AGREEMENT AND PLAN OF MERGER
Exhibit
2.1
THIS
AGREEMENT AND PLAN OF MERGER (the “Agreement”), dated as of the ____ day of
March, 2007, by and between E-Auto Network, Inc., a Florida
corporation (“EANW”), EANW Holdings, Inc., a Florida corporation (“MERGER SUB”)
and Metaswarm Holdings, Inc., a Nevada corporation (“Metaswarm”).
THE
PARTIES ENTER THIS AGREEMENT on the basis of the following facts, intentions
and
understandings:
A.
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EANW
is a Florida corporation organized on January 3, 2001. EANW has
authorized capital stock of (i) 100,000,000 common shares, $-0- par
value,
(“EANW Common Stock”) of which 12,278,700 shares are issued and
outstanding; and (ii) 100,000 preferred shares, $-0- par value
(“EANW Preferred Stock”) of which 100,000 shares are issued and
outstanding. EANW has no outstanding options or
warrants;
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B.
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MERGER
SUB is a wholly owned subsidiary of
EANW;
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C.
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METASWARM
is a privately held corporation organized under the laws of the State
of
Nevada on October 9, 2006 and METASWARM has authorized capital stock
of
(i) 300,000,000 common shares, $.001 par value, (“Metaswarm Common Stock”)
of which 81,102,808 shares are issued and outstanding; METASWARM
has no
outstanding options or warrants;
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D.
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The
respective Boards of Directors of EANW and METASWARM have deemed
it
advisable and in the best interests of EANW and METASWARM that METASWARM
be acquired by EANW, pursuant to the terms and conditions set forth
in
this Agreement;
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E.
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This
Agreement provides for the merger (the “Merger”) of MERGER SUB into
METASWARM pursuant to which the stockholders of METASWARM will receive
shares of EANW in exchange for their shares of METASWARM;
and
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F.
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The
parties desire the transaction to qualify as a tax-free merger under
Section 368 (a)(2)(E) of the Internal Revenue Code of 1986, as
amended.
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NOW,
THEREFORE, in consideration of the mutual promises contained herein and other
good and valuable consideration, receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:
ARTICAL
II
THE
MERGER
Merger. The
parties to this Agreement hereby agree that MERGER SUB shall be merged
with and into METASWARM upon the terms and conditions set forth herein
and
in accordance with the provisions of the Nevada Corporate
Law. It is the intention of the parties hereto that this
transaction qualify as a tax-free reorganization under Section
368(a)(2)(E) of the Internal Revenue Code of 1986, as amended, and
related
sections thereunder.
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1
Terms
of Merger. In accordance with the provisions of this
Agreement and the requirements of applicable law, MERGER SUB shall
be
merged with and into METASWARM as of the Effective Date (“Effective Date”
is defined in Section 2.1 hereof). METASWARM shall be the
surviving corporation (hereinafter sometimes the “Surviving Corporation”
and with MERGER SUB, the “Constituent Corporations”) and the separate
existence of MERGER SUB shall cease when the Merger shall become
effective. Consummation of the Merger shall be upon the
following terms and subject to the conditions set forth
herein:
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(a)
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Corporate
Existence.
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(1)
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Commencing
with the Effective Date, (i) the Surviving Corporation shall continue
its
corporate existence as a Nevada corporation; (ii) the Surviving
Corporation shall thereupon and thereafter possess all rights, privileges,
powers, franchises and property (real, personal and mixed) of each
of the
Constituent Corporations; (iii) all debts due to either of the Constituent
Corporations, on whatever account, all causes in action and all other
things belonging to either of the Constituent Corporations shall
be taken
and deemed to be transferred to and shall be vested in the Surviving
Corporation by virtue of the Merger without further act or deed;
and (iv)
all rights of creditors and all liens, if any, upon any property
of any of
the Constituent Corporations shall be preserved unimpaired, such
liens
shall continue to be limited to the property affected by such liens
immediately prior to the Effective Date, and all debts, liabilities
and
duties of the Constituent Corporations shall thenceforth attach to
the
Surviving Corporation.
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(2)
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At
the Effective Date, (i) the Certificate of Incorporation and the
By-laws
of the Surviving Corporation, as existing immediately prior to the
Effective Date, shall be and remain the Certificate of Incorporation
and
By-laws of the Surviving Corporation; (ii) the members of the Board
of
Directors of the Surviving Corporation holding office immediately
prior to
the Effective Date shall continue as the members of the Board of
Directors
of the Surviving Corporation; and (iii) until the Board of Directors
of
the Surviving Corporation shall otherwise determine, all persons
who hold
offices of the Surviving Corporation at the Effective Date shall
continue
to hold the same offices of the Surviving
Corporation.
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(b)
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Conversion
of Securities. As of the Effective Date and without any action on
the part of EANW, MERGER SUB, METASWARM or the holders of any of
the
securities of any of these corporations, each of the following shall
occur:
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(1)
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Each
share of METASWARM Common Stock issued and outstanding immediately
prior
to the Effective Date shall be converted into one (1) share of EANW
Common
Stock. All such shares of METASWARM Common Stock shall no
longer be outstanding and shall automatically be canceled and shall
cease
to exist, and each certificate previously evidencing any such shares
shall
thereafter represent the right to receive, upon the surrender of
such
certificate in accordance with the provisions hereof, certificates
evidencing such number of shares of EANW Common Stock, respectively,
into
which such shares of METASWARM Common Stock were converted. The
holders of such certificates previously evidencing shares of METASWARM
Common Stock outstanding immediately prior to the Effective Date
shall
cease to have any rights with respect to such shares of METASWARM
Common
Stock except as otherwise provided herein or by
law;
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2
(2)
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Any
shares of capital stock of METASWARM held in METASWARM’s treasury
immediately prior to the Effective Date shall automatically be canceled
and extinguished without any conversion thereof and no payment shall
be
made with respect thereto;
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(3)
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Each
share of capital stock of MERGER SUB issued and outstanding immediately
prior to the Effective Date shall remain in existence as one (1)
share of
common stock of the Surviving Corporation, which shall be owned by
EANW;
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(c)
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Other
Matters.
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(1)
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At
the Closing, the existing directors of EANW shall nominate and elect
to
the Board of Directors of EANW the persons designated by METASWARM,
and
all of the persons serving as directors and officers of EANW immediately
prior to the Closing shall thereafter resign from all of their positions
with EANW, effective as of the
Closing.
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(2)
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At
the Closing, EANW shall cause all issued and outstanding shares of
preferred stock of EANW to be
cancelled.
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(3)
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At
the Closing, EANW shall have obtained shareholder approval to change
the
name of EANW to MetaSwarm Corporation or such similar name as may
be
available in the state of Florida.
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(4)
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At
the Closing, EANW shall have obtained shareholder approval to increase
the
capitalization of EANW so that EANW has 300,000,000 shares of Common
Stock, par value $-0- and 10,000,000 shares of Preferred Stock, par
value
$-0- with rights and preferences to be determined by the Board of
Directors.
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3
(d)
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Delivery
of Shares. On or as soon as practicable after the
Effective Date, METASWARM will use reasonable efforts to cause all
holders
of METASWARM Common Stock (collectively, the “METASWARM Stockholders”) to
surrender to EANW for cancellation certificates representing their
shares
of METASWARM Common Stock against delivery of certificates representing
the shares of EANW Common Stock for which the shares of METASWARM
Common
Stock are to be converted in the Merger. Until surrendered and
exchanged as herein provided, each outstanding certificate which,
prior to
the Effective Date, represented METASWARM Common Stock shall be deemed
for
all corporate purposes to evidence ownership of the same number of
shares
of EANW Common Stock into which the shares of METASWARM Common Stock
represented by such METASWARM certificate shall have been so
converted. No dividends or other distributions declared or made
with respect to EANW Common Stock after the Effective Date will be
paid to
the holder of any certificate that prior to the Effective Date evidenced
shares of METASWARM Common Stock until the holder of such certificate
surrenders or exchanges such certificate as herein
provided. Subject to the effect of any applicable abandoned
property, escheat or similar laws, following surrender of any such
certificate, there will be paid to the holder of the certificates
evidencing shares of EANW Common Stock issued in exchange therefor,
without interest, (i) the amount of dividends or other distributions
with
a record date after the Effective Date theretofore paid with respect
to
such shares of EANW Common Stock and (ii) at the appropriate payment
date,
the amount of dividends or other distributions, with a record date
after
the Effective Date but prior to the surrender and a payment date
occurring
after surrender, payable with respect to such shares of EANW Common
Stock
less any withholding taxes which are required thereon. No party
hereto will be liable to any former holder of METASWARM Common Stock
for
any EANW Common Stock or dividends or distributions thereon in each
case
delivered to a public official pursuant to any applicable abandoned
property, escheat or similar law. In the event any certificate
representing METASWARM Common Stock shall have been lost, stolen
or
destroyed, upon the making of an affidavit of that fact by the holder
of
METASWARM Common Stock claiming such certificate to be lost, stolen
or
destroyed and an agreement by such holder to indemnify and hold harmless
EANW and the Surviving Corporation against any claim that may be
made
against them with respect to such certificate, EANW will issue in
exchange
for such lost, stolen or destroyed certificate EANW Common Stock
to which
such holder is entitled pursuant to this
Agreement.
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ARTICAL
II
THE
CLOSING
2.1
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Closing
Date. The consummation of the transactions
contemplated by this Agreement (the “Closing”) shall take place at the
offices of Xxxxxx X. Xxxxxxxxx, P.C., 1322 Xxxxxx, Xxxxx, XX 00000,
on or
before the “Effective Date” as hereinafter defined, or at such other place
or date and time as may be agreed to by the parties
hereto. “Effective Date” shall mean the date mutually agreed to
by the parties that is not later than the later of (i) five days
after
METASWARM receives written consents to the Merger (the “Consents”) from
holders of a majority of the Metaswarm Common
Stock.
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2.2
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EANW
shall pay all liabilities incurred prior to
closing.
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2.3
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Following
Closing, there shall be a total of 93,381,508 common shares of EANW
issued
and outstanding and no shares of preferred stock issued and
outstanding.
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4
ARTICAL
II
REPRESENTATIONS
AND WARRANTIES OF EANW
3.1
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EANW
hereby represents and warrants to METASWARM as
follows:
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(a)
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Financial
Statements. The audited financial statements of EANW
including balance sheets, income statements, statements of stockholders’
equity and statements of cash flows from the fiscal years ended December
31, 2001 are attached as Schedule A and each has been prepared in
accordance with generally accepted accounting principles, consistently
applied, and fairly present the financial condition of EANW at the
dates
thereof.
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(b)
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Property. Schedule
B is an accurate list and description of all property, real or personal,
owned by EANW of a value equal to or greater than
$1,000.00.
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(c)
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Liens
and Liabilities. There are no liens, encumbrances,
easements, security interests or similar interests in or affecting
any of
the assets listed on Schedule B. Schedule C is a complete and
accurate list of all debts, liabilities and obligations of
EANW.
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(d)
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Leases
and Contracts. EANW is not a party to any leases
(whether of real or personal property), contracts, promissory notes,
mortgages, licenses, franchises, or other written
agreements.
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(e)
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Loan
Agreements. EANW is not a party to any loan
agreements, promissory notes or other documents imposing an obligation
on
EANW to repay borrowed money.
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(f)
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Consents
Required. No notice or approval of the transactions
herein contemplated is required to effect the consummation of the
Merger.
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(g)
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Articles
and Bylaws. Complete and accurate copies of the
Articles of Incorporation and Bylaws of EANW together with all amendments
thereto to the date hereof are attached as Schedule
G.
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(h)
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Shareholders. Schedule
H.1 is a complete list of all persons or entities holding capital
stock of
EANW. There are no outstanding rights to subscribe for,
acquire, or receive shares of the capital stock of EANW (whether
warrants,
calls, options, conversion rights or otherwise); Schedule H
includes copies of all stock option plans whether qualified or
nonqualified, and other similar
agreements.
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(i)
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Officers
and Directors. Schedule I is a complete list of the
officers and directors of EANW.
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(j)
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Salary
Schedule. Schedule J is a complete and accurate list
(in all material respects) of the names and the current salary for
each
present employee of EANW who received $1,000.00 or more in aggregate
compensation from EANW whether in salary, bonus or otherwise, during
the
year 2006, or who is presently scheduled to receive from EANW a salary
in
excess of $1,000.00 during the fiscal year ending December 31, 2007,
including in each case the amount of compensation received or scheduled
to
be received, and a schedule of the hourly rates of all other employees
listed according to departments. All such employees are “at
will” employees of EANW.
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5
(k)
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Litigation. EANW
is not a party to nor, to the knowledge of its officers and directors,
threatened to be made a party to, any civil, criminal, administrative,
arbitration or other such proceedings or investigations (including
without
limitations unfair labor practice matters, labor organization activities,
environmental matters and civil rights
violations).
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(l)
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Tax
Returns. EANW has filed all required Federal and State
tax returns for EANW for the last five fiscal years. Copies of
all such returns are attached as Schedule
L.
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(m)
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Agency
Reports. Attached as Schedule M are copies of all material
reports or filings (and a list of the categories of reports or filings
made on a regular basis) made by EANW under ERISA, EEOC, FDA and
all other
governmental agencies (federal, state or local) during the last two
fiscal
years.
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(n)
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Banks. Schedule
N is a true and complete list, showing (1) the name of each bank
in which
EANW has an account or safe deposit box, and (2) the names and addresses
of all signatories.
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(o)
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Jurisdictions
Where Qualified. Schedule O is a list of all
jurisdictions wherein EANW is qualified to do business and is in
good
standing, including a copy of a certificate of good standing or existence,
as applicable, from each such jurisdiction issued no later than 30
days
prior to the date of this
Agreement.
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(p)
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Subsidiaries. EANW
does not own any interest in any corporations, unincorporated
associations, partnerships, limited liability companies, joint ventures,
or any other entity.
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(q)
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Union
Matters. EANW is not a party to any union contracts or
collective bargaining agreements.
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(r)
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Employee
and Consultant Contracts. Schedule R is a complete and
accurate list of all employee and consultant contracts to which EANW
is a
party.
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(s)
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Employee
Benefit Plans. Schedule S is complete and accurate
copies of all salary, stock options, bonus, incentive compensation,
deferred compensation, profit sharing, retirement, pension, group
insurance, disability, death benefit or other benefit plans, trust
agreements or arrangements of EANW, together with copies of any
determination letters issued by the Internal Revenue Service with
respect
thereto.
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6
(t)
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Insurance
Policies. Schedule T is a complete and accurate list
and a description of all material insurance policies naming EANW
as an
insured or beneficiary or as a loss payable payee or for which EANW
has
paid all or part of the premium in force on the date hereof, specifying
any notice or other information possessed by EANW regarding possible
claims thereunder, cancellation thereof or premium increases thereon,
including any policies now in effect naming EANW as beneficiary covering
the business activities of EANW.
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(u)
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Customers. Schedule
U is a complete and accurate list (in all material respects) of the
customers of EANW, including presently effective contracts of
EANW accounting for the principal revenues of EANW, indicating
the dollar amounts of gross income of each such customer for the period
ended December 31, 2006 (including but not limited to subscribers
to the
services or materials or publications of EANW for the previous two
calendar years).
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(v)
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Licenses
and Permits. Schedule V is a complete list of all
licenses, permits and other authorizations held by
EANW.
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(w)
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Organization,
Standing and Power. EANW is a corporation duly organized,
validly existing and in good standing under the laws of the State
of
Florida with all requisite corporate power to own or lease its properties
and carry on its businesses as are now being
conducted.
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(x)
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Qualification. EANW
is duly qualified and is licensed as a foreign corporation authorized
to
do business in each jurisdiction wherein it conducts its business
operations where in each jurisdiction the failure to qualify would
have a
material adverse effect on EANW or its business
operations.
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(y)
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Capitalization
of EANW. At the Effective Time, the authorized capital
stock of EANW will consist of 100,000,000 shares of EANW Common Stock,
$-0- par value, of which only 12,278,700 shares of EANW Common Stock
will
be issued and outstanding and 100,000 shares of EANW Preferred Stock,
$-0-
par value, of which no shares of EANW Preferred Stock will be issued
and
outstanding at the Effective Time, which shares were duly authorized,
validly issued and fully paid and nonassessable, and were issued
in
accordance with the registration provisions of the Securities Act
of 1933
(the “Securities Act”) and any relevant registration or qualification
provisions of state securities laws or pursuant to valid exemptions
therefrom. There are no preemptive rights with respect to any
of the EANW capital stock. There is no agreement or
understanding between any persons and/or entities, which affects
or
relates to the voting or giving of written consents with respect
to any
security or by a director of EANW.
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(z)
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Authority. The
execution and delivery of this Agreement and consummation of the
transactions contemplated herein have been duly authorized by all
necessary corporate actions, including but not limited to duly and
validly
authorized action and approval by the Board of Directors, on the
part of
EANW. This Agreement constitutes the valid and binding
obligation of EANW enforceable against it in accordance with its
terms,
subject to bankruptcy, insolvency, reorganization, moratorium or
similar
laws now or hereafter in effect relating to creditors’ rights generally or
to general principles of equity. This Agreement has been duly
executed by EANW and the execution and delivery of this Agreement
and the
consummation of the transactions contemplated by this Agreement shall
not
result in any breach of any terms or provisions of EANW's Articles
of
Incorporation or Bylaws or of any other agreement, contract, indenture,
mortgage, license, contract, note, bond, court order or instrument
to
which EANW is a party or by which it is
bound.
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7
(aa)
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Absence
of Undisclosed Liabilities. EANW has no liabilities of
any nature, whether fixed, absolute, contingent or accrued, which
are not
reflected on the financial statements set forth in Schedule A or
otherwise disclosed in this Agreement or any of the Schedules or
Exhibits
attached hereto. As of the Effective Time, EANW shall have no
assets or liabilities other than those resulting from the acquisition
of
METASWARM.
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(bb)
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Absence
of Changes. Since December 31, 2006, there has not
been any material adverse change in the condition (financial or
otherwise), assets, liabilities, properties, earnings, business or
prospects of EANW, except for expenses incurred in connection with
preparation and performance of this
Agreement.
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(cc)
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Tax
Matters. All taxes and other assessments and levies
which EANW is required by law to withhold or to collect have been
duly
withheld and collected, and have been paid over to the proper government
authorities or are held by EANW in separate bank accounts for such
payment
or are represented by depository receipts, and all such withholdings
and
collections and all other payments due in connection therewith (including,
without limitation, employment taxes, both the employee's and employer's
share) have been paid over to the government or placed in a separate
and
segregated bank account for such purpose. There are no known
deficiencies in income taxes for any periods and further, the
representations and warranties as to absence of undisclosed liabilities
contained in Section 3.1(aa) hereof
include any and all tax liabilities
of whatsoever kind or nature (including, without limitation, all
federal,
state, local and foreign income, profit, franchise, sales, use and
property taxes) due or to become due, incurred in respect of or measured
by EANW income or business prior to the Effective
Date. Further, EANW has timely filed all federal, state and
local tax returns it is required to file. Each such return is
complete and accurate.
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(dd)
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Options,
Warrants, Etc. There are no outstanding options,
warrants, calls, convertible securities, commitments or agreements
of any
character to which EANW or its shareholders are a party or by which
EANW
or its shareholders are bound, or are a party, calling for the issuance
of
shares of capital stock of EANW or any securities representing the
right
to purchase or otherwise receive any such capital stock of
EANW. EANW has not declared and is not otherwise obligated to
pay, any dividends, whether in cash, stock or other
property.
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8
(ee)
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Title
to Assets. EANW is the sole unconditional owner of,
with good and marketable title to, all assets listed in the schedules
as
owned by it and all other property and assets are free and clear
of all
mortgages, liens, pledges, charges or encumbrances of any nature
whatsoever.
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(ff)
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Agreements
in Force and Effect. All material contracts,
agreements, plans, promissory notes, bonds, indentures, mortgages,
leases,
policies, licenses, franchises or similar instruments to which EANW
is a
party are valid and in full force and effect on the date hereof,
and EANW
has not breached any material provision of, and is not in default
in any
material respect under the terms of, any such contract, agreement,
plan,
promissory note, bond, indenture, mortgage, lease, policy, license,
franchise or similar instrument which breach or default would have
a
material adverse effect upon the business, operations, properties
or
financial condition of EANW.
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(gg)
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Legal
Proceedings, Etc. There are no civil, criminal, administrative,
arbitration or other such proceedings or investigations pending or,
to the
knowledge of any of EANW or its shareholders, threatened, in which,
individually or in the aggregate, an adverse determination would
materially and adversely affect the assets, properties, business
or
operations of EANW. EANW has substantially complied with, and
is not in default in any material respect under, any laws, ordinances,
requirements, regulations or orders applicable to its
businesses.
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(hh)
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Governmental
Regulation. EANW is not in violation of or in default
with respect to any applicable law or any applicable rule, regulation,
order, writ or decree of any court or any governmental commission,
board,
bureau, agency or instrumentality, or delinquent with respect to
any
report required to be filed with any governmental commission, board,
bureau, agency or instrumentality which violation or default could
have a
material adverse effect upon the business, properties, operations
or
financial condition of EANW.
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(ii)
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Brokers
and Finders. EANW has not retained any broker or
finder in connection with the transactions contemplated herein and
has not
otherwise agreed to pay any brokerage fees, commissions or finders'
fees
to any person.
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(jj)
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Accuracy
of Information. No representation or warranty by EANW
contained in this Agreement and no statement contained in any certificate
or other instrument delivered or to be delivered to METASWARM pursuant
hereto or in connection with the transactions contemplated hereby
(including without limitation all Schedules and exhibits hereto)
contains
or will contain any untrue statement of material fact or omits or
will
omit to state any material fact necessary in order to make the statements
contained herein or therein not
misleading.
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(kk)
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Governmental
Approvals. Except as listed in Schedule F, no consent
or approval of, or registration, qualification or filing with, any
governmental authority or other person is required to be obtained
or
accomplished by EANW or any shareholder thereof in connection with
the
consummation of the transactions contemplated
hereby.
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9
(ll)
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Improper
Payments. Neither EANW, nor any person acting on
behalf of EANW has made any payment or otherwise transmitted anything
of
value, directly or indirectly, to (i) any official or any government
or
agency or political subdivision thereof for the purpose of influencing
any
decision affecting the business of EANW, (ii) any customer, supplier
or
competitor of EANW or employee of such customer, supplier or competitor,
for the purpose of obtaining, retaining or directing business for
EANW, or
(iii) any political party or any candidate for elective political
office
nor has any fund or other asset of EANW been maintained that was
not fully
and accurately recorded on the books of account of
EANW.
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(mm)
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Copies
of Documents. EANW has made available for inspection
and copying by METASWARM and its duly authorized representatives,
and will
continue to do so at all times, true and correct copies of all documents
that it has filed with the Securities and Exchange Commission and
all
other governmental agencies which are material to the terms and conditions
contained in this Agreement. EANW has timely filed all reports,
notices, forms and other documents, including registration statements,
required by it to be filed with the Securities and Exchange
Commission. EANW is in compliance with the Xxxxxxxx-Xxxxx Act
of 2002 and the regulations promulgated
thereunder. Furthermore, all filings by EANW with the
Securities and Exchange Commission, and all other governmental agencies,
including but not limited to the Internal Revenue Service, have contained
information which is true and correct, in all material respects and
did
not contain any untrue statement of a material fact or omit to state
any
material fact necessary to make the statements made therein not misleading
or which could have any material adverse effect upon the assets,
properties, financial condition or operations of EANW or adversely
affect
the objectives of this Agreement with respect to METASWARM including,
but
not limited to, the issuance and subsequent trading of the shares
of
common stock of EANW to be received hereby, subject to compliance
by the
shareholders of METASWARM with applicable
law.
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(nn)
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Valid
Issuance of Securities. The shares of EANW, when
issued, sold and delivered pursuant to the Merger and in accordance
with
the terms of this Agreement, will be duly and validly issued, fully
paid
and non-assessable, and will be free of restrictions on transfer
other
than restrictions on transfer and applicable state and federal securities
laws.
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(oo)
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Related
Party Transactions. No employee, officer or director
of EANW or member of his or her immediate family is indebted to EANW,
nor
is EANW indebted (or committed to make loans or extend or guarantee
credit) to any of them. No member of the immediate family of
any officer or director of EANW is directly or indirectly interested
in
any material contract with EANW.
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10
(pp)
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Foreign
Assets Control Regulations. The issuance of the shares
in the Merger by EANW will not violate the Trading with the Enemy
Act, as
amended, or any of the foreign assets control regulations of the
United
States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended)
or
any enabling legislation or executive order relating
thereto. Without limiting the foregoing, EANW (i) is not or
will not become a blocked person described in Section 1 of Executive
Order
13224 of September 23, 2001 Blocking Property and Prohibiting Transactions
With Persons Who Commit, Threaten to Commit, or Support Terrorism
(66 Fed.
Reg. 49049 (2001) or (ii) does not knowingly engage or will not engage
in
any dealings or transactions, or be otherwise associated, with any
such
person.
|
(qq)
|
Private
Offering by EANW. Neither EANW nor anyone acting on
its behalf has offered the shares of Common Stock or any similar
securities for sale to, or solicited any offer to buy any of the
same
from, or otherwise approached or negotiated in respect thereof with,
any
person other than the shareholders of METASWARM, each of which has
been
offered the Shares in a private sale for investment. Neither
EANW nor anyone acting on its behalf has taken, or will take, any
action
that would subject the issuance of the shares in the Merger to the
registration requirements of Section 5 of the Securities
Act.
|
ARTICAL
IV
REPRESENTATIONS
AND WARRANTIES OF METASWARM
4.1
|
METASWARM
hereby represents and warrants to EANW as
follows:
|
(a)
|
Financial
Statements. Schedule AA are the audited financial
statements for the period from inception to December 31, 2006 of
METASWARM
including, balance sheets, income statements, statements of stockholders’
equity and statements of cash flows since inception, prepared in
accordance with generally accepted accounting principles, consistently
applied, and which fairly present the financial condition of METASWARM
at
the dates thereof.
|
(b)
|
Property. Schedule
BB is an accurate list and description of all property, real or personal
owned by METASWARM as of the date hereof of a value equal to or greater
than $250,000.00.
|
(c)
|
Liens
and Liabilities. Schedule CC
is:
|
(1)
|
a
complete and accurate list of all material liens, encumbrances, easements,
security interests or similar interests in or affecting any of the
assets
listed on Schedule BB; and
|
(2)
|
a
complete and accurate list of all debts, liabilities and obligations
of
METASWARM in excess of $25,000, incurred or owing as of the date
of this
Agreement.
|
11
(d)
|
Leases
and Contracts. Schedule DD is a complete and accurate
list of all material leases (whether of real or personal property)
and
each contract, promissory note, mortgage, license, franchise, or
other
written agreement to which METASWARM is a party which involves or
can
reasonably be expected to involve aggregate future payments or receipts
by
METASWARM (whether by the terms of such lease, contract, promissory
note,
license, franchise or other written agreement or as a result of a
guarantee of the payment of or indemnity against the failure to pay
same)
of $250,000.00 or more annually during the twelve-month period ended
December 31, 2006 or any consecutive twelve-month period thereafter,
except any of said instruments which terminate or are cancelable
without
penalty during such twelve-month
period.
|
(e)
|
Loan
Agreements. Schedule EE is complete and accurate
copies of all loan agreements and other documents with respect to
obligations of METASWARM for the repayment of borrowed money, including
a
listing thereof.
|
(f)
|
Consents
Required. Schedule FF is a complete list of all
agreements wherein consent to the transaction herein contemplated
is
required; or where notice of such transaction is required at or subsequent
to closing, or where consent to an acquisition, consolidation, or
sale of
all or substantially all of the assets is
required.
|
(g)
|
Articles
and Bylaws. Schedule GG is complete and accurate
copies of the Articles of Incorporation and Bylaws of METASWARM,
together
with all amendments thereto to the date
hereof.
|
(h)
|
Shareholders. Schedule
HH is a complete list of all persons or entities holding capital
stock of
METASWARM or any rights to subscribe for, acquire, or receive shares
of
the capital stock of METASWARM (whether warrants, calls, options,
or
conversion rights), including options granted pursuant to all stock
option
plans whether qualified or nonqualified, and other similar
agreements.
|
(i)
|
Officers
and Directors. Schedule II is a complete and current
list of all officers and Directors of
METASWARM.
|
(j)
|
Salary
Schedule. Schedule JJ is a complete and accurate list
(in all material respects) of the names and the current salary or
each
present employee of METASWARM who received $100,000 or more in aggregate
compensation from METASWARM whether in salary, bonus or otherwise,
who is
presently scheduled to receive from METASWARM a salary in excess
of
$100,000.00 during the fiscal year ending December 31, 2006, including
in
each case the amount of compensation received or scheduled to be
received.
|
(k)
|
Litigation. Schedule
KK is a complete and accurate list (in all material respects) of
all
material civil, criminal, administrative, arbitration or other such
proceedings or investigations (including without limitations unfair
labor
practice matters, labor organization activities, environmental matters
and
civil rights violations) pending or, to the knowledge of METASWARM
threatened, which may materially and adversely affect
METASWARM.
|
12
(l)
|
Tax
Returns. Schedule LL is accurate copies of all Federal
and State tax returns for METASWARM for the last five fiscal years,
if
any.
|
(m)
|
Agency
Reports. Schedule MM are copies of all material
reports or filings (and a list of the categories of reports or filings
made on a regular basis) made by METASWARM under ERISA, EEOC, FDA
and all
other governmental agencies (federal, state or local) for the last
five
fiscal years.
|
(n)
|
Banks. Schedule
NN is a true and complete list (in all material respects), as of
the date
of this Agreement, showing (1) the name of each bank in which METASWARM
has an account or safe deposit box, and (2) the names and addresses
of all
signatories.
|
(o)
|
Jurisdictions
Where Qualified. METASWARM is qualified to do business
and is in good standing in Texas.
|
(p)
|
Subsidiaries. Schedule
PP is a complete list of all subsidiaries of METASWARM. The
term “Subsidiary” or “Subsidiaries” shall include corporations,
unincorporated associations, partnerships, limited liability companies,
joint ventures, or similar entities in which METASWARM has an interest,
direct or indirect.
|
(q)
|
Union
Matters. METASWARM is not a party to any union
contracts and collective bargaining
agreements.
|
(r)
|
Employee
and Consultant Contracts. Schedule RR is a complete
and accurate list of all employee and consultant contracts which
METASWARM
may have, other than those listed in the schedule on Union
Matters.
|
(s)
|
Employee
Benefit Plans. Schedule SS is complete and accurate
copies of all salary, stock option, bonus, incentive compensation,
deferred compensation, profit sharing, retirement, pension, group
insurance, disability, death benefit or other benefit plans, trust
agreements or arrangements of METASWARM in effect on the date hereof
or to
become effective after the date hereof, together with copies of any
determination letters issued by the Internal Revenue Service with
respect
thereto.
|
(t)
|
Insurance
Policies. Schedule TT is a complete and accurate list
(in all material respects) and description of all material insurance
policies naming METASWARM as an insured or beneficiary or as a loss
payable payee or for which METASWARM has paid all or part of the
premium
in force on the date hereof, specifying any notice or other information
possessed by METASWARM regarding possible claims thereunder, cancellation
thereof or premium increases thereon, including any policies now
in effect
naming METASWARM as beneficiary covering the business activities
of
METASWARM.
|
13
(u)
|
Customers. Schedule
UU is a complete and accurate list (in all material respects) of
the
customers of METASWARM, including all presently effective contracts of
METASWARM to be assigned to METASWARM, accounting for the principal
revenues of METASWARM, indicating the dollar amounts of gross revenues
of
each such customer for the period ended December 31,
2006.
|
(v)
|
Licenses
and Permits. Schedule VV is a complete list of all
licenses, permits and other authorizations of
METASWARM.
|
(w)
|
Organization,
Standing and Power. METASWARM is a corporation duly
organized, validly existing and in good standing under the laws of
the
State of Nevada with all requisite corporate power to own or lease
its
properties and carry on its business as is now being
conducted.
|
(x)
|
Qualification. METASWARM
is duly qualified and licensed as a foreign corporation authorized
to do
business in each jurisdiction wherein it conducts business operations
where in each jurisdiction the failure to qualify would have a material
adverse effect on METASWARM or its business
operations.
|
(y)
|
Capitalization
of METASWARM. The authorized capital stock of
METASWARM consists of 300,000,000 shares of Common Stock, $0.001
par value
per share, of which the only shares issued and outstanding are 81,102,808
shares issued to the shareholders listed on Schedule HH, which shares
were
duly authorized, validly issued and fully paid and
nonassessable. There are no preemptive rights with respect to
the METASWARM stock.
|
(z)
|
Authority. The
execution and delivery of this Agreement and consummation of the
transactions contemplated herein have been duly authorized by all
necessary corporate action, including but not limited to duly and
validly
authorized action and approval by the Board of Directors, on the
part of
METASWARM. This Agreement constitutes the valid and binding
obligation of METASWARM, enforceable against it in accordance with
its
terms, subject to bankruptcy, insolvency, reorganization, moratorium
or
similar laws now or hereafter in effect relating to creditors’ rights
generally or to general principles of equity. This Agreement
has been duly executed by METASWARM and the execution and delivery
of this
Agreement and the consummation of the transactions contemplated by
this
Agreement shall not result in any breach of any terms or provisions
of
METASWARM's Articles of Incorporation or Bylaws or of any other agreement,
contract, indenture, mortgage, license, note, bond, court order or
instrument to which METASWARM is a party or by which it is
bound.
|
(aa)
|
Absence
of Undisclosed Liabilities. METASWARM has no material
liabilities of any nature, whether fixed, absolute, contingent or
accrued,
which were not reflected on the financial statements set forth in
Schedule
AA or otherwise disclosed in this Agreement or any of the Schedules
or
Exhibits attached hereto.
|
(bb)
|
Absence
of Changes. Since December 31, 2006, there has not
been any material adverse change in the condition (financial or
otherwise), assets, properties, liabilities, earnings or business
of
METASWARM.
|
14
(cc)
|
Tax
Matters. All taxes and other assessments and levies
which METASWARM is required by law to withhold or to collect have
been
duly withheld and collected, and have been paid over to the proper
government authorities or are held by METASWARM in separate bank
accounts
for such payment or are represented by depository receipts, and all
such
withholdings and collections and all other payments due in connection
therewith (including, without limitation, employment taxes, both
the
employee's and employer's share) have been paid over to the government
or
placed in a separate and segregated bank account for such
purpose. There are no known deficiencies in income taxes for
any periods and further, the representations and warranties as to
absence
of undisclosed liabilities contained in Section 4.01(f) include any
and
all tax liabilities of whatsoever kind or nature (including, without
limitation, all federal, state, local and foreign income, profit,
franchise, sales, use and property taxes) due or to become due, incurred
in respect of or measured by METASWARM income or business prior to
the
Effective Date. Further, METASWARM has timely filed all
federal, state and local tax returns it is required to
file. Each such return is complete and
accurate.
|
(dd)
|
Options,
Warrants, Etc. Except as otherwise described in
Schedule HH, there are no outstanding options, warrants, calls,
convertible securities, commitments or agreements of any character
to
which METASWARM or its shareholders are a party or by which METASWARM
or
its shareholders are bound, or are a party, calling for the issuance
of
shares of capital stock of METASWARM or any securities representing
the
right to purchase or otherwise receive any such capital stock of
METASWARM. METASWARM has not declared and is not otherwise
obligated to pay, any dividends whether in cash, stock or other
property.
|
(ee)
|
Title
to Assets. Except for liens set forth in Schedule CC,
METASWARM is the sole and unconditional owner of, with
good and marketable title to, all the assets listed in the schedules
as
owned by them and all other property and assets are free and clear
of all
mortgages, liens, pledges, charges or encumbrances of any nature
whatsoever.
|
(ff)
|
Agreements
in Force and Effect. Except as set forth in Schedules
DD and EE, all material contracts, agreements, plans, promissory
notes,
bonds, indentures, mortgages, leases, policies, licenses, franchises
or
similar instruments to which METASWARM is a party are valid and in
full
force and effect on the date hereof, and METASWARM has not breached
any
material provision of, and is not in default in any material respect
under
the terms of, any such contract, agreement, plan, promissory note,
bond,
indenture, mortgage, lease, policy, license, franchise or similar
instrument which breach or default would have a material adverse
effect
upon the business, operations, properties or financial condition
of
METASWARM.
|
(gg)
|
Legal
Proceedings, Etc. There are no civil, criminal,
administrative, arbitration or other such proceedings or investigations
pending or to the knowledge of METASWARM, threatened, in which,
individually or in the aggregate, an adverse determination would
materially and adversely affect the assets, properties, business
or
operations of METASWARM. METASWARM has substantially complied with,
and is
not in default in any material respect under, any laws, ordinances,
requirements, regulations or orders applicable to its
businesses.
|
15
(hh)
|
Governmental
Regulation. To the knowledge of METASWARM, METASWARM
is not in violation of or in default with respect to any applicable
law or
any applicable rule, regulation, order, writ or decree of any court
or any
governmental commission, board, bureau, agency or instrumentality,
or
delinquent with respect to any report required to be filed with any
governmental commission, board, bureau, agency or instrumentality
which
violation or default could have a material adverse effect upon the
business, properties, operations or financial condition of
METASWARM.
|
(ii)
|
Broker
and Finders. METASWARM has not retained any broker or
finder in connection with the transactions contemplated herein and
has not
otherwise agreed to any brokerage fees, commissions or finders'
fees.
|
(jj)
|
Accuracy
of Information. No representation or warranty by
METASWARM contained in this Agreement and no statement contained
in any
certificate or other instrument delivered or to be delivered to EANW
pursuant hereto or in connection with the transactions contemplated
hereby
(including without limitation all Schedules and Exhibits hereto)
contains
or will contain any untrue statement of a material fact or omits
or will
omit to state any material fact necessary in order to make the statements
contained herein or therein not
misleading.
|
(kk)
|
Subsidiaries. METASWARM
does not have any other subsidiaries or own capital stock representing
ten
percent (10%) or more of (i) the issued and outstanding stock of
any other
corporation, (ii) the interest in any partnership or joint venture,
or
(iii) the membership interests in any limited liability
company.
|
(ll)
|
Consents. Except
as listed in Schedule FF, no consent or approval of, or registration,
qualification or filing with, any other governmental authority or
other
person is required to be obtained or accomplished by METASWARM or
any
shareholder thereof, in connection with the consummation of the
transactions contemplated hereby.
|
(mm)
|
Improper
Payments. No person acting on behalf of METASWARM has
made any payment or otherwise transmitted anything of value, directly
or
indirectly, to (i) any official or any government or agency or political
subdivision thereof for the purpose of influencing any decision affecting
the business of METASWARM, or (ii) any political party or any candidate
for elective political office, nor has any fund or other asset of
METASWARM been maintained that was not fully and accurately recorded
on
the books of account of METASWARM.
|
(nn)
|
Copies
of Documents. METASWARM has made available for
inspection and copying by EANW and its duly authorized representatives,
and will continue to do so at all times, true and correct copies
of all
material documents that it has filed with any governmental agency
and that
is material to the terms and conditions contained in this
Agreement. Furthermore, all filings by METASWARM with
governmental agencies, including but not limited to the Internal
Revenue
Service, have contained information which is true and correct in
all
material respects and did not contain any untrue statement of a material
fact or omit to state any material fact necessary to make the statements
made therein not misleading or which could have any material adverse
effect upon the assets, properties, financial condition or operations
of
METASWARM or adversely affect the objectives of this
Agreement.
|
16
ARTICAL
V
CONDUCT
AND TRANSACTIONS PRIOR TO THE
EFFECTIVE
TIME OF THE MERGER
5.1
|
Conduct
and Transactions of EANW. During the period from the
date hereof to the date of Closing, EANW
shall:
|
(a)
|
Conduct
its operations in the ordinary course of business, including but
not
limited to, paying all obligations as they mature, complying with
all
applicable tax laws, filing all tax returns (which shall be complete
and
accurate) required to be filed and paying all taxes
due;
|
(b)
|
Maintain
its records and books of account in a manner that fairly and correctly
reflects its income, expenses, assets and
liabilities.
|
(c)
|
EANW
shall not during such period, except in the ordinary course of business,
without the prior written consent of
METASWARM:
|
(1)
|
Except
as otherwise contemplated or required by this Agreement, sell, dispose
of
or encumber any of its properties or
assets;
|
(2)
|
Except
as otherwise contemplated or required by this Agreement, declare
or pay
any dividends on shares of its capital stock or make any other
distribution of assets to the holders
thereof;
|
(3)
|
Except
as otherwise contemplated or required by this Agreement, issue, reissue
or
sell, or issue options or rights to subscribe to, or enter into any
contract or commitment to issue, reissue or sell, any shares of its
capital stock or acquire or agree to acquire any shares of its capital
stock;
|
(4)
|
Except
as otherwise contemplated and required by this Agreement, amend its
Articles of Incorporation or merge or consolidate with or into any
other
corporation or sell all or substantially all of its assets or change
in
any manner the rights of its capital stock or other
securities;
|
(5)
|
Except
as contemplated or required by this Agreement, pay or incur any obligation
or liability, direct or contingent, of more than
$1,000;
|
17
(6)
|
Incur
any indebtedness for borrowed money, assume, guarantee, endorse or
otherwise become responsible for obligations of any other party,
or make
loans or advances to any other
party;
|
(7)
|
Make
any material change in its insurance
coverage;
|
(8)
|
Increase
in any manner the compensation, direct or indirect, of any of its
officers
or executive employees;
|
(9)
|
Except
in accordance with existing employment contracts, enter into any
agreement
or make any commitment to any labor union or
organization;
|
(10)
|
Make
any capital expenditures.
|
18
(d)
|
EANW
agrees it shall not, through the Effective
Date:
|
(1)
|
solicit
any offers to buy any securities of
EANW;
|
(2)
|
discussions
with any party looking toward such an offer or
solicitation;
|
(3)
|
enter
into any agreement with any party looking toward such an offer or
solicitation; or
|
(4)
|
enter
into any agreement with any party with respect to the sale of EANW
capital
stock or with respect to any merger, consolidation, or similar
transaction.
|
5.2
|
Conduct
and Transactions of METASWARM. During the period from
the date hereof to the date of Closing, METASWARM
shall:
|
(a)
|
Conduct
the operations of METASWARM in the ordinary course of
business.
|
(b)
|
METASWARM
shall not during such period, except in the ordinary course of business,
without the prior written consent of
EANW:
|
(1)
|
Declare
or pay any dividends on shares of its capital stock or make any other
distribution of assets to the holders
thereof;
|
(2)
|
Except
as otherwise contemplated and required by this Agreement, amend its
Certificate of Incorporation or merge or consolidate with or into
any
other corporation or sell all or substantially all of its
assets.
|
(3)
|
Will
not issue any stock, warrants, options or other rights to acquire
capital
stock of METASWARM in excess of the amounts represented in Section
4.1(y).
|
19
ARTICAL
VI
RIGHTS
OF INSPECTION
6.1
|
During
the period from the date of this Agreement to the date of Closing
of the
acquisition, EANW and METASWARM agree to use their best efforts to
give
the other party, including its representatives and agents, full access
to
the premises, books and records of each of the entities, and to furnish
the other with such financial and operating data and other information
including, but not limited to, copies of all legal documents and
instruments referred to on any schedule or exhibit hereto, with respect
to
the business and properties of EANW or METASWARM, as the case may
be, as
the other shall from time to time request; provided, however, if
there are
any such investigations: (1) they shall be conducted in such manner
as not
to unreasonably interfere with the operation of the business of the
other
parties and (2) such right of inspection shall not affect in any
way
whatsoever any of the representations or warranties given by the
respective parties hereunder. In the event of termination of
this Agreement, EANW and METASWARM will each return to the other
all
documents, work papers and other materials obtained from the other
party
in connection with the transactions contemplated hereby, and will
take
such other steps necessary to protect the confidentiality of such
material.
|
ARTICAL
VII
CONDITIONS
TO CLOSING
7.1
|
Conditions
to Obligations of METASWARM. The obligation of
METASWARM to perform this Agreement is subject to the satisfaction
of the
following conditions on or before the Closing unless waived in writing
by
METASWARM.
|
(a)
|
Representations
and Warranties. The representations and warranties of
EANW set forth in Article 3 hereof shall be true and correct in all
material respects as of the date of this Agreement and as of the
Closing
as though made on and as of the Closing, except as otherwise permitted
by
this Agreement.
|
(b)
|
Performance
of Obligations. EANW shall have in all material
respects performed all agreements required to be performed by it
under
this Agreement and shall have performed in all material respects
any
actions contemplated by this Agreement prior to or on the Closing
and EANW
shall have complied in all material respects with the course of conduct
required by this Agreement.
|
(c)
|
Corporate
Action. EANW shall have furnished minutes, certified
copies of corporate resolutions and/or other documentary evidence
satisfactory to counsel for METASWARM that EANW has submitted with
this
Agreement and any other documents required hereby to such parties
for
approval as provided by applicable
law.
|
(d)
|
Consents. Execution
of the Consent and a Representation Letter, substantially in the
form of
Exhibit A, by holders of at least 50% of METASWARM’s outstanding shares
and any consents necessary for or approval of any party listed on
any
Schedule delivered by EANW whose consent or approval is required
pursuant
thereto shall have been obtained.
|
20
(e)
|
Statutory
Requirements. All statutory requirements for the valid
consummation by EANW of the transactions contemplated by this Agreement
shall have been fulfilled.
|
(f)
|
Governmental
Approval. All authorizations, consents, approvals,
permits and orders of all federal and state governmental agencies
required
to be obtained by EANW for consummation of the transactions contemplated
by this Agreement shall have been obtained. All filings,
including filings with the Securities and Exchange Commission, shall
have
been made or if required to be made promptly upon consummation of
this
Agreement, a copy of such proposed filings, including Form 8-K or
otherwise in connection with this transaction, shall have been provided
by
EANW to METASWARM for its approval prior to the filing of the Form
8-K or
other required filings.
|
(g)
|
Changes
in Financial Condition of EANW. There shall not have
occurred any material adverse change in the financial condition or
in the
operations of the business of EANW, except expenditures in furtherance
of
this Agreement.
|
(h)
|
Absence
of Pending Litigation. EANW shall not be engaged in or
threatened with any suit, action, or legal, administrative or other
proceedings or governmental investigations pertaining to this Agreement,
the consummation of the transactions contemplated
hereunder.
|
(i)
|
Authorization
for Issuance of Stock. METASWARM shall have received
in form and substance satisfactory to counsel for METASWARM a letter
instructing and authorizing the Registrar and Transfer Agent for
the
shares of EANW Common Stock to issue stock certificates with the
appropriate legend relating to the restricted nature of the shares
under
the Securities Act and representing ownership of EANW Common Stock
to
METASWARM shareholders in accordance with the terms of this Agreement
and
a letter from said Registrar and Transfer Agent acknowledging receipt
of
the letter of instruction and stating to the effect that the Registrar
and
Transfer Agent holds adequate supplies of stock certificates necessary
to
comply with the letter of instruction and the terms and conditions
of this
Agreement.
|
(j)
|
Reserved.
|
(k)
|
Naming
of new Directors. At Closing, Xxxxxx Xxxxxxx and Xxxx
Xxx shall be appointed as directors of EANW, and the current officers
and
directors of EANW, shall resign as a director and officer of EANW
effective as of the Closing.
|
7.2
|
Conditions
to Obligations of EANW. The obligation of EANW to
perform this Agreement is subject to the satisfaction of the following
conditions on or before the Closing unless waived in writing by
EANW.
|
21
(a)
|
Representations
and Warranties. The representations and warranties of
METASWARM set forth in Article 4 hereof shall be true and correct
in all
material respects as of the date of this Agreement and as of the
Closing
as though made on and as of the Closing, except as otherwise permitted
by
this Agreement.
|
(b)
|
Performance
of Obligations. METASWARM shall have in all material
respects performed all agreements required to be performed by it
under
this Agreement and shall have performed in all material respects
any
actions contemplated by this Agreement prior to or on the Closing
and
METASWARM shall have complied in all respects with the course of
conduct
required by this Agreement.
|
(c)
|
Corporate
Action. METASWARM shall have furnished minutes,
certified copies of corporate resolutions and/or other documentary
evidence satisfactory to Counsel for EANW that METASWARM has submitted
with this Agreement and any other documents required hereby to such
parties for approval as provided by applicable
law.
|
(d)
|
Consents. Any
consents necessary for or approval of any party listed on any Schedule
delivered by METASWARM, whose consent or approval is required pursuant
thereto, shall have been obtained.
|
(e)
|
Statutory
Requirements. All statutory requirements for the valid
consummation by METASWARM of the transactions contemplated by this
Agreement shall have been
fulfilled.
|
(f)
|
Governmental
Approval. All authorizations, consents, approvals,
permits and orders of all federal and state governmental agencies
required
to be obtained by METASWARM for consummation of the transactions
contemplated by this Agreement shall have been
obtained.
|
(g)
|
Employment
Agreements. Existing METASWARM employment agreements
will have been delivered to counsel for
EANW.
|
(h)
|
Changes
in Financial Condition of METASWARM. There shall not
have occurred any material adverse change in the financial condition
or in
the operations of the business of METASWARM, except expenditures
in
furtherance of this Agreement and in the normal operation of its
business.
|
(i)
|
Absence
of Pending Litigation. METASWARM is not engaged in or
threatened with any suit, action, or legal, administrative or other
proceedings or governmental investigations pertaining to this Agreement
or
the consummation of the transactions contemplated
hereunder.
|
(j)
|
Shareholder
Approval. The METASWARM shareholders shall have
approved the Agreement and Plan of
Merger.
|
22
ARTICAL
VIII
MATTERS
SUBSEQUENT TO CLOSING
8.1
|
Covenant
of Further Assurance. The parties covenant and agree
that they shall, from time to time, execute and deliver or cause
to be
executed and delivered all such further instruments of conveyance,
transfer, assignments, receipts and other instruments, and shall
take or
cause to be taken such further or other actions as the other party
or
parties to this Agreement may reasonably deem necessary in order
to carry
out the purposes and intent of this
Agreement.
|
ARTICAL
IX
INDEMNIFICATION
9.1
|
Survival
of Representation, Warranties, Agreements and
Covenants. All statements contained in any written
certificate, schedule, exhibit or other written instrument delivered
by
EANW or METASWARM pursuant hereto, or otherwise adopted by EANW,
by its
written approval, or by METASWARM by its written approval, or in
connection with the transactions contemplated hereby, shall be deemed
representations and warranties by EANW or METASWARM as the case may
be. All representations, warranties and agreements made by
either party shall survive for the period of one year from the date
of the
Closing.
|
ARTICAL
X
TERMINATION
OF AGREEMENT
AND
ABANDONMENT OF REORGANIZATION
10.1
|
Termination. Anything
herein to the contrary notwithstanding, this Agreement and any agreement
executed as required hereunder and the acquisition contemplated hereby
may
be terminated at any time before the Closing as
follows:
|
(a)
|
By
mutual written consent of both EANW and
METASWARM.
|
(b)
|
By
EANW if any of the conditions set forth in Section 7.2 shall not
have been
satisfied by the Effective Date.
|
(c)
|
By
METASWARM if any of the conditions set forth in Section 7.1 shall
not have
been satisfied by the Effective
Date.
|
10.2
|
Termination
of Obligations and Waiver of Conditions; Payment of
Expenses. If this Agreement is terminated pursuant to
this Article X, this Agreement shall become void and of no force
and
effect and there shall be no liability on the part of any of the
parties
hereto, or their respective directors, officers, shareholders or
controlling persons to each other; provided Section 2.2 and Article
XII
shall survive termination hereof. Each party hereto will pay
all costs and expenses incident to its negotiation and preparation
of this
Agreement and any of the documents evidencing the transactions
contemplated hereby, including fees, expenses and disbursements of
counsel.
|
23
ARTICAL
XI
ISSUANCE
OF SHARES; FRACTIONAL SHARES
11.1
|
Issuance
of Share Certificates. At the Closing, EANW shall
issue a letter to the transfer agent of EANW with a copy of the resolution
of the Board of Directors of EANW authorizing and directing the issuance
of EANW Common Stock as required by this Agreement. Any
fractional shares of EANW Common Stock issuable as a result of this
exchange shall be rounded up to the next whole number of
shares.
|
11.2
|
Restrictions
on Shares Issued to METASWARM Stockholders. METASWARM
stockholders will receive shares of EANW Common Stock in connection
with
the Merger which have not been registered under the Securities Act
by
virtue of the exemption provided in Regulation D adopted pursuant
to the
Securities Act and/or Section 4(2) of the Securities Act, the certificates
for those shares of EANW Common Stock issued pursuant to the Merger
will
contain substantially the following
legend:
|
“The
shares represented by this certificate have not been registered under the
Securities Act of 1933, as amended. The shares have been acquired for
investment and may not be sold or offered for sale in the absence of an
effective Registration Statement for the shares under the Securities Act of
1933, as amended, or an opinion of counsel to the Corporation that such
registration is not required.”
AREICAL
XII
MISCELLANEOUS
12.1
|
Construction. This
Agreement shall be construed and enforced in accordance with the
laws of
the State of Nevada excluding its conflicts of laws
provisions.
|
12.2
|
Notices. All
notices necessary or appropriate under this Agreement shall be effective
when personally delivered or deposited in the United States mail,
postage
prepaid, certified or registered, return receipt requested, and addressed
to the parties last known address which addresses are currently as
follows:
|
If to “EANW” | If to “METASWARM” |
E-Auto
Network, Inc.
|
Metaswarm
Holdings, Inc.
|
0000
X.X. 104 St., Ste. 210
|
0000
X. Xxxxxx Xxx., #000
|
Xxxxxxxxx,
XX 00000
|
Xxx
Xxxxx, XX 00000
|
With
copies to (which shall
not constitute notice): With copies to (which shall not constitute
notice):
Xxxx X. Xxxxxxx, Esq. | Xxxxxx X. Xxxxxxxxx, Esq. |
0000 X.X. 104 St., Ste. 210 | 0000 Xxxxxx |
Xxxxxxxxx, XX 00000 | Xxxxx, XX, 00000 |
24
12.3
|
Amendment
and Waiver. This Agreement may only be amended,
changed, waived, discharged or terminated by a statement in writing
signed
by EANW and METASWARM; no amendment, change, waiver, discharge or
termination shall require the signature of any shareholder of either
EANW
or METASWARM.
|
12.4
|
Remedies
not Exclusive. Except as provided in Section 2.2(d),
no remedy conferred by any of the specific provisions of this Agreement
is
intended to be exclusive of any other remedy, and each and every
remedy
shall be cumulative and shall be in addition to every other remedy
given
hereunder or now or hereafter existing at law or in equity or by
statute
or otherwise. The election of any one or more remedies by EANW
or METASWARM shall not constitute a waiver of the right to pursue
other
available remedies. Notwithstanding the foregoing, EANW’s sale
and exclusive remedy for METASWARM’s failure to close the Merger shall be
to retain the Deposit.
|
12.5
|
Counterparts. This
Agreement may be executed in one or more counterparts, each of which
shall
be deemed an original, but all of which together shall constitute
one and
the same instrument.
|
12.6
|
Benefit. This
Agreement shall be binding upon, and inure to the benefit of, the
respective successors and assigns of EANW and
METASWARM.
|
12.7
|
Entire
Agreement. This Agreement and the Schedules and
Exhibits attached hereto, represent the entire agreement of the
undersigned regarding the subject matter hereof, and supersedes all
prior
written or oral understandings or agreements between the
parties.
|
12.8
|
Expenses. Each
party shall bear its own expenses incurred in connection with the
negotiation, execution, closing, and performance of this Agreement,
including counsel fees and accountant
fees.
|
12.9
|
Captions
and Section Headings. Captions and section headings
used herein are for convenience only and shall not control or affect
the
meaning or construction of any provision of this
Agreement.
|
[Signature
page follows]
25
IN
WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first written above.
E-AUTO NETWORK, INC. | METASWARM HOLDINGS, INC. | |||
/s/
|
|
|||
Xxxxx
Xxxxxx
|
Xxxxxx
Xxxxxxx
|
|||
President
|
President
|
26
EXHIBIT
A
INVESTMENT
REPRESENTATION STATEMENT
In
connection with my approval of the merger of Metaswarm Holdings, Inc. with
a
wholly-owned subsidiary of E-Auto Network, Inc., a Florida corporation, (the
“Company”) and the resulting acquisition of common stock, par value -0-, of the
Company (the “Securities”), the undersigned represents to the Company the
following:
1.
|
Investment.
|
(a)
|
I
am aware of the Company's business affairs and financial
condition. I am purchasing the Securities for investment for my
own account only and not with a view to, or for resale in connection
with,
any “distribution” thereof within the meaning of the Securities Act of
1933, as amended (the “Securities Act”). These securities have
not been registered under the Securities Act by reason of a specific
exemption therefrom, which exemption depends on, among other things,
the
bona fide nature of the investment intent as expressed
herein. In this connection I understand that, in view of the
Securities and Exchange Commission (“SEC”), the statutory basis for such
exemption may be unavailable if my representation was predicated
solely
upon a present intention to hold these Securities for the minimum
capital
gains period specified under tax statutes, for a deferred sale, for
or
until an increase or decrease in the market price of the Securities
or for
the period of one year or any other fixed period in the
future.
|
(b)
|
I
have examined or have had an opportunity to examine, before the date
hereof, such documents and information relevant to this transaction
as may
have been requested from the Company, in that connection, I have
taken all
steps necessary to evaluate the merits and risks of this
offering.
|
(c)
|
I
have had an opportunity to ask questions of and receive answers from
officers of the Company, or a person or persons acting on its behalf,
concerning the terms and conditions of this investment, and all such
questions have been answered to my full
satisfaction.
|
2.
|
Restrictions
on Transfer Under Securities Act. I further acknowledge and
understand that the Securities must be held indefinitely unless they
are
subsequently registered under the Securities Act and registered and/or
qualified under applicable state securities laws or unless an exemption
from such registration and/or qualification is
available. Moreover, I understand that the Company is under no
obligation to register the Securities. In addition, I
understand that the certificate evidencing the Securities will be
imprinted with a legend which restricts the transfer of the Securities
unless they are registered or unless the Company receives an opinion
of
counsel reasonably satisfactory to the Company that such registration
is
not required.
|
3.
|
Sales
Under Rule 144. I am aware of the adoption of Rule 144 by
the SEC promulgated under the Securities Act, which in substance
permits
limited public resale of securities acquired in a non- public offering
subject to the satisfaction of certain conditions, including: (i)
the
availability of certain current public information about the Company,
(ii)
the resale being made through a broker in an unsolicited “broker's
transaction” or in transactions directly with a “ market maker,” and (iv)
the amount of securities sold during any three-month period not exceeding
specified limitations (generally 1% of the total shares
outstanding).
|
27
4.
|
Limitations
on Rule 144. I further acknowledge and understand that the
Company is not now, and at any time I wish to sell the Securities
may not
be, satisfying the public information requirement of Rule 144, and,
in
such case, I would be precluded from selling the Securities under
Rule 144
even if the minimum holding period under Rule 144 had been
satisfied.
|
5.
|
Accredited
Investor. I am an “accredited investor” as defined by
Regulation D as set forth below;
|
According
to Rule 501(a) of Regulation D, “accredited investor” means any person who
comeswithin any of the following categories, or who the Issuer reasonable
believes comes within any ofthe following categories, at the time of the sale
of
the Shares to that person:
Any
bank
as defined in section 3(a)(2) of the Act, or any savings and loan association
or
other institution as defined in section 3(a)(5)(A) of the Act whether acting
in
its individual or fiduciary capacity; any broker or dealer registered pursuant
to section 15 of the Securities Exchange Act of 1934; an insurance company
as
defined in section 2(13) of the Act; an investment company registered under
the
Investment Company Act of 1940 or a business development company as defined
in
section 2(a)(48) of that Act; a Small business Investment Company licensed
by
the U.S. Small Business Administration under section 301(c) or (d) of the Small
Business Investment Act of 1958; any plan established and maintained by a State,
its political subdivisions, or any agency or instrumentality of a State or
its
political subdivisions, for the benefit of its employees, if such plan has
total
assets in excess of $5,000,000; any employee benefit plan within the meaning
of
the Employee Retirement Income Security Act of 1974, if the investment decision
is made by a plan fiduciary, as defined in section 3(21) of such Act, which
is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000 or, if a self-directed plan, with investment decisions made solely
by persons that are accredited investors;
(a)
|
Any
private business development company as defined in section 202(a)(22)
of
the Investment Advisers Act of
1940;
|
(b)
|
Any
organization described in section 501(c)(3) of the Internal Revenue
Code,
corporation, Massachusetts or similar business trust, or partnership,
not
formed for the specific purpose of acquiring the securities offered,
with
total assets in excess of
$5,000,000;
|
(c)
|
Any
director, executive officer, or general partner of the issuer of
the
securities being offered or sold, or any director, executive officer,
or
general partner of that issuer;
|
28
(d)
|
Any
natural person whose individual net worth, or joint net worth with
that
person's spouse, at the time of his purchase exceeds
$1,000,000;
|
(e)
|
Any
natural person who had individual income in excess of $200,000 in
each of
the two most recent years or joint income with that person's spouse
in
excess of $300,000 in each of those years and has a reasonable expectation
of reaching the same income level in the current
year;
|
(f)
|
Any
trust, with total assets in excess of $5,000,000, not formed for
the
specific purpose of acquiring the securities offered, whose purchase
is
directed by a sophisticated person as described in section
30.506(b)(2)(ii); and
|
(g)
|
Any
entity in which all of the equity owners are accredited
investors.
|
In
Witness Whereof, the undersigned has executed this Investor Representation
Statement with the intent and knowledge that the Company will rely on the truth
and completeness of the representations and warrantees contained
herein.
DATE: _____________,
2006 If
PURCHASER is/are individual(s), sign here:
Signature: ___________________________________________ |
Print Name: ___________________________________________ |
If PURCHASER is an entity, sign here: |
Entity Name: ___________________________________________ |
Signature: ___________________________________________ |
Print Name: ___________________________________________ |
Title: ___________________________________________ |
29