STOCK EXCHANGE & ACQUISITION AGREEMENT
Exhibit
2.2
STOCK
EXCHANGE & ACQUISITION AGREEMENT
STOCK
EXCHANGE AGREEMENT (hereinafter
sometimes referred to as the “Agreement”) dated as of September 12, 2003 by and
among Cork Aquisition Corp, a corporation organized under the laws of the State
of Delaware (“CORK”) and SiteWorks Inc (SRKS ) a corporation organized under the
laws of the State of Florida (“SRKS”)
W
I T N E S S E T H
WHEREAS,
immediately prior to the date hereof, SRKS has 15,000,000 Thousand shares issued
and outstanding; and
WHEREAS,
CORK
desires to acquire 2,000,000 of validly issued and outstanding shares
of
SiteWorks Inc; (collectively referred to as the “SRKS” Common Stock”), in
exchange for an aggregate of all (100%) 500,000 in issued securities of CORK
’s
Common Stock (the “CORK” Common Stock”), and
WHEREAS,
SRKS
desires to be acquired by CORK in a combination as herein set
forth.
NOW,
THEREFORE,
in
consideration of the premises and the mutual covenants and agreements set forth
herein, the parties hereto do hereby agree as follows:
ARTICLE
I
EXCHANGE
OF SECURITIES
1.1
Issuance
of Shares.
Subject
to all the terms and conditions of this Agreement, SRKS agrees to exchange
2,000,000 fully paid and nonassessable shares of its Common Stock for all of
the
CORK Shares, held by the CORK Shareholders. The SRKS Common Stock will be issued
directly to the CORK Shareholders in a timely many after the effective date
of
the Closing.
1.2
Exemption
from Registration.
The
parties hereto hereby agree that SRKS Common Stock to be issued by SRKS to
the
CORK Shareholders shall
be restricted pursuant to Rule 144
and
exempt from the registration requirements of the Securities Act of 1933, as
amended (the"Act"), and pursuant to Section 4(2) of the Act and the rules and
regulations promulgated thereunder. However SRKS is in the process of
registration (pursuant to an SB 2 filing) and when the filing is effective,
the
shares shall immediately become freely trading and negotiable.
ARTICLE
II
REPRESENTATIONS
AND WARRANTIES OF CORK
CORK,
jointly and severally, hereby represent and warrant to SRKS each and all of
the
following:
2.1 Organization
and Qualification.
CORK is
a corporation duly organized, validly existing and in good standing under the
laws of Delaware; has the full corporate power and authority to own or lease
its
property and carry on its business as now being conducted; and is duly qualified
to do business and is in good standing in each jurisdiction in which the
character of its properties owned or leased or the nature of its business
transacted makes such qualification necessary, except where the failure to
be so
qualified would not have a material adverse effect on the business, assets,
properties, operations, results of operations, condition (financial or
otherwise) or prospects of CORK (“Material Adverse Effect”).
2.2 Capitalization.
The
authorized capital stock of CORK is 500,000 shares ,issued and outstanding
and
held of record and beneficially by the CORK Shareholders. All of the outstanding
shares of capital stock of CORK have been duly and validly issued, are fully
paid and nonassessable, with no personal liability attaching to the ownership
thereof and in each case the issuance thereof was in conformity with all
applicable federal and state securities laws.
2.3 Ownership
of the Stock and Authority.
All the
issued and outstanding shares of CORK held by the CORK Shareholders are free
and
clear of all claims, liabilities, liens, pledges, charges, encumbrances or
equities of any king. This Agreement constitutes, or when executed and delivered
pursuant hereto will constitute, the valid and legally binding obligations
of
each of the CORK Shareholders, enforceable against each of them in accordance
with their respective terms. There are no outstanding subscriptions, options,
rights, warrants, debentures, instruments, securities or other agreements or
commitments obligating CORK to issue or to transfer from treasury any additional
shares of its capital stock of any class.
2.4 Subsidiaries.
As of
the date of this Agreement, CORK has no subsidiaries,.
CORK
does
not own any interest in any other enterprise (whether or not such enterprise
is
a corporation).
2.5 Financial
Statements.
At or
prior to the Closing, and attached as Exhibit
2.5
hereof,
SRKS shall be furnished with an audited financial statements of CORK (the
“Financial Statements”), which shall present fairly, in all material respects,
the financial condition of CORK as at the date reflected therein and for the
period then ending. There shall be no material debt, liability or obligation
of
any nature, whether accrued, absolute, contingent or otherwise, and whether
due
or to become due, that is not reflected in the Financial Statements or otherwise
reflected herein.
2.6 Litigation.
There
is no litigation, legal or administrative proceeding, investigation or other
action or proceeding of any nature pending or, to the knowledge of CORK,
threatened against or affecting CORK, directly or indirectly in any
way.
2.7 Certain
Agreements.
CORK is
not in default of any contract, agreement, undertaking or arrangement to which
it is bound whereby such default could be reasonably expected to have a Material
Adverse Effect.
2.8 Directors
and Officers.
Exhibit
2.8
to this
Agreement, the text of which is hereby incorporated herein by reference,
contains the names and titles of all directors and officers of CORK as of the
date of this Agreement.
2.9 Absence
of Changes.
Since
the date of the balance sheet included in Exhibit
2.5,
there
has not been any change in the financial condition or operations of CORK except
changes in the ordinary course of business, which changes have not in the
aggregate been materially adverse.
2.10 Absence
of Undisclosed Liabilities.
Except
as reflected in the Financial Statements or as otherwise reflected herein,
CORK
shall have, as of the date thereof, no material liability or financial
obligation, secured or unsecured, whether accrued, absolute, contingent or
otherwise.
2.11 Tax
Returns.
Except
as described in Exhibit
2.11
hereto,
CORK,
within
the times and in the manner prescribed by law, has
filed
all federal, state and local tax returns required by law and has paid all taxes,
assessments and penalties due and payable. The provisions for taxes, if any,
reflected in the balance sheet included in Exhibit
2.5
are
adequate and any and all federal, state, county and local taxes for the year
ending on the date of that balance sheet and for all prior years, whether or
not
disputed. There are no present disputes as to taxes of any nature payable by
CORK.
2.12
Patents,
Trademarks and Service Marks.
Schedule
2.12
lists
all patents, trade names,
trademarks and service marks, all patent, trademark and service xxxx
registrations or applications, both domestic and foreign, presently owned,
used
or held by CORK and
all
copyrights and copyright and registrations, domestic and foreign, relating
to
materials or services sold, provided, leased or licensed by CORK in the course
of its business, all of which are collectively referred as the "Proprietary
Rights". Schedule
2.12
also
lists all licenses, if any, granted by or to CORK. Except as set forth in
Schedule
2.12.,
CORK
has not granted to any person, firm or corporation, any right, license or
privilege in any of the Proprietary Rights or know-how used in the business
of
CORK nor have such Proprietary Rights or know-how been revealed to any persons
other than its employees, customers and consultants. No Proprietary Rights
or
applications or grants of licenses, set forth in Schedule
2.12,
are
subject to any pending or threatened challenge, except as indicated in
Schedule
2.12.
CORK
possesses all rights necessary to continue to conduct its business, and to
utilize the processes and market its products and services heretofore, utilized
and marketed in the conduct of such business, without payment of any royalties,
fees or other consideration, except as disclosed in Schedule
2.12.
Each of
the representations and warranties made by X.X. in the Technology Agreement
is
true and correct in all material respects.
2.13 Insurance
Policies.
Exhibit
2.13
to this
Agreement, the text of which is hereby incorporated herein by reference, is
a
description of all insurance policies held by CORK concerning its business
and
properties, all of which such policies are in full force and effect with all
premiums due thereon, having been paid. All of these policies are in the
respective amounts set forth in Exhibit
2.13.
2.14 Compliance
with Laws.
CORK
has complied with, and is not in violation of any applicable federal, state
or
local statutes, laws and regulations (including, without limitation, any
building, zoning or other law, ordinance or regulation) affecting its properties
or the operation of its business.
2.15 Authority.
The
Board of Directors of CORK has authorized the execution of this Agreement and
the consummation of the transactions contemplated herein, and CORK has full
power and authority to execute, deliver and perform this Agreement, and this
Agreement is a legal, valid and binding obligation of CORK and is enforceable
in
accordance with its terms and conditions. Attached hereto as Exhibit
2.15
are such
Board Resolutions authorizing the execution of this Agreement.
2.16 Ability
to Carry Out Obligations.
The
execution and delivery of this Agreement by CORK and the performance by CORK
of
its obligations hereunder in the time and manner contemplated will not cause,
constitute or conflict with or result in; (a) any breach or violation of any
of
the provisions of or constitute a default under any license, indenture,
mortgage, charter, instrument, article of incorporation, by-laws, or other
agreement or instrument to which CORK is a party, or by which it may be bound,
nor will any consents or authorizations of any party other than those hereto
be
required, (b) an event that would permit any party to any agreement or
instrument to terminate it or to accelerate the maturity of any indebtedness
or
other obligation of CORK or,
(c)
an event that would result in the creation or imposition of any lien, charge
or
encumbrance on any asset of CORK.
2.17 Full
Disclosure.
None of
the representations and warranties made by CORK , or in any exhibit, certificate
or memorandum furnished or to be furnished by CORK or in its behalf, contains
or
will contain any untrue statement of material fact, or omit any material fact,
the omission of which would be misleading.
2.18 Assets.
Exhibit
2.18
to this
Agreement, the text of which is hereby incorporated herein by reference, is
a
list, description and approximate value of all of its property, of which CORK
has good and marketable title to, and such property is subject only to liens
and
encumbrances created by the security agreements and other contracts listed
in
Exhibit
2.18
hereto.
2.19 Material
Contracts.
Except
as listed in Exhibit
2.19
hereto,
and except as otherwise disclosed herein, CORK has no contracts to which it
is a
party or by which it is bound.
2.20 Employees.
Exhibit
2.20
to this
Agreement sets forth information concerning the employees of CORK, including
the
names of the executive officers and managers of CORK, the salaries paid to
such
persons, the total number of employees of CORK, and the general policies of
CORK
concerning compensation of employees as of date of this Agreement.
2.21 Indemnification.
CORK ,
jointly and severally, agree to defend and hold SRKS harmless,
and in respect to, any and all claims, demands, losses, costs, expenses,
obligations, liabilities, damages, recoveries and deficiencies, including
interest, penalties and reasonable attorney fees, that they shall incur or
suffer, which arise out of, result from or relate to any breach of, or failure
by CORK and/or the CORK Shareholders to perform any of their respective
representations, warranties, covenants and agreements in this Agreement or
in
any exhibit or other instrument furnished or to be furnished by CORK and/or
the
CORK Shareholders under this Agreement.
ARTICLE
III
REPRESENTATIONS
AND WARRANTIES OF SRKS
SRKS
hereby represents and warrants to CORK and CORK Shareholders that:
3.1 Organization.
SRKS is
a corporation duly organized, validly existing and in good standing under the
laws of the State of Florida, having all necessary corporate powers to own
its
properties to carry on its business as now owned and operated by it,
and is
duly
qualified to do business and is in good standing in each of the states where
its
business requires qualification.
3.2 Capital.
The
authorized capital stock of SRKS is 100,000,000 shares of Common Stock, $ .001
par value and 1,000,000 shares of Preferred stock, in one or more series. There
are, as of the date of this Agreement, approximately 15,000,000 Common Shares
issued and outstanding. No shares of the Preferred Stock have been designated
or
issued. All of the issued and outstanding shares of SRKS are
duly
and validly issued, fully paid and nonassessable. There are no outstanding
subscriptions, options, rights, warrants, debentures, instruments, securities
or
other agreements or commitments obligating SRKS to issue or to transfer from
treasury any additional shares of its capital stock of any class.
3.3 Subsidiaries.
SRKS
does not have any subsidiaries or own any interest in any other enterprise
(whether not such enterprise is a corporation), except as indicated in
Exhibit
3.3.
3.4 Directors
and Officers.
Exhibit
3.4
to this
Agreement, the text of which is hereby incorporated herein by reference,
contains the names and titles of all directors and officers of SRKS as
of the
date of this Agreement.
3.5 Financial
Statements.
Exhibit
3.5
to this
Agreement, the text of which is hereby incorporated herein by reference,
includes the audited financial statements of SRKS for the nine months ended
September 30, 2003. Such financial have been prepared in accordance with
generally accepted accounting principles and practices consistently followed
SRKS throughout the period indicated, and correctly sets forth the financial
condition of SRKS as of the date thereof and for the period then
ended.
3.6 Absence
of Changes.
Since
the date of the balance sheet included in Exhibit
3.5,
there
has not been any change in financial condition or operations of SRKS except
changes in the ordinary course of business, which changes have not in the
aggregate been materially adverse.
3.7 Absence
of Undisclosed Liabilities.
As of
the date the balance sheet, SRKS did not have any material debt, liability
or
obligation of any nature, whether accrued, absolute, contingent or otherwise,
and whether due or to become due, that is not reflected in such balance
sheet.
3.8 Tax
Returns.
Except
as described in Exhibit
3.8
hereto,
SRKS ,
within
the times and in the manner prescribed by law, has filed all federal, state
and
local tax returns required by law and has paid all taxes, assessments and
penalties due and payable. The provisions for taxes, if any, reflected in the
balance sheet included in Exhibit
3.5
are
adequate for any and all federal, state, county and local taxes for the period
ending on the date of that balance sheet and all prior periods, whether or
not
disputed. There are no present disputes as to taxes of any nature payable by
SRKS .
3.9 Investigation
of Financial Condition.
Without, in any manner, reducing or otherwise mitigating the representations
contained herein, CORK and/or its attorneys shall have the opportunity to meet
with accountants and attorneys to determine the financial condition of SRKS
.
SRKS shall make available to CORK and/or its attorneys, all books and records
of
SRKS . If the transaction contemplated hereby is not completed, all documents
received by CORK and/or SRKS
and/or their attorneys shall be returned to the respective parties and all
information so received shall be treated as confidential.
3.10 Patents,
Formulas, Trademarks and Service Marks.
Schedule
3.10
lists
all patents, formulas, trade names, trademarks and service marks, all patent,
formulas, trademark and service xxxx registrations or applications, both
domestic and foreign, presently owned, used or held by SRKS and
all
copyrights and copyright and registrations, domestic and foreign, relating
to
materials or services sold, provided, leased or licensed by SRKS in the course
of its business, all of which are collectively referred as the "Proprietary
Rights". Schedule
3.10
also
lists all licenses, if any, granted by or to SRKS
.
Except as set forth in Schedule
3.10.,
SRKS
has not granted to any person, firm or corporation, any right, license or
privilege in any of the Proprietary Rights or know-how used in the business
of
SRKS nor have such Proprietary Rights or know-how been revealed to any persons
other than its employees, customers and consultants.
3.11 Compliance
with Laws.
SRKS
has complied with, and is not in violation of, applicable federal, state or
local statutes, laws and regulations (including, without limitation, any
applicable building, zoning or other law, ordinance or regulation) affecting
its
properties or the operation of its business.
3.12 Litigation.
Except
as described in Exhibit3.12,
SRKS is
not a party to any suit, action, arbitration or legal, administrative or other
proceeding, or governmental investigation pending or, to the best knowledge,
threatened against or affecting SRKS or its business, assets or financial
condition. SRKS is not in default with respect to any order, writ, injunction,
or decree of any federal, state, local or foreign court, department, agency
or
instrumentality applicable to it. SRKS is not engaged in any lawsuits to recover
moneys due to it.
3.13 Authority.
The
Board of Directors of SRKS have authorized the execution of this Agreement
and
the consummation of transactions contemplated herein, and SRKS has full power
and authority to execute, deliver and perform this Agreement, and this Agreement
is a legal, valid and binding obligation of SRKS and is enforceable in
accordance with its terms and conditions.
3.14 Ability
to Carry Out Obligations.
The
execution and delivery of this Agreement by SRKS and the performance
by SRKS
of
its obligations hereunder, in the time and manner contemplated, will not cause,
constitute or conflict with or result in; (a) any breach or violation of any
of
the provisions of or constitute a default under any license, indenture,
mortgage, charter, instrument, articles of incorporation, by-laws, or other
agreements or instrument to which SRKS is a party, or by which it may be bound,
nor will any consents or authorizations of any party other than those hereto
be
required, (b) an event that would permit any party to any agreement or
instrument to terminate it or to accelerate the maturity of any indebtedness
or
other obligation of SRKS or (c) an event that would result in the creation
or
imposition of any lien, charge or encumbrance on any asset of SRKS
.
3.15 Validity
of SRKS Shares.
The
shares of SRKS Common Stock and the SRKS Preferred Stock to be delivered to
the
CORK Shareholders pursuant this Agreement, when issued in accordance with the
provisions of this Agreement, will be duly authorized, validly issued, fully
paid and nonassessable.
3.16 Full
Disclosure.
None of
the representations and warranties made by SRKS herein, or in any exhibit,
certificate or memorandum furnished or to be furnished by SRKS or on its behalf,
contains or will contain any untrue statement of material fact, or omit any
material fact, the omission of which would be misleading.
3.17 Assets. SRKS
has
good and marketable title to all of its property and such property is subject
only to liens and encumbrances created by the security agreements and other
contracts listed in Exhibit
3.18
hereto.
3.18 Material
Contracts.
Except
as listed in Exhibit
3.18
hereto,
and except as otherwise disclosed herein, SRKS has no material contracts to
which it is a party or by which it bound.
3.19 Indemnification.
SRKS
agrees to defend and hold CORK and the CORK Shareholders harmless against and
in
respect of any and all claims, demands, losses, costs, expenses, obligations,
liabilities, damages, recoveries and deficiencies, including interest, penalties
and reasonable attorney fees, that they shall incur or suffer, which arise
out
of, result from or relate to any breach of, or failure by SRKS to perform any
of
its respective representations, warranties, covenants and agreements in this
Agreement or in any exhibit or other instrument furnished or to be furnished
by SRKS
under this Agreement.
ARTICLE
IV
REPRESENTATIONS
AND WARRANTIES OF THE CORK SHAREHOLDERS
4.1 Share
Ownership.
Each
CORK Shareholder holds CORK Shares, as set forth in Schedule
4.1,
hereto.
Each CORK Shareholder thereof owns of record and such CORK Shares beneficially,
and such shares are not subject to any claims, liabilities, liens, charges,
encumbrances or equities of any kind. Each CORK Shareholder holds authority
to
exchange shares pursuant to this Agreement and the delivery of the CORK Shares
to SRKS at the Closing, will transfer to SRKS valid title thereto, free and
clear of all claims, liabilities, liens, pledges, charges, and equities of
any
kind.
4.2 Investment
Intent.
Each
CORK Shareholder understands and acknowledges that the shares of SRKS Common
Stock are being offered for exchange in reliance upon the exemption provided
in
4(2) of the Act for non public offerings; and each CORK Shareholder makes the
following representations and warranties, with the intent that the same may
be
relied upon in determining suitability of each CORK Shareholder as a purchaser
of the SRKS Common Stock.
(a)
The
SRKS
Common Stock is being acquired solely for the account of each CORK Shareholder,
for investment purposes only, and not with a view toward, or for sale in
connection with, any distribution thereof and with no present intention of
distributing reselling any part of the SRKS Common Stock.
(b) Each
CORK
Shareholder agrees not to dispose of his SRKS Common Stock or any portion
thereof unless and until counsel for SRKS shall have determined that the
intended disposition is permissible and does not violate the Act or any
applicable state securities laws, or the rules and regulations
thereunder.
(c)
Each
CORK
Shareholder acknowledges that SRKS has made all documents pertaining to all
aspects of the Exchange Offer available to him/her and to his/her qualified
representatives, if any, and has offered such person(s) an opportunity to
discuss the Exchange Offer with an/the officer(s) of SRKS .
(d)
Each
CORK
Shareholder is knowledgeable and experienced in making and evaluating
investments of this nature and desires to accept the Exchange Offer on the
terms
and conditions set forth.
(e)
Each
CORK
Shareholder is able to bear the economic risk of an investment, as a result
of
the Exchange Offer, in the SRKS Common Stock.
(f)
Each
CORK
Shareholder understands that an investment in SRKS Common Stock is not liquid,
and each CORK Shareholder has adequate means of providing for current needs
and
personal contingencies and has no need for liquidity in this
investment.
4.3 Indemnification.
Each
CORK
Shareholder recognizes that the offer of the SRKS Common Stock to him/her is
based upon his/her representations and warranties set forth and contained
herein, hereby agrees to indemnify and hold harmless SRKS against all liability,
costs or expenses (including reasonable attorney’s) arising as a result of any
misrepresentation made herein by each CORK Shareholder.
4.4 Legend. Each
CORK
Shareholder agrees that the certificate evidencing the SRKS Common Stock
acquired pursuant this Agreement will have a legend placed thereon stating
that
the SRKS Common Stock have not been registered under the Act or any state
securities laws and setting forth, or referring to the restriction on
transferability and sale of the SRKS Common Stock.
ARTICLE
V
COVENANTS
5.1 Investigative
Rights.
As
between SRKS and CORK, from the date of this Agreement until the Closing Date,
each party shall provide to the other party, and such other party's counsels,
accountants, auditors, and other authorized representatives, full access during
normal business hours and upon reasonable advance written notice to all of
each
party's properties, books, contracts, commitments and records for the purpose
of
examining the same. Each party shall furnish the other party with all
information concerning each party's affairs as the other party may reasonably
request.
5.2 Conduct
of Business.
Prior
to the Closing, SRKS and CORK shall conduct their business in the normal course,
and shall not sell, pledge, or assign any assets, without the prior approval
of
the other party, except in the regular course of business. Neither SRKS nor
CORK
shall amend their Articles of Incorporation or By-Laws, declare dividends,
redeem or sell stock or other securities, incur additional or newly-funded
liabilities, acquire or dispose of fixed assets, change employment terms, enter
into any material or long-term contract, guarantee obligations of any third
party, settle or discharge any balance sheet receivable for less than its stated
amount, pay more on any liability than its stated amount, or enter into any
other transaction other than in the regular course of business.
ARTICLE
VI
-DOCUMENTS
6.1 Preparation.
Subsequent to the Closing, SRKS will use its best efforts to file the necessary
documents (the “Documents”) with the Securities and Exchange Commission (the
"Commission" in order to permit subsequent trading of the SRKS Common Stock
on
the Bulletin Board. It is understood that such necessary Documents may include
one or more of the following documents; Form 10K or Form 10Ksb, Form 10Q or
Form
10Qsb, and/or Form 10 or Form 10sb. Each of CORK’s and SRKS ’s Officers and
Directors shall cooperate in the prompt preparation of the necessary Documents,
which fully complies with the requirements of the Commission, and shall each
use
its best efforts to receive and respond to the comments of the Commission.
Each
of CORK and SRKS agrees to provide, promptly to the other, such information
concerning its business and financial statements and affairs as, in the
reasonable judgement of the other party or its counsel, may be required or
appropriate for inclusion in such Documents, or in any amendments or supplements
thereto, and to cause its counsel and auditors to cooperate with the other's
counsel and auditors in the preparation of such Documents. CORK and SRKS each
further agree to use its best efforts to have such Documents declared effective,
if necessary, by the Commission as soon as may be practicable.
6.2 Warranties
and Covenants of CORK.
CORK
represents and warrants to SRKS that the Documents, insofar as it contains
information pertaining to CORK, furnished by CORK, for inclusion therein, will
comply in all material respects with requirements of the Commission, and the
applicable rules and regulations, and that such information will contain no
untrue statement of any material fact and will not omit to state any material
fact required to be stated therein or to make the statements therein not
misleading. CORK will promptly advise SRKS if at any time, prior to the Closing
Date, it shall obtain knowledge of any facts that might make it necessary or
appropriate to amend or supplement the Documents, in order to make the
statements therein not misleading or to comply with applicable law.
6.3 Warranties
and Covenants of SRKS .
SRKS
represent and warrant to CORK that the Documents, insofar as it contains
information pertaining to and furnished by SRKS , for inclusion therein, shall
comply in all respects with the requirements of the Commission, and applicable
rules and regulations, and that such information will contain no untrue
statement of any fact will not omit to state any fact required to be stated
therein or necessary to make the statements therein not misleading. SRKS will
promptly advise CORK if at any time prior to the Closing Date they shall obtain
knowledge of any facts that might make it necessary or appropriate to amend
or
supplement the Documents in order to make the statements therein not misleading
or to comply with applicable law.
ARTICLE
VII
CONDITIONS
PRECEDENT TO SRKS 'S PERFORMANCE.
7.1 Conditions.
SRKS 's
obligations hereunder shall be subject to the satisfaction, at or before the
Closing, of all conditions set forth in this Article VII. SRKS may waive any
or
all of these conditions in whole or in part without prior notice; provided,
however, that no such waiver of a condition constitute a waiver by SRKS of
any
other condition of any of SRKS 's other rights or remedies, at law or in equity,
if CORK shall be in default of any of their representations, warranties or
covenants under this Agreement.
7.2 Accuracy
of Representation.
Except
as otherwise permitted by this Agreement, all representations and warranties
by
CORK and the CORK Shareholders in this Agreement, or in any written statement
that shall be delivered to SRKS by CORK and CORK Shareholders under this
Agreement shall be true and accurate on as of the Closing Date, as though made
at that time.
7.3 Performance.
CORK
and the CORK Shareholders shall have performed, satisfied, or complied with
all
covenants, agreements and conditions required by this Agreement to be performed
or complied with by it, on or before the Closing Date.
7.4 Absence
of Litigation.
No
action, suit or proceeding before any court or any governmental body or
authority, pertaining to the transaction contemplated by this Agreement or
to
its consummation, shall have been instituted or threatened against CORK or
the
CORK Shareholders on or before the Closing Date.
7.5
Directors
of CORK.
Effective on the Closing, the number of Directors of CORK shall
be
increased, if necessary, and the Board of Directors shall include Xxxx
Xxxxxx.
7.6 Officer's
Certificate and the CORK Shareholders Certificate.
CORK
shall have delivered to SRKS a certificate, substantially in the form attached
hereto as Exhibit
7.6,
dated
the Closing Date, and signed by the President of CORK certifying that each
of
the conditions specified in Sections 7.1 through 7.5 have been fulfilled, and
each of the CORK Shareholders shall deliver a certificate to the same
effect.
ARTICLE
VIII
CONDITIONS
PRECEDENT TO CORK'S AND CORK SHAREHOLDERS' PERFORMANCE
8.1 Conditions.
CORK's
and the CORK Shareholders’ obligations hereunder shall be subject to the
satisfaction, at or before the Closing, of all of the conditions set forth
in
this Article VIII. CORK and the CORK Shareholders may waive any or all of these
conditions in whole or in part without prior notice; provided, however, that
such waiver of a condition shall constitute a waiver by CORK and the CORK
Shareholders of any other condition of or any of CORK’s or the CORK
Shareholders’ rights or remedies at law or in equity, if SRKS shall be in
default of any of its representations, warranties or covenants under this
Agreement.
8.2 Accuracy
of Representations.
Except
as otherwise permitted by this Agreement, all representations and warranties
by
SRKS in this Agreement or in any written statement that shall be delivered
to
CORK and/or the CORK Shareholders by SRKS under this Agreement shall be true
and
accurate on and as of the Closing Date as though made at that time.
8.3 Performance.
SRKS
shall have performed, satisfied and complied with all covenants, agreements
and
conditions required by this Agreement to be performed or complied with by it,
on
or before the Closing Date.
8.4 Absence
of Litigation.
No
action, suit or proceeding before any court or any governmental body or
authority, pertaining to the transaction contemplated by this Agreement or
to
its consummation, shall have been instituted or threatened against SRKS on
or
before the Closing Date.
8.5 Officer's
Certificate.
SRKS
shall have delivered to CORK and the CORK Shareholders a certificate, dated
the
Closing Date, signed by the President of SRKS , certifying each of the
conditions specified in Sections 8.1 through 8.5 have been
fulfilled.
ARTICLE
IX
CLOSING
9.1 Closing.
The Closing (the "Closing") of this transaction shall be held at the offices
of
SiteWorks Inc , or such other place as shall be mutually agreed upon, on the
fifth business day following the satisfaction of all of the conditions to
closing as set forth in Articles VII and VIII hereof, or on such other date
as
shall be mutually agreed upon by the parties (the "Closing Date"). At the
Closing:
(a)
Each
CORK
Shareholder shall present the certificate(s) and/or instrument(s)
representing
his/her CORK Shares, being exchanged for SRKS Common Stock and such
certificates, instruments, if applicable, will be duly endorsed and/or signed
over to SRKS ; and
(b)
Each CORK Shareholder shall receive a certificate(s) representing
the
number of shares of SRKS Common Stock for which the CORK Shares represents
as stated in Schedule
4.1
hereof. It is understood and agreed that at the Closing it will be
sufficient to satisfy this requirement by delivering to CORK a copy
of an
appropriate instruction letter, addressed to the transfer agent,
and
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(c)
The
parties shall produce such other documents and certificates as required by
Articles VII and VIII hereof.
ARTICLE
X
MISCELLANEOUS
10.1 Captions
and Headings.
The
Articles and paragraphs throughout this Agreement are for convenience and
reference only, and shall in no way be deemed to define, limit or add to the
meaning of any provision of this Agreement.
10.2 No
Oral Change.
This
Agreement and any provisions hereof, may not be waived, changed, modified or
discharged orally, but it can be changed by an agreement in writing signed
by
the party against whom enforcement of any waiver, change, modification or
discharge is sought.
10.3 Non-Waiver.
Except
as otherwise expressly provided, no waiver of any covenant, condition or
provision of this agreement shall be deemed to have been made unless expressly
in writing and signed by the party against whom such waiver is; and (i) the
failure of any party to insist on any one or more cases upon the performance
of
any of the provisions, covenants or conditions of this Agreement or to exercise
any option herein contained shall not be construed as a waiver or relinquishment
for future of any such provisions, covenants or conditions, (ii) the acceptance
of performance of anything required by this Agreement to be performed with
knowledge of the breach or failure of a covenant, condition or provision hereof
shall not be deemed waiver of such breach or failure, and (iii) no waiver by
any
party of one breach by another party shall be construed as a waiver with respect
to any other or subsequent breach.
10.4 Termination
of Agreement.
This
Agreement may be terminated at any time before the Closing,
(a) |
By
mutual consent of the parties
hereto;
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(b)
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By
CORK and SRKS (provided they are not in breach hereunder) if any
of
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the
conditions precedent set forth in Article VII hereof have not been met or waived
in writing by SRKS prior to the Closing;
(c)
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By
CORK and the CORK Shareholders (provided they are not in breach hereunder)
if any of the conditions precedent set forth in Article VIII hereof
have
not been met or waived in writing by CORK and the CORK Shareholders,
prior
to the Closing.
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Unless
the termination has been caused by the willful failure of SRKS , on one hand,
or
CORK, and the CORK Shareholders, on the other hand, as the case may be, to
perform or satisfy any agreement, undertaking or condition to be performed
or
satisfied by it hereunder, SRKS shall have no further obligation or liability
to
CORK and the CORK Shareholders under this Agreement, and CORK and the CORK
Shareholders shall have no further obligation or liability to SRKS under this
Agreement.
10.5 Entire
Agreement.
This
Agreement contains the entire agreement and understanding between the parties
hereto, and supersedes all prior agreements and understandings. The terms of
the
letter of intent dated September 10, 2003, attached, are hereby incorporated
by
reference to the extent permitted by law and the regulatory
authorities.
10.6 Choice
of Law.
The
laws of the State of Florida shall govern this Agreement and its
application.
10.7 Counterparts.
This
Agreement may be executed simultaneously in one or more counterparts, each
of
which shall be deemed an original, but all of which together shall constitute
one and the same instrument. This Agreement shall be binding upon each of the
parties named in and who has signed this Agreement, immediately upon a majority
of the common shareholders having signed a counterpart hereof. For the purposes
hereof-facsimile signatures shall be deemed original and effective signatures.
10.8 Notices.
All
notices, requests, demands and other communications under this Agreement shall
be in writing and shall be deemed to have been duly given on the date of service
if served personally on the party to whom notice is to be given, or on the
third
day after mailing, if mailed to the party to whom notice is be given, by first
class mail, registered or certified, postage prepaid, and properly addressed
as
follows:
Cork
Aquisition Corp.
0000
Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxx
,
Xxxxxxxxxx 00000
Attn:
Xxxxxx Xxxxxxxxxxx, Chairman, CEO
Xxxx
M
Nurse/Steworks, Inc
0000
X
Xxxxx Xxx
Xxxxx,
Xxxxxxx 00000
With
a
copy to:
CORK
and
the CORK Shareholders:
Cork
Aquisition Corp LLC.
0000
Xxxxxxxxx Xxxxx, Xxxxx 000
Xxxxxx
,
Xxxxxxxxxx 00000
Att:
N.
Cacciamatta, Chairman, CEO
10.9 Binding
Effect.
This
Agreement shall inure to and be binding upon the heirs, executors, personal
representatives, successors and assigns of each of the parties to this
Agreement.
10.10 Effect
of Closing.
All
representations, warranties, covenants and agreements of the parties contained
in this Agreement, or in any instrument, certificate, opinion or other writing
provided for in it, shall survive the Closing of this Agreement.
10.11 Mutual
Cooperation.
The
parties hereto shall cooperate with each other to achieve the purpose of this
Agreement, and shall execute such other and further documents and take such
other and further actions as may be necessary or convenient to the transaction
described herein.
10.12 Brokers.
The
parties hereto represent and agree that no broker has brought about the
aforementioned exchange for stock and no finder's fee has been paid or is
payable by any party. Each of the parties hereto shall indemnify and hold the
other harmless from and against any and all claims, losses, liabilities or
expenses which may be asserted against it as a result of its dealings,
arrangements or agreements with any such broker or person.
10.13 Announcements.
SRKS
and CORK will consult and cooperate with each other as to the timing and content
of any announcements of the transactions contemplated hereby to the general
public or to employees, customers or suppliers.
10.14 Expenses.
Each
party will pay its own legal, accounting and any other out-of-pocket expenses
reasonably incurred in connection with this transaction, whether or not the
transaction contemplated hereby is consummated.
10.15 Survival
of Representations and Warranties.
The
representations, warrants and agreements of the parties set forth in this
Agreement shall survive the Closing irrespective of any investigation made
by or
on behalf of any party.
10.16 Exhibits.
As of
the execution hereof, the parties hereto have provided each other with the
Exhibits provided for herein above, including any items referenced therein
or
required to be attached thereto. Any material changes to the Exhibits shall
be
immediately disclosed to the other party prior to Closing.
10.17 Counsel.
Each of
the CORK Shareholders and CORK acknowledge that the law firm of ………………………… has
only represented SRKS in connection with this Agreement and the transaction
contemplated hereunder, and that each of the CORK Shareholders and CORK has
been
advised and has had the opportunity to retain Counsel of its own choosing and
each has done so to the extent each has deemed necessary.
IN
WITNESS WHEREOF,
the
undersigned have executed this as of the day and year first above
written.
Cork Aquisition Corp. | SiteWorks , Inc | |
__________________ | _______________ | |
By: ss Nanilo Cacciamatta | By: ss.Xxxx M Nurse | |
Chairman, CEO | Chairman, CEO | |
Majority Shareholder | Majority Shareholder | |
CORK , Inc. |