EXHIBIT 2
SUN & SURF INC. SPIN OFF AGREEMENT
WITH PREDECESSOR X XXXX'S INC.
SUN & SURF INC SPIN OFF AGREEMENT
WITH PREDECESSOR
X XXXX'S INC.
ASSIGNMENT AGREEMENT
In consideration of good and valuable consideration, receipt of which is
hereby acknowledged between X Xxxx's Inc. and Sun & Surf Inc. on December 5,
2000, or such other extended time as Sun & Surf Inc. shall deem desirable. All
assets, liabilities, an the on-going business operations of X Xxxx's Inc.
Consultant and Future Franchise Divisions, wherever located and of every nature
and description be and the same hereby are transferred and assigned to Sun &
Surf Inc., a New York domestic business corporation, and as soon as practicable
after the closing of an Agreement and Plan of Reorganization, and compliance
with or exemption from applicable laws, rules, and regulations concerning the
public issuance of securities, one share of common stock of JRE Inc., on a one
to one basis, shall be issued to each and every shareholder of record of J
Espo's Inc. as of December 18, 2000.
Dated: East Hampton, New York
December 05, 2000
J Espo's Inc
By: /s/ Xxxxxxx X. Xxxxxxxx
-----------------------------------
Xxxxxxx X. Xxxxxxxx
President
ACCEPTED AND AGREED:
Sun & Surf Inc.
BY: /s/ Xxxxxxx X. Xxxxxxxx
----------------------------------
Xxxxxxx X. Xxxxxxxx, President
Declaration of Dividend
(Spinoff) lOb-17
MILLING LAW OFFICES
Members New Jersey and New York Bars
000 Xxxxx Xxxx Telephone 000-000-0000
Building Xx. 00, Xxxxx 0000 Telecopier 000-000-0000
Edgewater, N.J. 07020-1068 E-mail Xxxxxxx@xxxxxxxxxx.xxx
December 5, 2000
National Association of Securities Dealers, Inc.
Market Data Intergrity
0000 X Xxxxxx XX
Xxxxxxxxxx, XX 00000
Re: X. Xxxx'x Inc.
Commission File No. 24-4212
Pink Street LLC
Declaration of dividend (spinoff)
Dear Sires and Mesdames:
In behalf of X Xxxx's Inc. (the Company) and pursuant to the requirements
of Rule 10b17 (the "Rule") of the General Rules and Regulations of the
Securities and Exchange Commission, we advise you that, on December 5, 2000, the
Company declared a dividend payable in stock of three corporations other than
the Company, i.e. a spinoff. The disclosure required by the Rule is as follows:
(i) Title of the security to
which the dividend relates: Common stock
(ii) Date of declaration: December 5, 2000
(iii) Record date for determing
holders to receive dividend: December 18, 2000
(iv) Date of payment of dividend: January 2, 2001
(v) Information with respect to the
dividend:
Type of dividend: Common stock of the following New York corporate
subsidiaries of the Company (the "Subsidiaries"):
Surf Group Inc. (4,710,250 shares)
Sun & Surf Inc. (4,710,250 Shares)
JRE Inc. (4,710,250 shares)
MILLING LAW OFFICES
National Association of
Securities Dealers Inc.
December 5, 2000
Page 2
Amount of dividend payment per share: One share of common stock
of each of the Subsidiaries
b) Amount of securities of the Company
of the class to be outstanding
immediately prior to and immediately
following the dividend: 4,710,250 shares
Dividend rate: One share of common stock
of each of the
Subsidiaries.
(c) Payment in other securities of the
same issuer: None
(d) Payment in securities of another
issuer: One share of common stock
of each of the
Subsidiaries.
(e) Payment in any other property than
cash: One share of common stock
of each of the
Subsidiaries.
(vi) Method of setliement of fractional
intereste: Not applicable
(vii) Details of governmental or other
conditions to bo satisfied: None - intrastate
statutory exemption
(viii) Additional information as to forward
or reverse stock splits: Not applicable
(ix) Name and address of transfer
(and paying) agent: American Registrar and
Transfer Co., 000 Xxxx 000
Xxxxx, Xxxx Xxxx Xxxx Xxxx
00000
Thank you for your attention to this matter.
Sincerely,
By: /s/ Xxxx X. Xxxxxxx
-----------------------------------
Xxxx X. Xxxxxxx
JLM/jds
cc: Xxxxxxx Xxxxxxxx, President
X Xxxx's Inc.
Prepared by American Registrar & Transfer Co.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 1
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN
000 0XX XXXXXX 000 0,000. 07/06/2000 07/06/2000
HOLTSVILLE, NY 11742
Total: 2,000.
XXXXXXXXX X XXXXXXXXXX
P0 BOX 2027 157 1,000. 07/12/2000
MONTAUK, NY 11954
Total: 1,000.
CEDE & CO
BOX #20 170 30,000. 11/27/2000
BOWLING GREEN STATION 171 800. 12/05/2000
NEW YORK, NY 10004
00-0000000 Total: 30,800.
XXXXXXX X XXXXXXX
0 XXXXX XXXXXX 101 60,000. 07/06/2000 07/06/2000 10/05/2000
PRT JEFFERSON STATN, NY 11776
Total: 60,000.
XXXX X XXXXXXXX 105 6,000. 07/06/2000 01/06/2000
00 XXXXXXXX XX 132 1,000. 07/1212000
LAKE RONKONKOMA, NY 11779
Total: 7,000.
XXXXX XXXXXXXX 106 26,OOO. 07/06/2000 07/06/2000
000 XXXXXXXX XXXXXX 179 7,000. 12/18/2000
BOHEMIA, NY 11716 180 2,000. 12/18/2000
Total: 35,000.
CHRJSTINE XXXXXXXX 107 4,000. 07/0612000 07/06/2000
000 XXXXXXXX XXXXXX 181 1,600. 12/18/2000
BOHEMIA, NY 11716 182 1,400. 12/1812000
Total: 7,000.
XXXXX XXXXXXXX 173 20,000. 12/18/2000 07/06/2000
Total: 20,000.
XXXXX X XXXXXXXX 108 3,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 135 3,000. 07/12/2000
ENDICOTT, NY 13760
Total: 6,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 2
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX X XXXXXXXX
CUST FBO XXXX X XXXXXXXX 109 2,000. 07/06/2000 07106/2000
0000 XXXXX XXX 000 2,000. 07/21/2000
ENDICOTT, NY 13760
Total: 4,000.
XXXXX X XXXXXXXX
CUST FBO XXXXX X XXXXXXXX 110 2,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 164 2,000. 07/21/2000
ENDICOTT, NY 13760
Total: 4,000.
XXXXX X XXXXXXXX
CUST FBO XXXXXX XXXXXXXX 111 2,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 165 2,000. 07/21/2000
ENDICOTT, NY 13760
Total: 4,000.
XXX XXXXXXXX 112 4,000. 07/06/2000 07/06/2000
00 XXXXXXXX XX 177 1,200. 12/18/2000
LAKE RONKONKOMA, NY 11779 178 800. 12/18/2000
Total: 6,000.
XXXXXXX X XXXXXXXX
00 XXXXXX XXXXXX 174 3,940,250. 12/18/2000 07/06/2000
SOUTH HAMPTON, NY 11968
Total: 3,940.250.
XXXXX X XXXXXXXX
910 XXXXXXXX ST 113 24,000. 07/06/2000 07/06/2000
BOHEMIA, NY 11716
Total: 24,000.
XXXXX X XXXXXXXX
& XXXXX XXXXXXXX JTTEN
000 XXXXXXXX XXXXXX 104 4,000. 07/06/2000 07/06/2000
BOHEMIA, NY 11716
Total: 4,000.
XXXX XXXXXXXX 114 2,000. 07/06/2000 07/06/2000
00 XXXXXXXX XX 175 1,200. 12/18/2000
LAKE RONKONKOMA, NY 11779 176 800. 12/18/2000
Total: 4,000.
XXXXXXXX X XXXXXXXX 115 3,000. 07/06/2000 07/06/2000
0000 XXXXX XXX 142 3,000. 07/12/2000
ENDICOTT, NY 13760
Total: 6,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 3
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXXXXX X XXXXXXXX
000 XXXXXXX XX 116 6,000. 07/06/2000 07/06/2000
SAYVILLE, NY 11782 143 1,000. 07/12/2000
Total: 7,000.
XXXXX X XXXXXXXX
CUST FBO XXXX XXXXXXXX UGMA 158 10,000. 07/12/2000
910 BENEDICT ST 172 40,000. 12/18/2000 07/06/2000
BOHEMIA, NY 11716
Total: 50,000.
XXXXXXX X XXXXXXX 117 65,000. 07/06/2000 07/06/2000
32 XXXXXXX XX. 144 100,000. 07/12/2000
NORTHPORT, NY 11768
Total: 165,000.
XXXXX X XXXXXXX 118 69,000. 07/06/2000 07/06/2000
32 XXXXXXX XX 145 100,000. 07/12/2000
NORTHPORT, NY 11768
Total: 169,000.
XXXX XXXXXXXXX
1961 XXXXXXXX AVE 162 500. 07/12/2000
BRONX, NY 10472
Total: 500.
XXXXXXX XXXXXXXXX
1961 XXXXXXXX AVE 161 500. 07/12/2000
BRONX, NY 10472
Total: 500.
XXXXXX COMPANIES
CJO ESPO'S INC.
00 XXXX XXXXXX 119 50,000. 07/06/2000 07/06/2000
EAST HAMPTON, NY 11937
Total: 50,000.
XXXXX XXXXXX
& XXXXXXXX XXXXXX
000 XXXXX XXXXXXX 166 200. 07/21/2000
STATEN ISLAND, NY 10301
Total: 200.
XXXXX XXXXXXXX 122 4,000. 07/06/2000 07/06/2000
646 CHESTER RD 146 8,000. 07/12/2000
SAYVILLE, NY 11762
Total: 12,000.
XXXXX XXXXXXXX 123 12,000. 07/06/2000 07/06/2000
646 CHESTER RD 147 2,000. 07/12/2000
SAYVILLE, NY 11782
Total: 14,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 4
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN 120 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX
XXXXXXXX, XX 00000 Total: 4,000.
XXXXXX XXXXXXXX 124 4,000. 07/06/2000 07/06/2000
646 CHESTER RD 148 8,000. 07/12/2000
SAYVILLE, NY 11782
Total 12,000.
XXXXX XXXXXXXX 125 12,000. 07/06/2000 07/06/2000
000 XXXXXXX XX 149 2,000. 07/12/2000
SAYVILLE, NY 11782
Total: 14,000.
XXXXX XXXXXXXX
& XXXXX XXXXXXXX JTTEN 121 4,000. 07/06/2000 07/06/2000
000 XXXXXXX XX
XXXXXXXX, XX 00000 Total: 4,000.
XXXX X XXXXXXX
8 OAK ST 151 500. 07/12/2000
CENTRAL ISLIP, NY 11722
Total: 500.
XXXX X XXXX0XX
000 XXXXX XXXX 102 10,000. 07/06/2000 07/06/2000
BLDNG. 12 STE#1205
EDGEWATER, NJ 07020 Total: 10,000.
XXXXX X XXXX
& XXXXXXXX XXXX JTTEN 126 2,000. 07/06/2000 07/06/2000
P0 BOX 1517
RONKONKOMA, NY 11779 Total: 2,000.
XXXXX X XXXX
P0 BOX 1517 127 2,000. 07/06/2000 07/06/2000
RONKONKOMA, NY 11779
Total: 2,000.
XXXXXXXX XXXX
P0 BOX 1517 128 2,000. 07/06/2000 07/06/2000
RONKONKOMA, NY 11779
Total: 2,000.
XXXXX XXXXXX
00 XXXX XXXXXX 129 4,000. 07/06/2000 07/06/2000
SOUTHHAMPTON, NY 12968
Total: 4,000.
J ESPO'S INC COMMON Date Printed: 12/19/2000
Ownership Register as of: December 18, 2000 Page No. 5
Name Certificate Shares Issued Restricted Stopped
---- ----------- ------ ------ ---------- -------
XXXXX XXXXXXX
1961 XXXXXXXX AVE 160 2,000. 07/12/2000
BRONX, NY 10472
Total: 2,000.
XXXXX XXXXXXXX
00 XXX XXX 130 14,000. 07/06/2000 07/06/2000
FLORAL PARK, NY 11001
Total: 14,000.
XXXX XXXXXXXX
00 XXX XXX 152 1,000. 07/12/2000
FLORAL PARK, NY 11001
Total: 1,000.
XXXX XXXXXXXX 131 2,000. 07/06/2000 07/06/2000
63 ELM AVE 150 2,500. 07/12/2000
FLORAL PARK, NY 11001
Total: 4,500.
XXXXX XXXXXX
0000 XXXXXXXXX XXXXX 000 1,000. 07/12/2000
BRONX, NY 10465
Total: 1,000.
TOTAL SHAREHOLDERS: 43.
TOTAL SHARES: 4,710,250.
TOTAL RESTRICTED SHARES: 4,410,250.
TOTAL CERTIFICATES: 67.
Opinion Letter of Exemption from
State Registration
MILLING LAW OFFICES
Members New Jersey and New York Bars
000 Xxxxx Xxxx Telephone 000-000-0000
Building Xx. 00, Xxxxx 0000 Telecopier 000-000-0000
Edgewater, N.J. 07020-1068 E-mail Xxxxxxx@xxxxxxxxxx.xxx
December 21, 2000
Xxxxxxx Xxx, President
American Registrat & Transfer Co.
000 Xxxx 000 Xxxxx
Xxxx Xxxx Xxxx, XX 00000
Re: X. Xxxx'x Inc. Spinoff of wholly owned subsidiaries
Dear Mr. Xxx:
We have been advised by our client, X. Xxxx'x Inc. (the "Company") that
they intend to spinoff to their common stockholders, which all of the
outstanding shares of three of the Company's wholly-owned subsidiaries, viz,
Surf Group Inc., Sun & Surf Inc. and JRE Inc. The spinoffs will be each be in
the number of shares outstanding in the Company and, accordingly, will be made
on a share-for-share basis. We have been requested by the Company to provide you
with an opinion with respect to the availabity of an exemption from federal and
state registration of the spinoffs. The spinoffs will be made based upon a
record date of December 18, 2000 at which time there were approximately 43
shareholders of the Company.
We note that each of the shareholders of the Company are residents of and
are domiciled in the State of New York as is the Company and each of the three
corporations whose stock is to be spun off. The distributions made by the three
spinoffs will therefore be made on an intrastate basis and will therefore be
exempt from federal registration the intrastate exemption from registration
found in Section 3(a)(11) of the Securities Act of 1933, as amended, and Rule
147 promulgated thereunder.
With respect to exemption from state registration of the spinoffs, New York
Blue Sky Regulations on Exempted Offerings, Section 80.9, provides that small
offerings to a related group, as defined in the regulations are automatically
exempted without application. Section 80.1 (j)(3) defines a related group as
"(a) group where a family or long time business or personal relationship exists
between one or more of the promoters and each and every member of the group".
Section 80.1(j)(5) defines a small offering as "(an) offering which seeks to
raise no more than $40,000. not including the personal investment of the
promoters". In the instant matter, the shareholders of the Company are for the
most part family related and those who are not are either personal friends or
long-time business associates. The distribution is without cost of any kind to
the recipients of the spun-off stock and accordingly, no sums or other
consideration of any kind is being raised.
MILLING LAW OFFICES
Xxxxxxx Xxx, President
December 21, 2000
Page 2
Under the circumstances it is our opinion, and we so advise, that the
spinoffs in question may lawfully be made without state of federal registration
of the distributed securities.
Sincerely,
MILLING LAW OFFICES
By: /s/ Xxxx X. Xxxxxxx
----------------------------------
Xxxx X. Xxxxxxx
JLM/ rab
