ACQUISITION AGREEMENT
THIS
ACQUISITION AGREEMENT (“Agreement”) is made as of Jan 24th, 2011 (the “Effective
Date”) by and between UV Flu Technologies, Inc., a Nevada corporation (“UV”) and
The Red Oak Trust (“Red Oak”), the sole shareholder of RxAir Industries, LLC, a
Nevada corporation (“RxAir”),
RECITALS
WHEREAS,
the Red Oak is the sole shareholder and owner of 100% of all membership interest
(“Units”) of RxAir; and,
WHEREAS,
UV desires to purchase from Red Oak, and Red Oak desires to sell to UV, all of
the Units of RxAir.
NOW,
THEREFORE, in consideration of the mutual covenants herein contained and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged:
IT IS
AGREED:
1. Purchase and
Sale. Subject to the terms and conditions contained in this
Agreement, at the Closing (defined below), Red Oak shall sell, assign, transfer
and deliver to UV all of the Units representing 100% of its ownership of
RxAir. UV shall purchase the Units from Red Oak for the purchase
price of:
(i) One hundred and twenty five
thousand ($125,000) dollars (the “Purchase Price”) to Red Oak,
payable:
(a) ten thousand ($10,000) dollars as
previously paid upon the execution of the Letter of Intent between UV and Red
Oak;
(b) one hundred and fifteen thousand
($115,000) dollars payable via a convertible note (the “Convertible Note”,
attached hereto as Exhibit “A” and to be delivered at the Closing;
and
(ii) One million five hundred
thousand (1,500,000) shares of UV common stock par value $0.001 per share (the
“Closing Shares”), pursuant to the following terms and conditions:
(a) At the Closing, UV shall deliver
the Closing Shares to Red Oak in “certificate-form.”;
(b) Commencing six (6) months after
the Closing Date, Red Oak shall be entitled to sell fifty percent (50%) or seven
hundred and fifty thousand (750,000) of the Closing Shares (the “6 Month
Shares”) subject to Red Oak meeting the conditions under Rule 144 of the
Securities Act of 1933, as amended, or other available
exemption;
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(c) Commencing nine (9) months after
the Closing Date, Red Oak shall be entitled to sell the remaining fifty percent
(50%) or seven hundred and fifty thousand (750,000) of the Closing Shares (the
“9 Month Shares”) subject to Red Oak meeting the conditions under Rule 144 of
the Securities Act of 1933, as amended or other available
exemption;
(d) UV agrees that on the Closing
Date, it shall provide a form and board resolution instructing its transfer
agent that at any time after 6 months from the Closing Date, the transfer agent
can accept a legal opinion from legal counsel other than legal counsel to UV
with respect to any request for removal of the restrictive legend related to the
6 Month Shares and respectively that at any time after 9 months from the Closing
Date, the transfer agent can accept a legal opinion from legal counsel other
than legal counsel to UV with respect to any request for removal of the
restrictive legend related to the 9 Month Shares. For purposes of
this Subparagraph “(d)” of this Subparagraph “(ii)” of this Article “1” of this
Agreement, a legal opinion from the firm of Xxxxx & Fraade, P.C. shall be
deemed acceptable to UV; and
(e) UV agrees that after the Closing
Date, if UV shall issue additional common shares of UV or if UV shall issue
additional preferred shares of UV that in any way dilutes or could dilute Red
Oak’s ownership interest in the Closing Shares, UV agrees to issue within 5
business day additional shares to Red Oak such that Red Oak will maintain its
original ownership percentage in UV, respective to the Closing Shares, as of the
Closing Date (the “Anti-Dilutive Shares”). UV agrees that any Anti-Dilutive
Shares shall be deemed to be consideration as part of this original Agreement,
and not as additional consideration, and shall further be deemed as being issued
on the Effective Date of this Agreement. UV agrees that at any time
after 6 months from the Closing Date, UV’s transfer agent can accept a legal
opinion from legal counsel other than legal counsel to UV with respect to any
request for removal of the restrictive legend from the Anti-Dilutive Shares.
Furthermore, if UV at any time or from time to time on or after the Closing Date
effects a subdivision of its outstanding Common Stock, the number of Closing
Shares and Anti-Dilutive Shares owned by or entitled to be owned by Red Oak
immediately before that subdivision shall be proportionately decreased, and
conversely, if UV at any time or from time to time on or after the Closing Date
combines its outstanding shares of Common Stock into a larger number of shares,
the number of Closing Shares and Anti-Dilutive Shares owned by or entitled to be
owned by Red Oak immediately before that subdivision shall be proportionately
increased.
1.1 Consulting
Agreement. Subject
to the terms and conditions contained in this Agreement, at the Closing (defined
below), UV agrees to enter into a Consulting Agreement with Bridgepoint
Partners, LLC to engage the consulting services of Xxxxx X. Xxxxx, according to
the terms and conditions as set forth in the Consulting Agreement attached
hereto as Exhibit “B”.
1.2 Key
Personnel. UV agrees that it shall issue to each of Xxxxx Xxxxxxx,
Xxxxxxx Xxxxxxx and Xxxx Xxxx, three key personnel of RxAir, subject to their
continued active involvement as employees, leased employees, consultants or
leased consultants to RxAir, three hundred thousand (300,000) shares of UV
common stock as follows:
(i) seventy five thousand (75,000)
shares on the Closing Date;
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(ii) seventy five thousand (75,000)
shares six (6) months after the Closing Date; and
(iii) one hundred and fifty thousand
(150,000) shares twelve (12) months after the Closing Date.
2. Closing. The
closing (the “Closing”) of the sale and purchase of the Units shall take place
on or about January 24, 2011. The date of the Closing is sometimes
herein referred to as the “Closing.”
2.1 Items to be Delivered
Prior to or at Closing:
(i) Red Oak shall deliver to
UV:
(a) a certificate representing 100% of
its ownership of the Units, duly endorsed in blank or accompanied by stock
powers duly executed in blank, attached hereto as Exhibit “C”;
(b) a letter from Xxxxx X. Xxxxx
resigning as the sole director and officer of RxAir, attached hereto as Exhibit
“D”;
(c) a debt forgiveness letter from Red
Oak forgiving all monies lent to RxAir as of the Closing and a debt forgiveness
letter from Bridgepoint Partners, LLC forgiving all monies lent to RxAir as of
the Closing, both letters attached hereto as Exhibit “M”;
(ii) UV shall deliver to Red
Oak:
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(a)
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An
corporate resolution approving the execution and delivery of the
Convertible Note, attached hereto as Exhibit
“E”;
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(b)
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An
original Convertible Note for one hundred and fifteen thousand dollars
($115,000) executed by an officer of the Company, attached hereto as
Exhibit “A”;
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(c)
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A
letter or e-mail from the UV’s transfer agent evidencing that the Closing
Shares are being held in “certificate-form” with Red Oak as the sole and
beneficial owner and that the Closing Shares will be sent immediately to
Red Oak as requested; attached hereto as Exhibit
“F”;
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(d)
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Evidence
that RxAir’s remaining lease obligation for the 3,900 square feet office
and warehouse space located at 0000 Xxxxxx Xxxxx Xxxxx, Xxxxxxx Xxxxxx,
Xxxxx 00000, as evidenced by the Lease Agreement dated May 1st, 2010 by
and among WTHW, Ltd (as Landlord) and RxAir Industries, LLC (Tenant), has
been fully transferred and assigned to UV, the Landlord’s Consent Letter
attached hereto as Exhibit “G”;
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(e)
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Evidence
that RxAir’s remaining lease obligation for corporate services provided at
00000 Xxxxxxxxxx Xxx, Xxx 000, Xxxxxx, Xxxxx 00000, as evidenced by the
Lease Agreement dated February 1st, 2011 between Centre Suites and RxAir
Industries, LLC (Customer) has been fully transferred and assigned to UV,
the Corporate Suite Consent attached hereto as Exhibit “H”;
and
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(f)
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Board
resolution authorizing the removal of the restricted legend from the
Closing Shares, pursuant to the terms and conditions in Article
“1(ii)(d)”, attached hereto as Exhibit
“I”.
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3. Red Oak Family
Trustee.
Red Oak
has irrevocably appointed Xxxxx X. Xxxxx as the Family Trustee, to be the true
and lawful agent as attorney-in-fact and representative with full power to act
for and on behalf of Red Oak for all purposes pursuant to this Agreement and in
connection with the transactions contemplated herein.
4. Representations
and Warranties of the Red Oak. Red Oak hereby represents and warrants to
UV the representations and warranties, as follows:
4.1 Validity of
Transaction. Red Oak owns 100% of the RxAir
Units. Red Oak has all requisite power and authority to execute,
deliver, and perform this Agreement and to sell to UV the Units pursuant
hereto. All necessary corporate proceedings or other similar actions
by Red Oak have been duly taken to authorize the execution, delivery, and
performance of this Agreement and to authorize the sale of the Units by Red
Oak. This Agreement has been duly authorized, executed, and delivered
by Red Oak, is the legal, valid, and binding obligation of Red Oak, and is
enforceable as to Red Oak in accordance with its terms except as may be limited
by bankruptcy, insolvency, moratorium or other similar laws affecting creditors’
rights generally, and subject to general principles of equity (regardless of
whether enforcement is considered in a proceeding in equity or at
law). No consent, authorization, approval, order, license,
certificate, or permit of or from, or declaration or filing with, any federal,
state, local, or other governmental authority or of any court or other tribunal
is required by Red Oak for the execution, delivery, or performance of this
Agreement by Red Oak, and except as would not affect the ability of Red Oak to
perform any of its material obligations under this Agreement. No
consent of any party to any contract, agreement, instrument, lease, license,
arrangement, or understanding to which Red Oak is a party, or by which any of
its properties or assets is bound, shall be required for the execution,
delivery, or performance by Red Oak of this Agreement, except for such consents
as have been obtained at or prior to the date of this Agreement, and except as
would not affect the ability of Red Oak to perform any of its material
obligations under this Agreement. The execution, delivery, and
performance of this Agreement by Red Oak will not violate, result in a breach
of, conflict with, or (with or without the giving of notice or the passage of
time or both) entitle any party to terminate or call a default under, any such
contract, agreement, instrument, lease, license, arrangement, or understanding,
or violate or result in a breach of any term of the certificate or articles of
incorporation or by-laws (or other organizational document) of Red Oak, or
violate, result in a breach of, or conflict with any law, rule, regulation,
order, judgment, or decree binding on Red Oak or to which any of its operations,
business, properties, or assets is subject, except as would not affect the
ability of Red Oak to perform any of its material obligations under this
Agreement. The Units sold by Red Oak have been duly authorized and
validly issued and are fully paid and non-assessable and have not been issued in
violation of any preemptive right of stockholders or rights of first
refusal. Upon the transfer of the Units, sold by Red Oak to UV at the
Closing, UV shall acquire good and valid title to such Units free and clear of
all claims, liens, security interests, pledges, charges, encumbrances,
stockholders’ agreements, and voting trusts (other than any created for and in
favor of UV).
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4.2 Finder or
Broker. Red Oak has not incurred any obligation to pay a fee
as a result of any negotiation with any finder, broker, intermediary, or similar
person in connection with the transaction contemplated hereby that will result
in any liability to UV.
4.3 Accredited
Investor. Red Oak is either a “sophisticated” investor, an
“accredited” investor, or both, as those terms are defined in Regulation D
promulgated under the Securities Act of 1933, as amended (“Securities
Act”). Red Oak has received all requested documents from UV,
including without limitation, and have had an opportunity to ask questions of
and receive answers from the officers of UV with respect to the business,
results of operations, financial condition, and prospects of UV.
4.4 Investment
Intent. Red Oak is acquiring the Common Stock for its own
account for investment and not with a view to, or for sale in connection with,
any public distribution thereof in violation of the Securities Act, it being
understood that Red Oak have the right to sell such shares in its sole
discretion in accordance with Section 1(ii)(b), (c) & (d) of this Agreement,
or otherwise after the requirements of the minimum six month hold period under
Rule 144. Red Oak understands that the Common Stock, as of Closing,
have not been registered for sale under the Securities Act or qualified under
applicable state securities laws and that the Common Stock shall be delivered to
Red Oak pursuant to one or more exemptions from the registration or
qualification requirements of such securities laws and that the representations
and warranties contained in this section are given with the intention that UV
may rely thereon for purposes of claiming such exemptions. Red Oak
understands that the Common Stock cannot be sold unless registered under the
Securities Act and qualified under state securities laws, or unless an exemption
from such registration and qualification is available.
4.5 Transfer of
Common Stock. Red Oak shall not sell or otherwise dispose of
any Common Stock unless (a) a registration statement with respect thereto has
become effective under the Securities Act and such shares have been qualified
under applicable state securities laws or (b) such registration and
qualification are not required and, if UV so requests, there is presented to UV
a legal opinion reasonably satisfactory to UV to such effect. Red Oak
consents that the transfer agent for the Common Stock may be instructed not to
transfer any Common Stock acquired pursuant hereto unless it receives
satisfactory evidence of compliance with the foregoing provisions, and that
there may be endorsed upon any certificate representing the Common Stock
acquired pursuant hereto (and any certificates issued in substitution therefor)
the following legend calling attention to the foregoing restrictions on
transferability and stating in substance:
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“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
QUALIFICATION UNDER THE BLUE SKY LAWS OF ANY JURISDICTION. SUCH
SECURITIES MAY NOT BE SOLD, ASSIGNED, TRANSFERRED OR OTHERWISE DISPOSED OF,
BENEFICIALLY OR ON THE RECORDS OF THE CORPORATION, UNLESS THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN REGISTERED UNDER THE SECURITIES ACT
AND QUALIFIED UNDER APPLICABLE BLUE SKY LAWS, OR AN EXEMPTION FROM SUCH
REGISTRATION AND QUALIFICATION IS AVAILABLE.”
UV shall,
upon the request of any holder of a certificate bearing the foregoing legend and
the surrender of such certificate, issue a new certificate without such legend
if (i) the security evidenced by such certificate has been effectively
registered under the Securities Act and qualified under any applicable state
securities law and sold by the holder thereof in accordance with such
registration and qualification or (ii) such holder shall have delivered to UV a
legal opinion from the firm of Xxxxx & Fraade, P.C. to the effect that the
restrictions set forth herein are no longer required or necessary under the
Securities Act or any applicable state law.
4.6 Corporate
Existence. RxAir is Nevada
corporation, validly existing and in good standing under the laws of the State
of Nevada and has all corporate powers and all governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted. RxAir is duly qualified to do
business as a foreign corporation and is in good standing in each jurisdiction
where such qualification is necessary, except for those jurisdictions where
failure to be so qualified would not, individually or in the aggregate, be
material to the business of RxAir. RxAir is not in violation of any
of the provisions of its Articles of Organization, its Bylaws, or any
regulations governing them.
4.7 Capitalization.
(a) 100%
of RxAir’s Units are owned by Red Oak.
(b) To
the knowledge of Red Oak, (i) all outstanding Units have been duly authorized
and validly issued and are fully paid and non-assessable and are not subject to
preemptive rights created under Nevada law, its Articles of Organization, its
Bylaws, or any regulations governing them, or any agreement or document to which
RxAir is a party or by which it or its assets are bound, (ii) all outstanding
Units have been issued and granted in compliance with all applicable securities
law and other legal requirements and all requirements set forth in applicable
agreements or instruments, and (iii) none of the outstanding Units is unvested
or is subject to a repurchase option, risk of forfeiture or other
condition.
(c) Other
than the Units there are no outstanding (i) membership interests or voting
securities of RxAir, (ii) securities of RxAir convertible into or exchangeable
for shares of capital stock or voting securities of RxAir or (iii) options or
other rights to acquire from RxAir, or other obligation of RxAir to issue, any
capital stock, voting securities or securities convertible into or exchangeable
for capital stock or voting securities of RxAir. There are no
registration rights, other than as set forth in this Agreement, and there is no
voting trust, proxy, rights plan, anti-takeover plan or other agreement or
understanding to which RxAir is a party. There are no outstanding
obligations of RxAir to repurchase, redeem or otherwise acquire any
Units.
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4.8 Financial
Statements. Red Oak acknowledges that the books and records of
RxAir fairly and correctly set out and disclose in all material respects, in
accordance with generally accepted accounting principles (“GAAP”), the financial
position of RxAir as at the date hereof, and all material financial transactions
of RxAir have been accurately recorded in such books and
records. Furthermore, UV has completed a fully audit of RxAir’s
books and records as of October 31st, 2010,
which is attached hereto as Exhibit “J”.
4.9 No
Undisclosed Material Liabilities. There are no
liabilities of RxAir of any kind whatsoever, whether accrued, contingent,
absolute, determined or determinable, and no existing condition, situation or
set of circumstances which could reasonably result in such a liability, other
than:
(a) liabilities
as listed and attached hereto as Exhibit “K”; and
(b) liabilities
incurred in the ordinary course of the business of RxAir consistent with past
practice, none of which has or may reasonably be expected to have, individually
or in the aggregate, a material adverse effect on the business, results of
operations, or financial condition of RxAir.
4.10 Litigation. There is no
action, suit, investigation or proceeding (or to Red Oak’s knowledge any basis
therefore) pending against, or to the knowledge of Red Oak threatened against or
affecting, Red Oak, RxAir or any of their respective properties before any court
or arbitrator or any governmental body, agency or official which, individually
or in the aggregate, if determined or resolved adversely in accordance with the
plaintiff’s demands, could reasonably be expected to have a material adverse
effect on the business, results of operations, or financial condition of RxAir
or which in any manner challenges or seeks to prevent, enjoin, alter or
materially delay the transactions contemplated by this Agreement.
4.11 Intellectual
Property. RxAir has
ownership and title to the Intellectual Property (defined herein as trade marks,
trade names or copyrights, patents, domestic or foreign) as listed and attached
hereto as Exhibit “L”.
4.12 Compliance
with Laws and Court Orders.
(a) RxAir
is not in violation of, and to the knowledge of Red Oak is not under
investigation with respect to and has not been threatened to be charged with or
given notice of any violation of, any applicable law, rule, regulation,
judgment, injunction, order or decree, except for violations that have not had
and could not reasonably be expected to have, individually or in the aggregate,
a material adverse effect on the business, results of operations or financial
condition of RxAir.
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(b) To
the knowledge of Red Oak, each executive officer and director of RxAir has
complied with all applicable laws in connection with or relating to actions
within the scope of RxAir’s business, except where the failure to comply would
not be material to RxAir. No executive officer or director of RxAir
is a party to or the subject of any pending or threatened suit, action,
proceeding or investigation by any governmental entity that would have a
material adverse effect on the business, results of operations or financial
condition of RxAir.
4.13 Absence of
Liens and Encumbrances; Title to Properties. RxAir has good,
valid and marketable title to all properties and assets used in the conduct of
its business free of all liens, mortgages, pledges, charges, security interests,
encumbrances or other adverse claims of any kind, except as set forth and
attached hereto as Exhibit “M”.
4.14 Material
Contracts. RxAir is not a party to or bound by any Contract
(as defined below) that (a) is a material contract, or (b) materially limits or
otherwise materially restricts RxAir or that would, after the Closing,
materially limit or otherwise materially restrict UV or any of its subsidiaries
or any successor thereto, from engaging or competing in any material line of
business in any geographic area or that contains most favored nation pricing
provisions or exclusivity or non-solicitation provisions with respect to
customers. As used herein, “Contract” shall mean any written or oral
agreement, contract, commitment, lease, license, contract, note, bond, mortgage,
indenture, arrangement or other instrument or obligation. RxAir is
not in, or has received notice of, any violation of or default under (or any
condition which with the passage of time or the giving of notice would cause
such a violation of or default under) any Contract or any other Contract to
which it is a party or by which it or any of its properties or assets is bound,
except for violations or defaults that would not have a material adverse effect
on the business, results of operations or financial condition of RxAir or, after
giving effect to the Closing, UV or any of its subsidiaries.
4.15 Taxes.
(a) RxAir has timely filed
all tax returns required to be filed on or before the Closing and all such tax
returns are true, correct and complete in all respects. RxAir has paid in full
on a timely basis all taxes owed by it, whether or not shown on any tax return,
except where the failure to file such return or pay such taxes would not have a
material adverse effect. No claim has ever been made by any authority
in any jurisdiction where RxAir does not file tax returns that RxAir may be
subject to taxation in that jurisdiction.
(b) There are no ongoing
examinations or claims against RxAir for taxes, and no notice of any audit,
examination or claim for taxes, whether pending or threatened, has been
received. RxAir has not waived or extended the statute of limitations with
respect to the collection or assessment of any tax.
5. Representations and
Warranties of UV. UV hereby represents and warrants to Red Oak
as follows:
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5.1 Validity of
Transaction. UV has all requisite power and authority to
execute, deliver, and perform this Agreement and to issue and deliver to Red Oak
the Common Stock of UV. All necessary corporate proceedings of UV
have been duly taken to authorize the execution, delivery, and performance of
this Agreement, and the issuance and sale to Red Oak of the Common Stock. This
Agreement has been duly authorized, executed, and delivered by UV, is the legal,
valid, and binding obligation of UV, and is enforceable as to UV in accordance
with its terms, except as may be limited by bankruptcy, insolvency, moratorium,
or other similar laws affecting creditors’ rights generally, and subject to
general principles of equity (regardless of whether enforcement is considered in
a proceeding in equity or at law). Subject to the compliance with and
completion of the registration requirements of the Securities Act as
contemplated in the Registration Rights Agreement, no consent, authorization,
approval, order, license, certificate, or permit of or from, or declaration or
filing with, any Federal, state, local, or other governmental authority or of
any court or other tribunal is required by UV for the execution, delivery, or
performance of this Agreement by UV, except as would not affect the ability of
UV to perform any of its material obligations under this
Agreement. No consent of any party to any contract, agreement,
instrument, lease, license, arrangement, or understanding to which UV is a
party, or by which any of its properties or assets is bound, is required for the
execution, delivery, or performance by UV of this Agreement, except for such
consents as have been obtained at or prior to the date of this Agreement, and
except as would not affect the ability of UV to perform any of its material
obligations under this Agreement. The execution, delivery, and
performance of this Agreement by UV will not violate, result in a breach of,
conflict with, or (with or without the giving of notice or the passage of time
or both) entitle any party to terminate or call a default under any contract,
agreement, instrument, lease, license, arrangement, or understanding to which UV
is a party, or violate or result in a breach of any term of the Articles of
Incorporation or By-laws of UV, or violate, result in a breach of, or conflict
with any law, rule, regulation, order, judgment, or decree binding on UV or to
which any of its operations, business, properties, or assets is subject, except
as would not affect the ability of UV to perform any of its material obligations
under this Agreement. The shares of UV Common Stock have been duly
authorized and, upon receipt by Red Oak from UV of the stock certificates
representing the Common Stock being sold pursuant to this Agreement, will be
validly issued, fully paid, and nonassessable, will not have been issued in
violation of any preemptive right of stockholders or rights of first refusal,
and Red Oak will have good title to the Common Stock, free and clear of all
liens, security interests, pledges, charges, encumbrances, stockholders
agreements, and voting trusts (other than any created by Red Oak).
5.2 Finder or
Broker. Neither UV nor any person acting on behalf of UV has
negotiated with any finder, broker, intermediary, or similar person in
connection with the transaction contemplated herein.
5.3 Accredited
Investor. UV is an “accredited investor,” as that term is
defined in Rule 501 of Regulation D promulgated under the Securities
Act.
5.4 Investment
Intent. UV is acquiring the Units of RxAir for its own account
for investment and not with a view to, or for sale in connection with, any
public distribution thereof in violation of the Securities Act. UV
understands that it must bear the economic risk of its investment in RxAir for
an indefinite period of time, and the Units of RxAir being purchased from Red
Oak cannot be sold unless registered under the Securities Act and qualified
under state securities laws, unless an exemption from such registration and
qualification is available.
5.5 Other
Stockholders. DELETED. NOT
APPLICABLE.
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5.6 UV’s
Corporate Existence. UV is a corporation
duly incorporated, validly existing and in good standing under the laws of
Nevada and has all corporate powers and all governmental licenses,
authorizations, permits, consents and approvals required to carry on its
business as now conducted. UV is duly qualified to do business
as a foreign corporation and is in good standing in each jurisdiction where such
qualification is necessary, except for those jurisdictions where failure to be
so qualified would not, individually or in the aggregate, be materially adverse
to the business of UV. UV is not in violation of any of the
provisions of its Articles of Incorporation or its Bylaws.
5.7 Capitalization.
(a) As
of the Closing Date the authorized capital stock of UV consists of
(i) Seventy five million (75,000,000)
shares of common stock, of which forty-five million and eighty thousand shares
(45,080,000) are issued and outstanding.
(ii) All
outstanding shares of Common Stock of UV have been duly authorized and validly
issued and are fully paid and non-assessable and are not subject to preemptive
rights created under Nevada law, the Articles of Incorporation or Bylaws of UV
or any agreement or document to which UV is a party or by which it or its assets
are bound. All outstanding shares of capital stock of UV have
been issued and granted in compliance with all applicable securities law and
other legal requirements and all requirements set forth in applicable agreements
or instruments. None of the outstanding UV Securities (as
defined below) is unvested or is subject to a repurchase option, risk of
forfeiture or other condition providing that such UV Securities may be forfeited
or repurchased by UV or otherwise vest upon termination of stockholder’s or
grantee’s employment, directorship or other relationship with UV or a UV
Subsidiary (as defined below) under the terms of any restricted stock agreement
or other agreement with UV. No UV debt has voting
rights. As used herein, “UV Subsidiary” shall mean any entity of
which securities or other ownership interests having ordinary voting power to
elect a majority of the board or directors or other persons performing similar
functions are at the time directly or indirectly owned by UV.
(iii) Except
as set forth in this Section, there are no outstanding (x) shares of capital
stock or voting securities of UV, (y) securities of UV convertible into or
exchangeable for shares of capital stock or voting securities of UV or (z)
options or other rights to acquire from UV, or other obligation of UV to issue,
any capital stock, voting securities or securities convertible into or
exchangeable for capital stock or voting securities of UV (the items in clauses
(x), (y) and (z) of this Section 5.7 being referred to collectively as the “UV
Securities”). There are no registration rights and there is no voting
trust, proxy, rights plan, anti-takeover plan or other agreement or
understanding to which UV or any of UV’s Subsidiaries is a party or by which it
is bound with respect to any UV Securities. There are no outstanding
obligations of UV or any UV Subsidiary to repurchase, redeem or otherwise
acquire any UV Securities.
(b) As of
the Closing Date no preferred capital stock has been
authorized.
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5.8 Litigation. There is no
action, suit, investigation or proceeding (or to UV’s knowledge any basis
therefore) pending against, or to the knowledge of UV, threatened against or
affecting, UV or any UV Subsidiary or any of their respective properties before
any court or arbitrator or any governmental body, agency or official which,
individually or in the aggregate, if determined or resolved adversely in
accordance with the plaintiff’s demands, could reasonably be expected to have a
material adverse effect on the business, results of operations, or financial
condition of UV and its subsidiaries taken as a whole or which in any manner
challenges or seeks to prevent, enjoin, alter or materially delay the
transactions contemplated by this Agreement.
5.9 Compliance
with Laws and Court Orders.
(a) Neither
UV nor any UV Subsidiary is in violation of, and has not violated, and to the
knowledge of UV is not under investigation with respect to and has not been
threatened to be charged with or given notice of any violation of, any
applicable law, rule, regulation, judgment, injunction, order or decree, except
for violations that have not had and could not reasonably be expected to have,
individually or in the aggregate, a material adverse effect on the business,
results of operations or financial condition of UV and its subsidiaries taken as
a whole.
(b) Each
executive officer and director of UV has complied with all applicable laws in
connection with or relating to actions within the scope of UV’s business, except
where the failure to comply would not be material to UV. No executive
officer or director of UV is a party to or the subject of any pending or
threatened suit, action, proceeding or investigation by any governmental entity
that would have a material adverse effect on the business, results of operations
or financial condition of UV and its subsidiaries taken as a whole.
5.10 Financial
Statements. All financial
statements of UV as the Closing Date are current and have been filed with the
SEC pursuant to the Exchange Act (collectively, “UV Financial Statements”) (a)
have been prepared in accordance with and accurately reflect in all material
respects, UV’s books and records as of the times and for the periods referred to
therein, (b) complies in all material respects with applicable accounting
requirements with respect thereto in effect during the periods included and (c)
fairly present in all material respects, in conformity with United States
generally accepted accounting principles applied on a consistent basis during
the periods involved (except as may be indicated in the notes thereto and except
in the unaudited financial statements as may be permitted in an SEC Form 10-Q),
the consolidated financial position of UV and its consolidated subsidiaries as
of the dates thereof and their consolidated results of operations and cash flows
for the periods then ended (subject to normal year end adjustments in the case
of any unaudited interim financial statements which were not and are not
expected to be material to UV).
5.11 No Undisclosed Material Liabilities. There are no
liabilities of UV or any UV Subsidiary of any kind whatsoever, whether accrued,
contingent, absolute, determined or determinable, and no existing condition,
situation or set of circumstances which could reasonably result in such a
liability, other than:
11
(a) liabilities
recorded in full or reserved for in the unaudited financial statements included
in UV Exchange Act Documents filed with respect to the fiscal period ended
September 30, 2010 (“UV Balance Sheet Date”); and
(b) liabilities
incurred in the ordinary course of the business of UV consistent with past
practice since UV Balance Sheet Date, none of which has or may reasonably be
expected to have, individually or in the aggregate, a material adverse effect on
the business, results of operations, or financial condition of UV and its
subsidiaries taken as a whole.
6. Survival Of
Representations and Warranties; Indemnification;
6.1 Nature and
Survival. The covenants, representations and warranties made
by the parties in this Agreement shall survive the execution and delivery of
this Agreement and the consummation of the transactions described herein, it
being agreed and understood that each of such covenants, representations and
warranties is of the essence to this Agreement and the same shall be binding
upon the parties and inure to other parties, and their successors and
assigns.
6.2 Red Oak
Indemnification.
(a) Subject
to Section 6.3 of this Agreement, Red Oak agrees to indemnify and hold harmless
UV against and in respect of its pro rata share (determined on the basis of the
percentage of the total number of shares of UV Common Stock that were issued to
such Shareholder) of any and all Damages. “Damages,” as used
herein, shall include any claim, action, demand, loss, cost, expense, liability
(joint or several), penalty and other damage, including, without limitation,
reasonable counsel fees and other costs and expenses reasonably incurred in
investigation or in attempting to avoid the same or oppose the imposition
thereof or in enforcing this indemnity, resulting to UV from (i) any inaccurate
representation made by or on behalf of RxAir or Red Oak or any certificate or
other document referenced in, this Agreement and delivered pursuant hereto, (ii)
the breach of any of the warranties or agreements made by or on behalf of RxAir
or Red Oak in this Agreement or any certificate or other document referenced in
this Agreement and delivered pursuant hereto, or (iii) the breach or default in
the performance by Red Oak of any of the obligations to be performed by any of
them hereunder.
(b) If
any claim shall be asserted against UV by a third party for which UV intends to
seek indemnification from Red Oak under this Section 6.2, UV shall given written
notice to the Red Oak of the nature of the claim asserted within forty-five (45)
days after any executive officer of UV learns of the assertion thereof and
determines that UV may have a right of indemnification with respect thereto, but
the failure to give this notice will not relieve Red Oak of any liability
hereunder in respect of this claim. UV shall have the exclusive right
to conduct, through counsel of its own choosing, which counsel is approved by
Red Oak (which approval may not be unreasonably withheld), the defense of any
such claim or action, and may compromise or settle such claims or actions with
the prior consent of Red Oak (which shall not be unreasonably
withheld).
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6.3 Satisfaction
of Red Oak Indemnification.
(a) Any
Damages incurred, paid or borne by UV (including legal and transfer agent fees)
for which it is entitled to indemnification from Red Oak under this Section 6.3
shall be satisfied, in whole or in part, solely by Red Oak delivering to UV for
cancellation, fifty percent (50%) of the Closing Shares, without further
recourse to Red Oak.
(b) “Closing
Date Market Value” of UV Common Stock as of a the Closing Date of this Agreement
shall mean the average of the price of a share during the last twenty (20)
trading days of Common Stock of UV common stock as determined on the basis of
the last reported sales price on the principal national securities exchange
(including, for purposes hereof, any of the several Nasdaq markets) upon which
the Common Stock is listed or admitted to trading. Such closing price
shall be the last reported sales price or, if the Common Stock is not listed or
admitted to trading on the any national securities exchange, (including any of
the several Nasdaq markets) or similar organization, the Closing Date Market
Price shall be determined on the basis of the average of the last reported sales
price on the Over-the-Counter Bulletin Board for the twenty (20) consecutive
trading days preceding such date (“Measurement Days”); or, if such shares are
not traded on the Over-the-Counter Bulletin Board, the Closing Date Market Value
will be determined by an independent reputable valuation and appraisal company
mutually agreed upon by UV and Red Oak (which appraiser shall be instructed to
disregard any minority shares discount), and if no agreement can be reached
within a 30-day period, by the average of the two Closing Date Market Values as
determined by independent reputable valuation and appraisal companies retained
by each of UV and Red Oak provided, however, that the
aggregate fees and expenses of any such independent valuation and appraisal
company or companies shall be shared evenly between UV, on the one hand, and Red
Oak.
6.4 UV
Indemnification.
(a) UV
shall indemnify and hold Red Oak harmless against and in respect of all RxAir
Damages. “RxAir Damages” shall mean any claim, action, demand, loss,
cost, expense, liability (joint or several), penalty and other damage,
including, without limitation, reasonable counsel fees, and other costs and
expenses reasonably incurred in investigating or in attempting to avoid the same
or oppose the imposition thereof or in enforcing this indemnity, resulting to a
Shareholder from (A) any inaccurate representation made by UV in this Agreement
or any certificate or other document referenced in this Agreement and delivered
by it pursuant hereto, (B) breach of any of the warranties or agreements made by
UV in this Agreement or any certificate or other document referenced in this
Agreement and delivered by it pursuant hereto, or (C) breach or default in the
performance by UV of any of the obligations to be performed by UV
hereunder. UV agrees to pay or reimburse Red Oak for any payment made
or amount payable or loss suffered or incurred by Red Oak at any time from and
after the Closing in respect of any Shareholder Damages to which the foregoing
indemnity relates.
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7. Covenants of
Red Oak.
7.1 Fulfillment of Closing
Conditions. At and prior to the Closing, Red Oak shall use
commercially reasonable efforts to perform its obligations pursuant to this
Agreement. In connection with the foregoing, Red Oak shall (a)
refrain from any actions that would cause any of their representations and
warranties to be inaccurate in any material respect as of the Closing, (b)
execute and deliver the applicable agreements and other documents referred to
herein, (c) comply in all material respects with all applicable laws in
connection with the execution, delivery and performance of this Agreement and
the transactions, (d) use commercially reasonable efforts to obtain in a timely
manner all necessary waivers, consents and approvals required under any laws,
contracts or otherwise, and (e) use commercially reasonable efforts to take, or
cause to be taken, all other actions and to do, or cause to be done, all other
things reasonably necessary, proper or advisable to consummate and make
effective as promptly as practicable the transactions.
7.2 Access
to Information. From the date of this Agreement to the Closing, Red Oak
shall give to UV and its officers, employees, counsel, accountants and other
representatives access to and the right to inspect, during normal business
hours, all of the assets, records, contracts and other documents relating to
RxAir as the other party may reasonably request. UV shall not use
such information for purposes other than in connection with the transactions
contemplated by this Agreement.
7.3 No
Solicitation. DELETED. NOT APPLICABLE.
7.4 Confidentiality. RxAir
agrees that after receipt (a) all information received by Red Oak pursuant to
this Agreement and (b) any other information that is disclosed by UV to Red Oak
shall be considered confidential information until such time as such information
otherwise becomes publicly available. Each party further agrees that
it shall hold all such confidential information in confidence and shall not
disclose any such confidential information to any third party except as required
by law or regulation (including the listing rules); provided that to the extent
possible UV shall have been provided with reasonable notice and the opportunity
to seek a protective order to the extent possible prior to such disclosure,
(other than its counsel or accountants) nor shall it use such confidential
information for any purpose other than its investment in UV; provided, however,
that the foregoing obligation to hold in confidence and not to disclose
confidential information shall not apply to any information that (1)
was known to the public prior to disclosure by UV, (2) becomes known
to the public through no fault of RxAir, (3) is disclosed to RxAir on a
non-confidential basis by a third party having a legal right to make such
disclosure or (4) is independently developed by RxAir.
7.5 Transfer
of Assets and Business. Red Oak shall, and shall cause RxAir to, take
such reasonable steps as may be necessary or appropriate, in the judgment of UV,
so that UV shall be placed in actual possession and control of all of the assets
and the business of RxAir, and RxAir shall be owned and operated as a wholly
owned subsidiary of UV.
7.6 Disclosure
of Fundraising. DELETED. NOT
APPLICABLE.
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8. Covenants of
UV.
8.1 Fulfillment of Closing
Conditions. At and prior to the Closing, UV shall use
commercially reasonable efforts to fulfill the conditions specified in this
Agreement to the extent that the fulfillment of such conditions is within its
control. In connection with the foregoing, UV shall (a) refrain from
any actions that would cause any of its representations and warranties to be
inaccurate in any material respect as of the Closing, (b) execute and deliver
the applicable agreements and other documents referred to herein, (c) comply in
all material respects with all applicable laws in connection with its execution,
delivery and performance of this Agreement and the transactions, (d) use
commercially reasonable efforts to obtain in a timely manner all necessary
waivers, consents and approvals required under any laws, contracts or otherwise,
and (e) use commercially reasonable efforts to take, or cause to be taken, all
other actions and to do, or cause to be done, all other things reasonably
necessary, proper or advisable to consummate and make effective as promptly as
practicable the transactions.
8.2 Access
to Information. From the date of this Agreement to the Closing, UV shall
give to Red Oak and their employees, counsel, accountants and other
representatives access to and the right to inspect, during normal business
hours, all of the assets, records, contracts and other documents relating to UV
as the other party may reasonably request. Red Oak shall not use such
information for purposes other than in connection with the transactions
contemplated by this Agreement.
8.3 Confidentiality. UV
agrees that after receipt (a) all information received by it pursuant to this
Agreement and (b) any other information that is disclosed by Red Oak to it shall
be considered confidential information until such time as such information
otherwise becomes publicly available. Each party further agrees that
it shall hold all such confidential information in confidence and shall not
disclose any such confidential information to any third party except as required
by law or regulation (including the listing rules); provided that to the extent
possible Red Oak shall have been provided with reasonable notice and the
opportunity to seek a protective order to the extent possible prior to such
disclosure, other than its counsel or accountants nor shall it use such
confidential information for any purpose other than its investment in RxAir;
provided, however, that the foregoing obligation to hold in confidence and not
to disclose confidential information shall not apply to any information that (1)
was known to the public prior to disclosure by UV, (2) becomes known to the
public through no fault of UV, (3) is disclosed to UV on a non-confidential
basis by a third party having a legal right to make such disclosure or (4) is
independently developed by UV.
8.4 Disclosure
of Fundraising. DELETED. NOT APPLICABLE.
8.5 UV SEC
Filings. UV shall use its best efforts to remain current
with its filing obligations with the SEC for a minimum of twelve (12) months
from the Closing Date.
9. Mutual
Covenants.
9.1 Disclosure of
Certain Matters. Red Oak on the one hand, and UV, on the other
hand, shall give UV and Red Oak, respectively, prompt notice of any event or
development that occurs prior to the Closing that (a) had it existed or been
known on the date hereof would have been required to be disclosed by such party
under this Agreement, (b) would cause any of the representations and warranties
of such party contained herein to be inaccurate or otherwise misleading, except
as contemplated by the terms hereof, or (c) gives any such party any reason to
believe that any of the conditions set forth in this Agreement.
15
9.2 Public
Announcements. Red Oak and UV shall consult with each other
before issuing any press release or making any public statement with respect to
this Agreement, except as may be required by applicable law or regulation, a
party hereto shall not issue any such press release or make any such public
statement without the consent of the other party hereto.
9.3 Confidentiality. Red
Oak agrees to be bound to the Confidentiality provision as aforementioned in
Section 7.4 of this Agreement. UV agrees to be bound to the
Confidentiality provision in Section 8.3 of this Agreement.
10. Conditions
Precedent to Obligations of Red Oak. All obligations of Red Oak to
consummate the transaction as defined within this Agreement are subject to the
satisfaction prior thereto of each of the following conditions:
10.1 Representations
and Warranties. The representations and warranties of UV
contained in this Agreement shall be true and correct on the date hereof and
(except to the extent such representations and warranties speak as of an earlier
date) shall also be true and correct on and as of the Closing with the same
force and effect as if made on and as of the Closing.
10.2 Agreements,
Conditions and Covenants. UV shall have performed or complied
with all agreements, conditions and covenants required by this Agreement to be
performed or complied with by it on or before the Closing.
10.3 Legality. No
law or court order shall have been enacted, entered, promulgated or enforced by
any court or governmental authority that is in effect and has the effect of
making the purchase and sale of the assets illegal or otherwise prohibiting the
consummation of such purchase and sale.
10.4
Purchase and Sale Conditions. UV shall have delivered to Red Oak all
purchase and sale items as aforementioned in Section 1 of this
Agreement.
11. Conditions
Precedent to Obligations of UV. All obligations of UV to consummate the
transactions are subject to the satisfaction (or waiver) prior thereto of each
of the following conditions:
11.1 Representations
and Warranties. The representations and warranties of Red Oak
contained in this Agreement shall be true and correct on the date hereof and
(except to the extent such representations and warranties speak as of an earlier
date) shall also be true and correct on and as of the Closing, except for
changes contemplated by this Agreement, with the same force and effect as if
made on and as of the Closing.
11.2 Agreements,
Conditions and Covenants. The RxAir shall have performed or
complied in all material respects with all agreements, conditions and covenants
required by this Agreement to be performed or complied with by them on or before
the Closing.
16
11.3 Legality. No
law or court order shall have been enacted, entered, promulgated or enforced by
any court or governmental authority that is in effect and (a) has the effect of
making the purchase and sale of the assets illegal or otherwise prohibiting the
consummation of such purchase and sale or (b) has a reasonable
likelihood of causing a material adverse effect.
12. Post-Closing
Obligations.
12.1 Audit. If
requested by UV, Red Oak shall use its best effort to assist UV with respect to
an audit of RxAir for the period of October 1st, 2010
thru December 31st,
2010. An audit of RxAir for the period of Sept 19th, 2009
thru September 30th, 2010
is attached hereto as Exhibit “J”.
13.
Termination
13.1 Grounds for
Termination. This Agreement may be terminated at any time
before the Closing:
(a) By mutual written
consent of Red Oak owning a majority of the Units of in RxAir and
UV;
(b) By
Red Oak or UV if a court of competent jurisdiction or governmental, regulatory
or administrative agency or commission shall have issued a court order (which
court order the parties shall use commercially reasonable efforts to lift) that
permanently restrains, enjoins or otherwise prohibits the transactions, and such
court order shall have become final and non-appealable;
(c) By
UV, if Red Oak shall have breached, or failed to comply with, any of Red Oak’s
obligations under this Agreement or any representation or warranty made by Red
Oak shall have been incorrect when made, and such breach, failure or
misrepresentation is not cured within twenty (20) days after notice thereof;
and
(d) By
Red Oak, if UV shall have breached, or failed to comply with any of its
obligations under this Agreement or any representation or warranty made by it
shall have been incorrect when made, and such breach, failure or
misrepresentation is not cured within twenty (20) days after notice thereof, and
in either case, any such breaches, failures or misrepresentations, individually
or in the aggregate, results or would reasonably be expected to affect
materially and adversely the benefits to be received by Red Oak
hereunder.
13.2 Effect of
Termination. If this Agreement is terminated pursuant to
Section 13.1, the agreements contained in Section 7.4 and Section 8.3 shall
survive the termination hereof and any party may pursue any legal or equitable
remedies that may be available if such termination is based on a breach of
another party.
17
14. General
Matters.
14.1 Entire
Agreement; Amendment This Agreement constitutes the entire
agreement among the parties hereto with respect to the subject matter hereof and
thereof. This Agreement supersedes all prior agreements and
understandings among the parties hereto with respect to the subject matter
hereof and thereof. There are no restrictions, promises, warranties
or undertakings, other than those set forth or referred to herein and
therein. This Agreement may be amended, modified or supplemented only
by a written instrument duly executed by each of the parties
hereto.
14.2 Benefits;
Successors. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective heirs, legal
representatives, successors and permitted assigns of the
parties. Nothing in this Agreement shall confer any rights upon any
person other than Red Oak and UV and their respective heirs, legal
representatives, successors and permitted assigns.
14.3 Assignment;
Waiver. No party hereto shall assign this Agreement or any
right, benefit or obligation hereunder, unless except explicitly outlined in
this Agreement or any of its related Exhibits. Any term or provision
of this Agreement may be waived at any time by the party entitled to the benefit
thereof by a written instrument duly executed by all of the parties
hereto. However, failure of any party to exercise any right or remedy
under this Agreement or otherwise, or delay by a party in exercising such right
or remedy, shall not operate as a waiver thereof.
14.4 Further
Assurances. At and after the Closing, Red Oak and UV shall
execute and deliver any and all documents and take any and all other actions
that may be deemed reasonably necessary by their respective counsel to complete
the transactions.
14.5 Interpretation.
Unless the context of this Agreement clearly requires otherwise, (a) references
to the plural include the singular, the singular the plural, the part the whole,
(b) references to any gender include all genders, (c) “or” has the inclusive
meaning frequently identified with the phrase “and/or,” (d) “including” has the
inclusive meaning frequently identified with the phrase "but not limited to" and
(e) references to “hereunder” or “herein” relate to this
Agreement. The section and other headings contained in this Agreement
are for reference purposes only and shall not control or affect the construction
of this Agreement or the interpretation thereof in any respect. Section,
subsection, Schedule and Exhibit references are to this Agreement unless
otherwise specified. Each accounting term used herein that is not
specifically defined herein shall have the meaning given to it under
GAAP. Any reference to a party’s being satisfied with any particular
item or to a party's determination of a particular item presumes that such
standard will not be achieved unless such party shall be satisfied or shall have
made such determination in its sole or complete discretion.
14.6 Severability. If
any provision of this Agreement shall be invalid or unenforceable in any
jurisdiction, such invalidity or unenforceability shall not affect the validity
or enforceability of the remainder of this Agreement in that jurisdiction or the
validity or enforceability of any provision of this Agreement in any other
jurisdiction.
14.7 Counterparts. This
Agreement may be executed in two or more counterparts, each of which shall be
binding as of the date first written above, and all of which shall constitute
one and the same instrument. Each such copy shall be deemed an
original.
18
14.8 Schedules.
Any items listed or described on Schedules shall be listed or described under a
caption that identifies the Sections of this Agreement to which the item
relates.
14.9 Notices.
All notices that are required or permitted hereunder shall be in writing and
shall be sufficient if personally delivered or sent by mail, facsimile message
or FedEx or other delivery service. Any notices shall be deemed given
upon the earlier of the date when received at, or the second day after the date
when sent by registered or certified mail, return receipt requested or the day
after the date when sent by FedEe, if sent via Priority Overnight or Standard
Overnight delivery, to, the address or fax number set forth below, unless such
address or fax number is changed by notice to the other party
hereto:
If to Red
Oak:
The Red
Oak Trust
0000
Xxxxxxxxxx Xxx, Xxx 000
Xxxxxx,
XX 00000
Attention:
Xxxxx X. Xxxxx, Trustee
Telephone:
000-000-0000
Facsimile:
972-829-3212
With
copies to:
Xxxxx
& Fraade, P.C.
000
Xxxxxxx Xxxxxx, Xxxxx 0000
Xxx
Xxxx, XX 00000
Attention:
Xxxx Xxxxxx
Phone:
000.000.0000
Fax:
000.000.0000
If to
UV:
UV
Flu Technologies, Inc.
000
Xxxx Xx., Xxxx 0
Xxxxxxxxxxxx,
XX, 00000 Attention: Xxxx Xxxxxx
Phone:
1-877-flu-kill (358-5455)
Fax:
With
copies to:
Xxxx
Xxx
Xxxxxxxxx
Traurig, LLP
0000 X
Xxxxxx, Xxxxx 0000
Xxxxxxxxxx,
XX 00000
Tel
000.000.0000
19
14.10 Arbitration.
The parties agree that they shall be deemed to have agreed to binding
arbitration in New York, New York with respect to the entire subject matter of
any and all disputes relating to or arising under this Agreement including, but
not limited to, the specific matters or disputes as to which arbitration has
been expressly provided for by other provisions of this
Agreement. Any such arbitration shall be by a panel of one arbitrator
and pursuant to the rules then obtaining of the American Arbitration Association
in New York, New York. The parties may agree in writing to conduct
any arbitration in another location or forum by their mutual
consent. In all arbitrations, judgment upon the arbitration award may
be entered in any court having jurisdiction. The parties specifically
designate the Courts in the County of New York, New York as properly having
jurisdiction for any proceeding to confirm and enter judgment upon any such
arbitration award. The parties hereby consent to and submit to the
exclusive personal jurisdiction over each of them by the Courts of the State of
New York in any action or proceeding, waive personal service of any and all
process and specifically consent that in any such action or proceeding, any
service of process may be effectuated upon any of them by certified mail, return
receipt requested, in accordance with Section 14.9 of this
Agreement. The parties agree, further, that the prevailing party in
any such arbitration as determined by the arbitrators shall be entitled to such
costs and attorney’s fees, if any, in connection with such arbitration in an
amount not to exceed ten thousand ($10,000); provided, however, that if a
proceeding is commenced to confirm and enter a judgment thereon by the Courts of
the State of New York and such application is denied, no such costs or attorneys
fees shall be paid. In connection with the arbitrators' determination
for this purpose of which party, if any, is the prevailing party, they shall
take into account all of the facts and circumstances including, without
limitation, the relief sought, and by whom, and the relief, if any, awarded, and
to whom. In addition, and notwithstanding the foregoing sentence, a
party shall not be deemed to be the prevailing party unless the amount of the
arbitration award is greater than fifteen (15%) percent of the amount offered in
writing by the other party. For example, if the party initiating the
arbitration (“A”) seeks an award of $100,000 plus costs and expenses, the other
party (“B”) has offered A $50,000 prior to the commencement of the arbitration
proceeding, and the arbitration panel awards any amount less than $57,500 to A,
the panel should determine that B has “prevailed”.
14.11 Governing
Law. The laws of the State of New York shall govern all issues
concerning the relative rights of the parties pursuant to this
Agreement. All other questions shall be governed by and interpreted
in accordance with the laws of the State of New York without regard to the
principles of conflict of laws.
IN
WITNESS WHEREOF, this Acquisition Agreement has been executed by the parties
hereto as of the day and year first written above.
20
UV FLU TECHNOLOGIES, INC | |||
By:
|
/s/ Xxxx X. Xxxxxx
|
||
XXXX X. XXXXXX, Chairman and CEO | |||
THE RED OAK TRUST | |||
By:
|
/s/ Xxxxx X. Xxxxx
|
||
Xxxxx X. Xxxxx, FAMILY TRUSTEE |
21