EXHIBIT 2
JRE INC. SPIN OFF AGREEMENT
WITH PREDECESSOR J ESPO'S INC.
JRE INC SPIN OFF AGREEMENT
WITH PREDECESSOR
J ESPO'S INC.
ASSIGNMENT AGREEMENT
In consideration of good and valuable consideration, receipt of which is
hereby acknowledged between J Espo's Inc. and JRE Inc. on December 5, 2000, or
such other extended time as JRE Inc. shall deem desirable. All assets,
liabilities, an the on-going business operations of J Espo's Inc. Internet
Retail and Wholesale Divisions, wherever located and of every nature and
description be and the same hereby are transferred and assigned to JRE Inc., a
New York domestic business corporation, and as soon as practicable after the
closing of an Agreement and Plan of Reorganization, and compliance with or
exemption from applicable laws, rules, and regulations concerning the public
issuance of securities, one share of common stock of JRE Inc., on a one to one
basis, shall be issued to each and every shareholder of record of J Espo's Inc.
as of December 18, 2000.
Dated: East Hampton, New York
December 05, 2000
J Espo's Inc
By: /s/ Xxxxxxx X. Xxxxxxxx
-----------------------------------
Xxxxxxx X. Xxxxxxxx
President
ACCEPTED AND AGREED:
JRE Inc.
BY: /s/ Xxxxxxx X. Xxxxxxxx
----------------------------------
Xxxxxxx X. Xxxxxxxx, President
Declaration of Dividend
(Spinoff) lOb-17
MILLING LAW OFFICES
Members New Jersey and New York Bars
000 Xxxxx Xxxx Telephone 000-000-0000
Building Xx. 00, Xxxxx 0000 Telecopier 000-000-0000
Edgewater, N.J. 07020-1068 E-mail Xxxxxxx@xxxxxxxxxx.xxx
December 5, 2000
National Association of Securities Dealers, Inc.
Market Data Intergrity
0000 X Xxxxxx XX
Xxxxxxxxxx, XX 00000
Re: J. Espo's Inc.
Commission File No. 00-0000
Xxxx Xxxxxx LLC
Declaration of dividend (spinoff)
Dear Sires and Mesdames:
In behalf of J Espo's Inc. (the Company) and pursuant to the requirements
of Rule 10b17 (the "Rule") of the General Rules and Regulations of the
Securities and Exchange Commission, we advise you that, on December 5, 2000, the
Company declared a dividend payable in stock of three corporations other than
the Company, i.e. a spinoff. The disclosure required by the Rule is as follows:
(i) Title of the security to
which the dividend relates: Common stock
(ii) Date of declaration: December 5, 2000
(iii) Record date for determing
holders to receive dividend: December 18, 2000
(iv) Date of payment of dividend: January 2, 2001
(v) Information with respect to the
dividend:
Type of dividend: Common stock of the following New York corporate
subsidiaries of the Company (the "Subsidiaries"):
Surf Group Inc. (4,710,250 shares)
Sun & Surf Inc. (4,710,250 Shares)
JRE Inc. (4,710,250 shares)
MILLING LAW OFFICES
National Association of
Securities Dealers Inc.
December 5, 2000
Page 2
Amount of dividend payment per share: One share of common stock
of each of the Subsidiaries
b) Amount of securities of the Company
of the class to be outstanding
immediately prior to and immediately
following the dividend: 4,710,250 shares
Dividend rate: One share of common stock
of each of the
Subsidiaries.
(c) Payment in other securities of the
same issuer: None
(d) Payment in securities of another
issuer: One share of common stock
of each of the
Subsidiaries.
(e) Payment in any other property than
cash: One share of common stock
of each of the
Subsidiaries.
(vi) Method of setliement of fractional
intereste: Not applicable
(vii) Details of governmental or other
conditions to bo satisfied: None - intrastate
statutory exemption
(viii) Additional information as to forward
or reverse stock splits: Not applicable
(ix) Name and address of transfer
(and paying) agent: American Registrar and
Transfer Co., 000 Xxxx 000
Xxxxx, Xxxx Xxxx Xxxx Xxxx
00000
Thank you for your attention to this matter.
Sincerely,
By: /s/ Xxxx X. Xxxxxxx
-----------------------------------
Xxxx X. Xxxxxxx
JLM/jds
cc: Xxxxxxx Xxxxxxxx, President
J.Espo's Inc.
Prepared by American Registrar & Transfer Co.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 1
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN
000 0XX XXXXXX 000 2,000. 07/06/2000 07/06/2000
XXXXXXXXXX, XX 00000
Total: 2,000.
XXXXXXXXX X XXXXXXXXXX
P0 BOX 2027 157 1,000. 07/12/2000
XXXXXXX, XX 00000
Total: 1,000.
CEDE & C0
BOX #20 170 30,000. 11/27/2000
BOWLING GREEN STATION 171 800. 12/05/2000
XXX XXXX, XX 00000
00-0000000 Total: 30,800.
XXXXXXX X XXXXXXX
0 XXXXX XXXXXX 101 60,000. 07/06/2000 07/06/2000 10/05/2000
PRT XXXXXXXXX XXXXX, XX 00000
Total: 60,000.
XXXX X XXXXXXXX 105 6,000. 07/06/2000 01/06/2000
00 XXXXXXXX XX 000 1,000. 07/1212000
XXXX XXXXXXXXXX, XX 00000
Total: 7,000.
XXXXX XXXXXXXX 106 26,OOO. 07/06/2000 07/06/2000
000 XXXXXXXX XXXXXX 179 7,000. 12/18/2000
XXXXXXX, XX 00000 180 2,000. 12/18/2000
Total: 35,000.
XXXXXXXXX XXXXXXXX 107 4,000. 07/0612000 07/06/2000
000 XXXXXXXX XXXXXX 181 1,600. 12/18/2000
XXXXXXX, XX 00000 182 1,400. 12/1812000
Total: 7,000.
XXXXX XXXXXXXX 173 20,000. 12/18/2000 07/06/2000
Total: 20,000.
XXXXX X XXXXXXXX 108 3,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 135 3,000. 07/12/2000
XXXXXXXX, XX 00000
Total: 6,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 2
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX X XXXXXXXX
CUST FBO XXXX X XXXXXXXX 109 2,000. 07/06/2000 07106/2000
0000 XXXXX XXX 163 2,000. 07/21/2000
XXXXXXXX, XX 00000
Total: 4,000.
XXXXX X XXXXXXXX
CUST FBO XXXXX X XXXXXXXX 110 2,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 164 2,000. 07/21/2000
XXXXXXXX, XX 00000
Total: 4,000.
XXXXX X XXXXXXXX
CUST FBO XXXXXX XXXXXXXX 111 2,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 165 2,000. 07/21/2000
XXXXXXXX, XX 00000
Total: 4,000.
XXX XXXXXXXX 112 4,000. 07/06/2000 07/06/2000
00 XXXXXXXX XX 000 1,200. 12/18/2000
XXXX XXXXXXXXXX, XX 00000 178 800. 12/18/2000
Total: 6,000.
XXXXXXX X XXXXXXXX
00 XXXXXX XXXXXX 174 3,940,250. 12/18/2000 07/06/2000
XXXXX XXXXXXX, XX 00000
Total: 3,940.250.
XXXXX X XXXXXXXX
000 XXXXXXXX XX 113 24,000. 07/06/2000 07/06/2000
XXXXXXX, XX 00000
Total: 24,000.
XXXXX X XXXXXXXX
& XXXXX XXXXXXXX JTTEN
000 XXXXXXXX XXXXXX 104 4,000. 07/06/2000 07/06/2000
XXXXXXX, XX 00000
Total: 4,000.
XXXX XXXXXXXX 114 2,000. 07/06/2000 07/06/2000
00 XXXXXXXX XX 000 1,200. 12/18/2000
XXXX XXXXXXXXXX, XX 00000 176 800. 12/18/2000
Total: 4,000.
XXXXXXXX X XXXXXXXX 115 3,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 142 3,000. 07/12/2000
XXXXXXXX, XX 00000
Total: 6,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 3
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXXXXX X XXXXXXXX
000 XXXXXXX XX 000 6,000. 07/06/2000 07/06/2000
XXXXXXXX, XX 00000 143 1,000. 07/12/2000
Total: 7,000.
XXXXX X XXXXXXXX
CUST FBO XXXX XXXXXXXX UGMA 158 10,000. 07/12/2000
000 XXXXXXXX XX 172 40,000. 12/18/2000 07/06/2000
XXXXXXX, XX 00000
Total: 50,000.
XXXXXXX X XXXXXXX 117 65,000. 07/06/2000 07/06/2000
00 XXXXXXX XX. 144 100,000. 07/12/2000
XXXXXXXXX, XX 00000
Total: 165,000.
XXXXX X XXXXXXX 118 69,000. 07/06/2000 07/06/2000
00 XXXXXXX XX 145 100,000. 07/12/2000
XXXXXXXXX, XX 00000
Total: 169,000.
XXXX XXXXXXXXX
0000 XXXXXXXX XXX 162 500. 07/12/2000
XXXXX, XX 00000
Total: 500.
XXXXXXX XXXXXXXXX
0000 XXXXXXXX XXX 161 500. 07/12/2000
XXXXX, XX 00000
Total: 500.
XXXXXX COMPANIES
CJO ESPO'S INC.
00 XXXX XXXXXX 119 50,000. 07/06/2000 07/06/2000
XXXX XXXXXXX, XX 00000
Total: 50,000.
XXXXX XXXXXX
& XXXXXXXX XXXXXX
000 XXXXX XXXXXXX 166 200. 07/21/2000
XXXXXX XXXXXX, XX 00000
Total: 200.
XXXXX XXXXXXXX 122 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX 146 8,000. 07/12/2000
XXXXXXXX, XX 00000
Total: 12,000.
XXXXX XXXXXXXX 123 12,000. 07/06/2000 07/06/2000
000 XXXXXXX XX 147 2,000. 07/12/2000
XXXXXXXX, XX 00000
Total: 14,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 4
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN 120 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX
XXXXXXXX, XX 00000 Total: 4,000.
XXXXXX XXXXXXXX 124 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX 148 8,000. 07/12/2000
XXXXXXXX, XX 00000
Total 12,000.
XXXXX XXXXXXXX 125 12,000. 07/06/2000 07/06/2000
000 XXXXXXX XX 149 2,000. 07/12/2000
XXXXXXXX, XX 00000
Total: 14,000.
XXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN 121 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX
XXXXXXXX, XX 00000 Total: 4,000.
XXXX X XXXXXXX
0 XXX XX 000 000. 00/00/0000
XXXXXXX XXXXX, XX 00000
Total: 500.
XXXX L MILL1NG
000 XXXXX XXXX 102 10,000. 07/06/2000 07/06/2000
BLDNG. 12 STE#1205
XXXXXXXXX, XX 00000 Total: 10,000.
XXXXX X XXXX
& XXXXXXXX XXXX JTTEN 126 2,000. 07/06/2000 07/06/2000
P0 XXX 0000
XXXXXXXXXX, XX 00000 Total: 2,000.
XXXXX X XXXX
P0 BOX 1517 127 2,000. 07/06/2000 07/06/2000
XXXXXXXXXX, XX 00000
Total: 2,000.
XXXXXXXX XXXX
X0 XXX 0000 128 2,000. 07/06/2000 07/06/2000
XXXXXXXXXX, XX 00000
Total: 2,000.
XXXXX XXXXXX
00 XXXX XXXXXX 129 4,000. 07/06/2000 07/06/2000
XXXXXXXXXXXX, XX 00000
Total: 4,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 5
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX XXXXXXX
0000 XXXXXXXX XXX 160 2,000. 07/12/2000
XXXXX, XX 00000
Total: 2,000.
XXXXX XXXXXXXX
00 XXX XXX 130 14,000. 07/06/2000 07/06/2000
XXXXXX XXXX, XX 00000
Total: 14,000.
XXXX XXXXXXXX
00 XXX XXX 152 1,000. 07/12/2000
XXXXXX XXXX, XX 00000
Total: 1,000.
XXXX XXXXXXXX 131 2,000. 07/06/2000 07/06/2000
00 XXX XXX 150 2,500. 07/12/2000
XXXXXX XXXX, XX 00000
Total: 4,500.
XXXXX XXXXXX
0000 XXXXXXXXX XXXXX 159 1,000. 07/12/2000
XXXXX, XX 00000
Total: 1,000.
TOTAL SHAREHOLDERS: 43.
TOTAL SHARES: 4,710,250.
TOTAL RESTRICTED SHARES: 4,410,250.
TOTAL CERTIFICATES: 67.
Opinion Letter of Exemption from
State Registration
MILLING LAW OFFICES
Members New Jersey and New York Bars
000 Xxxxx Xxxx Telephone 000-000-0000
Building Xx. 00, Xxxxx 0000 Telecopier 000-000-0000
Edgewater, N.J. 07020-1068 E-mail Xxxxxxx@xxxxxxxxxx.xxx
December 21, 2000
Xxxxxxx Xxx, President
American Registrat & Transfer Co.
000 Xxxx 000 Xxxxx
Xxxx Xxxx Xxxx, XX 00000
Re: J. Espo's Inc. Spinoff of wholly owned subsidiaries
Dear Mr. Day:
We have been advised by our client, J. Espo's Inc. (the "Company") that
they intend to spinoff to their common stockholders, which all of the
outstanding shares of three of the Company's wholly-owned subsidiaries, viz,
Surf Group Inc., Sun & Surf Inc. and JRE Inc. The spinoffs will be each be in
the number of shares outstanding in the Company and, accordingly, will be made
on a share-for-share basis. We have been requested by the Company to provide you
with an opinion with respect to the availabity of an exemption from federal and
state registration of the spinoffs. The spinoffs will be made based upon a
record date of December 18, 2000 at which time there were approximately 43
shareholders of the Company.
We note that each of the shareholders of the Company are residents of and
are domiciled in the State of New York as is the Company and each of the three
corporations whose stock is to be spun off. The distributions made by the three
spinoffs will therefore be made on an intrastate basis and will therefore be
exempt from federal registration the intrastate exemption from registration
found in Section 3(a)(11) of the Securities Act of 1933, as amended, and Rule
147 promulgated thereunder.
With respect to exemption from state registration of the spinoffs, New York
Blue Sky Regulations on Exempted Offerings, Section 80.9, provides that small
offerings to a related group, as defined in the regulations are automatically
exempted without application. Section 80.1 (j)(3) defines a related group as
"(a) group where a family or long time business or personal relationship exists
between one or more of the promoters and each and every member of the group".
Section 80.1(j)(5) defines a small offering as "(an) offering which seeks to
raise no more than $40,000. not including the personal investment of the
promoters". In the instant matter, the shareholders of the Company are for the
most part family related and those who are not are either personal friends or
long-time business associates. The distribution is without cost of any kind to
the recipients of the spun-off stock and accordingly, no sums or other
consideration of any kind is being raised.
MILLING LAW OFFICES
Xxxxxxx Xxx, President
December 21, 2000
Page 2
Under the circumstances it is our opinion, and we so advise, that the
spinoffs in question may lawfully be made without state of federal registration
of the distributed securities.
Sincerely,
MILLING LAW OFFICES
By: /s/ Xxxx X. Xxxxxxx
----------------------------------
Xxxx X. Xxxxxxx
JLM/ rab
