COMMON STOCK PURCHASE AGREEMENT
Exhibit
10.63
Private
and Confidential
THIS
COMMON STOCK PURCHASE AGREEMENT, (the “Agreement”) made as of the last executed
date below (the “Effective Date”), by and among Abacus Global Investments, Corp.
an entity with a principle address of 000 Xxxxxxx Xxxxx, Xxxxxxxxxx Xxxxx, XX
00000 (the “Buyer”) and Belmont Partners, LLC a Virginia limited liability
company with a principal address of 000 Xxxx Xxxxxx, Xxxxxxxxxx Xxxxxxxx 00000
(“Seller”), and Contracted Services, Inc. a public vehicle organized in the
state of Florida and traded under the symbol “CSEV” (the “Company”) and Escrow,
LLC (“Escrow Agent”) (Buyer, Seller and Company each a “Party” and collectively
the “Parties”).
WITNESSETH:
WHEREAS,
the Company currently has seven hundred fifty million (750,000,000) authorized
shares of common stock, of which approximately one hundred one million six
hundred twenty five thousand (101,625,000) common shares are issued and
outstanding and Seller agrees to provide Buyer a block of stock representing a
controlling interest of the Company’s capital stock consisting of ninety three
million seven hundred fifty (93,750,000) shares of common stock (the “Stock”).
The Company also has no authorized shares of preferred stock.
NOW,
THEREFORE, in consideration of the mutual promises, covenants, and
representations contained herein, and subject to the terms and conditions
hereof, the Parties agree as follows:
1.
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Agreement
to Purchase and Sell. Seller will sell to Buyer and Buyer agrees to
purchase the Stock in exchange for:
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a) two
hundred sixty two thousand five hundred U.S. dollars ($262,500.00)
together with two hundred U.S. dollars representing Buyer’s half of the
Escrow Fees (the “Purchase Price”), to be paid to Seller according to the
terms and conditions set forth in Section 3 herein;
and,
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b) one
and one half percent (1.5%) of the issued and outstanding common stock of
the Company according to the terms and conditions set forth in Section
3(e) herein (the “Position”).
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c) The
effective date of all stock transferred pursuant to this Agreement shall
be the Effective Date of this Agreement and shall be memorialized on the
face of the certificates evidencing such stock.
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2.
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Closing.
On the Effective Date (the “Closing”) the Parties shall perform, in
order:
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a) Buyer
shall deliver to Seller a copy of this Agreement executed by
Buyer;
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b) Seller
shall deliver a fully executed copy of this Agreement to
Buyer;
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c) The
Escrowed Funds (defined in Section 3(a) herein) shall be released to
Seller;
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d) The
Company’s shareholders and directors shall execute a joint resolution
approving the terms of this Agreement and the appointment of Buyer’s
designees to a majority of seats on the Board of Directors for the Company
(the “Joint Resolution”);
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e) Buyer
shall deliver to Seller a resolution of the board of directors of the
Company and Irrevocable Transfer Agent Instructions to effectuate
performance of Sections 1(b) and 3(e) of this Agreement (attached hereto
as Exhibit 2 and 3) (the “Board Resolution”);
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f) Buyer
shall deliver to Seller a resolution of the majority shareholders of the
Company to effectuate performance of Section 1(b) and 3(e) of this
Agreement (attached hereto as Exhibit 4) (the “Shareholder
Resolution”);
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g) Buyer
shall deliver to Escrow Agent the Proxy (as defined in Paragraph 4(a)
herein and attached as Exhibit 1);
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h) Seller
shall deliver to Buyer the Joint Resolution;
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i) Upon
initial release of the deposit from the Escrow Account, Seller shall
deliver to Buyer, to the extent reasonably available to Seller, and after
the full performance of Section 3(a), true and correct copies of the
Company’s business, financial and corporate records including but not
limited to: correspondence files, bank statements, checkbooks, minutes of
shareholder and directors meetings, financial statements, shareholder
listing, stock transfer records, agreements and contracts;
and,
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j) Seller
shall (i) immediately deposit the certificate(s) evidencing the Stock
together with Stock Powers to transfer the Stock to the Buyer into the
Escrow Account, and (ii) direct the Escrow Agent to deliver the Stock
certificates to Buyer, immediately after the full performance of Sections
2(a) through 2(g) herein.
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3.
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Payment
Terms.
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a) Buyer
shall place a deposit of twenty seven thousand five hundred U.S. Dollars
($27,500.00) into an escrow account with the Escrow Agent on behalf of the
Seller (the “Deposit”) on the Closing date. The balance of the Purchase
Price (the “Balance”) shall be due and payable on the following dates
(each a “Maturity Date”, collectively the “Maturity
Dates”):
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(i) Payment
in the amount of seven thousand two hundred twenty two U.S. dollars
($7,222.00) on or before sixty (60) days from the Effective
Date;
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(ii) Payment
in the amount of fourteen thousand four hundred forty four U.S. dollars
($14,444.00) on or before ninety (90) days from the Effective
Date;
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(iii) Payment
in the amount of twenty one thousand six hundred sixty six U.S. dollars
($21,666.00) on or before one hundred twenty (120) days from the Effective
Date.
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(iv) Payment
in the amount of twenty eight thousand eight hundred eight nine U.S.
dollars ($28,889.00) on or before one hundred fifty (150) days from the
Effective Date.
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(v) Payment
in the amount of thirty six thousand one hundred eleven U.S. dollars
($36,111.00) on or before one hundred eighty (180) days from the Effective
Date.
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(vi) Payment
in the amount of forty three thousand three hundred thirty four U.S.
dollars ($43,334.00) on or before two hundred ten (210) days from the
Effective Date.
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(vii) Payment
in the amount of fifty thousand five hundred fifty six U.S. dollars
($50,556.00) on or before two hundred forty (240) days from the Effective
Date.
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(viii) Payment
in the amount of thirty two thousand seven hundred seventy eight U.S.
dollars ($32,778.00) on or before two hundred seventy (270) days from the
Effective Date.
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b) Wire
transfer of all payments hereunder shall be made on or before each
payment’s respective Maturity Date by wire transfer of immediately
available funds to Seller’s account as
follows:
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Bank
Name:
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Rappahannock
National Bank
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0
Xxxx Xxxx
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Xxxxxxxxxx,
Xxxxxxxx 00000
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Account
Name:
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Belmont
Partners, LLC
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Account
Number:
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0000000
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Routing
Number:
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000000000
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c) The
Purchase Price may be prepaid in whole or in part at any time, at the
option of Buyer without premium or penalty.
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d) If
at any time during the term of this Agreement Buyer shall fail to pay a
payment on or before the payment’s respective Maturity Date, and such
failure by Buyer to pay the payment continues for a period of ten (10)
days from such payment’s Maturity Date (“Failed Payment”), the Failed
Payment shall bear an interest rate of eighteen percent (18%) per annum
from the date when Failed Payment was due until Failed Payment is received
by Seller by wire transfer. The payments of interest hereunder shall not
be required to the extent that receipt of any such interest by the Seller
would be contrary to provisions
of law applicable to the Seller limiting the maximum rate of interest that
may be charged or collected by the
Seller.
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e)
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Stock
Position.
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(i) In
consideration of the benefits provided to the Company hereby, Company
shall issue and deliver to Seller, such fully paid, non-assessable
restricted shares of the Company’s common stock equal to a one and one
half percent (1.5%) immediately after the Merger (as defined in Section 14
herein) ownership interest in the Company (the “Position”). The Position
shall be based on the capital structure of the Company post Merger (taking
into account any and all shares issued relating to the Merger). The
Position shall be non-dilutable with respect to (a) any transactions
involving any company listed in Exhibit A during the nine (9) month period
immediately following the Merger as defined in Section 14 and (b) any
financings that are made by the Company during the four (4) month period
immediately following the Merger as defined in Section 14. Buyer shall
take all steps necessary to fully effectuate the provisions of this
Section 3.
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(ii) Certificate(s)
evidencing the Position shall be issued and delivered to the Seller
immediately following the actions anticipated by Section 3(e)(i) herein
(the “Actions”), but in no case later than eleven (11) months following
the Effective Date hereof. In the event that all Actions have not been
completed by the eleventh month anniversary of this Agreement, Seller
shall transfer to Buyer shares comprising the Position on that date and
shall issue additional shares as necessary following completion of the
Actions.
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f) The
Parties acknowledge and agree that the Position shall be newly issued,
restricted common shares of the Company. Seller will deliver to Buyer and
Company a legal opinion of Seller’s counsel regarding the removal of
restrictions from the Position, which legal opinion and legal counsel
shall be reasonably acceptable to the Company. In the event that, in one
year from the date of the execution of this Agreement, the Position can
not be sold in accordance with Rule 144 of the Securities Act of 1933, due
to the fault of Buyer, the Seller shall have demand registration rights on
such Position at such time. In the event that Buyer (i) does not provide
for the removal of restrictions from the shares comprising the Position in
accordance with Rule 144, (ii) unreasonably refuses to recognize the
opinion of Seller’s counsel regarding the removal of such restrictions, or
(iii) does not register such shares, the Company and the Buyer, jointly
and severally, shall pay to Seller liquidated damages in the amount of the
bid price per share as of the one year anniversary of this Agreement (as
reported by the national market on which the shares trade) multiplied by
the number of shares in the Position. The Parties agree that the
liquidated damages hereunder are not a penalty. If Buyer pays Seller such
liquidated damages, such payment shall satisfy all of Buyer’s obligations
to Seller regarding the Position.
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g) In
consideration of the benefits provided to the Company hereby, Company and
Buyer agree to be jointly and severally liable for all amounts due
hereunder and all other obligations of this Stock Purchase
Agreement.
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4.
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Proxy.
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a) In
order to ensure performance under Section 3 of this Agreement, the Parties
hereby recognize the Agreement to Prevent Resale and Dilution and
Irrevocable Proxy Coupled with an Interest (the “Proxy”) as being legally
binding and fully valid. The Parties understand and agree that the Proxy
shall be valid from the Closing Date until such time as the Buyer and the
Company merge and the Company executes a Secured Promissory Note (the
“Secured Promissory Note”) for the remaining balance of the Purchase
Price. Such Secured Promissory Note shall be secured by a 1st
priority security interest in assets of the Company having a value at the
time the Secured Promissory Note is signed equal to two times the
remaining balance of the Purchase Price. The Proxy shall be held in escrow
by the Escrow Agent until such time as the Proxy may be released according
to Section 4(c) herein.
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b) Escrow
Agent’s Rights; Exculpation. The Proxy shall be held in the possession of
the Escrow Agent. The Escrow Agent shall have the authority and power to
take such actions and to exercise such powers as are specifically
delegated to the Escrow Agent by the terms of the Escrow Agreement The
Escrow Agent shall be under no duty with respect to the Proxy except to
account therefore in due course, pursuant to the terms and conditions
hereof.
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c) Upon
notification of Buyer’s Default (as defined in Section 5 herein) and prior
to the Merger, the Escrow Agent shall release the Proxy to the Transfer
Agent with a copy to the Seller and Company.
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d) The
Escrow Agent shall not be liable hereunder in its capacity as Escrow
Agent, agent or bailee for any action taken or omitted by it hereunder
except for its gross negligence or willful breach.
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5.
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Default. The following
conditions or events shall constitute events of default (“Event(s) of
Default”):
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a) if
the Buyer or Company shall default in the performance of or compliance
with any material term contained in this Agreement and such default is not
cured within ten (10) days of the events set forth in 5(b)
hereof;
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b) if
the Buyer or Company shall be in breach or otherwise default in the
performance of, or compliance with, any other term contained herein in any
material respect and such breach or default is not remedied within ten
(10) days of either:
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(i) an
officer of the Buyer or Company obtaining knowledge of such
default;
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(ii) Buyer’s
or Company’s Notification of such default; such notification shall be
effective two (2) days from the date of notice sent to the Buyer and
Company in accordance with the provisions of Section 25
hereof;
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c) if
any representation or warranty made in writing by or on behalf of the
Buyer herein or in any instrument furnished in compliance with or in
reference hereto or otherwise in connection with the transactions
contemplated hereby shall prove to have been false or incorrect in any
material respect on the date as of which made;
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d) if
the Buyer or Company shall:
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(i) be
generally not paying its debts as they become due;
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(ii) file,
or consent by answer or otherwise to the filing against it of, a petition
for relief or reorganization or arrangement or any other petition in
bankruptcy, for liquidation or to take advantage of any bankruptcy or
insolvency law of any jurisdiction;
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(iii) make
an assignment for the benefit of its creditors;
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(iv) consent
to the appointment of a custodian, receiver, trustee or other officer with
similar powers with respect to it or with respect to any substantial part
of its property;
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(v) be
adjudicated an insolvent or be liquidated; or,
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(vi) take
corporate action for the purpose of any of the
foregoing;
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e) if
a court or governmental authority of competent jurisdiction shall enter an
order appointing, without consent by the Buyer or Company, a custodian,
receiver, trustee or other officer with similar powers with respect to it
or with respect to any substantial part of its property, or constituting
an order for relief or approving a petition for relief or reorganization
or any other petition in bankruptcy or for liquidation or to take
advantage of any bankruptcy or insolvency law of any jurisdiction, or
ordering the dissolution, winding-up or liquidation of the Buyer or
Company, or if any such petition shall be filed against the Buyer or
Company and such petition shall not be dismissed within thirty (30) days;
or,
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f) if
a final judgment which, with other outstanding final judgments against the
Buyer or Company, exceeds five hundred thousand dollars ($500,000.00)
shall be entered against the Buyer or Company and if, within seventy five
(75) days after entry thereof, such judgment shall not have been
discharged or execution thereof stayed pending appeal, or if, within sixty
(60) days after the expiration of any such stay, such judgment shall not
have been discharged.
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6.
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Remedies
on Default.
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a) Upon
the occurrence of any Event of Default, the Seller may proceed to protect
and enforce its rights by suit in equity, action at law and/or other
appropriate proceeding either for specific performance of any covenant,
provision or condition contained in this Agreement, or in aid of the
exercise of any power granted in this Agreement, and (unless there shall
have occurred an Event of Default under Section 5(d) or 5(e), in which
case the unpaid balance due hereunder shall automatically become due and
payable) may at its sole option and with no further notice to the Buyer
declare all or any part of the unpaid principal amount of the Agreement
then outstanding to be forthwith due and payable, and thereupon such
unpaid principal amount or part thereof, together with interest accrued at
a rate of eighteen percent (18%) per annum thereon and all other sums, if
any, payable under this Agreement shall become so due and payable without
presentation, presentment, protest or further demand or notice of any
kind, all of which are hereby expressly waived, and the Seller may proceed
to enforce payment of such amount or part thereof in such manner as Seller
may elect.
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b) Annulment
of Defaults. An Event of Default shall not be deemed to be in existence or
to have occurred for any purpose of this Agreement until the expiration of
any and all grace periods under this Agreement or if the Seller shall have
waived such event in writing or stated in writing that such event has been
cured to its reasonable satisfaction. No waiver or statement of
satisfactory cure pursuant to this Section 6(b) shall extend to or affect
any subsequent or other Event of Default not specifically identified in
such waiver or statement of satisfactory cure or impair any other rights
of the Seller herein.
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c) Discretionary
Release. Seller may, if Buyer and Company have not effectuated a merger,
at Seller’s sole discretion, instruct the Escrow Agent to release the
Proxy in accordance with Section 7 herein if any Event of Default shall
have been in existence for a period of ten (10) days.
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d) Foreclosure
in Reliance on Secured Promissory Note. Seller may, at Seller’s sole
discretion, if any Event of Default shall have been in existence for a
period of ten (10) days, seek foreclosure or any other remedy available to
seller according to the terms and conditions of the Secured Promissory
Note.
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7.
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Proxy
Release.
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a) Upon
any Event of Default, and subject to the terms and limitations of Sections
6(c) herein, the Seller shall instruct the Escrow Agent to release the
Proxy to the Seller and Company.
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b) Upon
any Event of Default, Seller may at its sole discretion deliver notice of
default to the Escrow Agent and Buyer. Immediately upon receipt of the
Notice of Default, the Escrow Agent shall deliver the Proxy to the
Transfer Agent with a copy to the Seller and Company, thereby affording
Seller all the rights defined in the Proxy as referenced in Section 4
herein.
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8.
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Transfer
Agent.
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a) Until
the closing of the Merger, Buyer agrees that Pacific Stock Transfer, LLC
(the “Transfer Agent”) shall act as the Company’s sole transfer agency,
and Transfer Agent shall have full power and authority to act on behalf of
the Company in connection with the issuance, transfer, exchange and
replacement of all of the Company’s stock certificates.
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b) Transfer
Agent shall have full power and authority to act according to the
Irrevocable Proxy.
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9.
Collections. Should the
indebtedness represented by this Agreement or any part thereof be
collected at law or in equity, or in bankruptcy, receivership or any other
court proceedings (whether at the trial or appellate level), or should any
amount due under this Agreement be placed in the hands of attorneys, or
other collection agents, for collection upon default, Buyer agrees to pay,
in addition to the principal, premium and interest due and payable hereon,
all costs of collection, including reasonable attorneys’ fees and
expenses.
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10. Representations
and Warranties of Seller and the Company. Seller and Company hereby
jointly and severally represent and warrant, for a period
of twelve (12) months from the Effective Date, to Buyer that the
statements in the following paragraphs of this Section 10 are all true and
complete as of the date hereof:
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a) Title
to Stock. Seller is the record and beneficial owner and has sole
managerial and dispositive authority with respect to the Stock and has not
granted any person a proxy that has not expired or been validly withdrawn.
The sale and delivery of the Stock to Buyer pursuant to this Agreement
will vest in Buyer the legal and valid title to the Stock, free and clear
of all liens, security interests, adverse claims or other encumbrances of
any character whatsoever (“Encumbrances”) (other than Encumbrances created
by Buyer and restrictions on resales of the Stock under applicable
securities laws).
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b) Liabilities
of the Company. Seller represents and warrants to the best knowledge of
Seller after due inquiry that as of the Closing, the Company will not have
any liabilities contingent or otherwise. Buyer is solely responsible for
conducting its own due diligence with respect to the Company and its
liabilities and for gathering enough information upon which to base an
investment decision in the Stock. Buyer acknowledges
that:
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(i) Seller has
made no representations with respect to the Company or its status except
as explicitly stated in this Agreement; and,
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(ii) Except as
set forth in this Agreement, the Company is being sold “as
is”.
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c) Full
Power and Authority. Seller represents that it has full power and
authority to enter into this Agreement and the board of directors of
Company has authorized the execution and delivery of this Agreement by
Company and has approved the transactions contemplated by this
Agreement.
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d) Seller
Indemnification of Buyer. Seller represents that for a period of twelve
(12) months following the Closing, Seller shall indemnify Buyer, subject
to the terms and conditions of this Section, for the full value of any
liabilities incurred by the Company prior to the date of Closing and not
disclosed in this Agreement. In no circumstance shall such indemnification
in the aggregate exceed the Purchase Price.
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e) Absence
of Certain Events. Except as set forth in this Agreement or the schedules
hereto, since March 31, 2009, there has not been (i) any material adverse
change in the business, operations, financial condition, or prospects of
Company; or (ii) any damage, destruction, or loss to Company (whether or
not covered by insurance) materially and adversely affecting the business,
operations, financial condition, or prospects of
Company.
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f) Litigation
and Proceedings. To the best of Seller’s knowledge after due inquiry,
there are no actions, suits, proceedings, or investigations pending or, to
the knowledge of Company, threatened by or against Company, or affecting
Company, or its properties, at law or in equity, before any court or other
governmental agency or instrumentality, domestic or foreign, or before any
arbitrator of any kind.
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g) Organization.
Company is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Florida. A certified copy of the
Articles of Incorporation and bylaws of Company are attached hereto as
Schedule 10(g). Company has the power and is duly authorized, qualified,
franchised, and licensed under all applicable laws, regulations,
ordinances, and orders of public authorities to own all of its properties
and assets and to carry on its business in all material respects as it is
now being conducted, including qualification to do business as a foreign
corporation in jurisdictions in which the character and location of the
assets owned by it or the nature of the business transacted by it requires
qualification. The execution and delivery of this Agreement does not, and
the consummation of the Transactions in accordance with the terms hereof
will not, violate any provision of Company’s organizational documents.
Company has taken all action required by laws, its articles of
incorporation, certificate of business registration, or otherwise to
authorize the execution and delivery of this Agreement. Company has full
power, authority, and legal right and has taken or will take all action
required by law, its Certificate of Incorporation, and otherwise to
consummate the Transactions. Company is a corporation in good standing
under the laws of the state of Florida and shall receive a certificate of
good standing from the Secretary of State of the State of Florida, dated
as of a date within ten days prior to the Closing Date certifying that
Company is in good standing as a corporation in the State of
Florida.
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h) Capitalization.
Company has a total of 101,625,000 issued and outstanding shares of common
stock, each of which is legally issued, fully paid, and non-assessable.
All such shares of Company Common Stock are held of record by the Company
Shareholders. Company has no other capital stock, warrants, options, or
other securities convertible into shares of Company capital stock,
outstanding other than the Company Common
Stock.
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i) No
Conflict With Other Instruments. The execution of this Agreement
and the consummation of the Transactions will not result in the breach of
any term or provision of, or constitute an event of default under,
any material indenture, mortgage, deed of trust, or other material
contract, agreement, or instrument to which Company is a party or to which
any of its properties or operations are subject.
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j) Compliance
With Laws and Regulations. To the best of its knowledge, Company
has complied with all applicable statutes and regulations of any Federal,
state, or other applicable governmental entity or agency thereof, except
to the extent that noncompliance would not materially and adversely affect
the business, operations, financial condition, or prospects of Company or
except to the extent that noncompliance would not result in the incurrence
of any material liability.
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11. Representations
and Warranties of Buyer. Buyer hereby represents and warrants to
Seller that the statements in the following paragraphs of this Section 11
are all true and complete as of the date hereof:
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a) Affidavit
of Source of Funds. Prior to each transfer to Seller or each deposit into
escrow, Buyer shall execute an Affidavit of Source of Funds (attached
hereto as Exhibit 11), which attests that the funds to be transferred are
not the proceeds of nor are intended for or being transferred in the
furtherance of any illegal activity or activity prohibited by federal or
state laws. Such activity may include, but is not limited to: tax evasion;
financial misconduct; environmental crimes; activity involving drugs and
other controlled substances; counterfeiting; espionage; kidnapping;
smuggling; copyright infringement; entry of goods into the United States
by means of false statements; terrorism; terrorist financing or other
material support of terrorists or terrorism; arms dealing; bank fraud;
wire fraud; mail fraud; concealment of assets or any effort by conspiracy
or otherwise to defeat, defraud or otherwise evade, any party or the Court
in a bankruptcy proceeding, a receiver, a custodian, a trustee, a marshal,
or any other officer of the court or government or regulatory official;
bribery or any violation of the Foreign Corrupt Practices Act; trading
with enemies of the United States; forgery; or fraud of any kind. Buyer
further warrants that all transfers of monies will be in accordance with
the Money Laundering Control Act of 1986 as amended.
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b) Exempt
Transaction. Buyer understands that the offering and sale of the Stock is
intended to be exempt from registration under the Securities Act of 1933,
as amended (the “Act”) and exempt from registration or qualification under
any state law.
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c) Full
Power and Authority. Buyer represents that it has full power and authority
to enter into this Agreement.
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d) Stock.
The Stock to be purchased by Buyer hereunder will be acquired for
investment for Buyer’s own account, not as a nominee or agent, and not
with a view to the public resale or distribution thereof, and Buyer has no
present intention of selling, granting any participation in, or otherwise
distributing the same.
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e) Information
Concerning the Company. Buyer has conducted its own due diligence with
respect to the Company and its liabilities and believes it has enough
information upon which to base an investment decision in the Stock. Buyer
acknowledges that Seller has made no representations with respect to the
Company, its status or the existence or non-existence of any liabilities
except as explicitly stated in this Agreement.
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f) Investment
Experience. The Buyer understands that purchase of the Stock involves
substantial risk. The Buyer:
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(i) has
experience as a purchaser in securities of companies in the development
stage and acknowledges that he can bear the economic risk of Buyer’s
investment in the Stock; and,
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(ii) has
such knowledge and experience in financial, tax, and business matters so
as to enable Buyer to evaluate the merits and risks of an investment in
the Stock, to protect Buyer’s own interests in connection with the
investment and to make an informed investment decision with respect
thereto.
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g) No
Oral Representations. No oral or written representations have been made
other than or in addition to those stated in this Agreement. Buyer is not
relying on any oral statements made by Seller, Seller’s representatives,
employee’s or affiliates in purchasing the Stock.
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h) Restricted
Securities. Buyer understands that the Stock is characterized as
“restricted securities” under the Act inasmuch as they were acquired from
the Company in a transaction not involving a public
offering.
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i) Opinion
Necessary. Buyer acknowledges that if any transfer of the Stock is
proposed to be made in reliance upon an exemption under the Act, the
Company may require an opinion of counsel satisfactory to the Company that
such transfer may be made pursuant to an applicable exemption under the
Act. Buyer acknowledges that a restrictive legend appears on the Stock and
must remain on the Stock until such time as it may be removed under the
Act.
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j) Shareholder
Value. Buyer represents that Buyer intends to implement a business plan
designed to return value to the shareholders of the
Company.
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k) Compliance.
Buyer shall comply with all applicable securities laws, rules and
regulations regarding this Agreement, the Merger and all related
transactions, including but not limited to filing any forms required by
the U.S. Securities and Exchange Commission.
|
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l) Proxy.
Company and Buyer recognize the Proxy as being legally binding and fully
valid. Company and Buyer hereby knowingly, and to the fullest extent,
waive any and all objections to the validity or execution of the
Proxy.
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12. Indemnification.
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a) Indemnification
- Buyer. During a period of 12 months commencing from the Effective Date
of this Agreement, Buyer shall indemnify and hold harmless the Seller, its
members, officers, directors, agents, employees, attorneys, accountants,
consultants, subsidiaries, successors, affiliates and assigns (“Seller
Indemnitees”) from and against any and all losses, damages, expenses and
liabilities (collectively “Liabilities”) or actions, investigations,
inquiries, arbitrations, claims or other proceedings in respect thereof,
including enforcement of this Agreement (collectively “Actions”)
(Liabilities and Actions are herein collectively referred to as “Losses”)
arising out of or related to the failure by Buyer to fulfill its
obligations under this Agreement. Losses include, but are not limited to
all reasonable legal fees, court costs and other expenses incurred in
connection with investigating, preparing, defending, paying, settling or
compromising any suit in law or equity arising out of this Agreement or
for any breach of this Agreement. The indemnification of Seller by Buyer
shall be limited to an amount equal to the Purchase
Price.
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|
b) Indemnification
- Seller. During a period of 12 months commencing from the Effective Date
of this Agreement, Seller shall indemnify and hold harmless the Buyer, its
members, officers, directors, agents, employees, attorneys, accountants,
consultants, subsidiaries, successors, affiliates and assigns (“Buyer
Indemnitees”) from and against any and all losses, damages, expenses and
liabilities (collectively “Liabilities”) or actions, investigations,
inquiries, arbitrations, claims or other proceedings in respect thereof,
including enforcement of this Agreement (collectively “Actions”)
(Liabilities and Actions are herein collectively referred to as “Losses”)
arising out of or related to the failure by Seller to fulfill its
obligations under this Agreement. Losses include, but are not limited to
all reasonable legal fees, court costs and other expenses incurred in
connection with investigating, preparing, defending, paying, settling or
compromising any suit in law or equity arising out of this Agreement or
for any breach of this Agreement. The indemnification of Buyer by Seller
shall be limited to an amount equal to the Purchase
Price.
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13. Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida, U.S.A. without giving
effect to any other choice or conflict of law provision that would cause
the application of the laws of any other jurisdiction other than the State
of Florida.
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14. Merger
and Exchange of Stock. Merger
and Exchange of Stock. Buyer shall, as soon as practicable, and in
no case later than thirty (30) days from the Closing effect a series of
mergers or begin a series of acquisitions (the “Merger”) between the
Company and any one of the target corporations, which 2008 financial
performance and balance sheet is outlined in the “Sub consolidated balance
sheets” which are attached hereto as Exhibit A and which are more fully
described in the executive summary attached hereto as Exhibit B (the
“Subs”). The Buyer and Company represent and warrant that at a minimum the
Company will enter into, within four (4) months of the Effective date of
this agreement, a merger with or acquire at least three of the Companies
listed on Exhibit A or Liquid Capital, one of which shall be Green Planet.
The Company shall be the surviving corporation of the Merger, and shall
continue unimpaired by the Merger. Upon Merger, the Company shall succeed
to and shall possess all the assets, properties, rights, privileges,
powers, franchises, immunities and purposes, and be subject to all the
debts, liabilities, obligations, restrictions and duties of the
Subs.
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15. Term / Survival. The
terms of this Agreement shall be effective as of the Effective Date, and
continue until such time as the payment of the Purchase Price and all
other amounts due hereunder are fully satisfied, however; the terms,
conditions, and obligations of Sections 10, 11, 12, 13, 14 and 27 hereof
shall survive the termination of this Agreement.
|
|
16. Successors
and Assigns. The terms and conditions of this Agreement shall inure
to the benefit of and be binding upon the respective successors and
assigns of the parties, except that Buyer may not assign or transfer any
of its rights or obligations under this Agreement.
|
|
17. Counterparts.
This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute
one and the same agreement. A telefaxed copy of this Agreement shall be
deemed an original.
|
|
18. Headings.
The headings used in this Agreement are for convenience of reference only
and shall not be deemed to limit, characterize or in any way affect the
interpretation of any provision of this Agreement.
|
|
19. Costs,
Expenses. Each party hereto shall bear its own costs in connection
with the preparation, execution and delivery of this
Agreement.
|
|
20. Modifications
and Waivers. No change, modification or waiver of any provision of
this Agreement shall be valid or binding unless it is in writing, dated
subsequent to the Effective Date of this Agreement, and signed by both the
Buyer and Seller. No waiver of any breach, term, condition or remedy of
this Agreement by any party shall constitute a subsequent waiver of the
same or any other breach, term, condition or remedy. All remedies, either
under this agreement, by law, or otherwise afforded the Buyer shall be
cumulative and not alternative.
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|
21. Severability.
If one or more provisions of this Agreement are held to be unenforceable
under applicable law, such provision(s) shall be excluded from this
Agreement and the balance of the Agreement shall be interpreted as if such
provision(s) were so excluded and shall be enforceable in accordance with
its terms.
|
|
22. Termination.
Buyer or Seller may, upon written notice to the other party, terminate
this Agreement upon their own discretion prior to any funds being released
from escrow. Upon the release of any funds from escrow, this termination
clause is null and void.
|
|
23. Entire
Agreement. This Agreement constitutes the entire agreement and
understanding of the parties with respect to the subject matter hereof and
supersedes any and all prior negotiations, correspondence, agreements,
understandings duties or obligations between the parries with respect to
the subject matter hereof.
|
- 13
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24. Further
Assurances. From and after the date of this Agreement, upon the
request of the Buyer or Seller, Buyer and Seller shall execute and deliver
such instruments, documents or other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully
the intent and purposes of this Agreement.
|
|||
25. Notices.
All notices or other communications required or permitted by this
Agreement shall be in writing and shall be deemed to have been duly
received by the intended party.
|
|||
a) if
sent to the intended party by telecopier, when transmitted and the
appropriate telephonic confirmation received if transmitted on a business
day and during normal business hours of the recipient, and otherwise on
the next business day following transmission;
|
|||
b) if
sent to the intended party by certified or registered mail, return receipt
requested, postage prepaid, three business days after being deposited in
the U.S. mails; and,
|
|||
c) if
sent to the intended party by courier or other means, when received or
personally delivered, and, in any such case, addressed as indicated
herein, or to such other addresses as may be specified by any such Person
to the other Person pursuant to notice given by such Person in accordance
with the provisions of this Section 25.
|
|||
If
to Buyer to:
|
|||
Abacus
Global Investments Corp.
|
|||
000
Xxxxxxx Xx.,
|
|||
Xxxxxxxxxx
Xxxxx, XX, 00000
|
|||
Attention:
CEO
|
|||
Telecopier:
(000) 000-0000
|
|||
with
a copy to:
|
|||
Xxxxxxxx
& Xxxx LLP
|
|||
000
Xxxxx Xxxxxxxxx Xxxxx
|
|||
Xxxxx
0000
|
|||
Xxxxxxx,
Xxxxxxxx 00000-0000
|
|||
Attention:
Xxxxxx X. Xxxxxx
|
|||
Telecopier:
(000) 000-0000
|
|||
If
to Seller:
|
|||
Belmont
Partners, LLC
|
|||
000
Xxxx Xxxxxx
|
|||
Xxxxxxxxxx,
XX 00000
|
|||
Attention:
General Counsel
|
|||
Telecopier:
000 000-0000
|
- 14
-
with
a copy to:
|
||||
Attention:
|
||||
Telecopier:
|
||||
If
to Company:
|
000
Xxxxxxx Xx.
|
|||
Xxxxxxxxxx
Xxxxx
|
||||
Xx,
00000
|
||||
Attention:
|
CEO
|
|||
Telecopier:
|
000-000-0000
|
|||
with
a copy to:
|
||||
Attention:
|
||||
Telecopier:
|
or to
such other address as such party may indicate by a notice delivered to the other
party hereto.
26.
Xxxxxxx
Xxxxxxx. Seller and Buyer hereby certify that they have not themselves,
nor through any third parties, purchased nor caused to be purchased in the
public marketplace any publicly traded shares of the Company. Seller and Buyer
further certify they have not communicated the nature of the transactions
contemplated by the Agreement, are not aware of any disclosure of non public
information concerning said transactions, and are not a party to any xxxxxxx
xxxxxxx of Company shares.
27.
Binding
Arbitration. In the event of any dispute, claim, question, or
disagreement arising from or relating to this agreement or the breach thereof,
the Parties hereto shall use their best efforts to settle the dispute, claim
question, or disagreement. To this effect, they shall consult and negotiate with
each other in good faith and, recognizing their mutual interests, attempt to
reach a just and equitable solution satisfactory to both parties. If they do not
reach such a solution within a period of sixty (60) days, then, upon notice by
either party to the other, all disputes, claims, questions, or disagreements
shall be settled by arbitration administered by the American Arbitration
Association in accordance with its Commercial Arbitration Rules including the
Optional Rules for Emergency Measures of Protection, and judgment on any award
rendered by the arbitration(s) may be entered in any court having jurisdiction
thereof.
- 15
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[Remainder of
Page Intentionally Left Blank)
[Signature
Page to Follow]
- 16
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In
Witness Whereof,
the Parties hereto have executed this Agreement as of the last date written
below.
SELLER
|
BUYER
|
||||
BELMONT
PARTNERS, LLC
|
ABACUS
GLOBAL INVESTMENTS, CORP.
|
||||
/s/
Xxxxxx Xxxxx
|
/s/
Marius Silvasan
|
||||
By:
Xxxxxx Xxxxx, Managing Member
|
By:
Marius Silvasan, Chairman
|
||||
Date:
|
Date:
|
4
June, 09
|
|||
COMPANY
|
|||||
CONTRACTED
SERVICES, INC.
|
|||||
/s/
Xxxxxx Xxxxx
|
|||||
By:
Xxxxxx Xxxxx, Director
|
|||||
Date:
|
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