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Page 3 of 6
4.
CONDITIONS, REPRESENTATIONS AND WARRANTIES
4.1
In addition to anything else in this agreement, the following are conditions of completing this
agreement in favor of the Purchaser:
a)
That the Purchaser obtain financing on terms satisfactory to it to complete the purchase;
b)
that the carrying on of the business at its present location is not prohibited by land use
restrictions;
c)
That the lessor of the lease consents to its assignment to the Purchaser;
d)
That the Purchaser obtain all the permits and licenses required for it to carry on the business;
e)
That the Vendor supply or deliver on closing all of the closing documents;
f)
That the premises shall be in the same condition, reasonable wear and tear expected, on the
date of passing as they are currently in;
g)
That Seller's board of directors has duly authorized the execution of this agreement.
4.2
The following representations and warranties are made and given by the Vendor to the Purchaser
and expressly survive the closing of this agreement. The representations are true as of the date of
this agreement and will be true as of the date of closing when they shall continue as warranties
according to their terms. At the option of the Purchaser, the representations and warranties may
be treated as conditions of the closing of this agreement in favor of the Purchaser. However, the
closing of this agreement shall not operate as a waiver or otherwise result in a merger to deprive
the Purchaser of the right to sue the Vendor for breach of warranty in respect of any matter
warranted, whether or not ascertained by the Purchaser prior to closing:
a)
The Vendor is a resident of [YOUR COUNTRY] within the meaning of the Income Tax Act of
[YOUR COUNTRY];
b)
The Vendor owns and has the right to sell the items listed in Schedule A;
c)
The assets agreed to be bought and sold are sold free and clear of all liens, encumbrances and
charges;
d)
The equipment is in good operating condition;
e)
Until the closing date of this agreement, Vendor shall not, without the written consent of
Purchaser, dispose of or encumber any of the assets or property to be sold hereunder, with
the exception of any transactions occurring in the ordinary course of Vendor’s business. The
undertaking and assets agreed to be bought and sold will not be adversely affected in any
material respect in any way, and Vendor will not do anything before or after closing to
prejudice the goodwill;