STOCK EXCHANGE AGREEMENT AND PLAN OF MERGER
EXHIBIT
23.1 - Merger
Agreement dated May 8, 2007, among EMAX Holdings Corporation, and Gold Rush
Investments Corp. (Filed herewith.)
STOCK
EXCHANGE AGREEMENT AND PLAN OF MERGER
Agreement
dated as of May 8, 2007 between Gold Rush Investments Corp., a Utah Corporation
("GOLD RUSH"), and EMAX Holdings corporation, a Delaware Corporation
("EMAX").
The
parties agree as follows:
1.
The Merger Terms
1.1
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Subject
to the Terms and Conditions of this Agreement. At the Closing to
be held
as provided in Section 2, GOLD RUSH shareholders shall transfer the
GOLD
RUSH Shares (defined below) to EMAX, and the shareholders, officers
and
directors of EMAX shall CAUSE TO BE ISSUED SHARES IN EMAX AS DEFINED
IN
SECTION 1.2 TO THE SHAREHOLDERS OF GOLD RUSH free and clear of all
Encumbrances other than restrictions imposed by Federal and State
laws.
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1.2
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Purchase
Price. GOLD RUSH shareholders will exchange Three hundred ninety
three
Million, Seven Hundred and Seventy Five Thousand and Five hundred
and
sixty two, (393,775,562) shares of its restricted common stock (the
"GOLD
RUSH Shares") for Three hundred ninety three Million, Seven Hundred
and
Seventy Five Thousand and Five hundred and sixty two, (393,775,562)
of
common stock of EMAX, representing 100.0% of all of the outstanding
common
shares and preferred shares of EMAX (the "EMAX
Shares").
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2.
The Closing
2.1
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Place
and Timing. The closing of the sale and exchange of the GOLD
RUSH Shares for the EMAX Shares (the "Closing") shall take place
at the
TRANSFER AGENT OF EMAX, no later than the close of business (Salt
Lake
City, Utah time) on June 8, 2007 or at such other place, date
and time as the parties may agree in
writing.
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2.2
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Deliveries
by GOLD RUSH SHAREHOLDERS. At the Closing, GOLD RUSH
SHAREHOLDERS shall deliver the following to
EMAX:
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a.
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The
GOLD RUSH Shares, duly endorsed for transfer to EMAX and
accompanied by appropriate medallion guaranteed stock
powers;
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b.
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Articles
of Amendments for Gold Rush Investments Corp and EMAX Holdings
Corporation.
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c.
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Executed
Articles of Dissolution of EMAX ready for filing with the State of
Delaware.
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d.
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All
other documents, instruments and writings required by this Agreement
to be
delivered by EMAX at the Closing and any other documents or records
relating to EMAX's business reasonably requested by GOLD RUSH in
connection with this Agreement.
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2.3
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Deliveries
by EMAX. At the Closing, EMAX shall deliver the following to
GOLD RUSH SHAREHOLDERS.
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a.
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Certificates
representing the EMAX Shares issued to and registered in the name
of GOLD
RUSH SHAREHOLDERS (with RESTRICTIVE legend but without any other
reference
to any Encumbrance other than appropriate federal securities law
limitations).
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b.
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The
documents contemplated by Section
4.
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c.
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All
other documents, instruments and writings required by this Agreement
to be
delivered by EMAX at the Closing.
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3.
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Conditions
to GOLD RUSH Obligations
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The
obligations of GOLD RUSH to effect the Closing shall be subject to the
satisfaction at or prior to the Closing of the following conditions, any one
or
more of which may be waived by GOLD RUSH:
3.1
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No
Injunction. There shall not be in effect any injunction, order or
decree
of a court of competent jurisdiction that prevents the consummation
of the
transactions contemplated by this Agreement, that prohibits, GOLD
RUSH's
acquisition of the EMAX Shares or the GOLD RUSH Shares or that will
require any divestiture as a result of GOLD RUSH's acquisition of
the EMAX
Shares or that will require all or any part of the business of GOLD
RUSH
to be held separate and no litigation or proceedings seeking the
issuance
of such an injunction, order or decree or seeking to impose substantial
penalties on GOLD RUSH or EMAX if this Agreement is consummated shall
be
pending.
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3.2
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Representations,
Warranties and Agreements.
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(a)
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The
representations and warranties of EMAX set forth in this Agreement
shall
be true and complete in all material respects as of the closing Dates
as
though made at such time, (b) EMAX shall have preformed and complied
in
all material respects with the agreements contained in this Agreement
required to be performed and complied with by it at or prior to the
Closing and, (c) GOLD RUSH shall have received a certificate to that
effect signed by an authorized representative of
EMAX.
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3.3
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Regulatory
Approvals. All licenses, authorizations, consents, orders and
regulatory approvals of Governmental Bodies necessary for the consummation
of GOLD RUSH's acquisition of the EMAX Shares shall have been obtained
and
shall be in full force and effect.
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3.4
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Resignation
of Director. All directors of EMAX whose resignations shall have
been
requested by GOLD RUSH shall have submitted their resignations or
been
removed effective as of the Closing
Dates.
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4.
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Conditions
to EMAX's Obligations
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The
obligations of EMAX to effect the Closing shall be subject to the satisfaction
at or prior to the Closing of the following conditions, any one or more of
which
may be waived by EMAX.
4.1
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No
Injunction. There shall not be in effect any injunction, order or
decree
of a court of competent jurisdiction that prevents the consummation
of the
transactions contemplated by this Agreement, that prohibits GOLD
RUSH's
acquisition of the EMAX Shares or EMAX's acquisition of the GOLD
RUSH
Shares or that will require any divestiture as a result of GOLD RUSH's
acquisition of the Shares or EMAX's acquisition of the GOLD RUSH
Shares or
that will require all or any part of the business of GOLD RUSH or
EMAX to
be held separate and no litigation or proceedings seeking the issuance
of
such an injunction, order or decree or seeking to impose substantial
penalties on GOLD RUSH or EMAX if this Agreement is consummated shall
be
pending.
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4.2
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Representations,
Warranties and Agreement.
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(a)
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The
representations and warranties of GOLD RUSH set forth in this Agreement
shall be true and complete in all material respects as of the Closing
Date
as though made at such time, (b) GOLD RUSH shall have performed and
complied in all material respects with the agreements contained in
this
Agreement required to be performed and complied with by it at or
prior to
the Closing and (c) EMAX shall have received a certificate to that
effect
signed by an authorized representative of GOLD
RUSH.
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4.3
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Regulatory
Approvals. All licenses, authorizations, consents, orders and regulatory
approvals of Governmental Bodies necessary for the consummation of
GOLD
RUSH's acquisition of the EMAX Shares and EMAX's acquisition of the
GOLD
RUSH Shares shall have been obtained and shall be in full force and
effect.
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5.
Representations and Warranties of EMAX
EMAX
represents and warrants to GOLD RUSH that, to the Knowledge of EMAX (which
limitations shall not apply to Section 5.1), and except as set forth in the
EMAX
Disclosures Letter:
5.1
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Organization
of EMAX: Authorization. EMAX is a corporation duly organized, validly
existing and in good standing under the laws of the state of Delaware
with
full corporate power and authority to execute and deliver this Agreement
and to perform its obligations hereunder. The execution,
delivery, and performance of this Agreement have been duly authorized
by
all necessary corporate action of EMAX and this Agreement constitutes
a
valid and binding obligation of EMAX; enforceable against it in accordance
with its terms.
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5.2
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Capitalization.
The authorized capital stock of EMAX consists of 300,000,000 shares
of
common stock, par value of .00001, and 40,000,000 preferred shares,
par
value of $0.0001 per share, of which 300,000,000 common shares and
no
preferred shares are presently issued and outstanding. As of the
Closing
Date, all of the issued and outstanding shares of common stock of
EMAX are
validly issued. As of the Closing Date there will not be outstanding
any
warrants, options or other agreements on the part of EMAX obligating
EMAX
to issue any additional shares of common or preferred stock or any
of its
securities of any kind. Except as otherwise set forth herein, EMAX
will
not issue any shares of capital stock from the date of this Agreement
though the Closing Date.
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5.3
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No
Conflict as to EMAX. Neither the execution and delivery of this Agreement
nor the consummation of the sale of the EMAX Shares to GOLD RUSH
will (a)
violate any provision of the certificate of incorporation or by-laws
of
EMAX or (b) violate, be in conflict with, or constitute a default
(or an
event which, with notice or lapse of time or both, would constitute
a
default) under any agreement to which EMAX is a party or (c) violate
any
statute or law or any judgment, decree, order, regulation or rule
of any
court or other Governmental Body applicable to
EMAX.
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5.4
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Ownership
of EMAX Shares. The delivery of certificates to GOLD RUSH SHAREHOLDERS
provided in section 2.2 will result in GOLD RUSH's SHAREHOLDERS immediate
acquisition of record and beneficial ownership of the EMAX Shares,
free
and clear of all Encumbrances subject to applicable, State and Federal
securities laws. There are no outstanding options, rights, conversion
rights, agreements or commitments or any kind relating to the issuance,
value or transfer of any Equity Securities or other securities of
EMAX.
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5.5
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No
Conflict as to EMAX and Subsidiaries. Neither the execution and delivery
of this Agreement nor the consummation of the sale of the EMAX Shares
to
GOLD RUSH will (a) violate any provision of the certificate of
incorporation or by-laws (of other governing instrument) of EMAX
or any of
its Subsidiaries or (b) violate, or be in conflict with, or constitute
a
default (or an event which, with notice or lapse of time or both,
would
constitute a default) under, or result in the termination of, or
acceleration of the maturity of any debt of obligation pursuant to,
or
result in the creation or imposition of any Encumbrance upon any
property
or assets of EMAX or any of its Subsidiaries is a party or by which
any of
their respective property or assets is bound, or to which any of
the
property or assets of EMAX or any of its Subsidiaries is subject,
or (c)
violate any statute of law or any judgment, decree, order, regulation
or
rule of any court or other Governmental Body applicable to EMAX of
any of
its Subsidiaries except, in the case of violations, conflicts, defaults,
terminations, accelerations or Encumbrances described in clause (b)
of
this Section 5.5, for such matters which are not likely to have a
material
adverse effect on the business or financial condition of EMAX and
its
Subsidiaries, taken as a whole.
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5.6
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Consents
and Approvals of Governmental Authorities. Except with respect
to applicable State and Federal securities law, no consent approval
or
authorization of, or declaration, filing or registration with, and
Governmental Body is required to be made or obtained by EMAX or GOLD
RUSH
or any of its Subsidiaries in connection with the execution, delivery
and
performance of this Agreement by EMAX or the consummation of the
sale of
the EMAX Shares to GOLD RUSH.
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5.7
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Other
Consents. No consent of any Person is required to be obtained by
EMAX or
GOLD RUSH to the execution, delivery and performance of this Agreement
or
the consummation of the sale of the EMAX Shares to GOLD RUSH including
but
not limited to, consents from parties to leases or other agreements
or
commitments, except for any consent which the failure to obtain would
not
be likely to have a material adverse affect on the business and financial
condition of EMAX or GOLD RUSH.
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5.8
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Financial
Statements. EMAX has delivered to GOLD RUSH unaudited consolidated
balance
sheets of EMAX and its Subsidiaries as at December 31, 2006, and
statements of income and changes in financial position for the period
from
inception to the period then ended, together with the report thereon
of
EMAX's independent accountant (the "EMAX Financial
Statements"). Such EMAX Financial Statements are internally
prepared and unaudited but fairly present the consolidated financial
condition and results of operation of EMAX and its Subsidiaries as
at the
respective dates thereof and for the periods therein referred to,
all in
accordance with generally accepted United States accounting principles
consistently applied throughout the periods involved, except as set
forth
in the notes thereto.
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5.9
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Title
to Properties. Either EMAX or one of its Subsidiaries owns all the
material properties and assets that they purport to own (real, personal,
and mixed tangible and intangible), including, without limitations,
all
the material properties and assets reflected in the EMAX Financial
Statements, and all the material properties and assets purchased
or
otherwise acquired by EMAX or any of its Subsidiaries since the date
of
the EMAX Financial Statements. All properties and estates reflected
in the
EMAX Financial Statements are free and clear of all materiel Encumbrances
and are not, in the case of real property, subject to any material
rights
of way, building use restrictions, exemptions, variances, reservations
or
limitations or any nature whatsoever, except, with respect to all
such
properties and assets, (a) mortgages or security interests shown
on the
EMAX Financial Statements as securing specified liabilities or
obligations, with respect to which one default (or event which, with
notice or lapse of time or both, would constitute a default) exist,
and
all of which are listed in the EMAX Disclosure Letter, (b) mortgages
or
security interest incurred in connection with the purchase of property
or
assets after the date of the EMAX Financial Statements (such mortgages
or
security interests being limited too the property or assets so acquired),
with respect to which no default (or event which, with notice or
lapse of
time or both, would constitute a default) exists, (c) as to real
property,
(i) imperfections of title, if any, none of which materially detracts
from
the value or impairs the use of the property subject thereto, or
impairs
the operations of EMAX or any of its Subsidiaries and (ii) zoning
laws
that do not Impair the present or anticipated use of the property
subject
thereto, and (d) liens for current taxes not yet due. The
properties and assets of EMAX and its Subsidiaries include rights,
properties and other assets necessary to permit EMAX and its Subsidiaries
to conduct. EMAX's business in all material respects in the same
manner as
it is conducted on the date of this
Agreement.
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5.10
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Litigation.
There is no action, suit, inquiry, proceeding, or investigation by
or
before any court of Governmental Body pending or threatened in writing
against or involving EMAX or any of its Subsidiaries which is likely
to
have a material adverse effect on the business or financial condition
of
EMAX, GOLD RUSH and any of their Subsidiaries, taken as a whole,
or which
would require a payment by EMAX or its subsidiaries in excess of
$2,000 in
the aggregate of which questions or challenges the validity of this
Agreement. Neither EMAX nor any of its Subsidiaries are subject
to any judgment, order or decree that is likely to have a material
adverse
effect on the business or financial condition of EMAX, GOLD RUSH
or any of
their Subsidiaries, taken as a whole, or which would require a payment
by
EMAX or its subsidiaries in excess of $2,000 in the
aggregate.
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5.11
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Absence
of Certain Changes. Since the date of the EMAX Financial Statements,
neither EMAX nor any of its Subsidiaries
has:
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a.
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suffered
the damage or destruction of any of its properties or assets (whether
or
not covered by insurance) which is materially adverse to the business
or
financial condition of EMAX and its Subsidiaries, taken as a whole,
or
made any disposition of any of its material properties or assets
other
than in the ordinary course of
business;
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b.
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made
any changes or amendments in its certification of incorporation or
by-laws, or other governing
instruments;
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c.
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issued
or sold any Equity Securities or other securities, acquired, directly
or
indirectly, by redemption or otherwise, any such Equity Security,
or
granted or entered into any options, warrants, calls or commitments
or any
kind with respect thereto;
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d.
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organized
any new Subsidiary or acquired any Equity Securities of any Person
or any
equity or ownership interest in any
business
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e.
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borrowed
any funds or incurred, or assumed or become subject to, whether directly
or by way of guarantee or otherwise, any obligation or liability
with
respect to any such indebtedness for borrowed
money;
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f.
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paid,
discharged or satisfied any material claim, liability, or obligation
(absolute, accrued, contingent or otherwise), other than in the ordinary
course of business;
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g.
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prepaid
any material obligation having a maturity of more than 90 days form
the
date such obligations was issued or
incurred;
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h.
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cancelled
any material debts or waived any material claims or rights, except
in the
ordinary course of business;
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i.
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disposed
of or permitted to lapse any rights to the use of any material patent
or
registered trademark or copyright or other intellectual property
owned or
used by it;
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j.
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granted
any general increase in the compensation of officers or employees
(including any such increase pursuant to any employee benefit
plan);
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k.
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purchased
or entered into any contract or commitment to purchase any material
quantity or raw materials or supplies, or sold or entered into any
contracts or commitments to sell any material quantity of property
or
assets, except (i)normal contracts or commitments for the purchase
of, and
normal purchases of, raw materials or supplies, made in the ordinary
course of business (ii) normal contracts or commitments for the sale
of,
and normal sales of, inventory in the ordinary course of business,
and
(iii) other contracts, commitments, purchases or sales in the ordinary
course of business;
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l.
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made
any capital expenditures or additional to property, plant or equipment
or
acquired any other property or assets (other than raw materials and
supplies) at a cost in excess of $100,000 in the
aggregate.
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m. | written off or been required to write off any notes or accounts receivable in an aggregate amount in excess of $2,000; |
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n.
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written
down or been required to write down any inventory in an aggregate
amount
in excess of $2,000;
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o.
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entered
into any collective bargaining or union contracts or
agreements;
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p.
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other
than the ordinary course of business, incurred any liability
required by generally accepted accounting principles to be reflected
on a
balance sheet and material to the business or financial condition
of EMAX
and its subsidiaries taken as a
whole.
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5.12
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No
Material Adverse Change. Since the date of the EMAX Financial Statements,
there has not been any material adverse change in the business or
financial condition of EMAX and its Subsidiaries taken as a whole,
other
than changes resulting from economic conditions prevailing in the
United
States precious coins, collectibles and metals
industry.
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5.13
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Contracts
and Commitments. Neither EMAX nor any of its Subsidiaries is a party
to
any:
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a.
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Contract
or agreement (other than purchase or sales orders entered into in
the
ordinary course of business) involving any liability on the part
of EMAX
or one of its subsidiaries or more than $25,000 and not cancelable
by EMAX
or the relevant Subsidiary (without liability to EMAX or such Subsidiary)
within 60 days;
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b.
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Except
with respect to the lease on its business location, lease of personal
property involving annual rental payments in excess of $25,000 and
not
cancelable by EMAX or the relevant Subsidiary (without liability
to EMAX
or such Subsidiary) within 90 days;
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c.
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Except
with respect to the options referenced above, Employee bonus, stock
option
or stock purchase, performance unit, profit-sharing, pension, savings,
retirement, health, deferred or incentive compensation, insurance
or other
material employee benefit plan (as defined in Section 2(3) for ERISA)
or
program for any of the employees, former employees or retired employees
of
EMAX or any of its Subsidiaries;
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d.
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commitment,
contract or agreement that is currently expected by the management
of EMAX
to result in any material loss upon completion or performance
thereof;
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e.
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Contract,
agreement or commitment that is material to the business of EMAX,
and its
Subsidiaries, taken as a whole, with any officer, employee, agent,
consultant, advisor salesman, sales representative, value added reseller,
distributor, or dealer; or
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f.
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Employment
agreement or other similar agreement that contains any severance
or
terminates pay, liabilities or
obligations.
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All
such contracts and agreements are in full force and effect. Neither
EMAX
nor any of its Subsidiaries is in breach of, in violation of or in
default
under, any agreement, instrument, indenture, deed or trust, commitment,
contract or other obligation of any type to which EMAX or any of
its
Subsidiaries is party or is or may be bound that relates to the business
of EMAX or any of its Subsidiaries or to which any of the assets
or
properties of EMAX of any of its Subsidiaries is subject, the effect
of
which breach, violation or default is likely to materially and adversely
affect the business or financial condition of EMAX and its Subsidiaries,
taken as a whole. GOLD RUSH has not guaranteed or assumed and specifically
does not guarantee or assume any obligations of EMAX or any of its
Subsidiaries.
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5.14
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Labor
Relations. Neither EMAX nor any of its Subsidiaries is a party
to any collective bargaining agreement. Except for any matter,
which is not likely to have a material adverse effect on the business
or
financial condition of EMAX or any of its Subsidiaries, taken as
a whole,
(a) EMAX or each of its Subsidiaries is in compliance with all applicable
laws respecting employment and employment practices, terms and conditions
of employment and wages and hours, and is not engaged in any unfair
labor
practices, (b) there is no unfair labor practice complaint against
EMAX or
any of its Subsidiaries pending before the National Labor Relations
Board,
(c) there is no labor strike, dispute, slowdown or stoppage actually
pending or threatened against EMAX or any of its Subsidiaries, (d)
no
representation question exits respecting the employees of EMAX or
any of
its Subsidiaries, (e) neither EMAX or any of its Subsidiaries has
experienced any strike, work stoppage, or other labor difficulty,
and (f)
no collective bargaining agreement relating to employees of EMAX
or any of
its Subsidiaries is currently being
negotiated.
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5.15
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Employee
Benefit Plans. No material employee pension and welfare benefit
plans covering employees of EMAX is (1) a multi-employee plan as
defined
in Section 3(37) of ERISA, or (2) a defined benefit plan as defined
in
Section 3(35) of ERISA, any listed individual account pension plan
is duly
qualified as tax exempt under the applicable sections of the Code,
each
listed benefit plan and related funding arrangements, if any, has
been
maintained in all material respects in compliance with its terms
and the
provisions of ERISA and the Code.
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5.16
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Compliance
with Law. The operations of EMAX or any of its Subsidiaries
have been conducted in accordance with all applicable laws and regulations
of all Governmental Bodies having jurisdiction over them, except
for
violations thereof which are not likely to have a material adverse
effect
on the business or financial condition of EMAX or any of its Subsidiaries,
taken as a whole, or which would not require a payment by EMAX nor
any of
its Subsidiaries in excess of $2,000 in the aggregate, or which have
been
cured. Neither EMAX nor any of its Subsidiaries has received any
notification of any asserted present or past failure by it to comply
with
any such applicable laws or regulations. EMAX or any of its Subsidiaries
have all material licenses, permits, orders or approvals from the
Governmental Bodies required for the conduct of their business and
are not
in material violation of any such licenses, permits, orders and
approvals. All such licenses, permits, orders and approvals are
in full force and effect, and not suspension or cancellation of any
thereof has been threatened.
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5.17
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Tax
Matters
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a.
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EMAX
and each of its Subsidiaries (1) have not filed all non-consolidated
and
non-combined Tax Returns and all consolidated or combined Tax Returns
that
include only EMAX or any of its Subsidiaries and not Sellers or its
other
Affiliates (for the purposes of this Section 5.19, such tax returns
shall
be considered non-consolidated and non-combined Tax Returns) required
to
be filed through the date hereof with respect to the time periods
covered
by such non-consolidated and non-combined Tax Returns and shall timely
pay
any such Taxes required to be paid by it after the dates hereof with
response to such Tax Returns and (2) shall prepare and timely file
all
such non-consolidated and non-combined Tax Returns required to be
filed
after the date hereof and through the Closing Date and pay all Taxes
required to be paid by it with respect to the periods covered by
such Tax
Returns, (3) all such Tax Returns filed pursuant to clause (a) after
the
date hereof shall, in each case, be prepared and filed in a manner
consistent in all material respects (including elections and accounting
methods and conventions) with such Tax Return most recently filed
in the
relevant jurisdiction prior to the date hereof, except as otherwise
required by law or regulation. Any such Tax Return filed or required
to be
filed after the date hereof shall not reflect any new elections or
the
adoption of any new accounting methods or conventions or other similar
items, except to the extent such particular reflection or adoption
is
required to comply with any law or
regulation.
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b.
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All
consolidated or combined Tax Returns (except those described in
subparagraph (a) above) required to be filed by any person through
the
date hereof that are required or permitted to include the income,
or
reflect the activities, operations and transactions, of EMAX or any
of its
Subsidiaries for any taxable period have not been timely filed, and
the
income, activities, operations and transactions, of EMAX or any of
its
Subsidiaries have been properly included and reflected thereon. EMAX
shall
prepare and file, or cause to be prepared and filed, all such consolidated
or combined Tax Returns that are required or permitted to include
the
income, or reflect the activities, operations and transactions, of
EMAX or
any of its Subsidiaries, with respect to any taxable year or the
portion
thereof ending on or prior to the Closing Date, including, without
limitation, EMAX's consolidated federal income tax return for such
taxable
years. EMAX will timely file a consolidated federal income tax return
for
the taxable year ended December 31 and such return shall include
and
reflect the income, activities, operations and transactions of EMAX
or any
of its Subsidiaries for the taxable period then ended, and hereby
expressly covenants and agrees to file a consolidated federal income
tax
return, and to include and reflect thereon the income, activities,
operations and transactions of EMAX or any of its Subsidiaries for
the
taxable period through the Closing Date. All Tax Returns filed pursuant
to
this subparagraph () after the date hereof shall, in each case, to
the
extent that such Tax Returns specifically relate to EMAX or any of
its
Subsidiaries and do not generally relate to matters affecting other
members of EMAX's consolidated group, be prepared and filed in a
manner
consistent in all material respects (including elections and accounting
methods and conventions) with the Tax Return most recently filed
in the
relevant jurisdictions prior to the date hereof, except as otherwise
required by law or regulation. EMAX has paid or will pay all
Taxes that may now or hereafter be due with respect to the taxable
periods
covered by such consolidated or combined Tax
Returns.
|
|
c.
|
Neither
EMAX or any of its Subsidiaries has agreed, or is required, to make
any
adjustment (x) under Section 481(a) of the Code by reason of a change
in
accounting method or otherwise or (y) pursuant to any provision of
the Tax
Reform Act of 1986, the Revenue Act of 1987 of the Technical and
Miscellaneous Act of 1988.
|
|
d.
|
Neither
EMAX or any of its Subsidiaries or any predecessor or Affiliate of
the
foregoing has, at any time, filed a consistent under Section 341
(f)(1) of
the Code, or agreed under Section 341(f)(3) of the Code, to have
the
provisions of Section 341(f)(2) of the Code apply to any sale of
its
stock.
|
|
e.
|
There
is no (nor has there been any request for an) agreement, waiver or
consent
providing for an extension of time with respect to the assessment
of any
Taxes attributable to EMAX or any of its Subsidiaries, or their assets
or
operations and no power of attorney granted by EMAX or any of its
Subsidiaries with respect to any Tax matter is currently in
force.
|
|
f.
|
There
is no action, suit, proceeding, investigation, audit, claim, demand,
deficiency or additional assessment in progress, pending or threatened
against or with respect to any Tax attributable to EMAX, its Subsidiaries
or their assets or operations.
|
|
g.
|
All
amounts required to be withheld as of the Closing Date for Taxes
or
otherwise have been withheld and paid when due to the appropriate
agency
or authority.
|
|
h.
|
No
property of EMAX is "tax-exempt use property" within the meaning
of
Section 168(h) of the Code nor property that EMAX or any of its
Subsidiaries will be required to treat as being owned by another
person
pursuant to Section 168(f)(8) of the Internal Revenue Code of 1954,
as
amended and in effect immediately prior to the enactment of the Tax
Reform
Act of 1986.
|
|
i.
|
There
have been delivered or made available to GOLD RUSH true and complete
copies of all income Tax Returns (or with respect to consolidated
or
combined returns, the portion thereof) and any other Tax Returns
requested
by GOLD RUSH as may be relevant to EMAX, its Subsidiaries, or their
assets
or operations of any and all periods ending after December 31, 2006,
or
for any Tax years which are subject to audit, or investigation by
any
taxing authority or entity.
|
5.18
|
Environmental
Matters
|
|
a.
|
At
all times prior to the date hereof, EMAX and its Subsidiaries have
complied in all material respects with applicable environmental laws,
orders, regulations, rules and ordinances relating to the Properties
(as
hereinafter defined), the violations of which would have a material
adverse effect on the business or financial conditions of EMAX or
any of
its Subsidiaries, taken as a whole, or which would require a payment
by
EMAX and its Subsidiaries in excess of $2,000 in the aggregate, and
which
have been duly adopted, imposed or promulgated by any legislative,
executive, administrative or judicial body or officer of any Governmental
body.
|
|
b.
|
The
environmental licenses, permits and authorizations that are material
to
the operations of EMAX and its Subsidiaries, taken as a whole, are
in full
force and effect.
|
5.19
|
EMAX
has not employed any broker or finder or incurred any liability for
any
brokerage or finder's fee or commissions or similar payments in connection
with the sale of the EMAX Shares to GOLD
RUSH.
|
5.20
|
Absence
of Certain Commercial Practices. Neither EMAX nor any of its Subsidiaries
has, directly or indirectly, paid or delivered any fee, commission,
or
other sum of money or item of property, however characterized, to
any
finder, agent, government official, or other party in the United
States or
any other country, which is in any manner related to the business
or
operations of EMAX or any of its Subsidiaries, which EMAX or one
of its
Subsidiaries knows or has reason to believe to have been illegal
under any
federal, state or local laws of the United States or any other country
having jurisdiction; and neither EMAX nor any of its Subsidiaries
has
participated, directly or indirectly, in any boycotts or other similar
practices affecting any of its actual or potential customers in violation
of any applicable law or
regulation.
|
5.21
|
Transactions
with Directors or Officers. EMAX and its Subsidiaries do not engage
in
business with any Person in which any of EMAX's directors or officers
has
a material equity interest. No director or officer of EMAX owns
any property, asset or right which is material to the business of
EMAX and
its Subsidiaries, taken as a whole.
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5.22
|
Borrowing
and Guarantees. EMAX and its Subsidiaries (a) do not have any indebtedness
for borrowed money, (b) are not lending or committed to lend any
money
(except for advances to employees in the ordinary course of business),
and
(c) are not guarantors or sureties with respect to the obligations
of any
Person.
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6.
|
Representations
and Warranties of GOLD
RUSH
|
GOLD
RUSH
represents and warrants to EMAX that, to the Knowledge of GOLD RUSH (which
limitation shall not apply to Section 6.3), and except as set forth in the
GOLD
RUSH Disclosure letter:
6.1
|
Organization
of GOLD RUSH: Authorization.
|
GOLD
RUSH
is a corporation duly organized, validly existing and in good standing under
the
laws of the state of Utah with full corporate power and authority to execute
and
deliver this Agreement and to perform its obligations hereunder. The execution,
delivery, and performance of this Agreement have been duly authorized by all
necessary corporate action of GOLD RUSH and this Agreement constitutes a valid
and binding obligation of GOLD RUSH; enforceable against it in accordance with
its terms.
6.2
|
Capitalization.
The authorized capital stock of GOLD RUSH consists of 500,000,000
shares
of common stock, par value $.000001 per share. As of May 2,
2007 GOLD RUSH had 48,437,500 shares of common stock issued and
outstanding. As of the Closing Date, all of the issued and outstanding
shares of common stock of GOLD RUSH are validly issued, fully paid
and
non-assessable.
|
6.3
|
Ownership
of GOLD RUSH Shares. The delivery of certificates to EMAX provided
in
section 2.3 will result in Shareholder's of EMAX immediate acquisition
of
record and beneficial ownership of the GOLD RUSH Shares, free and
clear of
all Encumbrances other than as required by State and Federal securities
laws.
|
6.4
|
No
Conflicts as to GOLD RUSH and Subsidiaries. Neither the
execution and delivery of this agreement nor the consummation of
the sale
of the GOLD RUSH Shares to EMAX will (a) violate any provision of
the
certificate of incorporation or by-laws (of other governing instrument)
of
GOLD RUSH or any of its Subsidiaries or (b) violate, or be in conflict
with, or constitute a default (or an event which, with notice or
lapse of
time or both, would constitute a default) under, or result in the
termination of, or accelerate the performance required by, or excuse
performance by any Person of any of its obligations under, or cause
the
acceleration of the maturity of any debt of obligation pursuant to,
or
result in the creation or imposition of any Encumbrance upon any
property
or assets of GOLD RUSH or any of its Subsidiaries is a party or by
which
any of their respective property or assets is bound, or to which
any of
the property or assets of GOLD RUSH or any of its Subsidiaries is
subject,
or (c) violate any statute of law or any judgment, decree, order,
regulation or rule of any court of other Governmental Body applicable
to
GOLD RUSH of any of its Subsidiaries except, in the case of violations,
conflicts, defaults, terminations, accelerations or Encumbrances
described
in clause (b) of this Section 6.4, for such matters which are not
likely
to have a material adverse effect on the business or financial condition
of GOLD RUSH and its Subsidiaries, taken as a
whole.
|
6.5
|
Consents
and Approvals of Governmental Authorities. No consent approval or
authorization of, or declaration, filing or registration with, any
Governmental Body is required to be made or obtained by EMAX or GOLD
RUSH
or any of its Subsidiaries in connection with the execution, delivery
and
performance of this Agreement by GOLD RUSH or the consummation of
the sale
of the GOLD RUSH Shares to EMAX.
|
6.6
|
Other
Consents. No consent of any Person is required to be obtained by
EMAX or
GOLD RUSH to the execution, delivery and performance of this Agreement
or
the consummation of the sale of the GOLD RUSH Shares to EMAX including
but
not limited to, consents from parties to leases or other agreements
or
commitments, except for any consent which the failure to obtain would
not
be likely to have a material adverse affect on the business and financial
condition of EMAX or GOLD RUSH.
|
6.7
|
Financial
Statements. GOLD RUSH has delivered to EMAX consolidated balance
sheets of
GOLD RUSH and its Subsidiaries as at December 31, 2005 and statements
of
income and changes in financial position for the period then ended
December 31, 2006, together with the report thereon of GOLD RUSH's
independent accountant (the "GOLD RUSH Financial
Statements"). Such GOLD RUSH Financial Statements are
internally prepared and unaudited but fairly present the consolidated
financial condition and results of operation of GOLD RUSH and its
Subsidiaries as at the respective dates thereof and for the periods
therein referred to, all in accordance with generally accepted United
States accounting principles consistently applied throughout the
periods
involved, except as set forth in the notes thereto, and shall be
utilized
in any SEC filing in compliance with Rule 310 of Regulation S B
promulgated under the Securities
Act.
|
6.8
|
Brokers
or Finders. GOLD RUSH has not employed any broker or finder or incurred
any liability for any brokerage or finder's fee or commissions or
similar
payments in connection with the sale of the GOLD RUSH Shares to
EMAX.
|
7.
|
Access
and Reporting; Filing with Governmental Authorities; Other
Covenants
|
7.1
|
Access
Between the date of this Agreement and the Closing Date. Each of
EMAX and
GOLD RUSH shall (a) give to the other and its authorized representatives
reasonable access to all plants, offices, warehouse and other facilities
and properties of EMAX of GOLD RUSH, as the case may be, and to its
books
an records, (b) permit the other to make inspections thereof, and
(c)
cause its officers and its advisors to furnish the other with such
financial and operating data and other information with respect to
the
business and properties of such party and its Subsidiaries and to
discuss
with such and its authorized representatives its affairs and those
of its
Subsidiaries, all as the other may from time to time reasonably
request.
|
7.2
|
Exclusivity.
From the date hereof until the earlier of the Closing or the termination
of this Agreement, EMAX shall not solicit or negotiate or enter into
any
agreement with any other Person with respect to or in furtherance
of any
proposal for a merger or business combination involving or acquisition
of
any interest in, or (except in the ordinary course of business) sale
of
assets by, EMAX, except for the exchange of the GOLD RUSH Shares
for the
EMAX Shares from EMAX's
shareholders.
|
7.3
|
Regulatory
Matters. EMAX and GOLD RUSH shall (a) file with applicable regulatory
authorities any applications and related documents required to be
filed by
them in order to consummate the contemplated transaction and (b)
cooperate
with each other as they may reasonably request in connection with
the
foregoing.
|
8.
|
Conduct
of EMAX's Business Prior to the
Closing
|
8.1
|
Operation
in Ordinary Course. Between the date of this Agreement and the Closing
Date, EMAX shall cause conduct its business in all material respects
in
the ordinary course.
|
8.2
|
Business
Organization. Between the dates of this Agreement and the Closing
Date,
EMAX shall (a) preserve substantially intact the business organization
of
EMAX; and (b) preserve in all material respects the present business
relationships and good will of EMAX and each of its
Subsidiaries.
|
8.3
|
Corporate
Organization. Between the date of this Agreement and the Closing
Date,
EMAX shall not cause or permit any amendment of its certificate of
incorporation or by-laws (or other governing instrument) and shall
not:
|
|
a.
|
issue,
sell or otherwise dispose of any of its Equity Securities, or create,
sell
or otherwise dispose of any options, rights, conversion rights or
other
agreements or commitments of any kind relating to the issuance, sale
or
disposition of any of its Equity
Securities;
|
|
b.
|
create
or suffer to be created any Encumbrances thereon, or create, sell
or
otherwise dispose of any options, rights, conversion rights or other
agreements or commitments of any kind relating to the sale or disposition
of any Equity Securities;
|
|
c.
|
reclassify,
split up or otherwise change any of its Equity Securities; sell,
lease
license or otherwise dispose of any of its properties or assets (including
but not limited to rights with respect to patents and registered
trademarks and copyrights or other proprietary rights), in an amount
which
is material to the business or financial condition of EMAX and its
Subsidiaries, taken as a whole except in the ordinary course of business;
or
|
8.4
|
Other
Restrictions. Between the date of this Agreement and the Closing
Date,
EMAX shall not:
|
|
a.
|
borrow
any funds or otherwise become subject to, whether directly or by
way of
guarantee or otherwise, any indebtedness for borrowed
money;
|
|
b.
|
create
any material Encumbrance on any of its material properties or
assets.
|
|
c.
|
increase
in any manner the compensation of any director or officer or increase
in
any manner the compensation of any class of
employees;
|
|
d.
|
create
or materially modify any material bonus, deferred compensation, pension,
profit sharing, retirement, insurance, stock purchase, stock option,
or
other fringe benefit plan, arrangement or practice or any other employee
benefit plan (as defined in section 3(3) of
ERISA);
|
|
e.
|
make
any capital expenditure or acquire any property or
assets;
|
|
f.
|
enter
into any agreement that materially restricts GOLD RUSH or EMAX or
any of
their Subsidiaries from carrying on
business;
|
|
g.
|
pay,
discharge or satisfy any material claim, liability or obligation,
absolute, accrued, contingent or otherwise, other than the payment,
discharge or satisfaction in the ordinary course of business of EMAX
or
obligations reflected in the EMAX Financial Statements or incurred
in the
ordinary course of business and consistent with past practice since
the
date of the EMAX Financial Statements;
or
|
|
h.
|
cancel
any material debts or waive any material claims or
rights.
|
9.
|
Definitions
|
As
used
in this Agreement, the following terms have the meanings specified or referred
to in this Section 9.
9.1
|
Business
Day. Any day that is not a Saturday or Sunday or a day on which banks
located in the City of New York are authorized or required to be
closed.
|
9.2
|
Code.
The Internal Revenue code of 1986, as
amended.
|
9.3
|
Encumbrances.
Any security interest, mortgage, lien, charge, adverse claim or
restriction of any kind, including but not limited to, any restriction
on
the use, voting, transfer, receipt of income or other exercise of
any
attributes of ownership, other than a restriction on transfer arising
under Federal of State securities
laws.
|
9.4
|
Equity
Securities. See Rule 3a-11-1 under the Securities Exchange Act of
1934.
|
9.5
|
ERISA.
The Employee Retirement Income Security Act of 1974, as
amended.
|
9.6
|
Governmental
Body. Any domestic or foreign national, state or municipal or other
local
government or multi-national body (including, but not limited to,
the
European Economic Community), and subdivision, agency, commission
or
authority thereof.
|
9.7
|
Knowledge.
Actual knowledge, after reasonable
investigation.
|
9.8
|
Person.
Any individual, corporation, partnership, joint venture, trust,
association, unincorporated organization, other entity, of Governmental
Body.
|
9.9
|
Subsidiary.
With respect to any Person, and corporation of which securities having
the
power to elect a majority of that corporation's Board of Directors
(other
than securities having that power only upon the happening of a contingency
that has not occurred) are held by such Person or one or more of
its
Subsidiaries.
|
10.
|
Termination
|
10.1
|
Termination.
This Agreement may be terminated before the Closing Date occurs only
as
follows:
|
|
a.
|
by
written agreement of EMAX and GOLD RUSH at any
time;
|
|
b.
|
by
GOLD RUSH, by notice to EMAX at any time, if one or more of the conditions
specified in Section 4 is not satisfied at the time at which the
Closing
(as it may be deferred pursuant to Section 2.1) would otherwise
occur or if the satisfaction of such a condition is or becomes
impossible.
|
|
c.
|
by
EMAX, by notice to GOLD RUSH at any time, if one or more of the conditions
specified in Section 3 is not satisfied at the time at which the
Closing
(as it may be deferred pursuant to Section 2.1), would otherwise
occur of
if satisfaction of such a condition is or becomes
impossible;
|
|
d.
|
by
either EMAX or GOLD RUSH, by notice to the other at any time after
June 1,
2007.
|
10.2
|
Effect
of Termination. If this Agreement is terminated pursuant to Section
10.1,
this Agreement shall terminate without any liability or further obligation
of any party to another.
|
11
|
Notices.
All notices, consents, assignments and other communications under
this
Agreement shall be in writing and shall be deemed to have been duly
given
when (a) delivered by hand, (b) sent by telex or facsimile (with
receipt
confirmation), provided that a copy is mailed by registered mail,
return
receipt requested, or (c) received by the delivery service (receipt
requested), in each case to the appropriate address, telex numbers
and
facsimile numbers set forth below (or to such other address, telex
number
and facsimile numbers as a party may designate as to itself by notice
to
the other parties).
|
If
to GOLD RUSH Investments Corp.:
|
|
Ms
XxXxxx Christmas
|
|
Gold
Rush Investments, Corp
|
|
000
Xxxxx 000, Xxxxx X000
|
|
Xxxx
Xxxx Xxxx, Xxxx
|
|
If
to EMAX Holdings Corp.:
|
|
Xx.
Xxxxxxx Xxxxx
|
|
EMAX
Holdings, Inc.
|
|
0000
Xxxxxxxx Xxxx
|
|
Xxxxxxxxxxx,
Xxxxxxxxx 00000
|
12.
|
Miscellaneous
|
12.1
|
Expenses.
Each party shall bear its own expenses incident to the preparation,
negotiation, execution and delivery of this Agreement and the performance
of its obligations hereunder.
|
12.2.
|
Captions.
The captions in this Agreement are for convenience of reference only
and
shall not be given any effect in the interpretation of this
Agreement.
|
12.3
|
No
Waiver. The failure of a party to insist upon strict adherence to
any term
of this Agreement on any occasion shall not be considered a waiver
or
deprive that party of the right thereafter to insist upon strict
adherence
to that term or any other term of this Agreement. Any waiver
must be in writing.
|
12.4
|
Exclusive
Agreement: Amendment. This Agreement supercedes all prior Agreements
among
the parties with respect to its subject matter with respect thereto
and
cannot e changed or terminated
orally.
|
12.5
|
Counterparts.
This Agreement may be executed in two or more counterparts, each
of which
shall be considered an original, but all of which together shall
constitute the same instrument.
|
12.6
|
Governing
Law. This Agreement and (unless otherwise provided) all amendments
hereof
and waivers and consents hereunder shall be governed by the internal
law
of the States of Delaware and Utah, without regard to the conflicts
of law
principles thereof.
|
12.7
|
Binding
Effect. This Agreement Shall insure to benefit of and be binding
upon the
parties hereto and their respective successors and assigns, provided
that
neither party may assign its rights hereunder without the consent
of the
other, provided that, after the Closing, no consent of EMAX shall
be
needed in connection with any merger or consolidation of GOLD RUSH
with or
into another entity.
|
IN
WITNESS WHEREOF, the corporate parties hereto have caused this Agreement to
be
executed by their respective officers, hereunto duly authorized and entered
into
as of the date first above written.
XxXxxx
Christmas, President
|
Xxxxxxx
Xxxxx
|
|
On
behalf of Gold Rush Investments Corp.
|
President
of EMAX Holdings
Corp.
|