Document:

ex101.htm

EXHIBIT 10.1

EXCLUSIVE LICENSE AGREEMENT

THIS EXCLUSIVE LICENSE AGREEMENT dated as of September 14, 2009 (this “Agreement”), by and between GLOBAL TECHNOLOGIES GROUP, INC. (“Global”)
and ANASAZI CAPITAL CORP. a Florida corporation (“ACP”).

WHEREAS, Global is the owner of an exclusive license for North, South, Central America, Canada and Russia, the MBS Process (as hereinafter defined), a patented hazardous heavy metal remediation process;

WHEREAS, ACP wishes to purchase, and Global desires to grant ACP, an exclusive sub license for the country of Mexico of the MBS Process for remediating Brownfield and Redevelopment
Sites (as hereinafter defined) and may or may not, in conjunction with associate developers, states, cities or towns develop and operate such Brownfield and Redevelopment Sites for industrial, commercial, residential, recreational or other productive uses; and

WHEREAS, ACP desires to have Global provide expertise for all remediation work, including remediation of heavy metal pollution in soils and other untreated wastes, in the Brownfield and Redevelopment Sites by the use of the MBS Process, and Global desires to do so;

NOW, THEREFORE, in consideration of the mutual promises and undertakings herein set forth, and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Global and ACP hereby agree as follows:

1.   DEFINITIONS

For all purposes of this Agreement, the following terms shall have the meanings specified below:

“Contaminated Site”:  a site contaminated with hazardous heavy metals and may also be contaminated with low-level radioactive waste and may be a Superfund Site.

 “Brownfield”:  any real estate site, which may or may not be, designated by the local or other governmental authorities as a “Brownfield Site” otherwise suitable for commercial, residential or other for-profit productive use but which,
due to the presence or suspected presence at such site of heavy metal contaminants in the soil, is currently either not being utilized at all, or is being underutilized, for commercial or other productive use.

“Superfund Site”:  any site determined by the U.S. Environmental Protection Agency to be contaminated to such a degree that it constitutes
a health hazard to the local community and environment, and which has accordingly been registered on the National Priorities List, which is available for purchases and development.

 

“Redevelopment Site”:  any project involving the remediation of a Contaminated Site and the development and operation of such Contaminated Site or industrial, commercial, residential, recreational
or other productive use which are owned by ACP.

 

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 “MBS Patents”:  (i) the U.S. and foreign patents listed on Exhibit A hereto; (ii) any patents which shall issue on any of the patents listed on Exhibit
A hereto or on any improvements thereof, and any reissues, reexamination, renewals or extensions thereof; (iii) any divisional, continuation or continuation-in-part patent which shall be based on the patents described in Exhibit A; and (iv) patents and patent corresponding to each of the above-described patents which shall subsequently issue are issued, filed, or to be filed in any foreign country, any patents which shall subsequently
issue thereof, and any renewals, divisions, reissues, continuations or extensions thereof. “U.S. Patent Office”: the United States Patent and Trademark Office.

“MBS Process”:  Global’s long term heavy metal soil remediation process, for which patent have been issued as listed on Exhibit A hereto, to stabilize by the addition of
proprietary non-hazardous reagents to the contaminated materials under increased moisture conditions in order to convert such contaminated materials into an insoluble, stable, non-hazardous metal sulfide, together with any improvement, enhancement or expansion of such long term heavy metal soil remediation process.

2.  RIGHTS GRANTED BY GLOBAL TO ACP

	
  
	
2.1
	
Global hereby grants ACP and ACP hereby accepts from Global, an exclusive sub license under the MBS Patents to use the MBS Process for the purpose of remediating Brownfield and Redevelopment Sites for the country of Mexico.

3.  COMPENSATION FOR RIGHTS GRANTED

	
  
	
3.1.
	
Global shall receive the following compensation from ACP for the rights granted by Global hereunder:
	 

	
  
	
(a)
	
A payment of $1,250,000 U.S. at the closing hereunder to be paid in the form of a Certified check or other form of compensation that Global deems acceptable and a minimum annual royalty payment of $150,000 per annum, payable semiannually in the amount of $75,000, provided that the first payment thereof shall be prorated for the period through December 31, 2009. In the event of non payment of the above mentioned royalties,
ACP shall have 10 days to cure this default or this license granted will become null and void. See Section 5.1 (i) below.

	
  
	
(b)
	
All MBS Chemicals must be purchased exclusively from Global unless otherwise agreed to in writing by Global.

	
  
	
(c)
	
Should ACP purchase and sell or purchase and develop the Brownfield or Redevelopment property after remediation, Global will receive a 1% royalty of the sales price. Should ACP, its officers, partners or affiliates participate in ownership in any way with the development of the property after the sale of
the property Global must receive its 1% royalty of the total development cost.

	
  
	
(d)
	
Global will provide all in-house technical expertise as required for free. ACP will pay for all out-of-pocket expenses associated with site visits and other travel such as air fare, hotels, meals and ground transportation.

 

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4.  SUBLICENSING

	
  
	
4.1
	
The rights granted to ACP hereunder may not be sublicensed or transferred without the prior written consent of Global.

5.  REPRESENTATIONS AND WARRANTIES

	
  
	
5.1
	
Global represents and warrants and covenants and agrees that:

	
  
	
(a)
	
It is the sole owner of the exclusive rights granted to it under license to the MBS Patents and the MBS Process for North, South, Central America and Russia and  that it has the full and unrestricted right and power to grant the sub licenses granted herein and that it knows of no prior art or other information which would invalidate the MBS Patents;

	
  
	
(b)
	
The execution, delivery and performance of this Agreement has been duly authorized by all necessary corporate action on the part of Global (no consent of its shareholders or any trustee or holder of any debt or other obligation of Global being required); such execution, delivery and performance by Global will not violate any indenture, agreement, contract, commitment, judgment, decree, order or legal restriction
binding upon it or to which it is a party; and this Agreement has been duly executed and delivered by Global and constitutes the legal, valid and binding obligation of Global;

	
  
	
(c)
	
It has the exclusive license for the patents listed on Exhibit A to this Agreement with the governmental authorities specified on such Exhibit A;

	
  
	
(d)
	
Global has not licensed the MBS Process to any other party, and except in connection with remediation work being performed by or to be performed by Global in connection with contracted or negotiated remediation projects involving Global existing on the date hereof, Global has not agreed that any other person may use the MBS Process;

	
  
	
(e)
	
To the best knowledge of Global, the grant to ACP of the licenses granted herein does not infringe any rights of any third party; and

	
  
	
(f)
	
There are no claims or actions asserting infringement with respect to the MBS Patents or the MBS Process pending or, to the best knowledge of Global, threatened against Global in the territories mentioned in the agreement.

	
  
	
(g)
	
Global will (a) take all actions necessary to prosecute the patent listed in Exhibit A to issue and (b) diligently seek patent protection under U.S. and foreign laws for the patenting of the MBS

 

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(h)
	
If Global fails to deliver or manufacture the MBS materials needed for the MBS process, ACP will be granted with the right for the manufacture of these materials as long as ACP orders chemicals from Global in a timely manner and meets the accepted payment terms. Should ACP manufacture
the MBS chemicals, ACP must pay Global a Royalty of 25% of costs in recognition of Global’s ownership and development of the MBS patented process and for Global’s continued need for know-how relevant to remediation projects. In any event ACP will not sell the MBS patented chemicals or chemical process to any third party without Global’s written approval. Such an action would be in
violation of this Agreement and of Global’s patent rights. Global will have the right to audit all cost records of ACP on a Quarterly basis should ACP manufacture chemicals for the MBS process as may be allowed in this paragraph.

	
  
	
(i)
	
Except to the extent prohibited by law, either party may, at its option and without notice, terminate this Agreement, effective immediately, in the event the other party hereto (i) fails to make a minimum royalty payment hereunder, (ii) admits in writing its inability to pay its debts, (iii) is adjudicated by a court of competent jurisdiction as being insolvent or (iv) has a decree entered against it by a court of
competent jurisdiction appointing a receiver, liquidator, trustee or assignee in insolvency covering all or substantially all of such party’s property (which appointment is not vacated within sixty (60) days of the entry of the order of appointment) or providing for such liquidation of such party’s property or business affairs.

	
  
	
(j)
	
Should Global sell, assign or merge with another company, the rights under this contract shall survive and be transferred to new owners. In the event of a bankruptcy or other liquidation of Global, ACP will maintain its rights to the MBS Process pursuant to this Agreement.

	
  
	
5.2
	
ACP represents and warrants and covenants and agrees that:

	
  
	
(a)
	
It has the full and unrestricted right to enter into and fully perform this Agreement;

	
  
	
(b)
	
The execution and delivery of this Agreement and the performance hereof by it will not violate and indenture, agreement, contract, commitment, judgment, decree, order or legal restriction binding upon it or which it is a party; and

	
  
	
(c)
	
The Agreement has been duly authorized, executed and delivered by ACP and constitutes the legal, valid and binding obligation of ACP.

	
  
	
(d)
	
ACP also agrees to perform the following tasks:

	
  
	
·
	
 Hire (or identify for hiring) a core staff, consultants and key personnel experienced in land use, zoning, real estate development and financial analysis and management;

	
  
	
·
	
Retain necessary consultants (environmental, land use, etc.);

	
  
	
·
	
Identify, when known, with Global, a selection of Brownfield locations that show a high degree of potential for successful development;

 

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·
	
Develop, with Global, detailed feasibility studies with respect to 2-4 Brownfield locations selected for immediate development; and

	
  
	
·
	
Raise capital sufficient to promote the marketing and sales of the MBS Brownfield Technology;

	
  
	
·
	
Provide Global with written quarterly sales, marketing and performance

	
  
	
reports.

 6.       ASSISTANCE

Global will provide ACP with such technical assistance and other  materials and information related to the MBS Process as ACP, in good faith, deems of significant importance to the promotion and application of the MBS
Process.

7.           INFRINGEMENT

	
  
	
7.1
	
Global agrees to enforce the MBS Patents (after issuance thereof) against infringement by third parties upon notification by ACP to Global with the request that Global proceed to take such steps to end such infringement. If Global does not institute an infringement suit within 90 days after ACP written
request that it do so, or if Global institutes such action but thereafter fails to press such action vigorously, ACP may institutes and prosecute such lawsuit in the name of Global and add Global to such action as a party plaintiff, and Global hereby consents thereto.

	
  
	
7.2
	
Any action for infringement of the MBS Patents (whether by Global or  ACP as it relates to this contract) shall be prosecuted solely at the cost and expense of Global. Any sums recovered in any such action shall be divided proportionately between Global and ACP after deduction of all reasonable
expenses and attorney’s fees, on the basis of their respective actual damages suffered as a result of such infringement.

	
  
	
7.3
	
Each party hereto agrees to inform the other party hereto of the possible infringement by a third party of the MBS Patents and to fully cooperate with the other party hereto in the prosecution of any action for infringement of the MBS Patents.

	
  
	
7.4
	
Without ACP prior written consent, Global may not agree to any compromise or settlement of any third party claim relating to the MBS Process, which could reasonably be expected to have an adverse effect on the rights granted by Global to ACP hereunder. This consent may not be unreasonably withheld.

8.           INDEMNITY

	
  
	
8.1
	
Global agrees to defend, indemnify and hold ACP its members, officers, directors, agents, sublicenses and employees harmless from any and all claims, demands, causes of action, costs, expenses and losses (including reasonable attorney’s fees and costs) resulting from (i) any action brought by a third party claiming that the exercise by ACP of
its rights under the license granted to it pursuant to Section 2 infringed the rights of such third party or (ii) any representation or warranty of Global contained in Section 5.1 being false or incorrect or breached in material respect. The provisions of this Section
8.1 shall survive the expiration or termination of this Agreement for any reason and shall not be affected thereby.

 

 

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8.2
	
ACP agrees to defend, indemnify and hold Global, its shareholders, officers, directors, agents, sublicenses and employees harmless from any and all claims, demands, causes of action, costs, expenses and losses (including reasonable attorneys’ fees and costs) resulting from any representation or warranty of ACP contained
in Section 5.2 being false or incorrect or breached in any material respect. The provisions of this Section 8.2 shall survive the expiration or termination of this Agreement for any reason and shall not be affected thereby.

9.           TERM

	
  
	
9.1
	
The term of this Agreement shall be 15 years or, from the date of issuance     of any of the patents listed on Exhibit A attached as granted to Global by the U.S. Patent Office with respect to the MBS Process, until the expiration of the last of such patents, whichever is longer.

10.           CONFIDENTIALITY

	
  
	
10.1
	
Each party hereto shall maintain as strictly confidential the terms and conditions of this Agreement between ACP and Global, and shall not disclose the same to any other person, provided, however, that (i) any party may disclose any
such terms and conditions (a) to such parties officers, employees, counsel, accountants, auditors and representatives who, in any such case, have a need to know such information in connection with the performance of their services for such party; (b) to, or as required by, any governmental body or regulatory authority pursuant to such party’s good faith interpretation of any law, rule or regulation to which such party may subject, including, without limitation, or any other legal proceeding between the
parties; and (c) ACP may disclose any such terms and conditions to potential investors in ACP and its investment bankers and advisors on a confidential basis; and (ii) the obligations of the parties hereunder with respect to confidentiality shall not apply to any information that is or becomes publicly known or available through no fault of the disclosing party.

	
  
	
10.2
	
ACP acknowledges that the MBS Patents and the MBS Process  constitutes a valuable asset and trade secret of Global and further acknowledges that Global has an exclusive proprietary right and interest in and to the MBS Patents and the MBS Process under an exclusive license and that any information, corrections, programs and work product conceived, created
or developed alone or with ACP and others relating in any way to the MBS Patents and the MBS Process is confidential trade secret information and may not be made available to nor disclosed to any third party without prior consent of Global. Upon the expiration or termination of this Agreement, ACP shall promptly return to Global all proprietary and confidential information in this possession relating
to the MBS Patents and the MBS Process delivered or disclosed to ACP during the performance of this Agreement.

11.           NOTICES

	
  
	
11.1
	
Notices and other communications given hereunder shall be in writing and shall be deemed to have been adequately given and delivered when received by the party to which such notice is being given after the same shall have been deposited
in the mail, registered or certified, with postage prepaid, or deposited with any telegraphic or cable agency, with charges prepaid for immediate transmission, or delivered by express courier, or transmitted by facsimile and receipt of such transmission appropriately confirmed, and addressed as follows:

 

 

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To:           Anasazi Capital Corp.             To: Global Technologies Group, Inc.

513 Vintage Way                           1304 North Lake Shore Dr.

Brandon, Florida 33511                 Sarasota, Florida 34231

Attn: Joel Edison                            Attn: James Fallacaro

Or to such other address as the party to receive such notice may from time to time designate in writing to the other party.

12.           MISCELLANEOUS

	
  
	
12.1
	
This Agreement shall inure to the benefit of and shall be binding upon Each of the party’s hereto and there respective successors and assigns. Neither party hereto may assign this Agreement or its rights hereunder to any other party without the prior
written consent of the other party hereto.

	
  
	
12.2
	
THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUES IN ACCORDANCE WITH THE LAWS OF THE STATE OF FLORIDA. ANY CASE, CONTROVERSY, SUIT, ACTION OR PROCEEDING ARISING OUT OF OR IN CONNECTION WITH OR RELATED TO THIS AGREEMENT SHALL BE BROUGHT IN ANY FEDERAL OR STATE COURT LOCATED IN THE COUNTRY AND STATE OF FLORIDA AND EACH OF ACP
AND GLOBAL IRREVOCABLY SUBMITS TO THE JURISDICTION OF ANY SUCH COURT INANY SUCH SUIT, ACTION OR PROCEEDING.

 

	
  
	
12.3
	
This Agreement embodies the entire agreement and understanding   between ACP and Global relating to the subject matter hereof and supersedes all prior agreements and understandings relating to the subject matter hereof.

	
  
	
12.4
	
This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument.

	
  
	
12.5
	

The division of this Agreement into Sections and the insertion of headings  are for convenience of reference only and shall not affect the construction or interpretation of this Agreement.

 

	
  
	
12.6
	
This Agreement shall not in any manner be amended, supplemented or modified except by a written instrument executed on behalf of the parties hereto by their duly authorized representatives.

        

	
  
	
12.7
	
Any provision of this Agreement that is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, ineffective to the extent of such prohibition or unenforceability in any jurisdiction shall (to the full extent permitted by law) not
invalidate or render unenforceable such provision in any other jurisdiction.

           

	
  
	
12.8
	
Each covenant contained herein shall be construed (absent express provision to the contrary) as being independent of each other covenant herein, so that compliance with any one covenant shall not (absent such an express contrary provision) be deemed to
excuse compliance with any other covenant. Where any provision herein refers to action to betaken by any person, or which such person is prohibited from taking, such provision shall be applicable whether such action is taken directly by such person.

 

 

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their duly authorized representatives.

 

	 	GLOBAL TECHNOLOGIES GROUP, INC.	 
	 	 	 	 
	 	
By: 
	/s/ James Fallacaro	 
	 	 	James Fallacaro	 
	 	 	President	 
	 	 	 	 

	 	ANASAZI CAPITAL CORP.	 
	 	 	 	 
	
 
	
By: 
	/s/ Joel H. Edelson	 
	 	 	Joel H. Edelson	 
	 	 	President	 
	 	 	 	 

 

 

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EXHIBIT A

DESCRIPTION OF PATENTS

The MBS technology is a product of U.S patents developed, filed and issued to Solucorp Industries, Ltd., U.S. Patent numbers 5,898,093 and 5,877,393. Global Technologies Group, Inc. has an exclusive license from Solucorp Industries, Ltd. for North, Central, South America, Canada and Russia for Brownfield and Redevelopment properties which
was purchased by and issued to Global Technologies Group, Inc. on October 20, 2008.

 

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NOTE AND WARRANT PURCHASE AGREEMENT

 

THIS NOTE AND WARRANT PURCHASE AGREEMENT (this “Agreement”), dated as of September 15, 2009, is entered into by and between AMDL, Inc., a Delaware corporation (the “Company”),
with its principal executive office at 2492 Walnut Ave., Suite 100, Tustin, California 92780, and St. George Investments, LLC, an Illinois limited liability company (the “Investor”), with its principal executive office at 303 East Wacker Drive, Suite 311, Chicago, Illinois 60601.

 

A.           The Company has duly authorized the sale and issuance to the Investor of a convertible promissory note in the principal amount of Five Hundred Fifty-Five Thousand Five Hundred Fifty-Five and 56/100 Dollars ($555,555.56) in the form attached hereto as Exhibit
A (the “Note”) and a warrant to purchase 500,000 shares of the Company’s common stock (the “Common Stock”) in the form attached hereto as Exhibit B (the “Warrant,”
and together with the Note, the “Securities”).

 

B.           On the terms and subject to the conditions set forth herein, the Investor is willing to purchase from the Company, and the Company is willing to sell to the Investor, the Securities.

 

NOW THEREFORE, in consideration of the foregoing, and the representations, warranties, and conditions set forth below, the parties hereto, intending to be legally bound, hereby agree as follows:

 

1.      The Note.

 

(a)      Issuance of Securities.  At the Closing (as defined below), the Company agrees to issue and sell to the Investor, and, subject to all of the terms and conditions hereof, the Investor agrees to purchase the Securities.

 

(b)      Closing; Delivery.  The sale and purchase of the Securities shall take place at a Closing (the “Closing”) to be held at such place and time as
the Company and the Investor may determine (the “Closing Date”).    At the Closing, the Company will deliver to the Investor the Securities against receipt by the Company of the sum of Four Hundred Ninety-Two Thousand Five Hundred and 00/100 Dollars ($492,500.00) (the “Purchase Price”).

 

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

 

2.      Representations, Warranties and Covenants of the Company. The Company represents and warrants to the Investor as of the date of the Closing that:

 

(a)      Due Organization, Qualification, etc. Each of the Company and its subsidiaries (i) is duly organized, validly existing and in good standing under the laws of its state of formation; (ii) has the power and authority to own, lease and
operate its properties and carry on its business as now conducted; and (iii) is duly qualified, licensed to do business and in good standing as a foreign corporation in each jurisdiction where the failure to be so qualified or licensed could reasonably be expected to have a Material Adverse Effect.  For purposes of this Agreement the term “Material Adverse Effect” means a change, event or occurrence that individually,
or together with any other change, event or occurrence, has or would reasonably be expected to have a material adverse impact on the financial position, business results, operations or prospects of the Company, taken as a whole.

 

 

 

 

 

 

 

(b)      Authority. The execution, delivery and performance by the Company of this Agreement, the Note, the Warrant, and the Rights Agreement (as defined below) and the Confession of Judgment (as defined below) (collectively, the “Transaction Documents”)
and the consummation of the transactions contemplated hereby and thereby (i) are within the power of the Company and (ii) have been duly authorized by all necessary actions on the part of the Company.

 

(c)      Enforceability. Each Transaction Document (as defined below) executed, or to be executed, by the Company has been, or will be, duly executed and delivered by the Company and constitutes, or will constitute, a legal, valid and binding obligation
of the Company, enforceable against the Company in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.

 

(d)      Non-Contravention. The execution and delivery by the Company of the Transaction Documents executed by the Company and the performance and consummation of the transactions contemplated thereby do not and will not (i) violate its articles
of incorporation or bylaws or other organizational documents or any material judgment, order, writ, decree, statute, rule or regulation applicable to the Company; (ii) violate any provision of, or result in the breach or the acceleration of, or entitle any other person to accelerate (whether after the giving of notice or lapse of time or both), any material mortgage, indenture, agreement, instrument or contract to which the Company is a party or by which it is bound; or (iii) result in the creation
or imposition of any lien upon any property, asset or revenue of the Company  or the suspension, revocation, impairment, forfeiture, or nonrenewal of any material permit, license, authorization or approval applicable to the Company, its business or operations, or any of its assets or properties.

 

(e)      Approvals. No consent, approval, order or authorization of, or registration, declaration or filing with, any governmental authority or other person or entity (including, without limitation, the shareholders of any person) is required in connection
with the execution and delivery of the Transaction Documents executed by the Company and the performance and consummation of the transactions contemplated thereby, except the approval for listing by the NYSE Amex of the shares of Common Stock issuable on conversion of the Note or exercise of the Warrant.

 

(f)      No Violation or Default. Neither the Company nor any of the Company’s subsidiaries is in violation of or in default with respect to (i) its articles of incorporation  or bylaws or other organizational documents or any material
judgment, order, writ, decree, statute, rule or regulation applicable to such entity; or (ii) any material mortgage, indenture, agreement, instrument or contract to which such entity is a party or by which it is bound (nor is there any waiver in effect which, if not in effect, would result in such a violation or default).

 

 

 

 

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(g)      Litigation. No actions (including, without limitation, derivative actions), suits, proceedings or investigations are pending or, to the knowledge of the Company, threatened against the Company or the Company’s subsidiaries at law or in
equity in any court or before any other governmental authority which if adversely determined (i) would (alone or in the aggregate) result in a material liability have a Material Adverse Effect or (ii) seeks to enjoin, either directly or indirectly, the execution, delivery or performance by the Company of the Transaction Documents or the transactions contemplated thereby.

 

(h)      Title. The Company and the Company’s subsidiaries own and have good and marketable title in fee simple absolute to, or a valid leasehold interest in, all their respective real properties and good title to their other respective assets
and properties, subject to no liens except as have been disclosed to the Investor.

 

(i)      Intellectual Property.

 

(i)      Ownership.  The Company owns or possesses or can obtain on commercially reasonable terms sufficient legal rights to all patents, trademarks, service marks, trade names, copyrights, trade secrets, licenses (software or otherwise),
information, processes and similar proprietary rights (“Intellectual Property”) necessary to the business of the Company as presently conducted, the lack of which could reasonably be expected to have a Material Adverse Effect.  Except for agreements with its own employees or consultants, standard end-user license agreements, support/maintenance agreements and agreements entered in the ordinary course of the Company’s
business, all of which have been made available for review by the Investor, there are no outstanding options, licenses or agreements relating to the Intellectual Property, and the Company is not bound by or a party to any options, licenses or agreements with respect to the Intellectual Property of any other person or entity.  The Company has not received any written communication alleging that the Company has violated or, by conducting its business as currently conducted, would violate any of the Intellectual
Property of any other person or entity, nor is the Company aware of any basis therefor.  The Company is not obligated to make any payments by way of royalties, fees or otherwise to any owner or licensor of or claimant to any Intellectual Property with respect to the use thereof in connection with the present conduct of its business other than in the ordinary course of its business.  There are no agreements, understandings, instruments, contracts, judgments, orders or decrees to which the Company
is a party or by which it is bound which involve indemnification by the Company with respect to infringements of Intellectual Property, other than in the ordinary course of its business.

 

(ii)      No Breach by Employees.  The Company is not aware that any of its employees is obligated under any contract or other agreement, or subject to any judgment, decree or order of any court or administrative agency, that would
materially interfere with the use of his or her efforts to promote the interests of the Company or that would conflict with the Company’s business as presently conducted.  Neither the execution nor delivery of this Agreement, nor the carrying on of the Company’s business by the employees of the Company, nor the conduct of the Company’s business as presently conducted, will, to the Company’s knowledge, conflict with or result in a breach of the terms, conditions or provisions
of, or constitute a default under, any contract, covenant or instrument under which any of such employees is now obligated.  The Company does not believe it is or will be necessary to use any inventions of any of its employees made prior to their employment by the Company of which it is aware.

 

 

 

 

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(j)      Accuracy of Information Furnished. None of the Transaction Documents and none of the other certificates delivered by the Company to the Investor pursuant to the Transaction Documents contains or will contain any untrue statement of a material
fact or omits or will omit to state a material fact necessary to make the statements therein, in light of the circumstances under which they were made, not misleading.

 

(k)           Accuracy of Financial Information Furnished.  The financial information set forth in the Company’s Form 10-K for the period ended December 31, 2008, and Forms 10-Q for the periods ended March 31
and June 30, 2009, respectively (the “Exchange Act Reports”), present fairly in all material respects the financial position of the Company as of the dates indicated and present fairly in all material respects the results of the Company’s operations and financial condition for the periods then ended, and are accurate and complete in all material respects.  Such financial information has been prepared in accordance with generally accepted accounting principles applied on a consistent
basis throughout the periods indicated, except that any unaudited financial statements may not con­tain all footnotes required by generally accepted accounting principles.

 

(l)           No Commissions.  Except as set forth in Schedule 2(l), the Company has not incurred any obligation for any finder’s or broker’s or agent’s fees or commissions or similar compensation
in connection with the transactions contemplated by the Transaction Documents.  Any such compensation shall be given, if at all, only in accordance with applicable law.

 

(m)           S-3 Eligibility.  The Company meets all eligibility requirements to use Form S-3 for registration of securities under the Securities Act of 1933, as amended (the “Securities Act”), and all
applicable regulations promulgated thereunder.  The Company covenants to maintain such eligibility until such time as the registration statement contemplated by the Rights Agreement (hereafter defined) shall be declared effective.

 

(n)           Authorized Shares.  The Company has, as of Closing, and shall at all times until full repayment of the Note maintain, sufficient authorized but unissued shares of Common Stock to meet its obligations,
as they may arise from time to time, under the Note and the Warrant.  The Company’s failure to fulfill this covenant shall be deemed, without limiting other remedies, an immediate Event of Default under the Note.

 

(o)           Listing Approval.  The Company shall have received listing approval from NYSE Amex for the shares of Common Stock issuable upon conversion of the Note and exercise of the Warrant as soon as practicable
after Closing, but in no event later than November 15, 2009.

 

(p)           Stockholder Approval.  The Company received stockholder approval for the issuance of 6,500,000 shares of Common Stock, including the shares of Common Stock contemplated hereby pursuant to the Note and
the Warrant, at a discount from book or market value at the time of issuance, at a duly called annual meeting of the stockholders held August 21, 2009.

 

 

 

 

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3.      Representations, Warranties and Covenants of the Investor. The Investor represents and warrants to the Company as of the date of the Closing as follows:

 

(a)      Binding Obligation. The Investor has full legal capacity, power and authority to execute and deliver this Agreement and to perform its obligations hereunder.  This Agreement is a valid and binding obligation of the Investor, enforceable
in accordance with its terms, except as limited by bankruptcy, insolvency or other laws of general application relating to or affecting the enforcement of creditors’ rights generally and general principles of equity.

 

(b)      Access to Information. The Investor acknowledges that the Company has offered the Investor access to the corporate records and accounts of the Company and to all information in its possession relating to the Company, has made its officers and
representatives available for interview by the Investor, and has furnished the Investor with all documents and other information required for the Investor to make an informed decision with respect to the purchase of the Securities.

 

4.      Conditions to Closing of the Investor.

 

(a)      Generally.  The Investor’s obligations at the Closing are subject to the fulfillment, on or prior to the Closing Date, of all of the following conditions, any of which may be waived in whole or in part by the Investor:

 

(i)      Representations and Warranties. The representations and warranties made by the Company in Section 2 hereof shall have been true and correct when made, and shall be true and correct on the Closing Date.

 

(ii)      Approvals and Filings. Except for any notices required or permitted to be filed after the Closing Date with certain federal and state securities commissions and the receipt of listing approval for the shares issuable on conversion
of the Note or exercise of the Warrants from the NYSE Amex, the Company shall have obtained (a) all governmental approvals required in connection with the lawful sale and issuance of the Note,  and (b) all third party approvals required to be obtained by the Company in connection with the execution and delivery of the Transaction Documents by the Company or the performance of the Company’s obligations thereunder.

 

(iii)                 Legal Requirements. At the Closing, the sale and issuance by the Company, and the purchase by the Investor, of the Securities shall be legally permitted by all laws
and regulations to which the Investor or the Company are subject.

 

(iv)                 Proceedings and Documents. All corporate and other proceedings in connection with the transactions contemplated at the Closing and all documents and instruments incident
to such transactions shall be reasonably satisfactory in substance and form to the Investor.

 

(v)      Transaction Documents.  The following documents shall have been executed and delivered by all of the parties thereto (collectively, the “Transaction
Documents”):

 

(1)           This Agreement;

 

 

 

 

5

 

 

 

(2)           The Note;

 

(3)           The Warrant;

 

(4)           A Registration Rights Agreement substantially in the form attached hereto as Exhibit C (the “Rights Agreement”);
and

 

(5)           A Confession of Judgment substantially in the form attached hereto as Exhibit D (the “Confession”);

 

5.      Conditions to Obligations of the Company. The Company’s obligation to issue and sell the Securities at the Closing is subject to the fulfillment, on or prior to the Closing Date, of the following conditions, any of which may be waived in
whole or in part by the Company:

 

(a)      Representations and Warranties. The representations and warranties made by the Investor in Section 3 hereof shall be true and correct when made, and shall be true and correct on the Closing Date.

 

(b)      Governmental Approvals and Filings. Except for any notices required or permitted to be filed after the Closing Date with certain federal and state securities commissions, and the listing approval of the NYSE Amex, the Company shall have obtained
all governmental approvals required in connection with the lawful sale and issuance of the Securities.

 

(c)      Legal Requirements.  At the Closing, the sale and issuance by the Company, and the purchase by the Investor, of the Securities shall be legally permitted by all laws and regulations to which the Investor or the Company are subject; provided,
however, that in the event the Company or the Investor elects not to close based on the failure of this condition, the Company will pay to Investor $10,000 to cover legal fees and due diligence costs.

 

(d)      Purchase Price.  The Investor shall have delivered to the Company the Purchase Price in respect of the Securities.

 

6.      Limitations on Shares Issued as Payment of Interest or Principal or on Conversion of Note or Exercise of Warrants.  If at any time after the  Closing , the Investor shall receive (or shall attempt to convert the Note into)  shares
of the Company’s Common Stock in payment of interest or principal or on conversion of the Note, or the Investor, shall exercise or attempt to exercise the Warrant, so that the Investor would hold by virtue of such action or receipt of shares of Common Stock under or pursuant to conversion of the Note or exercise of the Warrant a number of shares exceeding 19.99% of the number of shares of the Company’s common stock outstanding on the Closing Date (the “19.99% Cap”), the Company shall not
be obligated and shall not issue to the Investor shares of its Common Stock which would exceed the 19.99% Cap, except as may otherwise be approved by the stockholders of the Company and the NYSE Amex.

 

7.      Miscellaneous.

 

(a)      Waivers and Amendments. Any provision of this Agreement may be amended, waived or modified only upon the written consent of the Company and the Investor.  Any such amendment, waiver, discharge or termination effected in accordance
with this paragraph shall be binding upon each holder of any securities purchased under the Transaction Documents at the time outstanding (including the Note and the Warrant) and each future holder of all such securities.

 

 

 

 

6

 

 

 

(b)      Governing Law; Venue. This Agreement and all actions arising out of or in connection with this Agreement shall be governed by and construed in accordance with the laws of the State of Illinois, without regard to the conflicts of law provisions
of the State of Illinois or of any other state.  With respect to any disputes arising out of or related to this Agreement, the parties consent to the exclusive jurisdiction of, and venue in, the state courts in Illinois (or in the event of exclusive federal jurisdiction, the United States District Court Northern District of Illinois).

 

(c)      Survival. The representations, warranties, covenants and agreements made herein shall survive the execution and delivery of this Agreement.

 

(d)      Successors and Assigns. Subject to the restrictions on transfer described in Sections 7(e) and 7(f) below, the rights and obligations of the Company and the Investor shall be binding upon and benefit the successors, assigns, heirs,
administrators and transferees of the parties.

 

(e)      Registration, Transfer and Replacement of the Securities. The Securities issuable under this Agreement shall be registered on the books and records of the Company.  The Company will keep, at its principal executive office, books for
the registration and registration of transfer of the Securities.  Prior to presentation of the Securities for registration of transfer, the Company shall treat the person or entity in whose name the Securities are registered as the owner and holder of the Securities for all purposes whatsoever, whether or not the Securities shall be overdue, and the Company shall not be affected by notice to the contrary.  Subject to any restrictions on or conditions to transfer set forth in the Note, the
holder of the Note, at its option, may in person or by duly authorized attorney surrender the same for exchange at the Company’s chief executive office, and promptly thereafter and at the Company’s expense, except as provided below, receive in exchange therefor one or more new Note(s), each in the principal requested by such holder, dated the date to which interest shall have been paid on the Note so surrendered or, if no interest shall have yet been so paid, dated the date of the Note so surrendered
and registered in the name of such person or persons as shall have been designated in writing by such holder or its attorney for the same principal amount as the then unpaid principal amount of the Note so surrendered.  Upon receipt by the Company of evidence reasonably satisfactory to it of the ownership of and the loss, theft, destruction or mutilation of the Note and (a) in the case of loss, theft or destruction, of indemnity reasonably satisfactory to it; or (b) in the case of mutilation,
upon surrender thereof, the Company, at its expense, will execute and deliver in lieu thereof a new Note executed in the same manner as the Note being replaced, in the same principal amount as the unpaid principal amount of the Note and dated the date to which interest shall have been paid on the Note or, if no interest shall have yet been so paid, dated the date of the Note.

 

(f)      Assignment by the Company. The rights, interests or obligations hereunder may not be assigned, by operation of law or otherwise, in whole or in part, by the Company without the prior written consent of the Investor, which consent may be withheld
at the sole discretion of the Investor; provided, however, that in the case of a merger, sale of substantially all of the Company’s assets or other corporate reorganization, the Investor shall not unreasonably withhold, condition or delay such consent.

 

 

 

 

7

 

 

(g)      Advice of Counsel. In connection with the preparation of this Agreement and all other Transaction Documents, each of the Company, its shareholders, officers, agents, and representatives acknowledges and agrees that the attorney that prepared
this Agreement and all of the other Transaction Agreements acted as legal counsel to Investor only.  Each of the Company, its shareholders, officers, agents, and representatives (i) hereby acknowledges that he/she/it has been, and hereby is, advised to seek legal counsel and to review this Agreement and all of the other Transaction Documents with legal counsel of his/her/its choice, and (ii) either has sought such legal counsel or hereby waives the right to do so.

 

(h)      No Strict Construction. The language used in this Agreement is the language chosen mutually by the parties hereto and no doctrine of construction shall be applied for or against any party.

 

(i)      Entire Agreement. This Agreement together with the other Transaction Documents constitute and contain the entire agreement between the Company and the Investor and supersede any and all prior agreements, negotiations, correspondence, understandings
and communications among the parties, whether written or oral, respecting the subject matter hereof.

 

(j)      Notices. All notices, requests, demands, consents, instructions or other communications required or permitted hereunder shall in writing and faxed, mailed or delivered to each party as follows:  (i) if to the Investor, at the
Investor’s address set forth above, or at such other address as the Investor shall have furnished the Company in writing, or (ii) if to the Company, at the Company’s address set forth above, or at such other address as the Company shall have furnished to the Investor in writing.  All such notices and communications shall be effective (a) when sent by Federal Express or other overnight service of recognized standing, on the business day following the deposit with such service; (b) when
mailed, by registered or certified mail, first class postage prepaid and addressed as aforesaid through the United States Postal Service, upon receipt; (c) when delivered by hand, upon delivery; and (d) when faxed or sent by electronic mail, upon confirmation of receipt.

 

(k)      Severability of this Agreement. If any one or more of the provisions contained herein, or the application thereof in any circumstance, is held invalid, illegal or unenforceable in any respect for any reason, the validity, legality and enforceability
of any such provision in every other respect and of the remaining provisions hereof shall not be in any way impaired, unless the provisions held invalid, illegal or unenforceable shall substantially impair the benefits of the remaining provisions hereof.

 

(l)      Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which together shall be deemed to constitute one instrument.  Facsimile copies of signed signature pages will
be deemed binding originals.

 

 

 

 

8

 

 

 

(m)             Expenses. The Company acknowledges and agrees that an amount equal to all legal fees incurred by the Investor in drafting the Transaction Documents and due diligence costs in evaluating the transaction
(estimated to be $10,000.00) is payable by the Company.  A $2,500.00 portion of these costs was sent by the Company to the Investor prior to drafting the documents and the other $7,500.00 has been deducted from the Purchase Price for the Securities.

 

[Signature Page Follows]

 

 

 

 

9

 

 

 

 

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and delivered by their proper and duly authorized officers as of the date and year first written above.

 

Exhibits:

Exhibit A                      --           Note

Exhibit B                      --           Warrant

Exhibit C                      --           Rights Agreement

Exhibit D                      --           Confession

 

 

COMPANY:

 

AMDL, INC.,

                                                                                               
a Delaware corporation

 

                                                                                              
By:           

                                                                                                             Name:          

                                                                                                             Title:                                                                

INVESTOR:

ST. GEORGE INVESTMENTS, LLC,

an Illinois limited liability company

 

By:           

Name:                                                                

Title:                                                                

[Signature page to Note Purchase Agreement]

  

10

  

 

EXHIBIT A

 

NOTE

 

 

 

 

 

 

 

 

  

11

  

EXHIBIT B

WARRANT

 

 

 

 

 

 

 

 

  

12

  

EXHIBIT C

RIGHTS AGREEMENT

 

 

 

 

 

 

 

 

  

13

  

EXHIBIT D

CONFESSION

 

 

 

 

 

 

 

 

  

14

  

SCHEDULE 2(l)

So long as it may lawfully do so, the Company will pay the sum of $25,000 to Galileo Asset Management, S.A.

 

 

 

 

 

 

 

  

15

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