Document:

ex-10_15.htm

OHR Pharmaceutical, Inc. 10-K

 

Exhibit 10.15

 

	
Void after _______, 2015

	  	
Warrant No. H-______

This Warrant and any shares acquired upon the exercise of this Warrant have not been registered under the Securities Act of 1933.  This Warrant and such shares may not be sold or transferred in the absence of such registration or an exemption therefrom under said Act.  This Warrant and such shares may not be transferred except upon the conditions specified in this Warrant, and no transfer of this Warrant or such shares shall be valid or effective unless and until such conditions shall have been complied with.

OHR PHARMACEUTICAL, INC.

CLASS H REDEEMABLE PURCHASE WARRANT

Ohr Pharmaceutical, Inc., a Delaware corporation (the “Company”), having its principal office at 1245 Brickyard Rd., #590, Salt Lake City, Utah  84106, hereby certifies that, for value received, ___________________, or assigns, is entitled, subject to the terms set forth below, to purchase from the Company at any time on or from time to time after the Commencement Date (as defined below) and before 5:00 P.M., New York City time, on January 15, 2015, or as extended in accordance with the terms hereof (the “Expiration Date”), ______________ fully paid and non-assessable shares of Common Stock of the Company, at the initial Purchase Price per share (as defined below) of $0.55.  The number and character of such shares of Common Stock and the Purchase Price per share

 

Background.  The Company agreed to issue warrants to purchase an aggregate of up to 5,583,336 shares of Common Stock (subject to adjustment as provided herein) (the “Warrants”), as replacement warrants to investors exercising warrants in connection with the Class F Warrant Redemption letter dated December 16, 2009.

As used herein the following terms, unless the context otherwise requires, have the following respective meanings:

“Additional Assets” has the meaning set forth in Section 7.

 

“Common Stock” shall mean stock of the Company of any class (however designated) whether now or hereafter authorized, which generally has the right to participate in the voting and in the distribution of earnings and assets of the Company without limit as to amount or percentage, which as of the date of this Warrant shall mean the Company’s Common Stock, no par value per share.

 

“Company” includes the Company and any corporation which shall succeed to or assume the obligations of the Company hereunder. The term “corporation” shall include an association, joint stock company, business trust, limited liability company or other similar organization.

 

  

  

  

“Commencement Date” means the Original Issue Date.

 

“Convertible Securities” means (i) options to purchase or rights to subscribe for Common Stock, (ii) securities by their terms convertible into or exchangeable for Common Stock or (iii) options to purchase or rights to subscribe for such convertible or exchangeable securities.

 

“Exchange Act” means the Securities Exchange Act of 1934 as the same shall be in effect at the time.

 

“Excluded Stock” shall mean (i) all shares of Common Stock issued or issuable to employees, directors or consultants pursuant to any equity compensation plan that is in effect on the date of this Warrant, (ii) all shares of Common Stock issued or issuable to employees or directors pursuant to any equity compensation plan approved by the stockholders of the Company after the date of this Warrant, (iii) all shares of Common Stock issued or issuable to employees, directors or consultants as bona fide compensation for business services rendered, not compensation for fundraising activities, (iv) all shares of Common Stock issued or issuable to bona fide leasing companies, strategic partners, or major lenders, (v) all shares of Common Stock issued or issuable as the purchase price in a bona fide acquisition or merger (including reasonable fees paid in connection therewith) or (vi) all Warrant Shares (as defined in the Subscription Agreement), Additional Warrants (as defined in the Subscription Agreement) and shares issued upon conversion or exercise of other Convertible Securities outstanding on the date hereof.

 

“Fair Market Value” of assets or securities (other than Common Stock) shall mean the fair market value as reasonably determined by the Board of Directors of the Company in good faith in accordance with generally accepted accounting principles.

 

“Holder” means any record owner of Warrants or Underlying Securities.

 

“Market Price” at any date shall be deemed to be (i) if the principal trading market for such securities is The Nasdaq SmallCap Market or another exchange, the high reported sale price per share of Common Stock on the date immediately before the date of determination, (ii) if the principal market for the Common Stock is the over-the-counter market, the high reported sale price per share of Common Stock on the date immediately before the date of determination or, (iii) if the Common Stock is not quoted by such over-the-counter market, the average of the mean of the bid and asking prices per share on such trading day as set forth in the National Quotation Bureau sheet listing such securities for such day.  Notwithstanding the foregoing, if there is no reported high sale price, as the case may be, reported on the trading day preceding the event requiring a determination of Market Price hereunder, then the Market Price shall be the average of the high bid and asked prices for such day; and if there is no reported high bid and asked prices, as the case may be, reported on the trading day preceding the event requiring a determination of Market Price hereunder, then the Market Price shall be determined in good faith by resolution of the Board of Directors of the Company, based on the best information available to it or in the event of a dispute of the determination of the Board of Directors of the Company provided in clause (b) above, by arbitration in accordance with the rules then standing of the American Arbitration Association, before a single arbitrator to be

 

  

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chosen by the Company and reasonably acceptable to a majority in interest of the holders of Warrants from a panel of persons qualified by education and training to pass on the matter to be decided.

 

“Merger” has the meaning set forth in the Subscription Agreement.

 

“New Purchase Price” has the meaning set forth in Section 7.

 

“Options” means rights, warrants or options to subscribe for, purchase or otherwise acquire Common Stock.

 

“Original Issue Date” means January__, 2010.

 

“Other Securities” refers to any stock (other than Common Stock) and other securities of the Company or any other person (corporate or otherwise) which the Holders of the Warrants at any time shall be entitled to receive, or shall have received, upon the exercise of the Warrants, in lieu of or in addition to Common Stock, or which at any time shall be issuable or shall have been issued in exchange for or in replacement of Common Stock or Other Securities pursuant to Section 6 or otherwise.

 

“Purchase Price per share” means $0.55 per share, as adjusted from time to time in accordance with the terms hereof.

 

“Ratchet Issuance” has the meaning set forth in Section 7.

 

“Ratchet Price” means $0.18 per share as adjusted from time to time in the same manner as adjustments to the Purchase Price per Share set forth in Section 5.

 

“Registered” and “registration” refer to a registration effected by filing a registration statement in compliance with the Securities Act, to permit the disposition of Common Stock (or Other Securities) issued or issuable upon the exercise of Warrants, and any post-effective amendments and supplements filed or required to be filed to permit any such disposition.

 

“Securities Act” means the Securities Act of 1933 as the same shall be in effect at the time.

 

“Underlying Securities” means any Common Stock or Other Securities issued or issuable upon exercise of Warrants.

 

“Warrant” means, as applicable, this Warrant or each right as set forth in this Warrant to purchase one share of Common Stock, as adjusted.

 

  

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1.           Registration, etc.  The Holder shall have the rights to registration of Underlying Securities issuable upon exercise of the Warrants that are set forth in the Subscription Agreement.

 

2.           Sale or Exercise Without Registration.  If, at the time of any exercise, transfer or surrender for exchange of a Warrant or of Underlying Securities previously issued upon the exercise of Warrants, such Warrant or Underlying Securities shall not be registered under the Securities Act, the Company may require, as a condition of allowing such exercise, transfer or exchange, that the Holder or transferee of such Warrant or Underlying Securities, as the case may be, furnish to the Company an opinion of counsel, reasonably satisfactory to the Company, to the effect that such exercise, transfer or exchange may be made without registration under the Securities Act, provided that the disposition thereof shall at all times be within the control of such Holder or transferee, as the case may be, and provided further that nothing contained in this Section 2 shall relieve the Company from complying with its obligations concerning registration of Underlying Securities pursuant to the Subscription Agreement.

 

3.           Exercise of Warrant.

 

3.1.           Exercise in Full.  Subject to the provisions hereof, this Warrant may be exercised in full by the Holder hereof by surrender of this Warrant, with the form of subscription at the end hereof duly executed by such Holder, to the Company at its principal office accompanied by payment, in cash or by certified or official bank check payable to the order of the Company, in the amount obtained by multiplying the number of shares of Common Stock issuable upon exercise of this Warrant by the Purchase Price per share, after giving effect to all adjustments through the date of exercise.

 

3.2.           Partial Exercise.  Subject to the provisions hereof, this Warrant may be exercised in part by surrender of this Warrant in the manner and at the place provided in Section 3.1 except that the amount payable by the Holder upon any partial exercise shall be the amount obtained by multiplying (a) the number of shares of Common Stock (without giving effect to any adjustment therein) designated by the Holder in the subscription at the end hereof by (b) the Purchase Price per share.  Upon any such partial exercise, the Company at its expense will forthwith issue and deliver to or upon the order of the Holder hereof a new Warrant or Warrants of like tenor, in the name of the Holder hereof or as such Holder (upon payment by such Holder of any applicable transfer taxes) may request, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock equal (without giving effect to any adjustment therein) to the number of such shares called for on the face of this Warrant minus the number of such shares designated by the Holder in the subscription at the end hereof.

 

3.3.           Company to Reaffirm Obligations.  The Company will, at the time of any exercise of this Warrant, upon the request of the Holder hereof, acknowledge in writing its continuing obligation to afford to such Holder any rights (including, without limitation, any right to registration of the Underlying Securities) to which such Holder shall continue to be entitled after such exercise in accordance with the provisions of this Warrant, provided that if the Holder of this Warrant shall fail to make any such request, such failure shall not affect the continuing obligation of the Company to afford such Holder any such rights.

 

  

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3.4.           Certain Exercises.  If an exercise of a Warrant or Warrants is to be made in connection with a registered public offering or sale of the Company, such exercise may, at the election of the Holder, be conditioned on the consummation of the public offering or sale of the Company, in which case such exercise shall not be deemed effective until the consummation of such transaction.

 

4.           Delivery of Stock Certificates, etc., on Exercise.  As soon as practicable after the exercise of this Warrant in full or in part, and in any event within three business days after delivery or surrender of all documents and instruments required to be delivered or surrendered to the Company for such exercise, including payment of the exercise price in cash or securities in accordance with this Warrant, the Company at its own expense (including the payment by it of any applicable issue taxes) will cause to be issued in the name of and delivered to the Holder hereof, or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct, a certificate or certificates for the number of fully paid and non-assessable shares of Common Stock or Other Securities to which such Holder shall be entitled upon such exercise, plus, in lieu of any fractional share to which such Holder would otherwise be entitled, cash equal to such fraction multiplied by the then current Market Price of one full share, together with any other stock or other securities and property (including cash, where applicable) to which such Holder is entitled upon such exercise pursuant to Section 5 or otherwise.

 

5.           Adjustment for Dividends in Other Stock, Property, etc.; Reclassification, etc.  In case at any time or from time to time after the Original Issue Date the holders of Common Stock (or, if applicable, Other Securities) shall have received, or (on or after the record date fixed for the determination of stockholders eligible to receive) shall have become entitled to receive, without payment therefor:

 

(a)           other or additional stock or other securities or property (other than cash) by way of dividend, or

 

(b)           any cash paid or payable (including, without limitation, by way of dividend), or

 

(c)           other or additional stock or other securities or property (including cash) by way of spin-off, split-up, reclassification, recapitalization, combination of shares or similar corporate rearrangement,

 

then, and in each such case the Holder of this Warrant, upon the exercise hereof as provided in Section 3, shall be entitled to receive the amount of stock and other securities and property (including cash in the cases referred to in subdivisions (b) and (c) of this Section 5 which such Holder would hold on the date of such exercise if on the Original Issue Date such Holder had been the Holder of record of the number of shares of Common Stock called for on the face of this Warrant and had thereafter, during the period from the Original Issue Date to and including the date of such exercise, retained such shares and all such other or additional stock and other securities and property (including cash in the cases referred to in subdivisions (b) and (c) of this Section 5 receivable by such Holder as aforesaid) during such period, giving effect to all adjustments called for during such period by Sections 6 and 7 hereof.  If the number of shares of Common Stock outstanding at any time after the date hereof is decreased by a combination or reverse stock split of the outstanding shares of Common Stock, the Purchase Price per share shall be increased, and the number of shares of Common Stock purchasable under this Warrant shall be decreased in proportion to such decrease in outstanding shares of Common Stock.

 

  

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6.           Reorganization, Consolidation, Merger, etc.  In case the Company after the Original Issue Date shall (a) effect a reorganization, (b) consolidate with or merge into any other person or (c) transfer all or substantially all of its properties or assets to any other person under any plan or arrangement contemplating the dissolution of the Company, then, in each such case, the Holder of this Warrant, upon the exercise hereof as provided in Section 3 at any time after the consummation of such reorganization, consolidation or merger or the effective date of such dissolution, as the case may be, shall be entitled to receive (and the Company shall be entitled to deliver), in lieu of the Underlying Securities issuable upon such exercise prior to such consummation or such effective date, the stock and other securities and property (including cash) to which such Holder would have been entitled upon such consummation or in connection with such dissolution, as the case may be, if such Holder had so exercised this Warrant immediately prior thereto, all subject to further adjustment thereafter as provided in Sections 5 and 7 hereof. The Company shall not effect any such reorganization, consolidation, merger or sale, unless prior to or simultaneously with the consummation thereof, the successor corporation resulting from such consolidation or merger or the corporation purchasing such assets or the appropriate corporation or entity shall assume, by written instrument, the obligation to deliver to each Holder the shares of stock, cash, other securities or assets to which, in accordance with the foregoing provisions, each Holder may be entitled to and all other obligations of the Company under this Warrant. In any such case, if necessary, the provisions set forth in this Section 6 with respect to the rights thereafter of the Holders shall be appropriately adjusted so as to be applicable, as nearly as may reasonably be, to any Other Securities or assets thereafter deliverable on the exercise of the Warrants.

 

7.           Other Adjustments.

 

7.1.           General.  Other than as set forth in Sections 5 and 6, if, on or before the second anniversary of the Original Issue Date, the Company shall issue any Common Stock other than Excluded Stock for a consideration per share (determined as set forth below) less than the Ratchet Price per share in effect immediately prior to the issuance of such Common Stock (the “Ratchet Issuance”), the Purchase Price per share in effect immediately prior to each issuance shall forthwith be reduced to a new Purchase Price per share determined by dividing (x) the sum of (I) the consideration received by the Company in such issue less (II) the Fair Market Value of any securities or other assets transferred by the Company in units or otherwise together with such Common Stock (“Additional Assets”), by (y) the number of shares of Common Stock (not including shares issuable upon conversion or exercise of Additional Assets) issued in the Ratchet Issuance (the “New Purchase Price”).

 

  

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7.2.            Convertible Securities.  (a)  In case the Company shall issue or sell any Convertible Securities (including without limitation Additional Assets), other than Excluded Stock, there shall be determined the price per share for which Common Stock is issuable upon the conversion or exchange thereof, such determination to be made by dividing (i) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus the then current aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the maximum number of shares of Common Stock of the Company issuable upon the conversion or exchange of all of such Convertible Securities.

 

(b)           If the price per share so determined shall be less than the applicable Ratchet Price per share, then such issue or sale shall be deemed to be an issue or sale for cash (as of the date of issue or sale of such Convertible Securities) of such maximum number of shares of Common Stock at the price per share so determined, provided that, if such Convertible Securities shall by their terms provide for an increase or increases or decrease or decreases, with the passage of time, in the amount of additional consideration, if any, to the Company, or in the rate of exchange, upon the conversion or exchange thereof, the adjusted Purchase Price per share shall, forthwith upon any such increase or decrease becoming effective, be readjusted to reflect the same, and provided further, that upon the expiration of such rights of conversion or exchange of such Convertible Securities, if any thereof shall not have been exercised, the adjusted Purchase Price per share shall forthwith be readjusted and thereafter be the price which it would have been had an adjustment been made on the basis that the only shares of Common Stock so issued or sold were issued or sold upon the conversion or exchange of such Convertible Securities, and that they were issued or sold for the consideration actually received by the Company upon such conversion or exchange, plus the consideration, if any, actually received by the Company for the issue or sale of all of such Convertible Securities which shall have been converted or exchanged.

 

7.3.           Rights and Options.  (a) In case the Company shall grant any rights or options to subscribe for, purchase or otherwise acquire Common Stock, other than Excluded Stock, there shall be determined the price per share for which Common Stock is issuable upon the exercise of such rights or options, such determination to be made by dividing (i) the total amount, if any, received or receivable by the Company as consideration for the granting of such rights or options, plus the then current amount of additional consideration payable to the Company upon the exercise of such rights or options, by (ii) the maximum number of shares of Common Stock of the Company issuable upon the exercise of such rights or options.

 

(b)           If the price per share so determined shall be less than the applicable Ratchet Price per share, then the granting of such rights or options shall be deemed to be an issue or sale for cash (as of the date of the granting of such rights or options) of such maximum number of shares of Common Stock at the price per share so determined, provided that, if such rights or options shall by their terms provide for an increase or increases or decrease or decreases, with the passage of time, in the amount of additional consideration payable to the Company upon the exercise thereof, the adjusted Purchase Price per share shall, forthwith upon any such increase or decrease becoming effective, be readjusted to reflect the same, and provided, further, that upon the expiration of such rights or options, if any thereof shall not have been exercised, the adjusted Purchase Price per share shall forthwith be readjusted and thereafter be the price which it would have been had an adjustment been made on the basis that the only shares of Common Stock so issued or sold were those issued or sold upon the exercise of such rights or options and that they were issued or sold for the consideration actually received by the Company upon such exercise, plus the consideration, if any, actually received by the Company for the granting of all such rights or options, whether or not exercised.

  

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7.4.           Other Securities. If any event occurs as to which the provisions of this Warrant are strictly applicable and the application thereof would not fairly protect the rights of the Holders in accordance with the essential intent and principles of such provisions, then the Company shall make such adjustments in the application of such provisions, in accordance with such essential intent and principles, as the Board of Directors, in good faith, determines to be reasonably necessary to protect such rights as aforesaid.  In case at any time or from time to time the Company shall take any action in respect of its Common Stock, other than any action described in Sections 5, 6 and 7, then, unless such action will not have a materially adverse effect upon the rights of the Holders, the number of shares of Common Stock or other stock for which this Warrant is exercisable and the Purchase Price per share shall be adjusted in such manner as the Board of Directors, in good faith, determines to be equitable in the circumstances.  In furtherance and not in limitation of the foregoing, if any event occurs of the type contemplated by Section 7 but not expressly provided for by such Section (including, without limitation, the granting of stock appreciation rights, phantom stock rights or other rights or arrangements with equity features), then the Company’s Board of Directors shall make an appropriate adjustment in the Purchase Price per share and the number of shares of Common Stock or Other Securities issuable upon the exercise of a Warrant so as to protect the rights of the Holders of such Warrants.  No adjustment made pursuant to this Section 7 shall increase the Purchase Price per share or decrease the number of shares of Common Stock or Other Securities issuable upon exercise of the Warrants.

 

8.           Further Assurances.  The Company will take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and non-assessable shares of stock upon the exercise of all Warrants from time to time outstanding.

 

9.           Officer’s Certificate as to Adjustments.  In each case of any adjustment or readjustment in the shares of Common Stock (or Other Securities) issuable upon the exercise of the Warrants, the Company at its expense will promptly cause its Chief Financial Officer to compute such adjustment or readjustment in accordance with the terms of the Warrants and prepare a certificate setting forth such adjustment or readjustment and showing in detail the facts upon which such adjustment or readjustment is based, and the number of shares of Common Stock outstanding or deemed to be outstanding, including a statement of: (a) the consideration received or receivable by the Company for any additional shares of Common Stock (or Other Securities) issued or sold or deemed to have been issued or sold; (b) the number of shares of Common Stock (or Other Securities) outstanding or deemed to be outstanding; and (c) the Purchase Price and the number of shares of Common Stock to be received upon exercise of this Warrant, in effect immediately prior to such adjustment or readjustment and as adjusted or readjusted as provided in this Warrant.  The Company will forthwith mail a copy of such certificate to each Holder.

 

  

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10.           Notices of Record Date, etc.  In the event of

 

(a)           any taking by the Company of a record of its stockholders for the purpose of determining the stockholders thereof who are entitled to receive any dividend or other distribution, or any right to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities or property, or to receive any other right, or for the purpose of determining stockholders who are entitled to vote in connection with any proposed capital reorganization of the Company, any reclassification or recapitalization of the capital stock of the Company or any transfer of all or substantially all the assets of the Company to or consolidation or merger of the Company with or into any other person, or

 

(b)           any voluntary or involuntary dissolution, liquidation or winding-up of the Company, or

 

(c)           any proposed issue or grant by the Company of any Common Stock, Convertible Securities or any other securities, or any right or option to subscribe for, purchase or otherwise acquire any shares of stock of any class or any other securities (other than the issue of Common Stock on the exercise of the Warrants),

 

then and in each such event the Company will mail or cause to be mailed to each Holder of a Warrant a notice specifying (i) the date on which any such record is to be taken for the purpose of such dividend, distribution or right, and stating the amount and character of such dividend, distribution or right, (ii) the date on which any such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up is to take place, and the time, if any, as of which the Holders of record of Underlying Securities shall be entitled to exchange their shares of Underlying Securities for securities or other property deliverable upon such reorganization, reclassification, recapitalization, transfer, consolidation, merger, dissolution, liquidation or winding-up and (iii) the amount and character of any stock or other securities, or rights or options with respect thereto, proposed to be issued or granted, the date of such proposed issue or grant and the persons or class of persons to whom such proposed issue or grant and the persons or class of persons to whom such proposed issue or grant is to be offered or made.  Such notice shall be mailed at least 20 days prior to the date therein specified.

 

11.           Reservation of Stock, etc., Issuable on Exercise of Warrants.  The Company will at all times reserve and keep available, solely for issuance and delivery upon the exercise of the Warrants, all shares of Common Stock (or Other Securities) from time to time issuable upon the exercise of the Warrants.

 

12.           Listing on Securities Exchanges; Registration; Issuance of Certain Securities.

 

12.1.           In furtherance and not in limitation of any other provision of this Warrant, during any period of time in which the Company’s Common Stock is listed on The Nasdaq SmallCap Market or any other national securities exchange, the Company will, at its expense, simultaneously list on The Nasdaq SmallCap Market or such exchange, upon official notice of issuance upon the exercise of the Warrants, and maintain such listing, all shares of Common Stock from time to time issuable upon the exercise of the Warrants; and the Company will so list on The Nasdaq SmallCap Market or any other national securities exchange, will so register and will maintain such listing of, any Other Securities if and at the time that any securities of like class or similar type shall be listed on The Nasdaq SmallCap Market or any other national securities exchange by the Company.

 

  

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12.2.           Until the shares issuable upon exercise of this Warrant have been resold publicly pursuant to a registration statement or under Rule 144, the Company shall not issue any (a) Convertible Securities or similar securities that contain a provision that provides for any change or determination of the applicable conversion price, conversion rate, or exercise price (or a similar provision which might have a similar effect) based on the Market Price or any other determination of the market price or value of the Company’s securities or any other market based or contingent standard, such as so-called “toxic” or “death spiral” convertible securities; provided, however, that this prohibition shall not include Convertible Securities or similar securities the conversion or exercise price or conversion rate of which is fixed on the date of issuance or subject to adjustment based upon the issuance by the Company of additional securities, including without limitation, standard anti-dilution adjustment provisions which are not based on calculations of the Market Price or other variable valuations; and provided, further, that in no event shall this provision be deemed to prohibit the transactions contemplated in the Offering; or (b) any preferred stock, debt instruments or similar securities or investment instruments providing for (i) preferences or other payments substantially in excess of the original investment by purchasers thereof or (ii) dividends, interest or similar payments other than dividends, interest or similar payments computed on an annual basis and not in excess, directly or indirectly, of the lesser of a rate equal to (A) twice the interest rate on 10 year US Treasury Notes and (B) 20%.

 

13.           Exchange of Warrants.  Subject to the provisions of Section 2 hereof, upon surrender for exchange of any Warrant, properly endorsed, to the Company, as soon as practicable (and in any event within three business days) the Company at its own expense will issue and deliver to or upon the order of the Holder thereof a new Warrant or Warrants of like tenor, in the name of such Holder or as such Holder (upon payment by such Holder of any applicable transfer taxes) may direct, calling in the aggregate on the face or faces thereof for the number of shares of Common Stock called for on the face or faces of the Warrant or Warrants so surrendered.

 

14.           Replacement of Warrants.  Upon receipt of evidence reasonably 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 delivery of an indemnity agreement reasonably satisfactory in form and amount to the Company or, in the case of any such mutilation, upon surrender and cancellation of such Warrant, the Company at its expense will execute and deliver, in lieu thereof, a new Warrant of like tenor.

 

  

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15.           Warrant Agent.  The Company may, by written notice to each Holder of a Warrant, appoint an agent (the “Warrant Agent”) having an office in New York, New York, for the purpose of issuing Common Stock (or Other Securities) upon the exercise of the Warrants pursuant to Section 3, exchanging Warrants pursuant to Section 13, replacing Warrants pursuant to Section 14, redeeming Warrants pursuant to Section 22, or any of the foregoing, and thereafter any such issuance, exchange or replacement, as the case may be, shall be made at such office by such agent.

 

16.           Remedies.  The Company stipulates that the remedies at law of the Holder of this Warrant in the event of any default or threatened default by the Company in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

 

17.           Negotiability, etc.  Subject to Section 2 above, this Warrant is issued upon the following terms, to all of which each Holder or owner hereof by the taking hereof consents and agrees:

 

(a)           subject to the provisions hereof, title to this Warrant may be transferred by endorsement (by the Holder hereof executing the form of assignment at the end hereof) and delivery in the same manner as in the case of a negotiable instrument transferable by endorsement and delivery;

 

(b)           subject to the foregoing, any person in possession of this Warrant properly endorsed is authorized to represent himself as absolute owner hereof and is empowered to transfer absolute title hereto by endorsement and delivery hereof to a bona fide purchaser hereof for value; each prior taker or owner waives and renounces all of his equities or rights in this Warrant in favor of each such bona fide purchaser and each such bona fide purchaser shall acquire absolute title hereto and to all rights represented hereby; and

 

(c)           until this Warrant is transferred on the books of the Company, the Company may treat the registered Holder hereof as the absolute owner hereof for all purposes, notwithstanding any notice to the contrary.

 

18.           Notices, etc.  All notices and other communications from the Company to the Holder of this Warrant shall be mailed by first class registered or certified mail, postage prepaid, at such address as may have been furnished to the Company in writing by such Holder, or, until an address is so furnished, to and at the address of the last Holder of this Warrant who has so furnished an address to the Company.

 

19.           Miscellaneous.  This Warrant and any term hereof may be changed, waived, discharged or terminated only by an instrument in writing signed by the Company and the Holders of outstanding Warrants to purchase a majority of the shares of Common Stock underlying all the outstanding Warrants.  This Warrant is being delivered in the State of New York and shall be construed and enforced in accordance with and governed by the laws of such State.  The headings in this Warrant are for purposes of reference only, and shall not limit or otherwise affect any of the terms hereof.

 

  

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20.           Assignability.  Subject to Section 2 hereof, this Warrant is fully assignable at any time.

 

21.           Amendments.  This Warrant may not be amended, modified or terminated, and no rights or provisions may be waived, except with (a) the written consent of the Holder and the Company or (b) in the event that all Warrants issued under the Unit Subscription Agreement are to be amended in like fashion, a majority in interest of the holders of all such Warrants and the Company.

 

22.           Redemption Of Warrant.

 

22.1.           Redemption Price. Warrants may be redeemed at the option of the Company, beginning six months after the Original Issue Date following a period of 10 consecutive trading days where the Market Price of the Common Stock exceeds $1.10, on notice as set forth in Section 22.2 , and at a redemption price equal to $.01 per Warrant.

 

22.2.           Notice of Redemption.  In the case of any redemption of Warrants, the Company or a Warrant Agent in the name of and at the expense of the Company shall give notice of such redemption to the holders of the Warrants to be redeemed as hereinafter provided in this Section 22.2. Notice of redemption to the holders of Warrants shall be given by mailing by first-class mail a notice of such redemption within 10 business days following the 10 consecutive trading day period referenced in Section 22.1 and not less than 30 days prior to the date fixed for redemption.  Any notice which is given in the manner herein provided shall be conclusively presumed to have been duly given, whether or not the holder receives the notice.  In any case, failure duly to give such notice, or any defect in such notice, to the holder of any Warrant shall not affect the validity of the proceedings for the redemption of Warrants represented by any other Warrant.  Each such notice shall specify the date fixed for redemption, the place of redemption and the redemption price of $.01 at which each Warrant is to be redeemed, and shall state that payment of the redemption price of the Warrants will be made on surrender of the Warrants at such place of redemption, and that if not exercised by the close of business on the date fixed for redemption, the exercise rights of the Warrants identified for redemption shall expire unless extended by the Company.  Such notice shall also state the current Exercise Price and the date on which the right to exercise the Warrants will expire unless extended by the Company.

 

22.3.           Payment of Warrants on Redemption; Deposit of Redemption Price.  If notice of redemption shall have been given as provided in Section 22.2, the redemption price of $.01 per Warrant shall, unless the Warrant is theretofore exercised pursuant to the terms hereof, become due and payable on the date and at the place stated in such notice.  On and after such date of redemption, provided that cash sufficient for the redemption thereof shall then be deposited by the Company with the Warrant Agent or a bank located in New York having more than $250,000,000 in assets for that purpose, the exercise rights of the Warrants identified for redemption shall expire.  On presentation and surrender of Warrants at such place of payment in such notice specified, the Warrants identified for redemption shall be paid and redeemed at the redemption price of $.01 per Warrant. Prior to the date fixed for redemption, the Company shall deposit with the Warrant Agent an amount of money sufficient to pay the redemption price of all the Warrants identified for redemption.  Any monies which shall have been deposited with the Warrant Agent or such bank for redemption of Warrants and which are not required for that purpose by reason of exercise of Warrants shall be repaid to the Company upon delivery to the Warrant Agent or such bank of evidence satisfactory to it of such exercise.

 

  

12

  

Dated: January ___, 2010

	  	  	
OHR PHARMACEUTICAL, INC.

	  	  	  
	  	  	
By:

	

/s/

	  	  	
Name:

	  
	  	  	
Title:

	  

Attest:___________________________

  

13

  

FORM OF SUBSCRIPTION

 

(To be signed only upon exercise of Warrant)

 

To: Ohr Pharmaceutical, Inc.

 

The undersigned, the Holder of the within Warrant, hereby irrevocably elects to exercise the purchase right represented by such Warrant for, and to purchase thereunder, shares of Common Stock of Ohr Pharmaceutical, Inc., and herewith makes payment therefor:

 

(i) of $          *    or

 

(ii) by surrender of the number of Warrants included in the within Warrant required for full exercise pursuant to Section 3.3 of the Warrant,

and requests that the certificates for such shares be issued in the name of, and delivered to, ___________________, whose address is _______________________.

 

Dated:

 

	  	  	  
	  	  	
(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

	  	  	  
	  	  	  
	  	  	  
	  	  	
(Address)

	
*

	
Insert here the number of shares called for on the face of the Warrant (or, in the case of a partial exercise, the portion thereof as to which the Warrant is being exercised), in either case without making any adjustment for additional Common Stock or any other stock or other securities or property or cash which, pursuant to the adjustment provisions of the Warrant, may be deliverable upon exercise.

  

14

  

FORM OF ASSIGNMENT

(To be signed only upon transfer of Warrant)

For value received, the undersigned hereby sells, assigns and transfers unto _________________________ the right represented by the within Warrant to purchase _________ of Common Stock of Ohr Pharmaceutical, Inc. to which the within Warrant relates, and appoints ______________________________ Attorney to transfer such right on the books of Ohr Pharmaceutical, Inc. with full power of substitution in the premises.  The Warrant being transferred hereby is one of the Warrants issued by Ohr Pharmaceutical, Inc. as of _________, 2010 to purchase an aggregate of up to _________ shares of Common Stock.

Dated:_______________

	  	  	  
	  	  	
(Signature must conform in all respects to name of Holder as specified on the face of the Warrant)

	  	  	  
	  	  	  
	  	  	  
	  	  	
(Address)

	  	  	  
	  	  	  
	
Signature guaranteed by a Bank or Trust Company having its principal office in New York City or by a Member Firm of the New York or American Stock Exchange

	  	  

 

15exhibit10-2.htm

 

 

EXHIBIT 10.2

AGREEMENT AND PLAN OF MERGER

 

This Agreement and Plan of Merger (the "Agreement") is made as of this 13 day of January 2011 by and among TC POWER MANAGEMENT CORP. , a Nevada corporation (the "Company"),  AXIOM ACQUISITION CORP., a Mexican corporation ("Merger Sub"), AXIOM MINERALS DE MEXICO S.A. DE C.V. , a Mexican corporation ("Axiom Mexico"), and Mr. Barry Quiroz, (the “AXIOM ORIGINAL SHAREHOLDER”).

 

WHEREAS, the Company  is authorized to issue 100,000,000 shares of its common stock, par value $0.001 per share ("Authorized Common Stock"), of which 24,634,400 shares ("Issued Common  Shares") are issued and outstanding as of the date hereof and no shares of preferred stock exist, as of the date hereof; and

 

WHEREAS, Merger Sub is a wholly owned subsidiary of the Company and is authorized to issue 50,000 shares of common stock, par value MXP 1 per share (the "Merger Sub Shares"), all of which are issued and outstanding and owned by the Company as of the date hereof; and

 

WHEREAS, the respective Boards of Directors of the Company, Merger Sub and Axiom Mexico (the "Constituent Corporations") deem it advisable and in the best interests of the Constituent Corporations, and their respective stockholders, that Axiom Mexico be acquired by the Company under the terms and conditions hereinafter set forth (the "Merger") and the Merger be effected pursuant to the Nevada General Corporation Law (the "NGCL") and the laws of Chihuahua, Chihuahua (“MGCL”); and

 

WHEREAS, it is intended that the Merger each be treated as a tax free reorganization under Section 368(a) of the Internal Revenue Code of 1986, as amended (the "Code"); and

 

NOW, THEREFORE, in consideration of the premises, covenants and conditions hereof, the parties hereto do mutually agree as follows:

 

ARTICLE I

The Merger

SECTION 1.1

 

The Merger.  On the basis of the representations, warranties, covenants and agreements set forth in this Agreement and subject to the satisfaction or waiver of the conditions set forth in this Agreement, at the Effective Time (as defined below) and in accordance with the applicable provisions of the NGCL and MGCL:

 

(a)           The Company, through the Merger Sub, shall acquire all of the issued and outstanding shares of Axiom Mexico, by the issuance of 2,000,000 common shares of the Company (the “Merger Common Stock”) and such Merger Common Stock shall be issued to the Axiom Original Shareholder on a pro rata basis as to their ownership of Axiom Mexico.  Merger Sub shall be merged with and into Axiom Mexico and the separate corporate existence of Merger Sub shall thereupon cease.  Axiom Mexico, as the surviving corporation in the Merger and a wholly-owned subsidiary of the Company shall continue its existence under the name “Axiom Minerals de Mexico  S.A. de C.V." and shall continue to be governed by the MGCL.

 

(b)           The Articles of Incorporation and By-laws of Axiom Mexico, as in effect immediately prior to the Effective Time, shall thereafter be the articles of incorporation and by-laws of the surviving corporation in the Merger until duly amended or repealed.

 

(c)           The members of the Board of Directors of Axiom Mexico  immediately prior to the Effective Time shall thereafter be confirmed as members of the Board of Directors of Axiom Mexico as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified in the manner provided in the articles of incorporation and by-laws of the surviving corporation in the Merger, or as otherwise provided by law.

 

(d)           The officers of Axiom Mexico immediately prior to the Effective Time shall be confirmed as the initial officers of Axiom Mexico as the surviving corporation in the Merger until the earlier of their resignation or removal or until their respective successors are duly elected or appointed and qualified.

 

SECTION 1.2

 

Closing.  The closing of the transactions contemplated by this Agreement (the "Closing") will take place commencing at 9:00  Eastern time on the next business day after all the conditions set forth in this Agreement have been satisfied or waived, or such later date as agreed upon by the parties hereto (the "Closing Date").

 

SECTION 1.3

 

Filing of Articles of Merger.  Subject to the provisions of this Agreement, as soon as practicable on the Closing Date, Merger Sub and Axiom Mexico shall cause Articles of Merger substantially in the form of Exhibit A attached hereto (the "Articles of Merger") and the Certificate of Merger substantially in the form of Exhibit B attached hereto (the "Certificate of Merger") or other appropriate documents, duly executed in accordance with the relevant provisions of the MGCL and to be filed and recorded as required by the MGCL and will take any other further actions in connection therewith as may be required by the MGCL to make the Merger effective.  The Merger shall become effective at the later of the time the Articles of Merger are duly filed or at the effective time set forth in the Articles of Merger and the Certificate of Merger (the "Effective Time").

 

  

1

  

	
SECTION 1.4

 

	
Certain Effects of the Merger.

 

(a)           At the Effective Time, Merger Sub shall be merged with and into Axiom Mexico and the separate existence of Merger Sub shall cease.  Axiom Mexico, as the surviving corporation in the Merger, shall thereupon and thereafter possess all the rights, privileges, powers and franchises, of a public or of a private nature, and be subject to all restrictions, liabilities and duties of each of Axiom Mexico and Merger Sub and shall continue its existence as a Mexican corporation.

 

(b)           The parties to this Agreement intend that the Merger shall constitute a tax free "reorganization".  Each party to this Agreement hereby agrees to file all tax returns, reports, or other documents, and to act in all other respects, in a manner consistent therewith.

 

SECTION 1.5

 

Effect of Merger on Capital Stock.

 

(a)           Cancellation of Axiom Mexico Treasury Stock.  At the Effective Time, by virtue of the Merger and without any action on the part of the holders of capital stock of Axiom Mexico or of Merger Sub, each share of Axiom Mexico Common Stock issued and held in the treasury of Axiom Mexico immediately prior to the Effective Time shall cease to be outstanding, shall be canceled and retired without any conversion thereof and without payment of any consideration therefor and shall cease to exist.

 

(b)           Conversion of Axiom Mexico Common Stock.

 

(i)           At the Effective Time, by virtue of the Merger and without any action on the part of the holders of capital stock of Axiom Mexico or of Merger Sub, each share of Axiom Mexico Common Stock issued and outstanding immediately prior to the Effective Time (other than the shares of Axiom Mexico Common Stock being canceled pursuant to Section 1.5(a)), shall be converted into the right to receive, upon surrender of the certificate which immediately prior to the Effective Time represented such share in accordance with Section 1.7, forty (40) Merger Common Stock (the "Merger Ratio") for each share of Axiom Mexico Common Stock.

 

(ii)           Each share of Axiom Mexico Common Stock so converted at the Effective Time shall be canceled and retired and shall cease to exist, and each certificate which theretofore represented shares so converted and canceled shall thereafter cease to have any rights with respect to such shares except the right to receive the Merger Common Stock.

 

  

2

  

(c)           Merger Sub Shares.  At the Effective Time, by virtue of the Merger and without any action on the part of the holder thereof, each Merger Sub Share issued and outstanding immediately prior to the Effective Time shall be converted into and become an issued and outstanding share of common stock of the surviving corporation in the Merger.

 

(d)           Securities Act Exemption.  The Merger Common Stock to be issued in the Merger is intended to be exempt from the registration requirements of the Securities Act of 1933, as amended (the "Securities Act"), pursuant to Section 4(2) of the Securities Act and/or Regulation S thereunder and from applicable state securities laws.  The Company will use reasonable efforts to facilitate each Axiom Mexico stockholder taking all reasonable actions and executing all necessary documents to qualify the issuance of Merger Common Stock for such exemptions.

 

SECTION 1.6

 

Delivery of New Certificates.  Promptly after the Effective Time, the Company shall send, by overnight courier, to each record holder of certificates formerly representing all of such holder’s shares of Axiom Mexico Common Stock (the "Old Certificates"), at the address set forth on books of Axiom Mexico, (i) a notice of the effectiveness of the Merger and (ii) a Letter of Transmittal.  Upon surrender to the Company of an Old Certificate, together with a Letter of Transmittal duly executed and completed in accordance with the instructions thereto, the holder of such Old Certificate (other than shares of Axiom Mexico Common Stock to be canceled pursuant to Section 1.5(a)) shall be entitled to receive in exchange therefore, certificates representing the shares of Merger Common Stock into which such holder’s shares of Axiom Mexico Common Stock were converted pursuant to the Merger (the "New Certificates") that such holder is entitled to receive pursuant to Section 1.5(b)(i), which shall be delivered by the Company in accordance with the instructions provided by such holder in the Letter of Transmittal executed by such holder.

 

SECTION 1.7

 

Share Certificates Issued in Different Names.  If the New Certificates to be delivered hereby are to be delivered in the name of a Person other than the Person in whose name the Old Certificate surrendered is registered, it shall be a condition of such delivery that the Old Certificate so surrendered shall be properly endorsed or otherwise in proper form for transfer and that the Person requesting such delivery shall pay any transfer or other taxes required by reason of such delivery to a Person other than the registered holder of the Old Certificate, or that such Person shall establish to the satisfaction of the Company that such tax has been paid or is not applicable.  Except as provided in the preceding sentence, any duty, stamp or transfer tax required to effect the exchange of certificates as contemplated by Section 1.7 shall be borne by the Company.

 

  

3

  

SECTION 1.8

 

No Further Ownership Rights in Axiom Mexico Common Stock.  All consideration paid upon the conversion of Axiom Mexico Common Stock and the surrender of Old Certificates in accordance with the terms of this Agreement shall be deemed to have been paid in full satisfaction of all rights pertaining to the shares of Axiom Mexico Common Stock theretofore represented by such Old Certificates.  At the Effective Time, the stock transfer books of Axiom Mexico shall be closed, and there shall be no further registration of transfers on the stock transfer books of the surviving corporation in the Merger of the shares of Axiom Mexico Common Stock that were outstanding immediately prior to the Effective Time.  If, after the Effective Time, Old Certificates are presented to the  Company for any reason, they shall be canceled and exchanged as provided in this Agreement.

 

SECTION 1.9

 

No Liability.  Notwithstanding anything to the contrary contained herein, none of the Company, Merger Sub, or Axiom Mexico shall be liable to any holder of an Old Certificate or any other person or entity in respect of any cash delivered to a public official pursuant to any applicable abandoned property, escheat or similar law.

 

ARTICLE II

Representations and Warranties of Axiom Mexico

 

Axiom Mexico  represents and warrants to the Company as follows, except to the extent set forth on the corresponding sections of the schedule of exceptions attached hereto and made a part hereof (the "Axiom Mexico  Schedule of Exceptions"):

 

SECTION 2.1

 

Organization; Standing and Power.  Axiom Mexico  is a corporation duly incorporated, validly existing and in good standing under the laws of Mexico and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted.  Copies of the Articles of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of Axiom Mexico have heretofore been delivered to the Company and are true, correct and complete.  Axiom Mexico is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.

 

	
SECTION 2.2

 

	
Authorization.

 

(a)           Axiom Mexico has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of Axiom Mexico whose consent is required in accordance with the laws of Mexico, to consummate the transactions contemplated by this Agreement.

 

  

4

  

(b)           Except for the consent and approval of the stockholders of Axiom Mexico, the execution, delivery and performance of the Agreement by Axiom Mexico  and the consummation by Axiom Mexico of the transactions contemplated by the Agreement will not require on the part of Axiom Mexico any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any federal, state or local government or any court, administrative or regulatory agency or commission or other governmental agency or authority, domestic or foreign (a "Governmental Authority") or any individual, partnership, joint venture, corporation, limited liability company, trust, unincorporated organization or other entity (including a Governmental Authority) (a "Person").

 

SECTION 2.3

 

Binding Agreement.  This Agreement has been duly executed and delivered by Axiom Mexico , and assuming the due execution and delivery of this Agreement by the Company, it constitutes the valid and binding obligation of Axiom Mexico, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

SECTION 2.4

 

No Conflicts.  The execution, delivery and performance of the Agreement by Axiom Mexico  and the consummation by Axiom Mexico of the transactions contemplated by the Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Articles of Incorporation or By-laws of Axiom Mexico or (ii) except for such violations, conflicts, breaches, defaults or accelerations that, individually or in the aggregate, have a material adverse effect on the business of Axiom Mexico, any contract, covenant, agreement or understanding, or any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which Axiom Mexico is a party or to which it or any of its properties or assets is subject, or result in the creation of any liens, pledges, security interests, charges, equities, options, proxies, voting restrictions, rights of first refusal, encumbrances, restrictions (other than restrictions arising under applicable securities laws) and claims of every kind and character ("Encumbrances") on any of its properties or assets.

 

SECTION 2.5

 

Broker's or Finder's Fees.  No agent, broker, firm or other Person acting on behalf of Axiom Mexico is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

  

5

  

SECTION 2.6

 

Capitalization.  The outstanding capitalization of Axiom Mexico is set forth on Schedule A annexed hereto.  There are issued and outstanding only the Issued Common  Shares, all of which are duly authorized and validly issued.  No securities of Axiom Mexico are entitled to preemptive or similar rights and no Person has any right of first refusal, right of participation, or any similar right to participate in the transactions contemplated hereby.  There are no outstanding options, warrants or other rights to acquire capital stock of Axiom Mexico, and there are no options, warrants, calls, rights, commitments agreements, understandings or arrangements to which Axiom Mexico is a party or by which Axiom Mexico is or may become bound to issue additional shares of capital stock of Axiom Mexico, or securities or rights convertible or exchangeable into shares of capital stock of Axiom Mexico prior to the Effective Time.

 

SECTION 2.7

 

Subsidiaries.  Axiom Mexico does not have any subsidiaries, nor does it own any direct or indirect interest in any other business entity.

 

SECTION 2.8

 

Financial Statements.  Axiom Mexico has furnished the Company with a true and complete copy of (i) the audited balance sheets of Axiom Mexico as of August 31, 2010, and the related audited statements of income and statements of cash flow of Axiom Mexico for the interim period ended August 31, 2010 (the "Financial Statements").  The Financial Statements fairly present in all material respects the financial position, results of operations and other information purported to be shown thereon of Axiom Mexico, at the dates and for the respective periods to which they apply, subject, in the case of the Financial Statements, to normal, immaterial year-end audit adjustments.  All such Financial Statements have been reviewed by Meyler and Co. and are accompanied by their report and were prepared in conformity with United States generally accepted accounting principles ("GAAP") consistently applied throughout the periods involved, and have been adjusted for all normal and recurring accruals.

 

SECTION 2.9

 

No Adverse Changes.  There has not been any material adverse change in the financial condition of Axiom Mexico from that set forth in the Financial Statements except for (i) transactions in the ordinary course of business since August 31, 2010 and (ii) transactions, including but not limited to the incurring of expenses and liabilities, relating to this Agreement.

 

SECTION 2.10

 

Liabilities; Claims.  There are no liabilities (including, but not limited to, tax liabilities) or claims against Axiom Mexico (whether such liabilities or claims are contingent or absolute, direct or indirect, and matured or unmatured) not appearing in the Financial Statements, other than (i) liabilities incurred in the ordinary course of business since August 31, 2010, (ii) taxes accrued on earnings since June 6, 2010 which are not yet due or payable or (iii) other liabilities which do not exceed $5,000 in the aggregate.

 

  

6

  

SECTION 2.11

 

Material Contracts.  All written agreements, contracts, letters of intent, arrangements, understandings and commitments to which Axiom Mexico is a party and which are material to Axiom Mexico  (collectively, " Axiom Mexico  Contracts") are in good standing, valid and effective in accordance with their respective terms, and neither Axiom Mexico nor any other party to a contract has violated any provision of, or committed or failed to perform any act which, with or without notice, lapse of time or both, would constitute a default under the provisions of, any such contract.  Axiom Mexico is not a party to or bound by any contract which would prohibit or materially delay the consummation of transactions contemplated by this Agreement.

 

SECTION 2.12

 

Tax Matters.

 

(a)           All federal, state, county, local and foreign income, excise, property and other tax returns required to be filed by Axiom Mexico have been timely filed and all such duly filed tax returns are true and correct in all material respects.  All required taxes, fees or assessments have been paid or an adequate reserve therefore has been established (in accordance with GAAP) in the Financial Statements.  The federal income tax returns and state and foreign income tax returns of Axiom Mexico have not been audited by the  Servicio de Administración Tributaria (the "SAT") or any other taxing authority and Axiom Mexico has not received any notice of deficiency or assessment from any taxing authority with respect to liability for taxes which has not been fully paid or finally settled.  Neither the SAT nor any state, local, foreign or other taxing authority has proposed in writing any additional taxes, interest or penalties with respect to Axiom Mexico or any of its operations or businesses.  There are no pending, or to the knowledge of Axiom Mexico, threatened, tax claims or assessments, and there are no pending, or to the knowledge of Axiom Mexico, threatened, tax examinations by any taxing authorities.  Axiom Mexico has not given any waivers of rights (which are currently in effect) under applicable statutes of limitations with respect to taxes of Axiom Mexico for any taxable period.  There are no liens for taxes upon the assets of Axiom Mexico except for statutory liens for current taxes not yet due and payable or which may thereafter be paid without penalty or are being contested in good faith.  Axiom Mexico has not filed a request with the SAT for changes in accounting methods within the last three (3) years which change would affect the accounting for tax purposes, directly or indirectly, of its business.

 

(b)            Axiom Mexico does not have any liability for taxes of any person as a result of being a member of an affiliated, consolidated, combined or unitary group, nor is it bound by any obligation under any tax sharing agreement, tax indemnification agreement or similar contract or arrangement.

 

  

7

  

SECTION 2.13

 

Legal Proceedings.  There are no legal, administrative, arbitral or other proceedings, claims, suits, actions or governmental investigations of any nature pending, or to Axiom Mexico's knowledge, threatened, directly or indirectly involving Axiom Mexico or its officers, directors, employees or affiliates, which would reasonably be expected to have a material adverse effect on the business of Axiom Mexico or challenging the validity of the transactions contemplated by this Agreement.  Axiom Mexico is not a party to any order, judgment, injunction, rule or decree of any Governmental Authority or arbitrator which would reasonably be expected to have a material adverse effect on the business of Axiom Mexico.

 

SECTION 2.14

 

Permits; Compliance with Laws.  Axiom Mexico has all governmental licenses, authorizations, permits, consents and approvals ("Permits") required to own, lease and operate its properties and to carry on its business as currently conducted.  Axiom Mexico:  (i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by Axiom Mexico under), nor has Axiom Mexico received notice of a claim that it is in default under or that it is in violation of, any indenture, mortgage, deed of trust or other agreement, instrument or contract to which Axiom Mexico is a party or by which it or any of its assets or properties are bound (whether or not such default or violation has been waived), (ii) is not in violation of any order of any court, arbitrator or Governmental Authority, (iii) is not and has not been in violation of any law, order, rule, regulation, writ, injunction, judgment or decree of any Governmental Authority having jurisdiction over Axiom Mexico or any of its business or properties, including federal and state securities laws and regulations and (iv) is not in violation of any of its Permits, except where the failure to so comply did not have and would not reasonably be expected to have a material adverse effect on the business of Axiom Mexico.

 

SECTION 2.15

 

Intellectual Property.  Axiom Mexico has no patents, patent applications, trademarks, trademark registrations or applications therefore, service marks, service mark registrations or applications therefore, trade names, copyrights, copyright registrations or applications therefore or any other proprietary intellectual property and other rights relating to the foregoing.  Axiom Mexico has no knowledge of any infringements by Axiom Mexico of any third party's intellectual property.

 

SECTION 2.16

 

Insurance.  The Company has no casualty and liability policies and other insurance policies.

 

SECTION 2.17

 

Related Party Contracts  None of the officers, directors, or affiliates of Axiom Mexico is presently a party to any transaction with Axiom Mexico (other than for services as employees, officers and directors), including any loans, leases, agreements, arrangements or understandings outstanding between Axiom Mexico and any of its officers, directors, or affiliates or any person related to or affiliated with any such officers or directors.

 

  

8

  

	
  

	
SECTION 2.18

 

Benefit Plans.  Axiom Mexico does not have any pension, retirement, savings, profitsharing, stock-based, incentive compensation or other similar employee benefit plan.

 

SECTION 2.19

 

Trading With the Enemy Act; Patriot Act.  Neither sale of Axiom Mexico’s securities nor Axiom Mexico's use of the proceeds from such sale has violated the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, Axiom Mexico (i) is not a Person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) and (ii) does not engage in any dealings or transactions, or is otherwise associated, with any such person.  Axiom Mexico is in compliance with the USA Patriot Act of

 

ARTICLE III

Representations and Warranties Regarding Merger Sub

 

The Company and Merger Sub each jointly and severally represents and warrants to Axiom Mexico as follows with respect to Merger Sub:

 

SECTION 3.1

 

Organization; Capitalization.  Merger Sub is a duly organized and validly existing corporation in good standing under the laws of Chihuahua, Chihuahua, authorized to issue only the Merger Sub Shares.  On the Closing Date there will be 50,000 issued and outstanding Merger Sub Shares, all of which shall be fully paid and non-assessable and shall be owned solely by the Company.  There are no issued or outstanding options or warrants to purchase Merger Sub Shares or any issued or outstanding securities of any nature convertible into Merger Sub Shares, or any agreements or understandings to issue any Merger Sub Shares, options or warrants.

 

SECTION 3.2

 

Authorization.

 

(a)           Merger Sub has all requisite corporate power and authority to execute and deliver this Agreement and to consummate the transactions contemplated by this Agreement.

 

(b)           Except for the filing of the Articles of Merger and the Certificate of Merger, the execution, delivery and performance of the Agreement by Merger Sub and the consummation by Merger Sub of the transactions contemplated by the Agreement will not require on the part of Merger Sub any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.

 

  

9

  

SECTION 3.3

 

Binding Agreement.  This Agreement has been duly executed and delivered by Merger Sub, and assuming the due execution and delivery of this Agreement by the Company and Axiom  Mexico, constitutes the valid and binding obligation of Merger Sub, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

SECTION 3.4

 

No Conflicts.  The execution, delivery and performance of the Agreement by Merger Sub and the consummation by Merger Sub of the transactions contemplated by the Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Certificate of Incorporation or By-laws of Merger Sub or (ii) any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which Merger Sub or any of its properties or assets is subject, or result in the creation of any Encumbrances on any of its properties or assets.

 

SECTION 3.5

 

Broker's or Finder's Fees.  No agent, broker, firm or other Person acting on behalf of Merger Sub is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

SECTION 3.6

 

Capitalization.  On the date hereof, the authorized capital stock of Merger Sub consists of 50,000 Merger Sub Shares.

 

SECTION 3.7

 

No Business Activity; Financial Condition.  Merger Sub has been organized solely for the purpose of consummating the Merger and, since its inception, has had no business activity of any nature other than those related to its organization or as contemplated by this Agreement.  Merger Sub has no contracts or commitments to which it is a party, except for this Agreement and other documents and instruments contemplated hereby in connection with the Merger.  Except for (i) the incurring of expenses of its organization, (ii) the issuance of the Merger Sub Shares to the Company, (iii) the incurring of expenses relating to this Agreement and the consummation of the transactions contemplated by this Agreement and (iv) the consummation of the Merger, Merger Sub has had no financial or other transactions of any nature whatsoever.  As of the date hereof, Merger Sub has no subsidiaries.

 

  

10

  

 

ARTICLE IV

Intentionally Left Blank

 

 

ARTICLE V

Representations and Warranties Regarding the Company

 

The Company hereby represents and warrants to Axiom Mexico as follows, except to the extent set forth on the corresponding sections of the schedule of exceptions attached hereto and made a part hereof:

 

SECTION 5.1

 

Organization; Standing and Power.  The Company is a corporation duly incorporated, validly existing and in good standing under the laws of the State of  Nevada and has all requisite corporate power and authority required to own, lease and operate its properties and to carry on its business as currently being conducted.  Copies of the Certificate of Incorporation and By-laws, corporate minute books, stock certificate books and stock transfer books of the Company that have heretofore been delivered to Axiom Mexico are true, correct and complete.  The Company is not required to be qualified or licensed as a foreign corporation in any other jurisdiction to conduct its business as currently conducted.

 

SECTION 5.2

 

Authorization.

 

(a)           The Company has all requisite corporate power and authority to execute and deliver this Agreement and, subject to the approval by the stockholders of the Company whose consent is required in accordance with the laws of the State of Nevada to consummate the Reincorporation and the transactions related thereto, and to consummate the transactions contemplated by this Agreement.

 

(b)           The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated by the Agreement will not require on the part of the Company any permit, approval, order or authorization of, or filing or registration with, or allowance by, or consent of or notification to any Person.

 

SECTION 5.3

 

Binding Agreement.  This Agreement has been duly executed and delivered by the Company, and constitutes the valid and binding obligation of the Company, enforceable against it in accordance with its terms, except to the extent that its enforceability may be limited by bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium, receivership and other similar laws affecting the enforcement of creditors' rights in general and general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

 

  

11

  

SECTION 5.4

 

No Conflicts.  The execution, delivery and performance of the Agreement by the Company and the consummation by the Company of the transactions contemplated by this Agreement will not, with or without the giving of notice or lapse of time, or both, violate, conflict with, result in a breach of, constitute a default under or accelerate the performance required by any of the terms, conditions or provisions of (i) the Certificate of Incorporation or By-laws of the Company or (ii) except for such violations, conflicts, breaches, defaults or accelerations that, individually or in the aggregate, have a material adverse effect on the business of the Company, any contract, covenant, agreement or understanding, or any statute, rule, regulation, order, decree, ruling, judgment, arbitration award, law, ordinance or stipulation to which the Company is a party or to which it or any of its properties or assets is subject, or result in the creation of any Encumbrances on any of its properties or assets.

 

SECTION 5.5

 

Broker's or Finder's Fees.  No agent, broker, firm or other Person acting on behalf of the Company is, or will be, entitled to any investment banking, commission, broker's or finder's fees from any of the parties hereto, or from any Person controlling, controlled by or under common control with any of the parties hereto, in connection with any of the transactions contemplated by this Agreement.

 

SECTION 5.6

 

Capitalization.

 

(a)           The authorized capital stock of the Company consists of 100,000,000 shares of Common Stock.  As of the date hereof, 24,634,400 shares of Common Stock are issued and outstanding. The Company declares that all such stock, as referred below, is the total amount of stock of the Company and there is no preferred stock or other different from such as above mentioned.  All of the issued and outstanding shares of capital stock of the Company have been duly authorized and validly issued and are fully paid and non assessable.  All of the issued and outstanding shares of capital stock of the Company have been offered, issued and sold by the Company in compliance with all applicable federal and state securities laws.  No securities of the Company are entitled to preemptive or similar rights, and no Person has any right of first refusal, preemptive right, right of participation, or any similar right to participate in the transactions contemplated hereby.  There are no outstanding options, warrants or other rights to acquire capital stock of the Company and there are no securities, options, warrants, calls, rights, commitments, agreements, understandings or arrangements to which the Company is a party or by which the Company is or may become bound to issue additional shares of capital stock of the Company, or securities or rights convertible or exchangeable into shares of capital stock of the Company.

 

  

12

  

(b)           There are no outstanding obligations, contingent or otherwise, of the Company to redeem, purchase or otherwise acquire any capital stock or other securities of the Company.

 

(c)           There are no stockholder agreements, voting trusts or other agreements or understandings to which the Company is a party or by which the Company is bound relating to the voting of any shares of the capital stock of the Company.

 

SECTION 5.7

 

Subsidiaries.  Other than the Merger Sub, the Company does not have any subsidiaries, nor does it own any direct or indirect interest in any other business entity.

 

SECTION 5.8

 

Investment Company/Investment Adviser.  The business of the Company does not require it to be registered as an investment company, as such term is defined under the Investment Company Act of 1940, as amended, nor does it require the Company to be registered as an investment adviser, as such term is defined under the Investment Advisers Act of 1940, as amended, or under applicable Nevada State laws.

 

SECTION 5.9

 

SEC Reports; Financial Statements.

 

(a)           The Company has filed all registration statements, prospectuses, reports, schedules, forms, statements and other documents required to be filed by it with the Securities and Exchange Commission (the "SEC") under the Securities Act and the Securities Exchange Act of 1934, as amended (the "Exchange Act"), including pursuant to Section 13(a) or 15(d) thereof, since November 11, 2007 (the foregoing materials being collectively referred to herein as the "SEC Reports") on a timely basis.  As of their respective dates (and as of the date of any amendment to the respective SEC Report), the SEC Reports complied in all material respects with the requirements of the Securities Act and the Exchange Act and the rules and regulations of the SEC promulgated thereunder.  None of the SEC Reports, as of their respective dates (or, if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing), contained any untrue statement of a material fact or omitted to state a material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.  The financial statements of the Company included in the SEC Reports complied in all material respects with applicable accounting requirements and the rules and regulations of the SEC with respect thereto as in effect at the time of filing.  Such financial statements were prepared in accordance with GAAP consistently applied during the periods involved, except as may be otherwise specified in such financial statements or the notes thereto, and fairly present in all material respects the financial position, results of operations and other information purported to be shown thereon of the Company as of the dates and for the respective periods to which they apply, subject, in the case of unaudited statements, to normal, immaterial, year-end audit adjustments.

 

  

13

  

(b)           Since the last SEC Report and except as specifically disclosed in the SEC Reports:

 

(i)           there has not been any material adverse change in the business, financial condition or results of operations of the Company, its liabilities, assets or any damage, loss or other change in circumstances materially affecting the Company, its business or assets or the Company's right to carry on its business;

 

(ii)          the Company has not incurred, assumed, guaranteed or endorsed any liabilities (contingent or otherwise) or amended of any material term of any outstanding security;

 

(iii)         there has been no sale, assignment, disposal, transfer, mortgage, pledge, encumbrance or lease of any asset or property of the Company;

 

(iv)         there has been no change in accounting methods or practices or the identity of its auditors, nor any revaluation of any asset of the Company;

 

(v)          there has been no declaration or payment of a dividend, or any other declaration, payment or distribution of any type or nature to any stockholder of the Company in respect of its stock, whether in cash or property, and no purchase or redemption of any share of the capital stock of the Company;

 

(vi)         the Company has not issued any equity securities to any officer, director or affiliate of the Company;

 

(vii)        the Company has not made any loan, advance or capital contributions to or investment in any Person;

 

(viii)       the Company has not established, adopted or amended (except as required by applicable law) any collective bargaining, bonus, profit sharing, thrift, pension, retirement, deferred compensation, compensation, stock option, restricted stock or other benefit plan or arrangement covering any current or former director, officer or employee of the Company;

 

(ix)          the Company has not increased the compensation, bonus or other benefits payable or otherwise made available to any current or former director, officer or employee of the Company;

 

  

14

  

(x)           the Company has not granted any severance or termination pay to any current or former director, officer or employee of the Company, or increased the benefits payable under any existing severance or termination pay policies or employment agreements or entered into any employment, deferred compensation or other similar agreement (or any amendment to any such existing agreement) with any current or former director, officer or employee of the Company;

 

(xi)          the Company has not made any tax election or any settlement or compromise of any tax liability, in either case that is material to the Company or entered into any transaction by the Company not in the ordinary course of business;

 

(xii)         there has been no release, compromise, waiver or cancellation of any debt to or claim by the Company, or waiver of any right of the Company;

 

(xiii)        there have been no capital expenditures by the Company;

 

(xiv)        there has been no material damage or destruction to, or loss of, physical property (whether or not covered by insurance) of the Company;

 

(xv)         there has been no guaranty by the Company of any indebtedness of any Person;

 

(xvi)        the Company has not entered into any transaction or commitment made, or any contract or agreement entered into, relating to its business or any of its assets (including the acquisition or disposition of, or creation of a lien on, any assets) or any relinquishment by the Company of any contract or other right;

 

(xvii)       the Company has not participated or engaged in any discussions or negotiations with any Person regarding, or entered into any transaction concerning, a merger, stock exchange or consolidation, other than with the other parties hereto, or liquidated or dissolved itself (or suffered any liquidation or dissolution) or conveyed, sold, leased, transferred or otherwise disposed of, in one transaction or a series of related transactions, all or a substantial part of its property, business, assets or capital stock or  securities convertible into equity, or made any material change in its current method of conducting business;

 

  

15

  

(xviii)      there has been no agreement or commitment by the Company to do any of the foregoing described in clauses (i) through (xviii); and

 

(xix)         there has been no other event or condition of any character that has had, or could reasonably be expected to have, a material adverse effect on the properties, business, operations, financial condition, assets or prospects of the Company.

 

SECTION 5.10

 

Assets; Liens.  The Company has not acquired any assets, including, without limitation, goodwill, assets, real property, tangible personal property, intangible personal property, rights and benefits under contracts and cash.  No Encumbrances exist on any of the Company's assets.

 

SECTION 5.11

 

Liabilities; Claims.  Except as set forth in the SEC Reports, there are no liabilities (including, but not limited to, tax liabilities) or claims against the Company (whether such liabilities or claims are contingent or absolute, direct or indirect, and matured or unmatured), and there is no existing condition, situation or set of circumstances which could reasonably be expected to result in such a liability or claim.

 

SECTION 5.12

 

Material Contracts.  The Company has no "material contracts" (as defined in Item 601(b)(10) of Regulation S-B of the SEC) to which it is a party.  The Company is not a party to or bound by any contract which would prohibit or materially delay the consummation of the transactions contemplated by this Agreement.

 

  

16

  

SECTION 5.13

 

Tax Matters.

 

(a)           All federal, state, county, local and foreign income, excise, property and other tax returns required to be filed by the Company have been timely filed and all such duly filed tax returns are true and correct in all material respects.  All required taxes, fees or assessments have been paid or an adequate reserve therefor has been established (in accordance with GAAP) in the financial statements of the Company included in the SEC Reports.  The federal income tax returns and state and foreign income tax returns of the Company and its subsidiaries have not been audited by the IRS or any other taxing authority and the Company or its subsidiaries have not received any notice of deficiency or assessment from any taxing authority with respect to liability for taxes which has not been fully paid or finally settled.  Neither the IRS nor any state, local, foreign or other taxing authority has proposed in writing any additional taxes, interest or penalties with respect to the Company or its subsidiaries or any of their operations or businesses.  There are no pending, or to the knowledge of the Company, threatened, tax claims or assessments, and there are no pending, or to the knowledge of the Company, threatened, tax examinations by any taxing authorities.  Neither the Company nor its subsidiaries have given any waivers of rights (which are currently in effect) under applicable statutes of limitations with respect to the federal income tax returns of the Company or its subsidiaries for any taxable period.  There are no liens for taxes upon the assets of the Company or its subsidiaries except for statutory liens for current taxes not yet due and payable or which may thereafter be paid without penalty or are being contested in good faith.  The Company or its subsidiaries has not filed a request with the IRS for changes in accounting methods within the last three (3) years which change would affect the accounting for tax purposes, directly or indirectly, of its business.

 

(b)           The Company does not have any liability for taxes of any person as a result of being a member of an affiliated, consolidated, combined or unitary group under Treasury Regulation Section 1.1502-6 (or any comparable provision of state, local or foreign law), nor is it bound by any obligation under any tax sharing agreement, tax indemnification agreement or similar contract or arrangement.

 

SECTION 5.14

 

Legal Proceedings.  There are no legal, administrative, arbitral or other proceedings, claims, suits, actions or governmental investigations of any nature pending, or to the Company's knowledge threatened, directly or indirectly involving the Company or its officers, directors or affiliates, including, but not limited to any stockholder claims or derivative actions, or challenging the validity or propriety of the transactions contemplated by this Agreement.  The Company is not subject to any order, judgment, injunction, rule or decree of any Governmental Authority or arbitrator.

 

  

17

  

SECTION 5.15

 

Insurance.  The Company has no casualty and liability policies and other insurance policies.

 

SECTION 5.16

 

Intellectual Property.  The Company has no patents, patent applications, trademarks, trademark registrations or applications therefore, service marks, service mark registrations or applications therefore, trade names, copyrights, copyright registrations or applications therefore or any other proprietary intellectual property and other rights relating to the foregoing.  The Company has no knowledge of any infringements by the Company of any third party's intellectual property.

 

SECTION 5.17

 

Permits; Compliance with Laws.  The Company has all Permits required to own, lease and operate its properties and to carry on its business as currently conducted.  The Company:  (i) is not in default under or in violation of (and no event has occurred that has not been waived that, with notice or lapse of time or both, would result in a default by the Company under), nor has the Company received notice of a claim that it is in default under or that it is in violation of, any indenture, mortgage, deed of trust or other agreement, instrument or contract to which the Company is a party or by which it or any of its assets or properties are bound (whether or not such default or violation has been waived), (ii) is not in violation of any order of any court, arbitrator or governmental body, (iii) is not and has not been in violation of any law, order, rule, regulation, writ, injunction, judgment or decree of any Governmental Authority having jurisdiction over the Company or any of its business or properties, including federal and state securities laws and regulations and (iv) is not in violation of any of its Permits.

 

SECTION 5.18

 

Related Party Contracts.  Except as set forth in the SEC Reports, none of the officers, directors, or affiliates of the Company is presently a party to any transaction with the Company (other than for services as employees, officers and directors), including any loans, leases, agreements, arrangements or understandings outstanding between the Company and any of its officers, directors, or affiliates or any person related to or affiliated with any such officers or directors.

 

SECTION 5.19

 

Employee Matters; Benefit Plans.  The Company has no employees and there are no labor disputes, grievances or requests for arbitration.  Except for the Stock Award to Steven A Sanders, the Company has no pension, retirement, savings, profit sharing, stock-based, incentive compensation or other similar employee benefit plan.

 

  

18

  

SECTION 5.20

 

Trading With the Enemy Act; Patriot Act.  No sale of the Company's securities or the Company's use of the proceeds from such sale has violated the Trading with the Enemy Act, as amended, or any of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended) or any enabling legislation or executive order relating thereto. Without limiting the foregoing, the Company (i) is not a person whose property or interests in property are blocked pursuant to Section 1 of Executive Order 13224 of September 23, 2001 Blocking Property and Prohibiting Transactions with Persons Who Commit, Threaten to Commit, or Support Terrorism (66 Fed. Reg. 49079 (2001)) and (ii) does not engage in any dealings or transactions, or be otherwise associated, with any such person.  The Company is in compliance with the USA Patriot Act of 2001.

 

SECTION 5.21

 

No Disagreements with Accountants and Lawyers.  There are no disagreements of any kind presently existing, or reasonably anticipated by the Company to arise, between the accountants and lawyers formerly or presently employed by the Company and the Company is current with respect to any fees owed to its accountants and lawyers.

 

SECTION 5.22

 

Environmental Matters.  The Company has complied with all applicable environmental laws.  There is no pending or threatened civil or criminal litigation, written notice of violation, formal administrative proceeding or investigation, inquiry or information request by any Governmental Authority or other entity relating to any environmental law involving the Company.

 

SECTION 5.23

 

Listing on the OTCBB.  The Company Common Stock has been approved for listing on the Over-The-Counter Bulletin Board (the "OTCBB") and the Company has and continues to satisfy all of the requirements of the OTCBB for such listing and for the trading of Company Common Stock thereunder.

 

SECTION 5.24

 

Disclosure.  The Company confirms that neither it nor any other Person acting on its behalf has provided Axiom Mexico or its agents or counsel with any information that constitutes or might constitute material, nonpublic information concerning the Company.  The Company understands and confirms that Axiom Mexico will rely on the foregoing representations in effecting transactions in securities of the Company.  All disclosure provided to Axiom Mexico regarding the Company, its business and the transactions contemplated hereby furnished by or on behalf of the Company with respect to the representations and warranties made herein are true and correct with respect to such representations and warranties and do not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements made therein not misleading.  The Company acknowledges and agrees that Axiom Mexico has not made, nor is Axiom Mexico making, any representations or warranties with respect to the transactions contemplated hereby other than those specifically set forth herein.

 

  

19

  

 

ARTICLE VI

Non-Survival of Representations, Warranties and Agreements

SECTION 6.1                                

 

None of the representations, covenants and warranties contained in this Agreement (including, but not limited to, all statements contained in any certificate or other instrument delivered by or on behalf of the Company, Merger Sub, or Axiom Mexico pursuant hereto or in connection with the transactions contemplated hereby) shall survive the Effective Time, except for the covenants and agreements that by their terms apply or are to be performed in whole or in part after the Effective Time.

 

ARTICLE VII

Conditions of Obligations of Merger Sub and the Company

 

The obligation of Merger Sub and the Company to consummate the Merger and other transactions contemplated hereby is subject to the satisfaction or waiver of the following conditions prior to the Closing Date:

 

SECTION 7.1

 

Compliance with Representations, Warranties and Covenants.  Each of the representations and warranties of Axiom Mexico set forth in this Agreement should be true and correct as the date hereof and as the Closing Date as though made on and as of the Closing Date and Axiom Mexico shall be in compliance with its covenants contained herein in all material respects, and Merger Sub and the Company each shall receive from Axiom Mexico certificates to such effect from an officer of Axiom Mexico as of the Closing Date.

 

SECTION 7.2

 

No Material Adverse Change.  Except as disclosed in this Agreement or in the Axiom Mexico Schedule of Exceptions, no material adverse change in the aggregate shall have occurred in the financial condition, business, properties, assets, liabilities or results of operations of Axiom Mexico since the last SEC Report .

 

SECTION 7.3

 

Filings and Approvals.  All applicable filings and regulatory approvals, as well as any other third party approvals, required to be made or obtained by Axiom Mexico shall have been made or obtained.

 

SECTION 7.4

 

Stockholder Approvals.  This Agreement and the transactions contemplated hereby shall have been approved by appropriate action of the stockholders of Axiom Mexico and resolutions to that effect shall have been delivered to the Company.

 

  

20

  

SECTION 7.5

 

No Claims.  No claim, suit, action or other proceeding shall be pending or threatened in writing before or by any court or Governmental Authority against Axiom Mexico that could materially and adversely affect the ability of Axiom Mexico to consummate the transactions contemplated by this Agreement.

 

SECTION 7.6

 

No Injunctions, Restraints or Pending Governmental Actions; Illegality.  No applicable laws shall have been adopted, promulgated or enforced by any Governmental Authority, and no temporary restraining order, preliminary or permanent injunction or other order issued by a court or other Governmental Authority of competent jurisdiction (an "Injunction") shall be in effect, having the effect of making the Merger illegal or otherwise prohibiting consummation of the Merger.  No proceeding initiated by any Governmental Authority seeking, and which is reasonably likely to result in the granting of, an Injunction shall be pending.

 

 

ARTICLE VIII

Conditions of Obligations of Axiom Mexico

 

The obligations of Axiom Mexico to consummate the Merger are subject to the following conditions prior to the Closing Date:

 

SECTION 8.1

 

Compliance with Representations, Warranties and Covenants.  Each of the representations and warranties of Merger Sub and the Company set forth in this Agreement (other than those representations and warranties which are made as of a specified date herein) shall be true and correct as of the date hereof and as of Closing Date as though made on and as of the Closing Date and Merger Sub and the Company shall be in compliance with their respective covenants contained herein in all material respects, and Axiom Mexico shall have received from each of Merger Sub and the Company a certificate to such effect from an officer of Merger Sub and the Company, as the case may be, as of the Closing Date.

 

SECTION 8.2

 

No Material Transactions.  Except as disclosed in this Agreement or pursuant to the Reincorporation, no material transactions shall have been entered into by Merger Sub or the Company, other than transactions in the ordinary course of business, since the most recent SEC Report, except as referred to in this Agreement or in connection herewith, with the prior written consent of Axiom Mexico.

 

SECTION 8.3

 

No Material Adverse Change.  Except as disclosed in this Agreement or pursuant to the Reincorporation, no material adverse change shall have occurred in the financial condition, business, properties, assets, liabilities or results of operations of Merger Sub or the Company since the most recent SEC Report.

 

  

21

  

SECTION 8.4

 

No Claims.  No claim, suit, action or other proceeding shall be pending or threatened in writing before or by any court or Governmental Authority against the Company or Merger Sub that could materially and adversely affect the ability of the Company or Merger Sub to consummate the transaction contemplated by this Agreement.

 

SECTION 8.5

 

No Injunctions, Restraints or Pending Governmental Actions; Illegality.  No applicable laws shall have been adopted, promulgated or enforced by any Governmental Authority, and no Injunction shall be in effect, having the effect of making the Merger illegal or otherwise prohibiting consummation of the Merger.  No proceeding initiated by any Governmental Authority seeking, and which is reasonably likely to result in the granting of, an Injunction shall be pending.

 

SECTION 8.6

 

Super 8-K Information.  The Company will have prepared and able to file a current report on Form 8-K reporting the merger that is compliant with, and provides the information required under, Items 1.01, 3.02, 5.01, 5.06, 9.01 and any other applicable Item of Form 8-K (the “Super 8-K”) including the necessary financial information and Axiom Mexico will have signed off on the Super 8-K to be filed with 4 days of the Effective Date.

 

  

22

  

ARTICLE IX Other Covenants

 

SECTION 9.1

 

Public Announcements.  No press release or announcement concerning this Agreement or the transactions related hereto will be issued by any party without the prior consent of the other parties, except as such release or announcement may be required by law, in which case the party required to make the release or announcement will, to the extent practicable, allow the other party reasonable time to comment on such release or announcement in advance of such issuance.

 

SECTION 9.2

 

Further Instruments and Actions.  Each party shall deliver such further instruments and take such further action as may be reasonably requested by any other party hereto in order to carry out the intent and purposes of this Agreement.

 

SECTION 9.3

 

Issuance of Stock.  Following the Closing, the Company shall issue the Merger Common Stock to the Original Axiom Mexico Shareholders.

 

SECTION 9.4

 

Company Actions Prior to Closing.  Except as otherwise contemplated by this Agreement, from the date hereof through the Closing, the Company shall not, other than in the ordinary course of business consistent with past practice, without the prior written consent of Axiom Mexico:

 

(a)          sell, lease, assign, transfer or otherwise dispose of any material assets;

 

(b)          agree to assume or assume, guarantee, endorse or otherwise in any way be, or become responsible or liable for, directly or indirectly, any material contingent obligation;

 

(c)          participate or engage in any discussions or negotiations with any Person regarding, or enter into any transaction concerning, a merger, stock exchange or consolidation, other than with the other parties hereto, or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, assets or capital stock or  securities convertible into equity, or make any material change in its present method of conducting business;

 

  

23

  

(d)          make any amendment to its certificate of incorporation or bylaws;

 

(e)          incur any liabilities (including, but not limited to. tax liabilities) or claims against the Company (whether such liabilities or claims are contingent or absolute, direct or indirect, and matured or unmatured);

 

(f)          create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property, assets, income or profits, whether now owned or hereafter acquired;

 

(g)          declare or authorize any dividends or distributions on any shares of its capital stock;

 

(h)          make any tax election, change any annual tax accounting period, amend any tax return, enter into any closing agreement, settle any tax claim or assessment, surrender any right to claim a tax refund or consent to any extension or waiver of the limitations period applicable to any tax claim or assessment; or

 

(i)          make any commitment, agreement or understanding with respect to any of the foregoing.

 

SECTION 9.5

 

Axiom Mexico Actions Prior to Closing.  Except as otherwise contemplated by this Agreement, from the date hereof through the Closing, Axiom Mexico shall not, other than in the ordinary course of business consistent with past practice, without the prior written consent of the Company:

 

(a)          sell, lease, assign, transfer or otherwise dispose of any material assets;

 

(b)          agree to assume or assume, guarantee, endorse or otherwise in any way be, or become responsible or liable for, directly or indirectly, any material contingent obligation;

 

(c)          participate or engage in any discussions or negotiations with any Person regarding, or enter into any transaction concerning, a merger, stock exchange or consolidation, other than with the other parties hereto, or liquidate or dissolve itself (or suffer any liquidation or dissolution) or convey, sell, lease, transfer or otherwise dispose of, in one transaction or a series of related transactions, all or a substantial part of its property, business, assets or capital stock or  securities convertible into equity, or make any material change in its present method of conducting business;

 

  

24

  

(d)          make any amendment to its certificate of incorporation or bylaws;

 

(e)          enter into or amend any employment agreements or increase the salary or bonus of any existing employee or with any person to become an officer of Axiom Mexico;

 

(f)          create, incur, assume or suffer to exist, any mortgage, pledge, lien, charge, security interest or encumbrance of any kind upon any of its property, assets, income or profits, whether now owned or hereafter acquired;

 

(g)          declare or authorize any dividends or distributions on any shares of its capital stock;

 

(h)          make any tax election, change any annual tax accounting period, amend any tax return, enter into any closing agreement, settle any tax claim or assessment, surrender any right to claim a tax refund or consent to any extension or waiver of the limitations period applicable to any tax claim or assessment; or

 

(i)          make any commitment, agreement or understanding with respect to any of the foregoing.

 

 

ARTICLE X

Termination or Abandonment

 

SECTION 10.1

 

Termination or Abandonment.  This Agreement may be terminated and may be abandoned by mutual agreement or by either the Company or Axiom Mexico, by written notice to the other parties hereto, at any time in the event of the failure of any condition in favor of such entity as to which the consummation of the Acquisition is subject.  In the event of termination of this Agreement, the same shall become wholly void and of no effect, and there shall be no further liability or obligation hereunder on the part of any of the Constituent Corporations, their respective Boards of Directors or any other party to this Agreement.

 

  

25

  

 

ARTICLE XI

Miscellaneous

 

SECTION 11.1

 

Notices.  All notices, requests and other communications to any party hereunder shall be in writing and either delivered personally, telecopied or sent by certified or registered mail, postage prepaid,

 

	
If to the Company:

	
Steven A Sanders, President

	
  

	
501 Madison Ave, 14th Floor

New York, New York  10022

Facsimile:  +1 (212) 826-9307

sas@sovrlaw.com

 

	
If to Merger Sub:

	
Steven A. Sanders, President

	
  

	
501 Madison Ave, 14th Floor

New York, New York  10022

Facsimile:  +1 (212) 826-9307

sas@sovrlaw.com

 

	
If to Axiom Mexico :

	
Francisco Quiroz, President

	
  

	
Avenida 10  No. 76 entre calles 2 y 3

Colonia Bugambilia

Hermosillo, Sonora

Mexico, C.P. 83140

barryquiroz@gmail.com

or such other address or fax number as such party may hereafter specify for the purpose by notice to the other parties hereto.  All such notices, requests and other communications shall be deemed received on the date delivered personally or by overnight delivery service or telecopied or, if mailed, five (5) business days after the date of mailing.

 

SECTION 11.2

 

Amendments; No Waivers.

 

(a)           Any provision of this Agreement with respect to transactions contemplated hereby may be amended or waived if, but only if, such amendment or waiver is in writing and is signed, in the case of an amendment, by the Company and Axiom Mexico; or in the case of a waiver, by the party against whom the waiver is to be effective.

 

  

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(b)           No failure or delay by any party in exercising any right, power or privilege hereunder shall operate as a waiver thereof nor shall any single or partial exercise thereof preclude any other or further exercise thereof or the exercise of any other right, power or privilege. The rights and remedies herein provided shall be cumulative and not exclusive of any rights or remedies provided by law.

 

SECTION 11.3

 

Fees and Expenses.  Except as otherwise provided in this Agreement, all costs and expenses incident to negotiation, preparation and performance of this Agreement and the transactions contemplated hereby shall be paid by the party incurring such costs and expenses, including, without limitation, fees, expenses and disbursements of their respective financial advisors, accountants and counsel.

 

SECTION 11.4

 

Successors and Assigns.  The provisions of this Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns, but any such transfer or assignment will not relieve the appropriate party of its obligations hereunder.

 

SECTION 11.5

 

Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Nevada, without giving effect to the principles of conflicts of law thereof.

 

SECTION 11.6

 

Jurisdiction.  Any suit, action or proceeding seeking to enforce any provision of, or based on any matter arising out of or in connection with, this Agreement or the transactions contemplated hereby may be brought in any federal or state court located in the City of Las Vegas, Nevada, and each of the parties hereto consents to the jurisdiction of such courts (and of the appropriate appellate courts therefrom) in any such suit, action or proceeding and irrevocably waives, to the fullest extent permitted by law, any objection which it may now or hereafter have to the laying of the venue of any such suit, action or proceeding in any such court or that any such suit, action or proceeding which is brought in any such court has been brought in an inconvenient forum.  Process in any such suit, action or proceeding may be served on any party anywhere in the world, whether within or without the jurisdiction of any such court.  Without limiting the foregoing, each party agrees that service of process on such party as provided in Section 11.1 shall be deemed effective service of process on such party.  Each party hereto (including its affiliates, agents, officers, directors and employees) irrevocably waives, to the fullest extent permitted by applicable law, any and all right to trial by jury in any legal proceeding arising out of or relating to this Agreement or the transactions contemplated hereby.

 

SECTION 11.7

 

Counterparts; Effectiveness.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument.  This Agreement shall become effective when each party hereto has received counterparts hereof signed by all of the other parties.  No provision of this Agreement is intended to confer upon any Person other than the parties hereto any rights or remedies under this Agreement.

 

  

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SECTION 11.8

 

Entire Agreement.  This Agreement and the attached Exhibits and Schedules constitute the entire agreement between the parties with respect to the subject matter of this Agreement and supersedes all prior agreements and understandings, both oral and written, between the parties with respect to the subject matter of this Agreement.

 

SECTION 11.9

 

Consent.  Whenever consent is required to be given by any party to any other party hereunder in connection with any matter contemplated hereby, such consent shall not be unreasonably withheld, delayed or conditioned.

 

SECTION 11.10

 

Captions.  The captions are included for convenience of reference only and shall be ignored in the construction or interpretation of this Agreement.

 

SECTION 11.11

 

Joint Drafting.  This Agreement shall be deemed to have been drafted jointly by the parties hereto, and no inference or interpretation against any party shall be made solely by virtue of such party allegedly having been the draftsperson of this Agreement.

 

SECTION 11.12

 

Public Announcements.  All parties hereto agree that any public announcement, press release or other public disclosure of the signing of this Agreement shall be made jointly and only after all parties hereto have reviewed and approved the language and timing of such disclosure.

 

SECTION 11.13

 

Severability.  If any term, provision, covenant or restriction of this Agreement is held by a court of competent jurisdiction or other authority to be invalid, void or unenforceable, the remainder of the terms, provisions, covenants and restrictions of this Agreement shall remain in full force and effect and shall in no way be affected, impaired or invalidated so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any parties.  Upon such a determination, the parties 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 in order that the transactions contemplated hereby are consummated as originally contemplated to the fullest extent possible.

 

SECTION 11.14

 

Specific Performance.  The parties hereto agree that irreparable damage would occur in the event any provision of this Agreement was not performed in accordance with the its terms and that the parties shall be entitled to specific performance of the terms of this Agreement in addition to any other remedy to which they are entitled at law or in equity.

 

[REMAINDER OF THE PAGE INTENTIONALLY LEFT BLANK]

 

  

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IN WITNESS WHEREOF, the parties hereto have made and executed this Agreement as of the day and year first above written.

 

 

	
  

	
TC POWER MANAGEMENT

 

By:  /s/ Stecen A. Sanders                    

Name:          Steven A. Sanders

Title:             President

 

	
  

	
AXIOM ACQUISITION CORP.

 

By:  /s/ Francisco Quiroz                     

Name:           Francisco Quiroz

Title:             President

 

	
  

	
AXIOM MINERALS DE MEXICO SA DE CV

 

By:  /s/ Francisco Quiroz                     

Name:           Francsico Quiroz

Title:             President

 

	
  

	 

 

  

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SCHEDULE A

 

Section 2.6 Capitalization - Axiom Minerals de Mexico SA de CV

 

	
Authorized Shares of Common Stock:

	 	 	50,000	 
	
Authorized Shares of Preferred Stock:

	 	 	0	 
	
Outstanding Shares of Common Stock:

	 	 	50,000	 
	
Shares of Common Stock Issuable Upon Exercise of Outstanding Options/Warrants:

	 	 	0	 
	
Fully-Diluted Common Shares Outstanding:

	 	 	50,000	 

  

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SCHEDULE OF EXCEPTIONS

TC POWER MANAGEMENT CORP.

Section 5.9 (b)(vi) and (vii) –

Stock Award to Steven A Sanders, 150,000 common shares, issued on November 15, 2010.  Future Stock Award to Steven A Sanders 150,000 common shares due October 1, 2011 and 150,000 common shares due October 1, 2012.

Stock Option Award to Frank Lamendola, 12,500 options issued on October 15, 2010.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00183-of-00352.parquet"}]]