convertiblepromissorynotepurchaseagreement.docx

fNEWCO,INC.CONVERTIBLEPROMISSORYNOTEPURCHASEAGREEMENTThisConvertiblePromissoryNotePurchaseAgreement(the"Agreement)ismadeasof,20_(theiiEffectiveDate")byandamongNevvco,Inc.,aDelawarecorporation(theiiCompany'"),andthepersonsandentitiesnamedontheScheduleofPurchasersattachedhereto(individually,a"Purchaser“andcollectively,the“Purchasers')RecitalToprovidetheCompanywithadditionalresourcestoconductitsbusiness,thePurchasersarewillingtoloantotheCompanyinoneormoredisbursementsuptoanaggregateamountof$,subjecttotheconditionsspecifiedherein.AgreementNOW,THEREFORE,inconsiderationoftheforegoing,andtherepresentations,warranties,covenantsandconditionssetforthbelow,theCompanyandeachPurchaser,intendingtobelegallybound,herebyagreeasfollows:1. AmountandTermsoftheLoan1.1 TheLoan.SubjecttothetermsofthisAgreement,eachPurchaseragreestolendtotheCompanyattheClosing(ashereinafterdefined)theamountsetforthoppositesuchPurchaser'snameontheScheduleofPurchasersattachedtothisAgreement(each,aikLoanAmoutiC)againsttheissuanceanddeliverybytheCompanyofaconvertiblepromissorynoteforsuchamount,insubstantiallytheformattachedheretoasExhibitA(each,a"Note"andcollectively,the"Notes“).2. ClosingandDelivery2.1 Closing.TheclosingofthesaleandpurchaseoftheNotes(the“Closing”)shallbeheldontheEffectiveDate,oratsuchothertimeastheCompanyandPurchasersmaymutuallyagree(suchdateishereinafterreferredtoasthe“ClosingDate'').2.2 SubsequentSalesofNotes.Atanytimeonorbeforethe1dayfollowingtheClosing,theCompanymaysellNotesrepresentinguptothebalanceoftheauthorizedprincipalamountnotsoldattheClosing(the"AdditionalPurchasers).Allsuchsalesmadeatanyadditionalclosings(eachaniiAdditionalClosing")shallbemadeonthetermsandconditionssetforthinthisAgreementand(i)therepresentationsandwarrantiesoftheCompanysetforthinSection3hereofshallspeakasoftheClosingandtheCompanyshallhavenoobligationtoupdateanydisclosurerelatedthereto,and(ii)therepresentationsandwarrantiesoftheAdditionalPurchasersinSection4hereofshallspeakasofsuchAdditionalClosing.ThisNote:Typicallythiswouldbe180daysorfewerfromtheinitialClosing.Agreement,includingwithoutlimitation,theScheduleofPurchasers,maybeamendedbytheCompanywithouttheconsentofPurchaserstoincludeanyAdditionalPurchasersupontheexecutionbysuchAdditionalPurchasersofacounterpartsignaturepagehereto.AnyNotessoldpursuanttothisSection2.2shallbedeemedtobe“Notes,“forallpurposesunderthisAgreementandanyAdditionalPurchasersthereofshallbedeemedtobe“Purchasers”forallpurposesunderthisAgreement.2.3 Delivery.AttheClosingandeachAdditionalClosing(i)eachPurchasershalldelivertotheCompanyacheckorwiretransferfundsintheamountofsuchPurchaser'sLoanAmount;and(ii)theCompanyshallissueanddelivertoeachPurchaseraNoteinfavorofsuchPurchaserpayableintheprincipalamountofsuchPurchaser'sLoanAmount.3. Representations,WarrantiestheCompanyTheCompanyherebyrepresentsandwarrantstoeachPurchaserasoftheClosingasfollows:3.1 Organization,GoodStandingandQualication.TheCompanyisacorporationdulyorganized,validlyexistingandingoodstandingunderthelawsoftheStateofDelaware.TheCompanyhastherequisitecorporatepowertoownandoperateitspropertiesandassetsandtocarryonitsbusinessasnowconductedandasproposedtobeconducted.TheCompanyisdulyqualifiedandisauthorizedtodobusinessandisingoodstandingasaforeigncorporationinalljurisdictionsinwhichthenatureofitsactivitiesandofitsproperties(bothownedandleased)makessuchqualificationnecessary,exceptforthosejurisdictionsinwhichfailuretodosowouldnothaveamaterialadverseeffectontheCompanyoritsbusiness.3.2 CorporatePower.TheCompanyhasallrequisitecorporatepowertoexecuteanddeliverthisAgreement,toissueeachNote(collectively,the“LoanDocuments")andtocarryoutandperformitsobligationsunderthetermsoftheLoanDocuments.3.3 Authorization.AllcorporateactiononthepartoftheCompany,itsdirectorsanditsstockholdersnecessaryfortheauthorizationoftheLoanDocumentsandtheexecution,deliveryandperformanceofallobligationsoftheCompanyundertheLoanDocuments,includingtheissuanceanddeliveryoftheNotesandthereservationoftheequitysecuritiesissuableuponconversionoftheNotes(collectively,theiiConversioiiSecurities)hasbeentakenorwillbetakenpriortotheissuanceofsuchConversionSecurities.TheLoanDocuments,whenexecutedanddeliveredbytheCompany,shallconstitutevalidandbindingobligationsoftheCompanyenforceableinaccordancewiththeirterms,subjecttolawsofgeneralapplicationrelatingtobankruptcy,insolvency,thereliefofdebtorsand,withrespecttorightstoindemnity,subjecttofederalandstatesecuritieslaws.TheConversionSecurities,whenissuedincompliancewiththeprovisionsoftheLoanDocumentswillbevalidlyissued,fullypaidandnonassessableandfreeofanyliensorencumbrancesandissuedincompliancewithallapplicablefederalandsecuritieslaws.3.4 GovernmentalConsents.Allconsents,approvals,orders,orauthorizationsof,orregistrations,qualifications,designations,declarations,orfilingswith,anygovernmentalauthority,requiredonthepartoftheCompanyinconnectionwiththevalidexecutionanddeliveryofthisAgreement,theoffer,saleorissuanceoftheNotesandtheConversionSecur