Document:

Unassociated Document

 

EXECUTION VERSION

 

COMMON STOCK

PURCHASE AGREEMENT

 

COMMON STOCK PURCHASE AGREEMENT (the “Agreement”), dated as of December 5, 2011, by and between CIG Wireless Corp., a Nevada corporation, with headquarters located at Five Concourse Parkway, Suite 3100, Atlanta, Georgia 30328 (the “Company”), and the purchaser set forth on the signature page hereto (the “Purchaser”).

WHEREAS:

 

A.           The Company and the Purchaser are executing and delivering this Agreement in reliance upon the exemption from securities registration afforded by Section 4(2) of the Securities Act of 1933, as amended (the “1933 Act”) and Regulation D Promulgated thereunder (“Regulation D”) as promulgated by the United States Securities and Exchange Commission (the “SEC”) under the 1933 Act.

 

B.           The Purchaser wishes to purchase, subject to all terms and conditions set forth in this Agreement, and the Company wishes to sell, upon the terms and conditions stated in this Agreement, the aggregate number of shares of Common Stock set forth on the signature page hereto (the “Common Shares”).

 

NOW, THEREFORE, the Company and the Purchaser hereby agree as follows:

 

1. PURCHASE AND SALE OF COMMON STOCK.

(a)           Common Shares. Subject to the satisfaction (or waiver) of the conditions set forth in Sections 5 and 6 below, the Company agrees to issue and sell to Purchaser and Purchaser agrees to purchase from the Company on the Closing Date (as defined below) the number of Common Shares set forth on the signature page hereto, which as and when shall be subject to all terms and conditions set forth in this Agreement.

 

(b)           Closing. The date and time of the Closing (the “Closing Date”) shall be 10:00 a.m., New York City time, on December 5, 2011 (or such later time or date as is mutually agreed to by the Company and Purchaser) at the offices of Wuersch & Gering LLP, 100 Wall Street, 21st Floor, New York, NY 10005 USA.

 

(c)           Purchase Price Consideration. Purchaser shall tender and deliver to the Company the consideration set forth on the signature page hereto for the number of Common Shares to be issued to the Purchaser at the Closing as set forth on the signature page hereto (the “Purchase Price Consideration”).

 

(d)           Form of Payment. On the Closing Date, (A) the Purchaser shall tender the Purchase Price Consideration to the Company for the Common Shares issued and sold to the Purchaser at the Closing; and (B) the Company shall deliver to the Purchaser the Common Shares, each duly executed on behalf of the Company and registered in the name of the Purchaser.

 

  

  

  

 

 

 

2. PURCHASER’S REPRESENTATIONS, WARRANTIES AND COVENANTS

Purchaser represents and warrants, as of the date hereof and as of the Closing Date, that:

 

(a)           Organization; Authority. Purchaser is an entity duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization with the requisite power and authority to enter into and to consummate the transactions contemplated by the Transaction Documents (as defined below) to which it is a party and otherwise to carry out its obligations hereunder and thereunder.

 

(b)           No Sale or Distribution. Purchaser is acquiring the Common Shares for its own account and not with a view towards, or for resale in connection with, the public sale or distribution thereof, except pursuant to sales registered or exempted under the 1933 Act; provided, however, that by making the representations herein, the Purchaser does not agree to hold any of the Common Shares for any minimum or other specific term and reserves the right to dispose of the Common Shares at any time in accordance with or pursuant to a registration statement or an exemption under the 1933 Act. The Purchaser is acquiring the Common Shares hereunder in the ordinary course of its business. The Purchaser does not presently have any agreement or understanding, directly or indirectly, with any Person to distribute any of the Common Shares.

 

(c)           General Solicitation. The Purchaser is not purchasing the Common Shares as a result of any advertisement, article, notice or other communication regarding the Common Shares published in any newspaper, magazine or similar media or broadcast over television, radio or the Internet or presented at any seminar or, to the Purchaser’s knowledge, any other general advertisement or general solicitation.

 

(d)           Reliance on Exemptions. The Purchaser understands that the Common Shares are being offered and sold to it in reliance on specific exemptions from the registration requirements of United States federal and state securities laws and that the Company is relying in part upon the truth and accuracy of, and Purchaser’s compliance with, the representations, warranties, agreements, acknowledgments and understandings of the Purchaser set forth herein in order to determine the availability of such exemptions and the eligibility of the Purchaser to acquire the Common Shares.

 

(e)           Information. Purchaser and its advisors, if any, have been furnished with all materials relating to the business, finances and operations of the Company and materials relating to the offer and sale of the Common Shares that have been requested by the Purchaser. The Purchaser and its advisors, if any, have been afforded the opportunity to ask questions of the Company. Neither such inquiries nor any other due diligence investigations conducted by the Purchaser or its advisors, if any, or its representatives shall modify, amend or affect the Purchaser’s right to rely on the Company’s representations and warranties contained herein. The Purchaser understands that its investment in the Common Shares involves a high degree of risk. The Purchaser has sought such accounting, legal and tax advice as it has considered necessary to make an informed investment decision with respect to its acquisition of the Common Shares.

 

  

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(f)           No Governmental Review. The Purchaser understands that no United States federal or state agency or any other government or governmental agency has passed on or made any recommendation or endorsement of the Common Shares or the fairness or suitability of the investment in the Common Shares nor have such authorities passed upon or endorsed the merits of the offering of the Common Shares.

 

(g)           Transfer or Resale.  The Purchaser expressly understands, acknowledges and agrees that: (i) the Common Shares have not been and are not being registered under the 1933 Act or any state securities laws, and may not be offered for sale, sold, assigned or transferred, unless subsequent to the termination date of all such limitation periods, the Common Shares are (A) subsequently registered thereunder, (B) the Purchaser shall have delivered to the Company an opinion of counsel, in a generally acceptable form, to the effect that such Common Shares to be sold, assigned or transferred may be sold, assigned or transferred pursuant to an exemption from such registration, or (C) the Purchaser provides the Company with reasonable assurance that such Common Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A promulgated under the 1933 Act, as amended, (or a successor rule thereto) (collectively, “Rule 144”); (ii) any sale of the Common Shares made in reliance on Rule 144 may be made only in accordance with the terms of Rule 144 and further, if Rule 144 is not applicable, any resale of the Common Shares under circumstances in which the seller (or the Person (as defined in Section 3(q)) through whom the sale is made) may be deemed to be an underwriter (as that term is defined in the 1933 Act) may require compliance with some other exemption under the 1933 Act or the rules and regulations of the SEC thereunder; and (iii) neither the Company nor any other Person is under any obligation to register the Common Shares under the 1933 Act or any state securities laws or to comply with the terms and conditions of any exemption thereunder. The Common Shares may be pledged in connection with a bona fide margin account or other loan or financing arrangement secured by the Common Shares and such pledge of Common Shares shall not be deemed to be a transfer, sale or assignment of the Common Shares hereunder, and no Purchaser effecting a pledge of Common Shares shall be required to provide the Company with any notice thereof or otherwise make any delivery to the Company pursuant to this Agreement or any other Transaction Document (as defined in Section 3(b)), including, without limitation, this Section 2(g).

 

(h)           Legends. The Purchaser understands that the certificates or other instruments representing the Common Shares, until resale of the Common Shares have been registered under the 1933 Act or there is an exemption from registration available, the stock certificates representing the Common Shares, shall bear any legend as required by the “blue sky” laws of any state and a restrictive legend in substantially the following form (and a stop-transfer order may be placed against transfer of such stock certificates):

 

THE COMMON SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE COMMON SHARES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE COMMON SHARES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT AND APPLICABLE STATE SECURITIES LAWS OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID ACT. NOTWITHSTANDING THE FOREGOING, THE COMMON SHARES MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED BY THE COMMON SHARES.

 

  

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The legend set forth above shall be removed and the Company shall issue a certificate without such legend to the holder of the Common Shares upon which it is stamped or issue to such holder by electronic delivery at the applicable balance account at The Depository Trust Company (“DTC”), if, unless otherwise required by state securities laws, (i) such Common Shares are registered for resale under the 1933 Act, (ii) in connection with a sale, assignment or other transfer, such holder provides the Company with an opinion of counsel, in a generally acceptable form, to the effect that such sale, assignment or transfer of the Common Shares may be made without registration under the applicable requirements of the 1933 Act, or (iii) such holder provides the Company with reasonable assurance that the Common Shares can be sold, assigned or transferred pursuant to Rule 144 or Rule 144A. The Company shall be responsible for the fees of its transfer agent and all DTC fees associated with such issuance.

 

(i)           Validity; Enforcement. This Agreement has been duly and validly authorized, executed and delivered on behalf of the Purchaser and shall constitute the legal, valid and binding obligations of the Purchaser enforceable against the Purchaser in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or to applicable bankruptcy, insolvency, reorganization, moratorium, liquidation and other similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(j)           No Conflicts. The execution, delivery and performance by the Purchaser of this Agreement and the consummation by the Purchaser of the transactions contemplated hereby and thereby will not (i) result in a violation of the organizational documents of the Purchaser or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Purchaser is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including federal and state securities laws) applicable to the Purchaser, except in the case of clauses (ii) and (iii) above, for such conflicts, defaults, rights or violations which would not, individually or in the aggregate, reasonably be expected to have a material adverse effect on the ability of the Purchaser to perform its obligations hereunder.

 

(k)           No Agent. The Purchaser has not engaged any placement agent or other agent in connection with the sale of the Common Shares.

 

(l)           Accredited Investor Status. The Purchaser is an “accredited investor” as that term is defined in Rule 501(a) of Regulation D promulgated under the Securities Act.

 

  

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3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

The Company represents and warrants to the Purchaser that, as of the date hereof and as of the Closing Date:

 

(a)           Organization and Qualification. The Company and its “Subsidiaries” (which for purposes of this Agreement means any entity in which the Company, directly or indirectly, owns a majority of the capital stock, equity or similar interest) are entities duly organized and validly existing and, to the extent legally applicable, in good standing under the laws of the jurisdiction in which they are formed, and have the requisite power and authorization to own their properties and to carry on their business as now being conducted. Each of the Company and its Subsidiaries is duly qualified as an entity to do business and, to the extent legally applicable, is in good standing in every jurisdiction in which its ownership of property or the nature of the business conducted by it makes such qualification necessary, except to the extent that the failure to be so qualified or be in good standing would not reasonably be expected to have a Material Adverse Effect. As used in this Agreement, “Material Adverse Effect” means any material adverse effect on the business, properties, assets, operations, results of operations, condition (financial or otherwise) or prospects of the Company and its Subsidiaries, taken as a whole, or on the transactions contemplated hereby or in the other Transaction Documents or by the agreements and instruments to be entered into in connection herewith or therewith, or on the authority or ability of the Company to perform its obligations under the Transaction Documents (as defined below).

 

(b)           Authorization; Enforcement; Validity. The Company has the requisite corporate power and authority to enter into and perform its obligations under this Agreement, and each of the other agreements entered into by the parties hereto as of even date hereof in connection with the transactions contemplated by this Agreement (collectively, the “Transaction Documents”) and to issue the Common Shares in accordance with the terms hereof and thereof. The execution and delivery of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby, including, without limitation, the issuance of the Common Shares, have been duly authorized by the Company’s board of directors and no further filing, consent, or authorization is required by the Company, its board of directors or its stockholders. This Agreement and the other Transaction Documents of even date herewith have been duly executed and delivered by the Company, and constitute the legal, valid and binding obligations of the Company, enforceable against the Company in accordance with their respective terms, except as such enforceability may be limited by general principles of equity or applicable bankruptcy, insolvency, reorganization, moratorium, liquidation or similar laws relating to, or affecting generally, the enforcement of applicable creditors’ rights and remedies.

 

(c)           Issuance of Common Shares. The issuance of the Common Shares are duly authorized and upon issuance in accordance with the terms of the Transaction Documents shall be fully paid, validly issued, and non-assessable, and free from all taxes, liens and charges with respect to the issue thereof (except for liens arising as a function of law or regulation on the Common Shares). Assuming the accuracy of each of the representations and warranties set forth in Section 2 of this Agreement, the offer and issuance by the Company of the Common Shares is exempt from registration under the 1933 Act.

 

  

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(d)           No Conflicts. The execution, delivery and performance of the Transaction Documents by the Company and the consummation by the Company of the transactions contemplated hereby and thereby (including, without limitation, the issuance of the Common Shares) will not (i) result in a violation of the Articles of Incorporation (as defined in Section 3(p)), the Company’s Articles of Incorporation, any certificate of formation, any certificate of designations or other constituent documents of the Company or any of its Subsidiaries, any capital stock of the Company or any of its Subsidiaries or bylaws of the Company or any of its Subsidiaries or (ii) conflict with, or constitute a default (or an event which with notice or lapse of time or both would become a default) in any respect under, or give to others any rights of termination, amendment, acceleration or cancellation of, any agreement, indenture or instrument to which the Company or any of its Subsidiaries is a party, or (iii) result in a violation of any law, rule, regulation, order, judgment or decree (including foreign, federal and state securities laws and regulations and the rules and regulations of the principal securities market or exchange (the “Principal Market”) applicable to the Company or any of its Subsidiaries or by which any property or asset of the Company or any of its Subsidiaries is bound or affected.

 

(e)           Consents. Neither the Company nor any of its Subsidiaries is required to obtain any consent, authorization or order of, or make any filing or registration with, any court, governmental agency or any regulatory or self-regulatory agency or any other Person in order for it to execute, deliver or perform any of its obligations under or contemplated by the Transaction Documents, in each case in accordance with the terms hereof or thereof. The Company is not in violation of the listing requirements of the Principal Market and has no knowledge of any facts that would reasonably lead to delisting or suspension of the Common Stock in the foreseeable future. The issuance by the Company of the Common Shares shall not have the effect of delisting or suspending the Common Stock from the Principal Market.

 

4. COVENANTS.

(a)           Best Efforts. Each party shall use its best efforts timely to satisfy each of the conditions to be satisfied by it as provided in Sections 5 and 6 of this Agreement.

 

(b)           Reporting Status. Until the date on which the Purchaser or any transferee or assignee thereof to whom a Purchaser assigns its rights as a holder of Common Shares under this Agreement (each an “Investor”, and collectively, the “Investors”) shall have sold all the Common Shares (the “Reporting Period”), the Company shall timely file all reports required to be filed with the SEC pursuant to the 1934 Act, and the Company shall not terminate its status as an issuer required to file reports under the 1934 Act even if the 1934 Act or the rules and regulations thereunder would no longer require or otherwise permit such termination.

 

(c)           Use of Proceeds. The Company will use the proceeds from the sale of the Common Shares for working capital and general corporate purposes.

 

(d)           Conduct of Business. The business of the Company and its Subsidiaries shall not be conducted in violation of any law, ordinance or regulation of any governmental entity, except where such violations would not result, either individually or in the aggregate, in a Material Adverse Effect.

 

  

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5. CONDITIONS TO THE COMPANY’S OBLIGATION TO SELL.

(a)           The obligation of the Company hereunder to issue and sell the Common Shares to Purchaser at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for the Company’s sole benefit and may be waived by the Company at any time in its sole discretion by providing Purchaser with prior written notice thereof:

 

(i)           The Purchaser shall have executed each of the Transaction Documents to which it is a party and delivered the same to the Company.

 

(ii)           The Purchaser shall have delivered to the Company the Purchase Price Consideration for the Common Shares being purchased by the Purchaser at the Closing by wire transfer of immediately available funds pursuant to the wire instructions provided by the Company.

 

(iii)           The representations and warranties of the Purchaser shall be true and correct in all material respects as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date), and the Purchaser shall have performed, satisfied and complied in all material respects with the covenants, agreements and conditions required by this Agreement to be performed, satisfied or complied with by the Purchaser at or prior to the Closing Date.

 

6. CONDITIONS TO PURCHASER’S OBLIGATION TO PURCHASE.

(a)           The obligation of Purchaser hereunder to purchase the Common Shares at the Closing is subject to the satisfaction, at or before the Closing Date, of each of the following conditions, provided that these conditions are for Purchaser’s sole benefit and may be waived by the Purchaser at any time in its sole discretion by providing the Company with prior written notice thereof:

 

(i)           The Company shall have duly executed and delivered to the Purchaser (A) each of the Transaction Documents and (B) the Common Shares being purchased by the Purchaser at the Closing pursuant to this Agreement.

 

(ii)           The representations and warranties of the Company shall be true and correct as of the date when made and as of the Closing Date as though made at that time (except for representations and warranties that speak as of a specific date, which shall be true and correct as of such specified date) and the Company shall have performed, satisfied and complied in all respects with the covenants, agreements and conditions required by the Transaction Documents to be performed, satisfied or complied with by the Company at or prior to the Closing Date.

 

(iii)           The Company shall have obtained all governmental, regulatory or third party consents and approvals, if any, necessary for the sale of the Common Shares.

 

  

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(iv)           The Company shall have delivered to the Purchaser such other documents relating to the transactions contemplated by this Agreement as the Purchaser or its counsel may reasonably request.

 

7. TERMINATION.

In the event that the Closing shall not have occurred on or before five (5) Business Days from the date hereof due to the Company’s or the Purchaser’s failure to satisfy the conditions set forth in Sections 5 and 6 above (and the nonbreaching party’s failure to waive such unsatisfied condition(s)), the nonbreaching party shall have the option to terminate this Agreement with respect to such breaching party at the close of business on such date without liability of any party to any other party.

 

8. MISCELLANEOUS.

(a)           Jurisdiction and Venue; Jury Trial Waiver.  Each party acknowledges and agrees that any legal action, proceeding, or litigation arising out of or in any way related to this Agreement shall be instituted in the United States District Court for the Northern District of Georgia or any State of Georgia court having jurisdiction over the subject matter of the dispute or matter.  Each party agrees to submit to the jurisdiction of and agree that the venue is proper in those courts in any legal action, proceeding, or litigation arising out of or in any way related to this Agreement.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, EACH PARTY HEREBY KNOWINGLY, VOLUNTARILY, AND IRREVOCABLY WAIVES ANY RIGHT TO A JURY TRIAL IN CONNECTION WITH ANY LEGAL ACTION, PROCEEDING, OR LITIGATION ARISING OUT OF OR IN ANY WAY RELATED TO THIS AGREEMENT.

 

(b)           Counterparts. This Agreement may be executed in two or more identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature.

 

(c)           Headings. The headings of this Agreement are for convenience of reference and shall not form part of, or affect the interpretation of, this Agreement.

 

(d)           Severability. If any provision of this Agreement is prohibited by law or otherwise determined to be invalid or unenforceable by a court of competent jurisdiction, the provision that would otherwise be prohibited, invalid or unenforceable shall be deemed amended to apply to the broadest extent that it would be valid and enforceable, and the invalidity or unenforceability of such provision shall not affect the validity of the remaining provisions of this Agreement so long as this Agreement as so modified continues to express, without material change, the original intentions of the parties as to the subject matter hereof and the prohibited nature, invalidity or unenforceability of the provision(s) in question does not substantially impair the respective expectations or reciprocal obligations of the parties or the practical realization of the benefits that would otherwise be conferred upon the parties. The parties will endeavor in good faith negotiations to replace the prohibited, invalid or unenforceable provision(s) with a valid provision(s), the effect of which comes as close as possible to that of the prohibited, invalid or unenforceable provision(s).

 

  

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(e)           Entire Agreement; Amendments. This Agreement and the other Transaction Documents supersede all other prior oral or written agreements between the Purchaser, the Company, their affiliates and Persons acting on their behalf with respect to the matters discussed herein, and this Agreement, the other Transaction Documents and the instruments referenced herein and therein contain the entire understanding of the parties with respect to the matters covered herein and therein and, except as specifically set forth herein or therein, neither the Company nor Purchaser makes any representation, warranty, covenant or undertaking with respect to such matters. No provision of this Agreement may be amended other than by an instrument in writing signed by the Company and the holder of the Common Stock at such time, and any amendment to this Agreement made in conformity with the provisions of this Section 8(e) shall be binding on all Purchaser and holders of Common Shares, as applicable. No provision hereof may be waived other than by an instrument in writing signed by the party against whom enforcement is sought. No such amendment shall be effective to the extent that it applies to less than all of the holders of the applicable Common Shares then outstanding. No consideration shall be offered or paid to any Person to amend or consent to a waiver or modification of any provision of any of the Transaction Documents unless the same consideration also is offered to all of the parties to the Transaction Documents or holders of Common Shares, as the case may be. The Company has not, directly or indirectly, made any agreements with Purchaser relating to the terms or conditions of the transactions contemplated by the Transaction Documents except as set forth in the Transaction Documents. Without limiting the foregoing, the Company confirms that, except as set forth in this Agreement, no Purchaser has made any commitment or promise or has any other obligation to provide any financing to the Company or otherwise.

 

(f)           Notices. Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Agreement must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by facsimile or e-mail (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with an overnight courier service, in each case properly addressed to the party to receive the same. The addresses and facsimile numbers for such communications shall be:

 

If to the Company:

 

CIG Wireless Corp.

Five Concourse Parkway, Suite 3100

Atlanta, GA 30328

Telephone No.: 678-332-5000

Facsimile No.:  678-332-5050

Attn:  Akram Baker, CEO

 

  

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with a copy to:

Wuersch & Gering LLP

100 Wall Street

New York, New York 10005

Telephone No.: (212) 509-5050

Facsimile No.:  (610) 819-9104

Attn:  Travis L. Gering

 

If to the Purchaser:

 

BAC Berlin Atlantic Holding GmbH & Co. KG

Five Concourse Parkway, Suite 3100

Atlanta, GA 30328

Telephone No.: 678-332-5000

Facsimile No.:  678-332-5050

with a copy to:

Hartman Simons & Wood LLP

6400 Powers Ferry Road, NW

Suite 400

Atlanta, Georgia 30339

Telephone No.:  678-528-4446

Facsimile No.:  770-951-5357

Attention:  Yvette Fallone-Tietje

 

or to such other address and/or facsimile number and/or to the attention of such other Person as the recipient party has specified by written notice given to each other party five (5) days prior to the effectiveness of such change. Written confirmation of receipt (A) given by the recipient of such notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s facsimile machine containing the time, date, recipient facsimile number and an image of the first page of such transmission or (C) provided by an overnight courier service shall be rebuttable evidence of personal service, receipt by facsimile or receipt from an overnight courier service in accordance with clause (i), (ii) or (iii) above, respectively.

 

(g)           Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and assigns, including any purchasers of the Common Shares. Purchaser may assign some or all of its rights hereunder without the consent of the Company, in which event such assignee shall be deemed to be a Purchaser hereunder with respect to such assigned rights.

 

(h)           No Third Party Beneficiaries. This Agreement is intended for the benefit of the parties hereto and their respective permitted successors and assigns, and is not for the benefit of, nor may any provision hereof be enforced by, any other Person.

 

  

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(i)           Survival. Unless this Agreement is terminated under Section 7, the representations and warranties of the Company and the Purchaser contained in Sections 2 and 3 and the agreements and covenants set forth in Sections 4 and 8 shall survive the Closing and the delivery of the Common Shares. Purchaser shall be responsible only for its own representations, warranties, agreements and covenants hereunder.

 

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

 

(k)           No Strict Construction. The language used in this Agreement will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party.

 

(m)           Remedies. Purchaser and each holder of the Common Shares shall have all rights and remedies set forth in the Transaction Documents and all rights and remedies which such holders have been granted at any time under any other agreement or contract and all of the rights which such holders have under any law. Any Person having any rights under any provision of this Agreement shall be entitled to enforce such rights specifically (without posting a bond or other security), to recover damages by reason of any breach of any provision of this Agreement and to exercise all other rights granted by law. Furthermore, the Company recognizes that in the event that it fails to perform, observe, or discharge any or all of its obligations under the Transaction Documents, any remedy at law may prove to be inadequate relief to the Purchaser. The Company therefore agrees that the Purchaser shall be entitled to seek temporary and permanent injunctive relief in any such case without the necessity of proving actual damages and without posting a bond or other security.

 

(l)           Rescission and Withdrawal Right. Notwithstanding anything to the contrary contained in (and without limiting any similar provisions of) the Transaction Documents, whenever Purchaser exercises a right, election, demand or option under a Transaction Document and the Company does not timely perform its related obligations within the periods therein provided, then the Purchaser may rescind or withdraw, in its sole discretion from time to time upon written notice to the Company, any relevant notice, demand or election in whole or in part without prejudice to its future actions and rights.

 

(m)           Independent Nature of Purchaser’s Obligations and Rights. The obligations of Purchaser under any Transaction Document are several and not joint with the obligations of any other Purchaser, and no Purchaser shall be responsible in any way for the performance of the obligations of any other Purchaser under any Transaction Document. Nothing contained herein or in any other Transaction Document, and no action taken by Purchaser pursuant hereto or thereto, shall be deemed to constitute the Purchaser as, and the Company acknowledges that the Purchaser do not so constitute, a partnership, an association, a joint venture or any other kind of entity, or create a presumption that the Purchaser are in any way acting in concert or as a group, and the Company will not assert any such claim with respect to such obligations or the transactions contemplated by the Transaction Documents and the Company acknowledges that the Purchaser are not acting in concert or as a group with respect to such obligations or the transactions contemplated by the Transaction Documents. The Company acknowledges and Purchaser confirms that it has independently participated in the negotiation of the transaction contemplated hereby with the advice of its own counsel and advisors. Purchaser shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement or out of any other Transaction Documents, and it shall not be necessary for any other Purchaser to be joined as an additional party in any proceeding for such purpose.

 

  

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[Signature Page Follows]

 

 

  

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IN WITNESS WHEREOF, Purchaser and the Company have caused their respective signature page to this COMMON STOCK PURCHASE AGREEMENT to be duly executed as of the date first written above.

 

Number of Shares of Common Stock purchased by the undersigned Purchaser: ***750,000*** Shares of Company Common Stock at a value of Two U.S. Dollars ($2.00) per share.

 

Consideration: One Hundred Percent (100%) of the Equity Membership Interests of CIG, LLC, a Delaware Limited Liability Company, to be transferred to CIG Properties, Inc., a wholly owned subsidiary of the Company.

 

	 	

COMPANY:  CIG WIRELESS CORP.

	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Akram Baker

	 	 	 	 
	 	 	
Name:  Akram Baker

	 	 	 	 
	 	 	
Title:    Chief Executive Officer

	 	 	 	 

	 	BAC Berlin Atlantic Holding GMBH & CO. KG	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	BAC Verwaltung GmbH, its General Partner	 	 	 	 
	 	 	 	 	 	 	 
	 	By: 	
/s/ Stefan Beiten

	 	 	 	 
	 	 	
Name:  Stefan Beiten

	 	 	 	 
	 	 	

Title:    Managing Director

	 	 	 	 

 

  

13Unassociated Document

 

EXHIBIT 10.1

 

 

 

 

___________________________________________________

 

 

STOCK PURCHASE AGREEMENT

 

___________________________________________________

 

As of December 2, 2011

 

 

 

 

 

  

  

  

 

Raptor Networks Technology, Inc.

Stock Purchase Agreement

as of December 2, 2011

Page

 

	SECTION 1. PURCHASE AND SALE	
1

	
1.1.

	
Purchase and Sale.

	
1

	
1.2.

	
Closing.

	
1

	
1.3.

	
Transfer Taxes

	
2

	
1.4.

	
Post-Split Capitalization

	
2

	 	 	 
	SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY	
2

	
2.1.

	
Organization and Corporate Power

	
2

	
2.2.

	
Capitalization

	
3

	
2.3.

	
Authorization

	
3

	
2.4.

	
Noncontravention

	
3

	
2.5.

	
Subsidiaries

	
4

	
2.6.

	
Financial Statements

	
4

	
2.7.

	
Absence of Certain Changes

	
4

	
2.8.

	
Undisclosed Liabilities

	
5

	
2.9.

	
Tax Matters

	
5

	
2.10.

	
Absence of Debt

	
5

	
2.11.

	
Pacific InterMedia Merger

	
 5

	
2.12.

	
Investment Status

	
5

	

2.13.

	

Representation of CCE

	5
	
2.14.

	
D&O Tail Insurance

	
5

	
2.15

	
Disclosure

	
5

	 	 
	SECTION 3. REPRESENTATIONS AND WARRANTIES OF LANTIS LASER	
6

	
3.1.

	
Organization and Corporate Power

	
6

	
3.2.

	
Capitalization

	
6

	
3.3.

	
Authorization

	
6

	
3.4.

	
Noncontravention..

	
7

	
3.5.

	
Subsidiaries

	
7

	
3.7.

	
Absence of Certain Changes

	
7

	
3.8.

	
Undisclosed Liabilities

	
8

	
3.9.

	
Tax Matters

	
8

	
3.10.

	
Investment Status

	
8

	
3.11.

	
Investment Banking; Brokerage Fees

	
8

	  	  	  
	SECTION 4. CONDITIONS OF PURCHASE BY LANTIS LASER	
8

	
4.1.

	
Satisfaction of Conditions

	
8

	
4.2.

	
[Omitted]

	
8

	
4.3.

	
Authorization

	
8

	
4.4.

	
Delivery of Documents

	
8

	
4.5.

	
All Proceedings Satisfactory.

	
9

	
4.6.

	
No Violation or Injunction.

	
9

 

 

 

  

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	SECTION 5. CONDITIONS TO OBLIGATIONS OF THE COMPANY	
10

	
5.1.

	
Satisfaction of Conditions

	
10

	 	 
	SECTION 6. SURVIVAL; INDEMNIFICATION	
10

	
6.1.

	
Survival of Representations, Warranties and Covenants; Indemnification.

	
10

	 	 
	SECTION 7. COVENANTS	
11

	
7.1.

	
Support of Post-Closing Actions

	
11

	
7.2

	
D&O Tail

	
11

	 	 
	
SECTION 8.  GENERAL

	
11

	
8.1.

	
Amendments, Waivers and Consents

	
11

	
8.2.

	
Legend on Securities

	
11

	
8.3.

	
Governing Law..

	
11

	
8.4.

	
Section Headings and Gender

	
11

	
8.5.

	
Counterparts

	
12

	
8.6.

	
Notices and Demands

	
12

	
8.7.

	
Jursidiction of Disputes; Venue

	
12

	
8.8.

	
Assignability

	
13

	
8.9.

	
Integration

	
13

	
8.10.

	
Recitals

	
13

	
8.11

	
Publicity

	
13

	
8.12

	
Confidentiality

	
13

DISCLOSURE SCHEDULE

 

Schedule 2.2   Outstanding Options and Warrants

Schedule 2.5   Subsidiaries

 

  

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STOCK PURCHASE AGREEMENT

 

THIS STOCK PURCHASE AGREEMENT (this “Agreement”) is made as of this 2nd day of December, 2011, by and between Lantis Laser Inc., a Nevada corporation (“Lantis Laser”), and Raptor Networks Technology, Inc., a Colorado corporation (together with any predecessors or successors thereto as the context requires, the “Company”).

WHEREAS, the Company and Lantis Laser entered into a letter of intent ("LOI") on August 19, 2011 under which Lantis Laser agreed to exchange 5,000,000 restricted shares of its common stock, $.001 par value per share ("Lantis Common Stock"), for 80% of all the issued and outstanding shares of the Company's capital stock;

 

WHEREAS, the Company only has 200,000,000 shares of authorized common stock under its Articles of Incorporation, of which 88,080,979 shares are issued and outstanding and 90,071,689 shares are outstanding on a fully diluted basis;

 

WHEREAS, the Company lacks sufficient cash to effect a reverse split, including the costs of meeting the SEC regulations to obtain the necessary shareholder approval for a reverse split; and

 

WHEREAS, the Company and Lantis Laser have agreed to have Lantis Laser acquire 80% of the Company's issued and outstanding common stock, par value $.001 per share ("Company Common Stock"), in two steps, the first being by having the Company issue 109,928,311 shares of its common stock, to give Lantis Laser 55% ownership of all issued and outstanding shares of the Company's capital stock, and the second to effect a 1:10 reverse split of all issued and outstanding shares of the Company's capital stock as a result of which the current shareholders of the Company, following the issuance of 13,510,752 shares of the Company Common Stock to California Capital Equity, LLC, will own 8,808,098, of the issued and outstanding shares of Company Common Stock, California Capital Equity will own 13,510,752 shares of Company Common Stock and 199,071 shares of Company Common Stock will be reserved for the exercise of options and warrants for a total of 22,517,912 of the issued and outstanding shares of Company Common Stock on a fully diluted basis and Lantis Laser will receive an additional 79,078,817 shares of Company Common Stock to achieve its ownership of 90,071,648 shares or 80% of the Company's 112,589,560 issued and outstanding shares of the Company's capital stock.

 

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements hereinafter set forth, and for other valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

1. PURCHASE AND SALE

 

1.1 Purchase and Sale. Upon the terms and subject to the conditions herein, and in reliance on the representations and warranties set forth in Section 2, Lantis Laser irrevocably subscribes for and agrees to purchase, and the Company agrees to sell, 109,928,311 restricted shares of Company Common Stock in return for 5,000,000 restricted shares of Lantis Common Stock.

 

  

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1.2. Closing. The purchase and sale of the shares of Company Common Stock for shares of Lantis Common Stock (the “Closing”) shall take place at the offices of Akerman Senterfitt LLP, 750 Ninth Street, N.W., Suite 750, Washington, D.C. 20001 or at such other time and place as the Company and the Lantis Laser mutually agree upon, orally or in writing, following completion of the Closing conditions.

 

           1.3 Transfer Taxes.   All transfer taxes, fees and duties under applicable law incurred in connection with the sale and transfer of the shares of the Company’s Common Stock under this Agreement will be borne and paid by Lantis Laser.

 

1.4  Post-Split Capitalization.  Following the Closing and the 1:10 reverse split the ownership of the shares of Company Common Stock will be as follows:  Lantis Laser will own 90,071,648 shares, California Capital Equity, LLC will own 13,510,752 shares, the existing shareholders of the Company will own 8,808,098 shares and there will be 199,071 shares of Company Common Stock reserved for the exercise of options and warrants.

 

SECTION 2. REPRESENTATIONS AND WARRANTIES OF THE COMPANY

 

In order to induce Lantis Laser to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby makes to Lantis Laser the representations and warranties contained in this Section 2 as of the Closing.  Such representations and warranties are subject to the qualifications and exceptions set forth in the disclosure schedule delivered to Lantis Laser pursuant to this Agreement (the “Disclosure Schedule”); provided, however, that any information set forth in a Section of the Disclosure Schedule shall not be incorporated (unless by specific reference) to any other Section of the Disclosure Schedule.  For purposes hereof, unless otherwise indicated, all references to the Company shall include all Subsidiaries of the Company.

 

           2.1. Organization and Corporate Power.  The Company is a corporation duly organized, validly existing and in corporate good standing under the laws of the State of Colorado.  The Company is duly qualified to conduct business and is in corporate good standing under the laws of each jurisdiction in which the nature of its businesses or the ownership or leasing of its properties requires such qualification, except where the failure to be so qualified or in good standing would not have any change or effect that is materially adverse to the properties, assets, business, condition (financial or otherwise), prospects or results of operations of the Company and its Subsidiaries, taken as a whole.  The Company has the corporate power and authority to carry on the businesses in which it is engaged and to own and use the properties owned and used by it.  The Company has furnished or made available to Lantis Laser true and complete copies of its Articles of Incorporation and Bylaws, each as amended and as in effect on the date hereof (hereinafter the “Company Charter” and “Bylaws”, respectively).  The Company is not in default under or in violation of any provision of the Company Charter or Bylaws.

 

  

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           2.2. Capitalization. The authorized capital stock of the Company is 205,000,000 shares of which 200,000,000 shares are Company Common Stock, of which 88,080,979 shares are issued and outstanding, and 5,000,000 shares of preferred stock, no par value, none of which are issued and outstanding.  All issued and outstanding shares of the Company stock have been duly authorized and validly issued, and are fully paid and nonassessable.  All of the outstanding shares of common stock and other outstanding securities of the Company have been duly and validly issued in compliance with federal and state securities laws.  Section 2.2 of the Disclosure Schedule sets forth a complete and accurate list outstanding of authorized subscriptions, options, warrants, plans or, except for this Agreement and as contemplated by this Agreement, other agreements or rights of any kind to purchase or otherwise receive or be issued, securities or obligations of any kind convertible into, any shares of capital stock or other securities of the Company, and there are no dividends which have accrued or been declared but are unpaid on the capital stock of the Company.  There are no outstanding or authorized stock appreciation, phantom stock or similar rights with respect to the Company.  All of the issued and outstanding shares of the Company’s capital stock are free and clear of any liens, pledges, encumbrances, charges, agreements adversely effecting title to such shares or claims (other than those created by virtue of this Agreement), and the certificates evidencing the ownership of such shares are in proper form for the enforcement of the rights and limitations of rights pertaining to said shares which are set forth in the Company Charter and Bylaws. As of each Closing, there are (A) no preemptive rights, rights of first refusal, put or call rights or obligations or anti-dilution rights with respect to the issuance, sale or redemption of the Company’s capital stock, (B) no rights to have the Company’s capital stock registered for sale to the public in connection with the laws of any jurisdiction and (C) no documents, instruments or agreements relating to the voting of the Company’s voting securities or restrictions on the transfer of the Company’s capital stock.

           2.3. Authorization.  The Company has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution and delivery of this Agreement, the performance by the Company of this Agreement, the consummation by the Company of the transactions contemplated hereby and the sale and delivery of the Company Common Stock have been duly and validly authorized by all necessary corporate action on the part of the Company.  This Agreement has been duly and validly executed and delivered by the Company and constitutes a valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding therefor may be brought.

 

           2.4. Noncontravention.  Subject to compliance with the applicable requirements of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended and any applicable state securities laws, the execution and delivery of this Agreement by the Company, the sale and delivery of the shares of Company Common Stock, and the consummation by the Company of the transactions contemplated hereby, will not: (a) conflict with or violate any provision of the Company Charter or the Bylaws; (b) require on the part of the Company any filing with, or any permit, authorization, consent or approval of, any Governmental Entity, other than any filing, permit, authorization, consent or approval which if not made or obtained would not have any change or effect that is materially adverse to the properties, assets, business, condition (financial or otherwise), prospects or results of operations of the Company or any Subsidiary, taken as a whole (a “Material Adverse Effect”); (c) conflict with, result in a breach of, constitute (with or without due notice or lapse of time or both) a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice, consent or waiver under, any contract listed in Section 2.4 of the Disclosure Schedule, except for any conflict, breach, default, acceleration, right to accelerate, termination, modification, cancellation, notice, consent or waiver that would not reasonably be expected to have a Material Adverse Effect on the Company; (d) result in the imposition of any Security Interest upon any assets of the Company; or (e) violate any order, writ, injunction, decree, statute, rule or regulation applicable to the Company, any of its properties or assets, other than such conflicts, violations, defaults, breaches, cancellations or accelerations referred to in clauses (a) through (e) (inclusive) hereof which would not have a Material Adverse Effect on the Company.

 

  

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           2.5. Subsidiaries.  Except as disclosed in Section 2.5 of the Disclosure Schedule, the Company does not have any direct or indirect subsidiaries or any equity interest in any other firm, corporation, membership, joint venture, association or other business organization.

 

           2.6. Financial Statements.  The Company has provided its audited balance sheet, statement of operations and statement of cash flows as of December 31, 2010 (the “Balance Sheet Date”)  and its unaudited  balance sheet, statement of operations and statement of cash flows as of September 30, 2011 (collectively, the “Financial Statements”), all of which have been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, fairly and accurately present the financial condition, results of operations and cash flows of the Company as of the respective dates thereof and for the periods referred to therein and are consistent with the books and records of the Company; provided, however, that the Financial Statements referred to above are subject to normal recurring year-end adjustments (which will not in the aggregate be material).

 

           2.7. Absence of Certain Changes.  Since the Balance Sheet Date, the Company has conducted its business as ordinarily conducted consistent with past practice and there has not occurred any change, event or condition (whether or not covered by insurance) that has resulted in, or would reasonably be expected to result in any Material Adverse Effect on the Company.

 

           2.8. Undisclosed Liabilities.  The Company has no liability (whether known or unknown, whether absolute or contingent, whether liquidated or unliquidated and whether due or to become due), except for (a) liabilities accrued, reflected, reserved against on the Financial Statements, (b) liabilities which have arisen since the Balance Sheet Date, in the ordinary course of business, (c) contractual or statutory liabilities incurred in the ordinary course of business, and (d) liabilities which would not have a Material Adverse Effect on the Company.

 

           2.9. Tax Matters.  The Company has timely (taking into account extensions of time to file) filed all Tax Returns that it was required to file and all such Tax Returns were correct and complete in all material respects.  All Taxes that the Company is or was required by law to withhold or collect have been duly withheld or collected and, to the extent required, have been paid to the proper Governmental Entity or deposited in accordance with the law.

 

  

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2.10  Absence of Debt.  The Company will have no debt obligations at Closing.

 

2.11  Pacific InterMedia Merger.  The merger between the Company and Pacific InterMedia, Inc. pursuant to which Pacific InterMedia, Inc. acquired all the issued and outstanding shares of Raptor Networks Technology, Inc. and in which Raptor Networks Technology, Inc. became a wholly-owned subsidiary of Pacific InterMedia, Inc. and later merged with Pacific InterMedia, Inc. and changed its name to Raptor Networks Technology, Inc., was properly structured and approved by the shareholders of both companies.

 

2.12. Investment Status.    The Company represents that it is purchasing the Lantis Common Stock for its own account, for investment only and not with a view to, or any present intention of, effecting a distribution of such securities or any part thereof except pursuant to a registration or an available exemption under applicable law.  Lantis Laser acknowledges that shares of the Company Common Stock have not been registered under the Securities Act or the securities laws of any state or other jurisdiction and cannot be disposed of unless they are subsequently registered under the Securities Act and any applicable state laws or exemption from such registration is available.

 

2.13  Representation of CCE.  In consideration for receiving 5,000,000 shares of Lantis Common Stock prior to the 1:10 reverse split and 13,510,752 shares of Company Common Stock on a post-split basis, all financial obligations of the Company to California Capital Equity, LLC and Raptor Acquisition, LLC (collectively "CCE") have been converted to shares of Company Common Stock and no further financial obligations by the Company to CCE exist.

 

2.14. D&O Tail Insurance.  The Company has paid in full the D&O tail insurance covering its officers and directors and Lantis Laser shall not incur any financial obligation for such D&O coverage.

 

2.15. Disclosure.  No representation or warranty by the Company contained in this Agreement, including any statement contained in the Disclosure Schedule or any Closing Document contains any untrue statement of a material fact or omits to state any material fact necessary, in light of the circumstances under which it was made, in order to make the statements herein not misleading.

 

SECTION 3. REPRESENTATIONS AND WARRANTIES OF  LANTIS LASER

 

As a material inducement to the Company to enter into this Agreement and consummate the transactions contemplated hereby, Lantis Laser hereby makes to the Company the representations and warranties contained in this Section 3 as of each Closing.  Such representations and warranties are subject to the qualifications and exceptions set forth in the documents filed by Lantis Laser with the U.S. Securities and Exchange Commission ("SEC Filings") or the disclosure schedule delivered to Lantis Laser pursuant to this Agreement (the “Disclosure Schedule”); provided, however, that any information set forth in a Section of the Disclosure Schedule.  For purposes hereof, unless otherwise indicated, all references to the Company Schedule shall not be incorporated (unless by specific reference) to any other Section of the shall include all Subsidiaries of the Company.

 

  

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3.1. Organization and Corporate Power.  The Company is a corporation duly organized, validly existing and in corporate good standing under the laws of the State of Nevada.  The Company is duly qualified to conduct business and is in corporate good standing under the laws of each jurisdiction in which the nature of its businesses or the ownership or leasing of its properties requires such qualification, except where the failure to be so qualified or in good standing would not have any change or effect that is materially adverse to the properties, assets, business, condition (financial or otherwise), prospects or results of operations of the Company and its Subsidiaries, taken as a whole.  The Company has the corporate power and authority to carry on the businesses in which it is engaged and to own and use the properties owned and used by it.  Lantis Laser has furnished or made available to the Company true and complete copies of its Articles of Incorporation and Bylaws, each as amended and as in effect on the date hereof (hereinafter the “Lantis Laser Charter” and “Bylaws”, respectively).  Lantis Laser is not in default under or in violation of any provision of the Lantis Laser Charter or Bylaws.

 

3.2. Capitalization.  The authorized capital stock of Lantis Laser is 1,000,000,000 shares of which 990,000,000 shares are Lantis Common Stock, 365,659,029 of which are issued and outstanding, and 10,000,000 shares are preferred stock, par value $.001 per share, none of which are issued or outstanding.  All issued and outstanding shares of Lantis Laser stock have been duly authorized and validly issued, and are fully paid and nonassessable.  All of the outstanding shares of Lantis Common Stock and other outstanding securities of Lantis Laser have been duly and validly issued in compliance with federal and state securities laws.   All of the issued and outstanding shares of Lantis Laser’s capital stock are free and clear of any liens, pledges, encumbrances, charges, agreements adversely effecting title to such shares or claims (other than those created by virtue of this Agreement), and the certificates evidencing the ownership of such shares are in proper form for the enforcement of the rights and limitations of rights pertaining to said shares which are set forth in the Lantis Laser Charter and Bylaws. As of each Closing, there are (A) no preemptive rights, rights of first refusal, put or call rights or obligations or anti-dilution rights with respect to the issuance, sale or redemption of Lantis Laser’s capital stock, (B) no rights to have Lantis Laser’s capital stock registered for sale to the public in connection with the laws of any jurisdiction and (C) no documents, instruments or agreements relating to the voting of the Lantis Laser’s voting securities or restrictions on the transfer of Lantis Laser’s capital stock.

 

3.3. Authorization.   Lantis Laser has the corporate power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  The execution and delivery of this Agreement, the performance by Lantis Laser of this Agreement, the consummation by Lantis Laser of the transactions contemplated hereby and the sale and delivery of shares of Lantis Common Stock have been duly and validly authorized by all necessary corporate action on the part of Lantis Laser.  This Agreement has been duly and validly executed and delivered by Lantis Laser and constitutes a valid and binding obligation of Lantis Laser, enforceable against Lantis Laser in accordance with its terms, except as enforcement may be limited by bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights generally, and except that the availability of equitable remedies, including specific performance, is subject to the discretion of the court before which any proceeding therefor may be brought.

 

  

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3.4. Noncontravention.  Subject to compliance with the applicable requirements of the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended and any applicable state securities laws, the execution and delivery of this Agreement by Lantis Laser, the sale and delivery of Lantis Common Stock, and the consummation by Lantis Laser of the transactions contemplated hereby, will not: (a) conflict with or violate any provision of Lantis Laser Charter or the Bylaws; (b) require on the part of Lantis Laser any filing with, or any permit, authorization, consent or approval of, any Governmental Entity, other than any filing, permit, authorization, consent or approval which if not made or obtained would not have any change or effect that is materially adverse to the properties, assets, business, condition (financial or otherwise), prospects or results of operations of Lantis Laser or any Subsidiary, taken as a whole (a “Material Adverse Effect”); (c) conflict with, result in a breach of, constitute (with or without due notice or lapse of time or both) a default under, result in the acceleration of, create in any party the right to accelerate, terminate, modify or cancel, or require any notice, consent or waiver under, any contract listed in its SEC Filings or Section 3.4 of the Disclosure Schedule, except for any conflict, breach, default, acceleration, right to accelerate, termination, modification, cancellation, notice, consent or waiver that would not reasonably be expected to have a Material Adverse Effect on Lantis Laser; (d) result in the imposition of any Security Interest upon any assets of Lantis Laser; or (e) violate any order, writ, injunction, decree, statute, rule or regulation applicable to Lantis Laser, any of its properties or assets, other than such conflicts, violations, defaults, breaches, cancellations or accelerations referred to in clauses (a) through (e) (inclusive) hereof which would not have a Material Adverse Effect on Lantis Laser.

 

3.5. Subsidiaries.  Lantis Laser does not have any direct or indirect subsidiaries or any equity interest in any other firm, corporation, membership, joint venture, association or other business organization.

 

3.6. Financial Statements.  Lantis Laser has made available through its SEC Filings, and the Company acknowledges that it has reviewed such SEC Filings, in which Lantis Laser has provided its audited balance sheet, statement of operations and statement of cash flows as of December 31, 2010 (the “Balance Sheet Date”)  and its unaudited  balance sheet, statement of operations and statement of cash flows as of September 30, 2011 (collectively, the “Financial Statements”), all of which have been prepared in accordance with GAAP applied on a consistent basis throughout the periods covered thereby, fairly and accurately present the financial condition, results of operations and cash flows of Lantis Laser as of the respective dates thereof and for the periods referred to therein and are consistent with the books and records of Lantis Laser; provided, however, that the Financial Statements referred to above are subject to normal recurring year-end adjustments (which will not in the aggregate be material).

 

3.7. Absence of Certain Changes.  Since the Balance Sheet Date, Lantis Laser has conducted its business as ordinarily conducted consistent with past practice and there has not occurred any change, event or condition (whether or not covered by insurance) that has resulted in, or would reasonably be expected to result in any Material Adverse Effect on Lantis Laser.

 

  

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3.8. Undisclosed Liabilities.  Lantis Laser has no liability (whether known or unknown, whether absolute or contingent, whether liquidated or unliquidated and whether due or to become due), except for (a) liabilities accrued, reflected, reserved against on the Financial Statements, (b) liabilities which have arisen since the Balance Sheet Date, in the ordinary course of business, (c) contractual or statutory liabilities incurred in the ordinary course of business, and (d) liabilities which would not have a Material Adverse Effect on Lantis Laser.

 

3.9. Tax Matters.  Lantis Laser has timely (taking into account extensions of time to file) filed all Tax Returns that it was required to file and all such Tax Returns were correct and complete in all material respects.  All Taxes that Lantis Laser is or was required by law to withhold or collect have been duly withheld or collected and, to the extent required, have been paid to the proper Governmental Entity or deposited in accordance with the law.

 

3.10. Investment Status.   Lantis Laser represents to the Company that it is purchasing the Company Common Stock for its own account, for investment only and not with a view to, or any present intention of, effecting a distribution of such securities or any part thereof except pursuant to a registration or an available exemption under applicable law.  Lantis Laser acknowledges that shares of the Company Common Stock have not been registered under the Securities Act or the securities laws of any state or other jurisdiction and cannot be disposed of unless they are subsequently registered under the Securities Act and any applicable state laws or exemption from such registration is available.

 

3.11. Investment Banking; Brokerage Fees.  Lantis Laser has not incurred or become liable for any broker’s or finder’s fee, banking fees or similar compensation relating to or in connection with the transactions contemplated hereby.

 

SECTION 4.  CONDITIONS OF PURCHASE BY  LANTIS LASER

 

 Lantis Laser's obligations to purchase the Company's Common Stock through the exchange of its shares of Lantis Common Stock shall be subject to compliance by the Company with the agreements herein contained and to the fulfillment to the Lantis Laser’ satisfaction, or the waiver by the Lantis Laser, on or before the Closing of the following conditions:

 

4.1. Satisfaction of Conditions.  The representations and warranties of the Company contained in this Agreement shall be true and correct on and as of the Closing and each of the conditions specified in this Section 4 shall have been satisfied or waived in writing by Lantis Laser.

 

           4.2. [Omitted].

 

           4.3. Authorization.  The Board of Directors of the Company shall have duly adopted resolutions in a form reasonably satisfactory to Lantis Laser approving the transactions and shall have taken all action necessary for the purpose of authorizing the Company to consummate all of the transactions contemplated hereby (including, without limitation, the issuance of the shares of Common Stock as contemplated herein).

 

           4.4. Delivery of Documents.  The Company shall have executed and/or delivered to Lantis Laser or shall have caused to be executed and delivered to Lantis Laser by the appropriate individual, corporation, partnership, joint venture, trust, unincorporated organization, limited liability company or any government or any agency or political subdivision thereof (collectively, “Persons” or individually, each a “Person”) the following:

 

  

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           (a) A certificate evidencing the shares of Company Common Stock purchased in accordance with each of the Closing conditions;

 

           (b)  Certificates issued by (i) the Secretary of State of the State of Colorado certifying that the Company (i) has legal existence and is in good standing; and (ii) the Secretary of State (or similar authority) of each jurisdiction in which each of the Company has qualified to do business as a foreign corporation (or is required to be so qualified) as to such foreign qualification;

 

           (c) A certificate executed by the Chief Executive Officer and President of the Company to the effect that the representations and warranties of the Company are true and correct on and as of each Closing;

 

(d) A certificate of the Secretary of the Company which shall certify (i) the resolutions adopted by the Board of Directors as contemplated in Section 4.3 hereof, (ii) the Company’s By-laws and (iii) the names of the officers of the Company authorized to sign this Agreement and the other documents, instruments or certificates to be delivered pursuant to this Agreement by the Company or any of its officers, together with the true signatures of such officers;

 

(e)  letters of resignation by all the current officers and directors of the Company;

 

           (f) an opinion of counsel satisfactory to Lantis Laser that the merger of Pacific InterMedia, Inc. pursuant to which Pacific InterMedia, Inc. acquired all the issued and outstanding shares of Raptor Networks Technology, Inc. and in which Raptor Networks Technology, Inc. became a wholly-owned subsidiary of Pacific InterMedia, Inc. and later merged with Pacific InterMedia, Inc. and changed its name to Raptor Networks Technology, Inc., was properly structured and approved by the shareholders of both companies; and.

 

(g) Such other supporting documents and certificates as Lantis Laser may reasonably request and as may be required pursuant to this Agreement.

 

           4.5. All Proceedings Satisfactory.  All corporate and other proceedings taken prior to or at the Closing  in connection with the transactions contemplated by this Agreement, and all documents and instruments related thereto, shall be reasonably satisfactory in form and substance to Lantis Laser and the issuance and sale of the shares of Company Common Stock shall be made in compliance with applicable federal and state law.

 

           4.6. No Violation or Injunction.  The consummation of the transactions contemplated by this Agreement shall not be in violation of any law or regulation, and shall not be subject to any injunction, stay or restraining order.

 

 

  

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SECTION 5. CONDITIONS TO OBLIGATIONS OF THE COMPANY

 

The obligation of the Company to consummate this Agreement and the transactions contemplated hereby is subject to the fulfillment, prior to or at each Closing, of the following conditions precedent:

 

           5.1. Satisfaction of Conditions.  The representations and warranties of Lantis Laser contained in Section 3 shall be true and correct in all material respects on and as of the Closing as though made on and as of the Closing and each of the conditions specified in this Section 5 shall have been satisfied or waived in writing by the Company.

 

SECTION 6. SURVIVAL; INDEMNIFICATION

 

           6.1. Survival of Representations, Warranties and Covenants; Indemnification.

 

           (a) All covenants, agreements, representations and warranties of the Company and  Lantis Laser made herein and in the certificates, lists, exhibits, schedules or other written information delivered or furnished to Lantis Laser in connection herewith (i) are material, shall be deemed to have been relied upon by the party or parties to whom they are made and shall survive the Closing for a period of not more than one (1) year (the “Survival Period”) regardless of any investigation on the part of such party or its representatives and (ii) shall bind the parties’ successors and assigns (including, without limitation, any successor to the Company by way of acquisition, merger or otherwise), whether so expressed or not, and, except as otherwise provided in this Agreement, all such covenants, agreements, representations and warranties shall inure to the benefit of Lantis Laser’s successors and assigns and to their transferees of Securities, whether so expressed or not; provided, that any claim for indemnification made prior to the expiration of such Survival Period shall survive thereafter and, as to any such claim, such expiration will not affect the rights to indemnification of the party making such claim.

 

           (b) The Company and Lantis Laser each agrees to indemnify and hold harmless the other party and its affiliates and their respective direct and indirect partners (including partners of partners and stockholders and members of partners) members, stockholders, directors, officers, employees, attorneys and agents and each Person who controls any of them within the meaning of Section 15 of the Securities Act of 1933, as amended or Section 20 of the Securities Exchange Act of 1934, as amended, from and against any liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, attorneys’ fees, expenses and disbursements of any kind (“Losses”) which may be imposed upon, incurred by or asserted against the other party or such other indemnified Persons in any manner relating to or arising out of any untrue representation, breach of warranty or failure to perform any covenants or agreements by the either party contained herein or in any certificate or document delivered pursuant hereto or otherwise relating to or arising out of the transactions contemplated hereby.

 

  

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SECTION 7. COVENANTS

 

         7.1. Support of Post-Closing Actions. The Company covenants and agrees that it shall use its best efforts to have its shareholders vote in support of the reverse split, amendment to the Company's Charter and such other matters as required under the terms of this Agreement following the Closing.

 

7.2. D&O Tail. Lantis Laser will not cancel or modify the Directors & Officers tail coverage in effect for the Company at Closing that covers the directors and officers of the Company.

 

SECTION 8. GENERAL

 

           8.1. Amendments, Waivers and Consents.  For purposes of this Agreement, no course of dealing between or among any of the parties hereto and no delay on the part of any party hereto in exercising any rights hereunder or thereunder shall operate as a waiver of the rights hereof and thereof.  No provision hereof may be waived otherwise than by a written instrument signed by the party or parties so waiving such covenant or other provision.  No amendment to this Agreement may be made without the written consent of the Company and Lantis Laser.

 

           8.2. Legend on Securities.  The Company and Lantis Laser acknowledge and agree that the following legend (or one substantially similar thereto) shall be typed on each certificate evidencing any of the securities issued hereunder held at any time by Lantis Laser or the Company:

 

THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR ANY STATE SECURITIES OR BLUE SKY LAWS AND MAY NOT BE OFFERED, SOLD, TRANSFERRED, HYPOTHECATED OR OTHERWISE ASSIGNED EXCEPT (1) PURSUANT TO A REGISTRATION STATEMENT WITH RESPECT TO SUCH SECURITIES WHICH IS EFFECTIVE UNDER THE ACT OR (2) PURSUANT TO AN AVAILABLE EXEMPTION FROM REGISTRATION UNDER THE ACT RELATING TO THE DISPOSITION OF SECURITIES AND (3) IN ACCORDANCE WITH APPLICABLE STATE SECURITIES AND BLUE SKY LAWS.

 

           8.3. Governing Law.  This Agreement shall be governed by, construed and enforced in accordance with, the laws of the State of New Jersey without regard to the principles thereof relating to conflict of laws.

 

           8.4. Section Headings and Gender.  The descriptive headings in this Agreement have been inserted for convenience only and shall not be deemed to limit or otherwise affect the construction of any provision thereof or hereof.  The use in this Agreement of the masculine pronoun in reference to a party hereto shall be deemed to include the feminine or neuter, and vice versa, as the context may require.

 

  

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           8.5. Counterparts.  This Agreement may be executed simultaneously in any number of counterparts, each of which when so executed and delivered shall be taken to be an original; but such counterparts shall together constitute but one and the same document.

 

           8.6. Notices and Demands.  Any notice or demand which is required or provided to be given under this Agreement shall be deemed to have been sufficiently given and received for all purposes when delivered by hand, telecopy, by email or telex or other method of facsimile with proof of receipt, or five (5) days after being sent by certified or registered mail, postage and charges prepaid, return receipt requested, or two (2) days after being sent by overnight delivery providing receipt of delivery:

 

  If to the Company:

 

Raptor Networks Technology, Inc.

12021 Wilshire Boulevard, Suite 2000

Los Angeles, California 90025

Attn:  Thomas Wittenschlaeger, President

Telecopier: (310) 405-7587

twittenschlaeger@nantworks.com

  With a copy to:

 

Akerman Senterfitt LLP

750 9th Street, N.W., 7th Floor

Washington, D.C. 20001

Attn: Ernest M. Stern, Esq.

Telecopier: (866) 268-2788

ernest.stern@akerman.com

If to Lantis Laser:

 

41 Howe Lane

Freehold, New Jersey 07728

Attn: Al Pietrangelo, President

Telecopier: (732) 358-0117

alpietrangelo@gmail.com

           8.7. Jurisdiction of Disputes; Venue. The parties irrevocably submit to the jurisdiction of any state or federal court sitting in the County of New York, New York in any action arising out of this Agreement, and waive, to the fullest extent that they may effectively do so, the defense of an inconvenient forum.  The parties also agree that a final judgment in any such action shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law.

 

  

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8.8. Assignability.  The rights of Lantis Laser set forth in this Agreement are transferable to each transferee who receives shares of Common Stock.  Each such transferee must consent in writing to be bound by the terms and conditions of this Agreement in order to acquire the rights set forth herein.

 

8.9. Integration.  This Agreement, including the exhibits, documents and instruments referred to herein, constitutes the entire agreement, and supersedes all other prior agreements and understandings, both written and oral, among the parties with respect to the subject matter hereof.

 

8.10. Recitals.  The parties acknowledge the accuracy of the Recitals and incorporate the Recitals into and make them a part of this Agreement.

 

8.11  Publicity.  Neither Lantis Laser nor the Company shall issue any press release or make any public disclosure regarding the transactions contemplated hereby unless such press release or public disclosure is approved by those parties mentioned in such press release or public disclosure in advance.  Notwithstanding the foregoing, each of the parties hereto may, in documents required to be filed by it with the Securities and Exchange Commission or any other regulatory bodies, make such statements with respect to the transactions contemplated hereby as each may be advised by counsel is legally necessary or advisable, and may make such disclosure as it is advised by its counsel is required by law.

 

8.12 Confidentiality. Subject to the terms and conditions of this section 8.12, each of the parties hereto shall treat as confidential the terms and conditions of this Agreement and all knowledge and information concerning the business or property of the other party (the “Information”) which may be acquired in the course of negotiation or performance of this Agreement.  Each party further agrees that it will not divulge to any third parties, without the prior written consent of the other parties, any of the Information.  Each party further agrees that it will not make any commercial use whatsoever of the Information without the prior written consent of the other party and that the Information shall be used solely for that party’s performance under this Agreement.  The obligations of each party under this section 8.12 do not apply to:

 

	
  

	
(a)

	
Information which can be demonstrated by the disclosing party to have been, at the time of its receipt by such party or thereafter (but prior to its disclosure to a third party), public information or information known generally in the trade by reason other than the failure of the disclosing party to comply with the undertakings set forth herein;

 

	
  

	
(b)

	
Information which can be demonstrated by the disclosing party to have been in its lawful possession and not supplied by the other Party, prior to the disclosing party’s initial receipt hereunder;

 

	
  

	
(c)

	
Information which can be demonstrated by the disclosing party to have been acquired lawfully by such party from a third party not under any obligation of confidentiality to the other party; or

 

	
  

	
(d)

	
Information which the disclosing party is legally obligated to disclose, in which case the disclosing party shall give at least 20 days advance notice to the other party prior to such disclosure.

 

Each party further agrees that only those of its employees, servants or agents who have a need to receive Information for the performance of its obligations under this Agreement shall have access thereto and, in such event, such party agrees and undertakes to cause its said employees, servants and agents to hold such Information so received under the obligations of confidentiality imposed by this section 8.12.  For greater certainty, each party shall be responsible to the other party for any disclosure or use of the Information contrary to this Agreement by any of such parties’ employees, servants or agents or any other party to whom such party has disclosed such Information.

 

[Signature Page Follows]

 

 

  

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IN WITNESS WHEREOF, the Company and Lantis Laser have caused this Stock Purchase Agreement to be duly executed and delivered by their proper and duly authorized representatives as of the day and year first above written.

 

RAPTOR NETWORKS TECHNOLOGY, INC.

 

 

By:  /s/ Thomas Wittenschlaeger 

Name: Thomas Wittenschlaeger

Title:  President

 

 

LANTIS LASER INC.

 

 

/s/ Al Pietrangelo 

Name: Al Pietrangelo

Title: President

 

Only with respect to sections 2.13 and 7.1:

 

 

CALIFORNIA CAPITAL EQUITY, LLC

 

 

By:  /s/ C. Kentworthy 

Name:  C. Kentworthy

Title:  Manager

 

 

RAPTOR ACQUISITION,  LLC

 

 

By:  C. Kentworthy 

Name:  C. Kentworthy

Title:  Authorized Signatory

[Signature Page to Stock Purchase Agreement]

 

  

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DISCLOSURE SCHEDULE

 

 

Schedule 2.2 Outstanding Options and Warrants

 

 

Following option and warrants are outstanding as per 11/25/11

 

	
Stock options:

	 	
# of options

	 	 	
Exercise price

	 
	
Thomas M. Wittenschlaeger

	 	 	350,000	 	 	$	1.00	 
	
Thomas M. Wittenschlaeger

	 	 	90,000	 	 	$	0.67	 
	
Larry L. Enterline

	 	 	100,000	 	 	$	1.00	 
	
Larry L. Enterline

	 	 	90,000	 	 	$	0.67	 
	
Ken Bramlett

	 	 	100,000	 	 	$	1.00	 
	
Ken Bramlett

	 	 	90,000	 	 	$	0.67	 
	
Bob van Leyen

	 	 	300,000	 	 	$	1.00	 
	
Bob van Leyen

	 	 	70,000	 	 	$	0.67	 
	
Total stock options

	 	 	1,190,000	 	 	 	----	 

     

	
Warrants:

	 	
# of warrants

	 	 	
Exercise price

	 
	
Montgomery

	 	 	600,710	 	 	$	0.44	 
	
Newport Securities

	 	 	100,000	 	 	$	0.50	 
	
Newport Securities

	 	 	100,000	 	 	$	1.00	 
	
Total warrants outstanding

	 	 	800,710	 	 	 	----	 

 

 

Schedule 2.5. Subsidiaries

 

The Company owns the following subsidiaries: 

 

	
  

	
o

	
Raptor Networks Technology Inc., a California corporation

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