Representations, Warranties and Covenants of Sherwood. Sherwood ----------------------------------------------------- represents and warrants to Faraday that Sherwood owns the Free Trading Stock free and clear of any liens or encumbrances and covenants to not encumber the Free Trading Stock in any way during the term of this Agreement. The execution, delivery and performance by Sherwood of this Agreement are within Sherwood's powers and do not violate any contractual restriction contained in any agreement which binds or affects or purports to bind or affect Sherwood. This Agreement, when executed and delivered by Sherwood, will constitute the legal, valid and binding obligations of Sherwood enforceable against Sherwood in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium and other laws of general application affecting enforcement of creditors' rights generally.
