AGREEMENT OF SHARE EXCHANGE AND PLAN OF REORGANIZATION
EXHIBIT
2.1
AGREEMENT
OF SHARE EXCHANGE AND PLAN OF REORGANIZATION
THIS
AGREEMENT made and entered into as of the 5th day of December, 2008, by and
between CYTTA Corp., a Nevada corporation (hereinafter called “CC”), and
Ophthalmic International, Inc., a Nevada corporation (hereinafter called
“OI”).
WITNESSETH
THAT:
A.
CC is a company whose common stock may be publicly traded under the symbol
“CYTC.”
B.
OI is a private company which manufactures and markets a patented medial
device.
C.
Subject to the approval of the Board of Directors of CC and OI, CC and OI
shall enter into an Agreement of Exchange (hereinafter called the “Exchange
Agreement”) in substantially the form attached hereto and made a part hereof as
Exhibit A, which provides, among other things, for the issuance by CC of
56,000,000 of its restricted common stock shares to all of the shareholders of
OI in exchange for their OI common stock shares (the “Exchange”).
D.
Following the Exchange under the Exchange Agreement, OI will be a wholly-owned
subsidiary of CC.
E.
It is intended that the transactions contemplated by this Agreement shall
constitute an exchange conforming to the provisions of Section 368(a)(2) of the
Internal Revenue Code of 1954.
NOW
THEREFORE, in consideration of the mutual covenants and agreements and the
benefits to be realized by each of the parties, the following transactions are
hereby agreed to, subject to the conditions hereinafter stated:
1.
The
Exchange
(a) In accordance with the Exchange Agreement, on the Closing Date
hereinafter referred to, and in exchange for all of the then issued and
outstanding shares of capital stock of OI (the “OI Capital Stock”), CC shall
issue the number of fully paid and nonassessable shares of voting CC common
stock, $.001 par value per share (hereinafter called “CC Common Stock”) in order
to permit the Exchange to be effected in accordance with the terms of the
Exchange Agreement, on the basis of Five Hundred Sixty (560.0) shares of CC
Common Stock for each One (1.0) share of OI Capital Stock, subject to rounding
to a whole share as provided in the Exchange Agreement.
If
between the date hereof and the Closing Date, CC shall effect any
reclassification, recapitalization, subdivision, combination or exchange of
shares, in respect of the outstanding shares of common stock of CC or a stock
dividend thereon shall be declared with a record date within said period, the
per share amounts of CC Common Stock to be issued and delivered in the Exchange
shall be appropriately adjusted.
(b) CC shall issue and deliver as and when required by the Exchange
Agreement, certificates representing the shares of CC Common Stock for which the
shares of OI Capital Stock outstanding immediately prior to the effective time
of the Exchange shall have been exchanged as provided in the Exchange
Agreement.
(c) OI shall submit this Agreement and the Exchange Agreement to its
shareholders for majority consent, in accordance with Nevada law. OI
shall use its best efforts to receive such consents on or before December 9,
2008, or as soon thereafter as practical.
(d) CC is not required under Nevada corporate law to submit this
Agreement and the Exchange Agreement to its shareholders for
approval.
(e) Following the approval of the Exchange by the stockholders of OI,
and upon execution of the Exchange Agreement by the officers of CC and OI, a
certificate of Exchange containing the information required by Nevada corporate
law shall be filed with the Nevada Secretary of State.
2.
Closing
(a) The closing of all the transactions contemplated hereby (herein
called the “Closing” or the “Closing Date”) shall take place at the offices of
OI in Fountain Hills, Arizona at 9:00 a.m. on a date within five (5) business
days after all of the conditions described in paragraphs 13 and 14 hereof have
been satisfied or, to the extent permitted in paragraph 15 hereof, their
satisfaction has been waived. CC and OI will use their best efforts
to obtain the approvals specified in paragraph 7 hereof and any other of the
consents, waivers or approvals necessary or desirable to accomplish the
transactions contemplated by this Agreement and the Exchange
Agreement. All documents required to be delivered by each of the
parties hereto shall be duly delivered to the respective recipient thereof at or
prior to the Closing. In no event shall the Closing Date be later
than December 12, 2008, and if it is delayed beyond said date the either party
shall have the right to terminate this Agreement upon notice to that
effect.
(b) At the Closing, CC and OI shall jointly direct that the
Certificate of Exchange be duly filed, and it shall in accordance with such
direction be filed, in Nevada so that the Exchange shall be effective as soon
after the Closing Date as possible.
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3.
Investigation by the
Parties
CC and OI
each may, prior to the Closing Date, make or cause to be made such investigation
of the properties of the other and its subsidiaries and of its financial and
legal condition as the party making such investigation deems necessary or
advisable to familiarize itself with such properties and other matters,
provided, that such investigation shall not interfere with normal
operations. CC and OI each agrees to permit the other and its
authorized agents or representatives to have, after the date of execution
hereof, full access to its premises and to all of its books and records at
reasonable hours, and its subsidiaries and officers will furnish the party
making such investigation with such financial and operating data and other
information with respect to the business and properties of it and its
subsidiaries as the party making such investigation shall from time to time
reasonably request. Each party further agrees that in the event that
the transactions contemplated by this Agreement shall not be consummated, it and
its officers, employees, accountants, attorneys, engineers and other
representatives will not disclose or make available to any other person or use
for any purpose unrelated to the consummation of this Agreement any information,
whether written or oral, with respect to the other party and its subsidiaries or
their business which it obtained pursuant to this Agreement. Such
information shall remain the property of the party providing it and shall not be
reproduced or copies without the consent of such party. In the event
that the transactions contemplated by this Agreement shall not be consummated,
all such written information shall be returned to the party providing
it.
4.
Shareholders Of
OI
Prior to
the Closing Date, OI agrees to obtain from each of its shareholders an agreement
to the effect that: (a) such shareholder is acquiring the CC Common Stock to be
received by him hereunder for his own account, not with a view toward
distribution and through to a private placement by CC pursuant to Rule 506 of
the Securities and Exchange Commission (the “SEC”); and (b) such shareholder
will not sell any portion of his CC Common Stock for an indefinite period of
time after the Closing Date.
5.
State Securities
Laws
CC and OI
will each take such steps as may be necessary on their respective parts to
comply with any state securities or so-called Blue Sky laws applicable to the
action to be taken by them in connection with the Exchange and the delivery by
CC to OI shareholders of the CC Common Stock pursuant to this Agreement and the
Exchange Agreement.
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6.
Business Pending the
Closing
(a) From the date of this Agreement to and including the Closing
Date, except as may be first approved by OI or as is otherwise permitted or
contemplated by this Agreement: (i) CC shall conduct its business only in the
usual and ordinary course without the creation of any additional indebtedness
for money borrowed maturing in more than one year; (ii) no change shall be made
in the authorized capitalization of CC except as contemplated by this Agreement;
(iii) no shares of capital stock of CC shall be authorized for issuance or
issued and no agreement or commitment for the issuance hereof shall be entered
into; (iv) no rights or elections shall be created or granted to purchase stock
under any employee stock bonus, thrift or purchase plan or otherwise; (v) no
amendment shall be made to CC’s Articles of Incorporation or Bylaws, except as
contemplated by this Agreement; (vi) no modification shall be made in CC’s
present employee benefit programs or in its present policies in regard to the
payment of salaries or compensation to its personnel and no increase shall be
made in the compensation of its personnel; (vii) no contract or commitment shall
be entered into by or on behalf of CC and no sale or purchase of assets shall be
made except in the ordinary course of business; (viii) CC will use all
reasonable and proper efforts to preserve its business organization intact, to
keep available the services of its present employees and to maintain
satisfactory relationships between CC and its suppliers, customers, regulatory
agencies, and other having business relations with it; (ix) CC shall make no
amendments or contributions to any profit sharing plan; and (x) the Board of
Directors of CC will not declare any dividends on, or otherwise make any
distribution in respect of, its outstanding shares of capital
stock;
(b) From the date of this Agreement to and including the Closing
Date, except as may be first approved by CC or as is otherwise permitted or
contemplated by this Agreement: (i) OI (which term shall, where applicable in
this paragraph 6, also refer to the subsidiaries of OI specified in paragraph 11
hereof) shall conduct its business only in the usual and ordinary course without
the creation of any additional indebtedness exceeding $10,000 for money borrowed
maturing in more than one year, except for the lease of capital equipment
pursuant to leasing company commitments outstanding prior to the date of this
Agreement; (ii) no change shall be made in the authorized capitalization of OI,
except as contemplated by this Agreement; (iii) no shares of capital stock of OI
shall be authorized for issuance or issued and no agreement or commitment for
the issuance thereof shall be entered into; (iv) no rights or elections shall be
created or granted to purchase stock under any employee stock bonus, thrift or
purchase plan or otherwise; (v) no amendment shall be made to OI’s Articles of
Incorporation or Bylaws, except as contemplated by this Agreement; (vi) no
modification shall be made in OI’s present employee benefit programs or in its
present policies in regard to the payment of salaries or compensation to its
personnel and no increase shall be made in the compensation of its personnel,
provided that nothing herein shall preclude, (1) the continuation of OI’s
present practice of periodically reviewing the salaries of its personnel and
granting normal increase in such salaries or compensation to such personnel, or
(2) the hiring of new personnel at a salary or compensation deemed reasonable in
the ordinary course of business; (vii) no contract or commitment shall be
entered into by or on behalf of OI and no sale or purchase of assets shall be
made except in the ordinary course of business; (viii) OI will use all
reasonable and proper efforts to preserve its business organization intact, to
keep available the services of its present employees and to maintain
satisfactory relationships between OI and its suppliers, customers, regulatory
agencies, and others having business relations with it; (ix) OI shall make no
amendments or contributions to its profit sharing plan; and (x) the Board of
Directors of OI will not declare any dividends on, or otherwise make any
distribution in respect of, its outstanding shares of capital
stock.
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7. Efforts
to Obtain Approvals and Consents
In
addition to CC and OI obtaining the requisite shareholder approval as described
in paragraph 1 hereof, CC and OI will use all reasonable and proper efforts to
obtain, where required, the approval and consent: (i) of any governmental
authorities having jurisdiction over the transactions contemplated in this
Agreement; and (ii) of such other persons whose consent is required to the
transactions contemplated by this Agreement.
8. Cooperation Between
Parties
CC and OI
shall fully cooperate with each other and with their respective counsel and
accountants in connection with any steps required to be taken as part of their
obligations under this Agreement, including the preparation of financial
statements and the supplying of information.
9. No Tax
Ruling
CC and OI
agree that they will not attempt to obtain ruling from the United States
Internal Revenue Service to the effect that for Federal income tax purposes no
gain or loss will be recognized to the holders of OI Capital Stock upon the
receipt of CC Common Stock in exchange for their OI shares in accordance with
the provisions of this Agreement and the Exchange Agreement.
10. Representations of
CC
CC
represents, warrants and agrees that:
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(a) CC is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada and it is duly qualified to do
business and in good standing in every jurisdiction in which the nature of its
business of the character of its properties makes such qualification
necessary. CC has the corporate power and any necessary governmental
authority to own or lease their respective properties now owned and to carry on
their respective business as now being conducted.
(b) As of September 30, 2008 the capitalization of CC is as set forth
in the financial statements filed with the SEC. The outstanding capital stock of
CC has been duly authorized and issued and is fully paid and
nonassessable. CC has no commitment to issue nor will it issue any
shares of its capital stock or any securities or obligations convertible into or
exchangeable for, or giving any person any right to acquire from CC, any shares
of its capital stock, except for those shares issued in conformity with
paragraph 6(a)(iii) above.
(c) The shares of CC Common Stock which are to be issued and
delivered to the OI shareholders pursuant to the terms of this Agreement and the
Exchange Agreement, when so issued and delivered, will be validly authorized and
issued and will be fully paid and non-assessable. No stockholder of
CC, or other person, will have any preemptive rights in respect to the CC Common
stock.
(d) All of the September 30, 2008 financial statements filed with the
SEC present fairly the financial condition of CC, at the periods indicated
therein, and the results of its operations and changes in financial position for
the year and periods then ended in conformity with generally accepted accounting
principles applied on a consistent basis. CC has no material liabilities or
commitments other than as listed or noted on the aforesaid financial statements,
or as incurred in the ordinary course of business. Since September 30, 2008 to
the date of this Agreement, there has been no material adverse change in the
assets or liabilities or in the business or condition, financial or otherwise,
of CC, except in the ordinary course of business or as contemplated by this
Agreement. Nor has CC, except in the ordinary course of business or as
contemplated by this Agreement, incurred any indebtedness for money
borrowed. All tax returns and reports of CC required by law to be
filed have been duly filed and all taxes, assessments and other governmental
charges now due (other than any still payable without penalty) upon CC or upon
any of its properties or assets. All amounts which have been
reflected as liabilities on the books of CC in respect of taxes are considered
adequate and CC does not know of any actual or proposed additional assessments
in respect of taxes, against it.
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(e) Except for changes resulting from the ordinary course of its
business, CC, will on the Closing Date own, the full right, title and interest
in and to all its property and assets (excluding property leased from others) in
each case free and clear of all mortgages, liens, restrictions, charges and
other encumbrances and defects of title (other than easements, rights of way,
reservations and other conditions of title, encumbrances and defects of title
which are not individually or in the aggregate materially adverse to the
business of CC).
(f) Subsequent to September 30, 2008, CC has not declared or paid any
dividend on its outstanding shares of common stock or declared or made any
distribution on, or directly or indirectly redeemed, purchased or otherwise
acquired any of its outstanding stock or authorized the creation or issuance of,
or issued any additional shares of stock, or agreed to take any such action,
except as expressly provided for in Paragraph 6(a)iii above this
Agreement. CC will not take any such action during the period between
the date hereof and the Closing Date.
(g) CC is not engaged in or a party to, or to the knowledge of CC
threatened with, any material legal action or other proceeding before any court
or administrative agency, except as set forth and described in a memorandum
prepared by CC and previously furnished to OI. CC, to the knowledge
of CC, has not been charged with, and is not under investigation with regard to,
any charge concerning any presently pending material violation of any provision
of Federal, State or other applicable law or administrative regulations in
respect of its business except as set forth in said memorandum.
(h) There has not been, since September 30, 2008, and will not be
prior to the Closing Date, a purchase or sale or any other acquisition, transfer
or distribution of any assets or properties on the part of CC except in the
ordinary course of business.
(i) CC has adequate franchises, permits or operating rights without
unusual restrictions to allow it to conduct the business in which it is
presently engaged except in certain instances where in the reasonably exercised
judgment of CC the lack of a current franchise, permit or operating right has no
adverse effect on the conduct of such business.
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(j) Except in each case as set forth in a memorandum prepared by CC
and previously furnished to OI, as of the date of this Agreement CC is not a
holder of or a party to any: (i) written or oral contract for employment of any
officer or other person, (ii) contract with any labor union, (iii) bonus,
pension, profit sharing, retirement, stock purchase, stock option, insurance, or
similar plan or practice in effect with respect to its employees or other
person, (iv) indenture of mortgage, debenture, indenture, loan or borrowing
agreement, (v) bonding arrangement, including performance bond, (vi) continuing
contract for future purchase, sale, lease or distribution of materials,
services, supplied, products, or equipment involving annual payments in excess
of $10,000, (vi) lease or other commitment for the rental of office space,
storage or other facilities, (viii) contract or lease agreement for the
acquisition or lease of motor vehicles, (ix) patent, patent application, patent
right, patentable inventions, trademark, trademark registration and applications
therefor, trade name, copyright, copyright registration and application
therefor, patent license granted to or by CC and in force or contracts with
employees or others relating in whole or in part to disclosure, assignment or
patenting of any inventions, discoveries improvements, shop rights, processes,
formulae or other know-how, presently owned or held, in whole or in part, by CC,
(x) insurance policy covering its properties, buildings, machinery, equipment,
furniture, fixtures or operations, or the life of any person, (xi) agreement
between a present employee of CC and persons, firms or corporations other than
CC relating in whole or in part to disclosure, assignment or patenting of
inventions, discoveries, improvements, shop rights, processes, formulae or other
know-how, including without limitation thereto, to the best knowledge of CC,
agreements entered into by such employees prior to the time they became
employees of CC, or (xii) material contract or commitment not made in the
ordinary course of business.
(k) The execution and carrying out of this Agreement and compliance
with the terms and provisions hereof by CC will not conflict with or result in
any material breach of any of the terms, conditions, or provision of, or
constitute a default under, or result in the creation of, any lien, charge or
encumbrance upon any of the property or assets of CC or any of its subsidiaries
pursuant to any corporate charter, bylaw, indenture, mortgage, agreement (other
than that which is created by virtue of this Agreement), or other instrument to
which CC is a party or by which it is bound or affected.
(l) This Agreement and the memoranda and documents furnished
hereunder on behalf of CC do not contain any untrue statement of a material fact
nor omit to state a material fact necessary to be stated in order to make the
statements contained herein and therein not misleading; and there is no fact
which materially adversely affects or in the future (so far as CC can now
foresee) will materially adversely affect the business operations, affairs or
condition of CC or any of the properties or assets which has not been set forth
in this Agreement and other documents and papers furnished
hereunder.
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11. Representations of
OI
OI
represents, warrants and agrees that:
(a) OI is a corporation duly organized, validly existing and in good
standing under the laws of the State of Nevada. OI has the corporate
power and any necessary governmental authority to own or lease its properties
now owned or leased and to carry on its business as now being
conducted. OI is duly qualified to do business and in good standing
in every jurisdiction in which the nature of its business or the character of
its properties makes such qualification necessary.
(b) OI has no commitment to issue nor will it issue any shares of its
capital stock or any securities or obligations convertible into or exchangeable
for, or giving any person any right to acquire from OI, any shares of its
capital stock, except for those shares issued or to be issued in conformity with
paragraph 6(b)(iii) above.
(c) Since September 30, 2008, there has been no material adverse
change in the assets or liabilities or in the business or condition, financial
or otherwise, of OI or its consolidated subsidiaries, and no change except in
the ordinary course of business or as contemplated by this
Agreement. All tax returns and reports of OI required by law to be
filed have been duly filed, except for the fiscal year ending September 30,
2007, and all taxes, assessments and other governmental charges now due (other
than any still payable without penalty) upon OI and its subsidiaries or upon any
of their properties or assets have been paid. All amounts which have
been reflected as liabilities on the books of OI and its subsidiaries in respect
of taxes are considered adequate and OI does not know of any actual or proposed
additional assessments in respect of taxes, against either it or its
subsidiaries.
(d) Except for changes resulting from the ordinary course of its
business and except for the mortgages, liens, restrictions, charges and other
encumbrances set forth in a memorandum prepared by OI and previously furnished
to CC, OI and its subsidiaries own, and will on the Closing Date own, the full
right, title and interest in and to all their property and assets (excluding
property leased from others) in each case free and clear of all mortgages,
liens, restrictions, charges and other encumbrances and defects of title (other
than easements, rights of way, reservations and other conditions of title,
encumbrances and defects of title which are not individually or in the aggregate
materially adverse to the business of OI and its subsidiaries).
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(e) Subsequent to September 30, 2008, OI has not declared or paid any
dividend on its outstanding shares of common stock or declared or made any
distribution on, or directly or indirectly redeemed, purchased or otherwise
acquired any of its outstanding stock or authorized the creation or issuance of,
or issued any additional shares of stock, or agreed to take any such action,
except as expressly provided for in this Agreement. OI will not take
any such action during the period between the date hereof and the Closing Date
except as provided herein.
(f) Neither OI nor any of its subsidiaries is engaged in or a party
to, or to the knowledge of OI threatened with, any material legal action or
other proceeding before court or administrative agency except as set forth in a
memorandum prepared by OI and previously furnished to CC. Neither OI
nor any of its subsidiaries, to the knowledge of OI, has been charged with, or
is under investigation with respect to, any charge concerning any presently
pending material violation of any provision of Federal, State or other
applicable law or administrative regulations in respect of its business except
as set forth in said memorandum.
(g) There has not been, since September 30, 2008, and will not be
prior to the Closing Date, a purchase or sale or any other acquisition, transfer
or distribution of any assets or properties on the part of OI or its
subsidiaries, except in the ordinary course of business.
(h) OI and its subsidiaries have adequate franchises, permits or
operating rights without unusual restrictions to allow them to conduct the
business in which they are presently engaged, except in certain instances where
in the reasonably exercised judgment of OI the lack of a current franchise,
permit or operating right has no adverse effect on the conduct of such
business.
(i) Except in each case as set forth in a memorandum prepared by OI
and previously furnished to CC, as of the date of this Agreement neither OI nor
any of its subsidiaries is a holder of or a party to any written or oral (i)
contract for employment of any officer or other person other than its officers
and Directors, (ii) contract with any labor union, (iii) bonus, pension, profit
sharing, retirement, stock purchase, stock option, insurance, or similar plan or
practice in effect with respect to its employees or other persons, (iv)
indenture of mortgage, debenture, indenture, loan or borrowing agreement, (v)
bonding arrangement, including performance bond, (vi) continuing contract for
future purchase, sales, lease or distribution of materials, services, supplies,
products, or equipment involving annual payments in excess of $10,000, (vii)
lease or other commitment for the rental of office space, storage or other
facilities, (viii) contract or lease agreement for the acquisition or lease of
motor vehicles, (ix) patent, patent application, patent right, patentable
inventions, trademark, trademark registration and applications therefor, trade
name, copyright, copyright registration and application therefor, patent license
granted to or by OI or its subsidiaries and in force or contracts with employees
or others relating in whole or in part to disclosure, assignment or patenting of
any inventions, discoveries, improvements, shop rights, processes, formulae or
other know-how, presently owned or held, in whole or in part, by OI or its
subsidiaries, (x) insurance policy covering its properties, buildings machinery,
equipment, and persons, firms or operations, or the life of any person, (xi)
agreement between a present employee of OI and persons, firms or corporations
other than OI relating in whole or in art to disclosure, assignment or patenting
of inventions, discoveries, improvements, shop rights, processes, formulae or
other know-how, including without limitation thereto, to the best knowledge of
OI, agreements entered into by such employees prior to the time they became
employees of OI, or (xii) material contract or commitment not made in the
ordinary course of business.
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(j) OI has the corporate power to enter into this Agreement, the
execution and delivery and performance of this Agreement have been duly
authorized by all requisite corporate action, and this Agreement constitutes the
valid and binding obligation of OI.
(k) The execution and carrying out of this Agreement and compliance
with the terms and provisions hereof by OI will not conflict with or result in
any beach of any of them terms, conditions or provisions of, or constitute a
default under, or result in the creation of, any lien, charge, or encumbrance
upon any of the properties or assets of OI or any of its subsidiaries pursuant
to any corporate charter, indenture, mortgage, agreement (other than that which
is created by virtue of this Agreement) or other instrument to which OI or any
of its subsidiaries is a party or by which it or any of its subsidiaries is
bound or affected.
(l) This Agreement and the memoranda and documents furnished
hereunder on behalf of OI do not contain any untrue statement of a material fact
nor omit to state a material fact necessary to be stated in order to make the
statements contained herein and therein not misleading; and there is no fact
which materially adversely affects or in the future (so far as OI can now
foresee) will materially adversely affect the business operations, affairs or
condition of vitro or any of its subsidiaries or any of its or their properties
or assets which has not been set forth in this Agreement or other documents and
papers furnished hereunder.
12. Survival of
Warranties
The
representations and warranties made herein by CC and OI shall survive the
Closing hereunder.
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13. Conditions to the Obligations of
CC
The
obligations of CC hereunder are subject to the satisfaction on or before the
Closing Date of the following conditions:
(a) This Agreement and the transactions contemplated hereby shall
have been approved by a majority of the outstanding shares of OI Capital Stock
and OI’s Board of Directors.
(b) Each shareholder of OI will have properly executed and delivered
to CC the shareholder’s agreement described in paragraph 4 hereof.
(c) OI shall have delivered to CC audited financial statements as
required by SEC Form 8-K for the fiscal years ending September 30, 2007 and 2008
(the “OI Financial Statements”).
(d) OI shall deliver to CC a certificate of OI’s President which
states all of the OI Financial Statements present fairly the financial condition
of OI, at the periods indicated therein, and the results of its operations and
changes in financial position for the year and periods then ended in conformity
with generally accepted accounting principles applied on a consistent basis and
that OI has no material liabilities or commitments other than as listed or noted
on the OI Financial Statements, or as incurred in the ordinary course of
business.
(e) The representations and warranties of OI contained in this
Agreement shall be true in all material respects on and as of the Closing Date
with the same effect as though such representations and
warranties had been made on and as of such date, except for changes
permitted by this Agreement or those incurred in the ordinary course of
business, and CC shall have received from OI at the Closing a certificate, dated
the Closing Date, of the President of OI to that effect.
(f) Each and all of the respective agreements of OI to be performed
on or before the Closing Date pursuant to the terms hereof shall in all material
respects have been duly performed and OI shall have delivered to CC a
certificate dated the Closing Date, of the President of OI to that
effect.
14. Conditions to the Obligations of
OI
The
obligations of OI hereunder are subject to the satisfaction on or before the
Closing Date of the following conditions:
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(a) This Agreement and the transactions contemplated hereby shall
have been approved by a majority of the outstanding shares of CC Common Stock
and CC’s Board of Directors.
(b) All the terms and covenants of this Agreement to be complied with
or performed by CC shall have been fully complied with and
performed.
(c) All representations and warranties of CC contained in this
Agreement shall be true on and as of the Closing Date with the same effect as
though such representations and warranties had been made on and as of such date,
and CC shall have delivered to OI a certificate dated the Closing Date of the
President of CC to that effect.
(d) The necessary approvals described in paragraph 7 hereof shall
have been granted.
15. Termination and Modification
Rights
(a) This Agreement (except for the last three sentences of paragraph
3 hereof) may be terminated at any time prior to the Closing Date by (1) mutual
consent of the parties hereto authorized by their respective Boards of Directors
or (2) upon written notice to the other party, by either party upon
authorization of its Board of Directors:
(i) if in its reasonably exercised judgment there shall have occurred a material
adverse change in the financial condition or business of the other party or the
other party shall have suffered a material loss or damage to any of its property
or assets, which change, loss or damage materially affects or impairs the
ability of the other party to conduct its business, or if any previously
undisclosed condition which materially adversely affects the earning power or
assets of either party comes to the attention of the other party;
(ii) if the terms, covenants or conditions of this Agreement to be
complied with or performed by one of the other parties at or before the Closing
Date shall not have been materially complied with or performed at the time
required for such compliance or performance and such noncompliance or
nonperformance shall not have been waived by the party giving notice of
termination; and
(iii) if any action or proceeding shall have been instituted or threatened
before a court or other governmental body or by any public authority to restrain
or prohibit the transaction contemplated by this Agreement or if the
consummation of such transactions would subject either of such parties to
liability for breach of any law or regulation.
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(b) As provided in paragraph 2(a), this Agreement may be terminated
by either party upon notice to the other in the event the Closing shall not be
held by December 12, 2008.
(c) Any term or condition of this Agreement may be waived at any time
by the party hereto which is entitled to the benefit thereof, by action taken by
the Board of Directors of such party; and any such term or condition may be
amended at any time, by an agreement in writing executed by the chairman of the
Board or the President of each of the parties pursuant to authorization by the
respective Boards of Directors; provided however, that no amendment of any
principal term of the Exchange shall be effected after approval of this
Agreement by the shareholders of OI, unless such amendment is approved by such
shareholders in accordance with the respective state corporation
law.
16.
Expenses
In the
event this Agreement is terminated without consummation at the Closing, CC and
OI shall each pay all of its respective expenses incurred for the purpose of
carrying this Agreement into effect, except that each party hereto, in addition
to its own expenses, shall pay all of the non-breaching party’s reasonable
out-of-pocket expenses if termination is caused by a breach of any
representation or warranty made in this Agreement or a default by said party in
performance of any obligation hereunder.
17. Finders
Each of
the parties represents that no broker, agent, finder or similar person has been
retained or paid and that no brokerage fee or other commission has been agreed
to be paid for or on account of this Agreement.
18. Governing Law And
Venue
This
Agreement shall be governed by and interpreted in accordance with the laws of
the State of Arizona, United States of America. The parties hereby
expressly agree that the proper venue for any claim or cause of action by the
parties shall be Superior Court for Maricopa County, Arizona and the
each party upon execution of this Agreement consents to the service of process
from such court.
19. Notices
Any
notices or other communications required or permitted hereunder shall be
sufficiently given if sent by certified mail, postage prepaid, addressed as
follows:
000 00xx
Xxx. XX
Xxxxx
000
Xxxxxxx,
XX X0X 0X0
Ophthalmic
International, Inc.
00000 X.
Xxxxxxx Xxxxxxxxx
Xxxxxxxx
Xxxxx, XX 00000
14
20. Binding Nature and
Assignment
This
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their respective successors, but it may not be assigned by any party without
the consent of the other.
21. Assignment
Rights
and obligations of a party to this Agreement may not be assigned or transferred
without the other party’s prior written consent thereto.
22. Modification
No
modification or amendment of this Agreement shall be valid unless it is in
writing and signed by both parties hereto.
23. Complete
Agreement
This
Agreement constitutes the entire agreement between the parties and supersedes
all prior agreements and understandings between the parties.
24. Waiver
The
waiver by either party of a breach of any term of this Agreement shall not
operate as, or be construed as, a waiver of any subsequent breach.
25. Headings
The
headings in this Agreement are inserted for convenience only and shall not be
considered in interpreting the provisions hereof.
26. Counterparts
This
Agreement may be executed in two or more counterparts, each of which shall be
deemed an original but all of which together shall constitute one and the same
instrument.
[Signature
Page Follows]
15
IN
WITNESS WHEREOF, this Agreement has been duly executed by the parties hereto by
their respective officers thereunto duly authorized by a majority of their
directors as of the date first above written.
CYTTA CORP. | |||
By:
|
/s/ Xxxxxx Xxxxxx | ||
Xxxxxx Xxxxxx, President |
OPHTHALMIC INTERNATIONAL, INC. | |||
By:
|
/s/ G. Xxxxxxx Xxxxx | ||
G. Xxxxxxx Xxxxx, President |
16
EXHIBIT
A
AGREEMENT
OF EXCHANGE
OF
AND
OPHTHALMIC
INTERNATIONAL, INC.
AGREEMENT
OF EXCHANGE made as of the 5th of December 2008, by and between CYTTA Corp., a
Nevada corporation (herein “CC”), and Ophthalmic International, Inc., a Nevada
corporation (herein “OI”). CC and OI are sometimes hereinafter
collectively referred to as the “Constituent Corporations”.
RECITALS:
CC is a
Nevada corporation with authorized capital stock consists of 400,000,000 shares
of common stock, $.001 par value (the “CC Common Stock”), of which 24,200,000
shares of CC Common Stock were issued and outstanding as of December 5, 2008 and
no shares of CC Common Stock were reserved for issuance upon exercise of any
outstanding common stock purchase warrants or options, and 100,000,000 shares of
preferred stock, $.001 par value the “CC Preferred Stock”), of which 0 shares of
CC Preferred Stock were issued and outstanding as of December 5, 2008 and no
shares of CC Preferred Stock were reserved for issuance upon exercise of any
outstanding preferred stock purchase warrants or options.
OI is a
Nevada corporation with authorized capital stock consists of 1,000,000 shares of
common stock, $.001 par value (the “OI Common Stock”) of which 100,000 shares of
OI Common Stock were issued and outstanding as of December 5, 2008 and no shares
of OI Common Stock were reserved for issuance upon exercise of any outstanding
common stock purchase warrants or options.
CC and OI
have entered into an Agreement of Share Exchange and Plan of Reorganization
dated December 5, 2008 (the “Reorganization Agreement”) setting forth certain
representations, warranties, agreements and conditions in connection with the
exchange provided for herein.
The
respective Board of Directors of CC and OI have, by resolution, duly approved
the execution of and the transaction contemplated by the Reorganization
Agreement and this Agreement of Exchange and directed that they be submitted to
the shareholders of OI for adoption and approval.
NOW,
THEREFORE, in consideration of the premises and of the mutual covenants and
agreements herein contained, the parties hereto have agreed and do hereby agree,
subject to the terms and conditions hereinafter set forth, as
follows:
I
EXCHANGE
1.1 In
accordance with the provisions of this Agreement and Section 1(a) of
Reorganization Agreement, the One Hundred Thousand (100,000) shares of OI Common
Stock outstanding as the Effective Date of the Exchange shall be exchanged for
Fifty-Six Million (56,000,000) shares of CC Common Stock to be issued upon the
Effective Date of the Exchange. CC shall be and is herein sometimes
referred to as the “Acquiring Corporation”.
1.2 Upon
the Effective Date of the Exchange (as defined in Article III hereof) OI: (i)
shall become a wholly-owned subsidiary of CC, (ii) shall continue to possess all
of its rights and property as constituted immediately prior to the Effective
Date of the Exchange, and (iii) shall continue subject to all of its debts and
liabilities as the same shall have existed immediately prior to the Effective
Date of the Exchange. All rights of creditors and all liens upon the
property of each of the Constituent Corporations shall be preserved
unimpaired.
1.3 CC
hereby agrees that at and after the time when the Exchange shall become
effective and as and when required by the provisions of the Reorganization
Agreement, CC will issue certificates representing that number of shares of
common stock, $.001 par value, of CC (collectively, the “Exchange Shares”) for
which shares of OI Common Stock issued and outstanding immediately prior to the
Effective Date of the Exchange will, as of the Effective Date of the Exchange
and by virtue of the Exchange, be exchanged as hereinafter
provided.
1.4 The
Exchange shall not become effective until the following actions shall have been
completed: (i) this Agreement of Exchange shall have been adopted and
approved by majority consent of the shareholders of OI in accordance with the
requirements of Nevada corporate law; and (ii) all of the other conditions
precedent to the consummation of the Exchange specified in the Reorganization
Agreement shall have been satisfied or duly waived by the party entitled to
satisfaction thereof.
II
EXCHANGE
OF SHARES
The
manner and basis of exchanging shares of OI Common Stock for the Exchange Shares
and the exchange of certificates therefore, shall be as follows:
2
2.1 Each
one (1.0) share of OI Common Stock which shall be issued and outstanding
immediately prior to the Effective Date of the Exchange shall, by virtue of the
Exchange and without any action on the part of the holder thereof other than
that set forth in the Reorganization Agreement, be exchanged at the Effective
Date of the Exchange into Five Hundred Sixty (560) shares of the Exchange
Shares, as described in Exhibit 1 to this Agreement where the individual
shareholders of OI are listed with their number of OI Common Stock shares and
the number of CC Common Stock shares they are to receive in the
Exchange. If between the date hereof and the Effective Date of the
Exchange, CC or OI shall either effect any reclassification, recapitalization,
subdivision, combination or exchange of shares, in respect of their respective
outstanding common stock, or a stock dividend thereon shall be declared with a
record date within said period, the per share amounts of the Exchange Shares to
be issued and delivered as provided in this Agreement shall be appropriately
adjusted.
2.2 After
the Effective Date of the Exchange certificates evidencing outstanding shares of
OI Common Stock shall evidence the right of the holder thereof to receive
certificates for shares of the Exchange Shares at the applicable rate as
aforesaid. Each holder of OI Common Stock, upon surrender of the
certificate or certificates, which prior thereto represented shares of OI Common
Stock, to CC’s stock transfer agent, which shall act as the exchange agent (the
“Exchange Agent”) for such shareholder to effect the exchange of certificates on
their behalf, shall be entitled upon such surrender to receive in exchange
therefor a certificate or certificates representing the number of whole shares
of the Exchange Shares into which the shares of OI Common Stock theretofore
represented by the certificate or certificates so surrendered shall have been
exchanged as aforesaid. Until so surrendered, each such outstanding
certificate for shares of OI Common Stock shall be deemed for all corporate
purposes, including voting rights, subject to the future provisions of this
Article II, to evidence the ownership of the shares of the Exchange Shares into
which such shares have been so exchanged. No dividends or
distributions will be paid to persons entitled to receive certificates for
shares of the Exchange Shares pursuant hereto until such persons shall have
surrendered their certificates which prior to the Effective Date of the Exchange
represented shares of OI Common Stock; but there shall be paid to the record
holder of each such certificate, with respect to the number of whole shares of
the Exchange Shares issued in exchange therefore (i) upon such surrender,the
amount of any dividends or distributions with a record date subsequent to the
Effective Date of the Exchange and prior to surrender which shall have become
payable thereon since the Effective Date of the Exchange, without interest, and
(ii) after such surrender, the amount of any dividends thereon with a record
date subsequent to the Effective Date of the Exchange and prior to surrender and
the payment date of which shall be subsequent to surrender; such amount to be
paid on such payment date.
3
2.3 No
certificate representing a fraction of a share of the Exchange Shares will be
issued and no right to vote or receive any distribution or any other right of a
shareholder shall attach to any fractional interest in a share of the Exchange
Shares to which any holder of shares of OI Common Stock would otherwise be
entitled hereunder. In lieu thereof, each holder of shares of OI
Common Stock entitled to a fraction of a share of the Exchange Shares shall
receive one whole share of CC Common Stock if the fraction of a share is equal
to or greater than one-half share (.50); otherwise, the holder of the fraction
of a share shall receive no additional share.
2.4 If
any certificate for shares of the Exchange Shares is to be issued in a name
other than that in which the certificate surrendered in exchange therefore is
registered, it shall be a condition of the issuance thereof that the certificate
so surrendered shall be properly endorsed and otherwise be in proper form for
transfer and that the person requesting such exchange pay to the Exchange Agent
any transfer or other taxes required by reason of the issuance of a certificate
for shares of the Exchange Shares in any name other than that of the registered
holder of the certificate surrendered, or establish to the satisfaction of the
Exchange Agent that such tax has been paid or is not payable.
2.5 At
the Effective Date of the Exchange, all shares of OI Common Stock which shall
then be held in its treasury, if any, shall cease to exist, and all certificates
representing such shares shall be canceled.
III
EFFECTIVE
DATE OF EXCHANGE; ABANDONMENT OF EXCHANGE
3.1 Subject
to the provisions of this Article III, this Agreement shall be submitted to the
shareholders of OI as provided in the Reorganization Agreement. If
adopted and approved by the vote of the shareholders of each of the Constituent
Corporations, if required by statute, and if all of the conditions precedent to
the consummation of the Exchange specified in the Reorganization Agreement shall
have been satisfied or duly waived by the party entitled to satisfaction
thereof, then unless terminated as provided in this Article III, the Exchange
Certificate shall be filed with Nevada. The Effective Date of the
Exchange is the date upon which a duly executed copy of the Exchange Certificate
is filed with the appropriate office in Nevada. The date when the
Exchange shall become effective as aforesaid is herein called the “Effective
Date of the Exchange”
4
3.2 This
Agreement of Exchange may be terminated and the proposed Exchange abandoned at
any time prior to the Effective Date of the Exchange, and whether before or
after approval of this Agreement of Exchange by the Board of Directors or
shareholders of either of the Constituent Corporations, in the manner provided
in the Reorganization Agreement.
IV
MISCELLANEOUS
4.1 For
the convenience of the parties hereto and to facilitate the filing of this
Agreement of Exchange, any number of counterparts hereof may be executed; and
each such counterpart shall be deemed to be an original instrument.
4.2 At
any time prior to the Effective Date of the Exchange the parties hereto may, by
written agreement, (a) extend the time for the performance of any of the
obligations or other acts of the parties hereto, (b) waive (in the manner
specified in Paragraph 16 of the Reorganization Agreement) any breach or
inaccuracy in the representations and warranties contained in this Agreement of
Exchange or in the Reorganization Agreement or in any document delivered
pursuant thereto, or (c) waive (in the manner specified in Paragraph 15 of the
Reorganization Agreement) compliance with any of the covenants, conditions or
agreements contained in this Agreement of Exchange or in the Reorganization
Agreement.
4.3 The
corporation parties to this Agreement are also parties to the Reorganization
Agreement. The two agreements are intended to be construed together
in order to effectuate their purposes, and said agreements are intended as a
plan or reorganization within the meaning of Section 368 of the Internal Revenue
Code of 1954, as amended.
IN
WITNESS WHEREOF, each of the undersigned corporations has caused this Agreement
of Exchange to be signed in its corporate name by its duly authorized officers
and its corporate seal to be affixed hereto, all as of the date first above
written.
CYTTA CORP. | |||
By:
|
/s/ Xxxxxx Xxxxxx | ||
President |
OPHTHALMIC INTERNATIONAL, INC. | |||
By:
|
/s/ G. Xxxxxxx Xxxxx | ||
President |
5
EXHIBIT
1
LIST
OF SHAREHOLDERS
NAME |
OI
SHARES
|
CC
SHARES
|
||||||
G. Xxxxxxx Xxxxx | 85,000 | 47,600,000 | ||||||
Xxxxxxx Xxxxx | 5,000 | 2,800,000 | ||||||
Xxxx Xxxxxxx | 5,000 | 2,800,000 | ||||||
Xxxxxx Xxxx and Xxxxxxxx Xxxxx | 5,000 | 2,800,000 | ||||||
Total
|
100,000 | 56,000,000 |
6