and documents as any other party hereto reasonably may request in order to carry out the intent and accomplish the purposes of this Agreement and the consummation of the transactions contemplated hereby.

 

	
  

	
8.13.

	
Counterparts.

 

This Agreement may be executed in any number of counterparts, each of which shall be deemed to be an original and all of which taken together shall constitute one and the same instrument.

 

  

9

  

 

IN WITNESS WHEREOF, each of the Company and the Investor has caused this Agreement to be executed as of the date first written above.

 

	DEBT RESOLVE, INC.	 	 	 	 
	 	 	 	 	 
	By:	
/s/ David M. Rainey

	 	 	
 

	 
	
   David M. Rainey

	 	 	
Name 

	 
	
   President and Chief Financial Officer

	 	 	
 

	 
	 	 	 	
Social Security Number: __________________

	 
	 	 	 	 	 
	 	 	 	Contact Information for Notices:	 
	 	 	 	 	 
	 	 	 	Address:_____________________________	 
	 	 	 	 	 
	 	 	 	
Home Telephone: _______________________

	 
	 	 	 	 	 
	 	 	 	
Office Telephone:  ______________________

	 
	 	 	 	 	 
	 	 	 	
Home Facsimile: ________________________

	 
	 	 	 	 	 
	 	 	 	Office Facsimile:  _______________________	 
	 	 	 	 	 
	 	 	 	E-Mail Address: ________________________	 

 

 10

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