SHARE EXCHANGE AGREEMENT
EXHIBIT 10.1
THIS AGREEMENT is made as of
the 7th day of
April, 2008
AMONG:
MAP V ACQUISITION, INC., a corporation formed
pursuant to the laws of the State of Delaware and having an office for business
located at 00 Xxxxxxxx Xxxxxxxxx, Xxx Xxxxx, Xxx Xxxx 00000
(“Map”)
AND:
VANITY HOLDING GROUP, INC., a
company formed pursuant to the laws of the State of Delaware and having an
office for business located at The Empire State Building 000 Xxxxx Xxxxxx, Xxxxx
0000 Xxx Xxxx, Xxx Xxxx 00000 ("Vanity")
AND:
The
shareholders of Vanity, each of whom are set forth on the signature page of this
Agreement (the “Vanity Shareholders”)
WHEREAS:
A. The
Vanity Shareholders own 21,392,109 shares of common stock, $0.0001 par value,
being 100% of the presently issued and outstanding Vanity Shares;
B. Map
was incorporated on November 22, 2006 and became an SEC reporting company on
March 26, 2007;
C.
The respective Boards of Directors of Map and Vanity deem it
advisable and in the best interests of Map and Vanity that Vanity become a
wholly-owned subsidiary of Map (the “Acquisition”) pursuant to this
Agreement;
NOW THEREFORE THIS AGREEMENT
WITNESSETH THAT in consideration of the premises and the mutual
covenants, agreements, representations and warranties contained herein, and
other good and valuable consideration, the receipt and sufficiency of which is
hereby acknowledged, the parties hereto hereby agree as follows:
ARTICLE
1
DEFINITIONS
AND INTERPRETATION
Definitions
1.1 In this
Agreement the following terms will have the following meanings:
(a)
|
“Acquisition” means the
Acquisition, at the Closing, of Vanity by Map pursuant to this
Agreement;
|
(b)
|
“Acquisition Shares”
means the 12,497,000 Map Common Shares to be issued to the Vanity
Shareholders at Closing pursuant to the terms of the
Acquisition;
|
1
(c)
|
“Agreement” means this
share exchange agreement among Map, Vanity, and the Vanity
Shareholders;
|
(d)
|
“Closing” means the
completion, on the Closing Date, of the transactions contemplated hereby
in accordance with Article 9
hereof;
|
(e)
|
“Closing Date” means the
day on which all conditions precedent to the completion of the transaction
as contemplated hereby have been satisfied or waived, but in any event no
later than March 31, 2008;
|
(f)
|
“Map Accounts Payable and
Liabilities” means all accounts payable and liabilities of Map, on
a consolidated basis, due and owing or otherwise constituting a binding
obligation of Map pursuant to Map Financial
Statements;
|
(g)
|
“Map Accounts Receivable”
means all accounts receivable and other debts owing to Map, on a
consolidated basis, as of December 31,
2007;
|
(h)
|
“Map Assets” means the
undertaking and all the property and assets of the Map Business of every
kind and description wheresoever situated including, without limitation,
Map Equipment, Map Inventory, Map Material Contracts, Map Accounts
Receivable, Map Cash, Map Intangible Assets and Map Goodwill, and all
credit cards, charge cards and banking cards issued to
Map;
|
(i)
|
“Map Bank Accounts” means all
of the bank accounts, lock boxes and safety deposit boxes of Map relating
to the Map Business;
|
(j)
|
“Map Business” means all
aspects of any business conducted by
Map;
|
(k)
|
“Map Cash” means all cash on
hand or on deposit to the credit of Map on the Closing
Date;
|
(l)
|
“Map Common Shares” means the
shares of common stock in the capital of
Map;
|
(m)
|
“Map Debt to Related Parties”
means the debts owed by Map to any affiliate, director or officer of
Map;
|
(n)
|
“Map Equipment” means all
machinery, equipment, furniture, and furnishings used in the Map
Business;
|
(o)
|
“Map Financial Statements”
means, collectively, the unaudited financial statements of Map for the
period ended September 30, 2007;
|
(p)
|
“Map Goodwill” means the
goodwill of the Map Business including the right to all corporate,
operating and trade names associated with the Map Business, or any
variations of such names as part of or in connection with the Map
Business, all books and records and other information relating to the Map
Business, all necessary licenses and authorizations and any other rights
used in connection with the Map
Business;
|
(q)
|
“Map Insurance Policies”
means the public liability insurance and insurance against loss or damage
to the Map Assets and the Map
Business;
|
(r)
|
“Map Intangible Assets" means
all of the intangible assets of Map, including, without limitation, Map
Goodwill, all trademarks, logos, copyrights, designs, and other
intellectual and industrial property of Map and its
subsidiaries;
|
2
(s)
|
“Map Inventory” means all
inventory and supplies of the Map Business as of September 30,
2007;
|
(t)
|
“Map Material Contracts”
means the burden and benefit of and the right, title and interest of Map
in, to and under all trade and non-trade contracts, engagements or
commitments, whether written or oral, to which Map or its subsidiaries are
entitled whereunder Map are obligated to pay or entitled to receive the
sum of $10,000 or more including, without limitation, any pension plans,
profit sharing plans, bonus plans, loan agreements, security agreements,
indemnities and guarantees, any agreements with employees, lessees,
licensees, managers, accountants, suppliers, agents, distributors,
officers, directors, attorneys or others which cannot be terminated
without liability on not more than one month's
notice;
|
(u)
|
“Place of Closing” means
the offices of Sichenzia Xxxx Xxxxxxxx Xxxxxxx LLP, or such other place as
Map and Vanity may mutually agree
upon;
|
(v)
|
“Vanity Accounts Payable and
Liabilities” means all accounts payable and liabilities of Vanity,
due and owing or otherwise constituting a binding obligation of Vanity
(other than a Vanity Material Contract) as set forth in the Vanity
Financial Statements;
|
(w)
|
“Vanity Accounts
Receivable” means all accounts receivable and other debts owing to
Vanity, as set forth in the Vanity Financial
Statements;
|
(x)
|
“Vanity Assets“ means the
undertaking and all the property and assets of the Vanity Business of
every kind and description wheresoever situated including, without
limitation, Vanity Equipment, Vanity Inventory, Vanity Material Contracts,
Vanity Accounts Receivable, Vanity Cash, Vanity Intangible Assets and
Vanity Goodwill, and all credit cards, charge cards and banking cards
issued to Vanity;
|
(y)
|
“Vanity Bank Accounts”
means all of the bank accounts, lock boxes and safety deposit boxes of
Vanity or relating to the Vanity
Business;
|
(z)
|
“Vanity Business” means
all aspects of the business conducted by
Vanity;
|
(aa)
|
“Vanity Cash” means all
cash on hand or on deposit to the credit of Vanity on the Closing
Date;
|
(bb)
|
“Vanity Debt to Related
Parties” means the debts owed by Vanity and its subsidiaries to the
Vanity Shareholders or to any family member thereof, or to any affiliate,
director or officer of Vanity or the Vanity Shareholders as set forth in
the Vanity Financial Statements;
|
(cc)
|
“Vanity Equipment” means
all machinery, equipment, furniture, and furnishings used in the Vanity
Business, including, without limitation, as set forth in the Vanity
Financial Statements;
|
(dd)
|
“Vanity Financial
Statements” means collectively, the unaudited financial statements
of Vanity for the two fiscal years ended December 31, 2005 and December
31, 2006, true copies of which are attached as Schedule “B”
hereto;
|
3
(ee)
|
“Vanity Goodwill” means
the goodwill of the Vanity Business together with the exclusive right of
Map to represent itself as carrying on the Vanity Business in succession
of Vanity subject to the terms hereof, and the right to use any words
indicating that the Vanity Business is so carried on including the right
to use the name "Vanity” or “Vanity International" or any variation
thereof as part of the name of or in connection with the Vanity Business
or any part thereof carried on or to be carried on by Vanity, the right to
all corporate, operating and trade names associated with the Vanity
Business, or any variations of such names as part of or in connection with
the Vanity Business, all telephone listings and telephone advertising
contracts, all lists of customers, books and records and other information
relating to the Vanity Business, all necessary licenses and authorizations
and any other rights used in connection with the Vanity
Business;
|
(ff)
|
“Vanity Intangible
Assets” means all of the intangible assets of Vanity, including,
without limitation, Vanity Goodwill, all trademarks, logos, copyrights,
designs, and other intellectual and industrial property of Vanity and its
subsidiaries;
|
(gg)
|
“Vanity Inventory” means
all inventory and supplies of the Vanity
Business;
|
(hh)
|
“Vanity Material
Contracts” means the burden and benefit of and the right, title and
interest of Vanity in, to and under all trade and non-trade contracts,
engagements or commitments, whether written or oral, to which Vanity is
entitled in connection with the Vanity Business whereunder Vanity is
obligated to pay or entitled to receive the sum of $10,000 or more
including, without limitation, any pension plans, profit sharing plans,
bonus plans, loan agreements, security agreements, indemnities and
guarantees, any agreements with employees, lessees, licensees, managers,
accountants, suppliers, agents, distributors, officers, directors,
attorneys or others which cannot be terminated without liability on not
more than one month's notice;
|
(ii)
|
“Vanity Related Party
Debts” means the debts owed by the Vanity Shareholders or by any
family member thereof, or by any affiliate, director or officer of Vanity
or the Vanity Shareholders, to Vanity as described in the Vanity Financial
Statements;
|
(jj)
|
“Vanity Shares” means all
of the issued and outstanding shares of Vanity's equity
stock;
|
Any other
terms defined within the text of this Agreement will have the meanings so
ascribed to them.
Captions
and Section Numbers
1.2 The
headings and section references in this Agreement are for convenience of
reference only and do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
provision thereof.
Section
References and Schedules
1.3 Any
reference to a particular “Article”, “section”, “paragraph”, “clause” or other
subdivision is to the particular Article, section, clause or other subdivision
of this Agreement and any reference to a Schedule by letter will mean the
appropriate Schedule attached to this Agreement and by such reference the
appropriate Schedule is incorporated into and made part of this
Agreement. The Schedules to this Agreement are as
follows:
4
Information
concerning Map
Schedule “A” Map Financial
Statements
Information
concerning Vanity
Schedule “B” Vanity Financial
Statements
Severability
of Clauses
1.4 If
any part of this Agreement is declared or held to be invalid for any reason,
such invalidity will not affect the validity of the remainder which will
continue in full force and effect and be construed as if this Agreement had been
executed without the invalid portion, and it is hereby declared the intention of
the parties that this Agreement would have been executed without reference to
any portion which may, for any reason, be hereafter declared or held to be
invalid.
ARTICLE
2
THE
ACQUISITION
Sale
of Shares
2.1 The
Vanity Shareholders hereby agree to sell to Map the Vanity Shares in exchange
for the Acquisition Shares on the Closing Date and to transfer to Map on the
Closing Date a 100% undivided interest in and to the Vanity Shares free from all
liens, mortgages, charges, pledges, encumbrances or other burdens with all
rights now or thereafter attached thereto.
Allocation
of Consideration
2.2 The
Acquisition Shares shall be allocated to the Vanity Shareholders on the basis of
0.5842 Acquisition Shares for each one Vanity Share held by a Vanity
Shareholders.
Adherence
with Applicable Securities Laws
2.2 The
Vanity Shareholders agree that they are acquiring the Acquisition Shares for
investment purposes and will not offer, sell or otherwise transfer, pledge or
hypothecate any of the Acquisition Shares issued to them (other than pursuant to
an effective Registration Statement under the Securities Act of 1933, as
amended) directly or indirectly unless:
(a)
|
the
sale is to Map;
|
(b)
|
the
sale is made pursuant to the exemption from registration under the Securities Act of 1933, as
amended, provided by Rule 144 thereunder;
or
|
(c)
|
the
Acquisition Shares are sold in a transaction that does not require
registration under the Securities Act of 1933, as
amended, or any applicable United States state laws and regulations
governing the offer and sale of securities, and the vendor has furnished
to Map an opinion of counsel to that effect or such other written opinion
as may be reasonably required by
Map.
|
5
The Vanity Shareholders acknowledge
that the certificates representing the Acquisition Shares shall bear the
following legend:
NO SALE,
OFFER TO SELL, OR TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE SHALL
BE MADE UNLESS A REGISTRATION STATEMENT UNDER THE FEDERAL SECURITIES ACT OF
1933, AS AMENDED, IN RESPECT OF SUCH SHARES IS THEN IN EFFECT OR AN EXEMPTION
FROM THE REGISTRATION REQUIREMENTS OF SAID ACT IS THEN IN FACT APPLICABLE TO
SAID SHARES.
ARTICLE
3
REPRESENTATIONS
AND WARRANTIES
OF
MAP
Representations
and Warranties
3.1 Map
hereby represents and warrants in all material respects to Vanity and the Vanity
Shareholders, with the intent that Vanity and the Vanity Shareholders will rely
thereon in entering into this Agreement and in approving and completing the
transactions contemplated hereby, that:
Map
- Corporate Status and Capacity
(a)
|
Incorporation.
Map is a corporation duly incorporated and validly subsisting under the
laws of the State of Delaware and in good standing with the office of the
Secretary of State for the State of
Delaware;
|
(b)
|
Carrying on
Business. Map conducts the business described in its filings with
the Securities and Exchange Commission and does not conduct any other
business. The nature of the Map Business does not require Map
to register or otherwise be qualified to carry on business in any other
jurisdictions;
|
(c)
|
Corporate
Capacity. Map has the corporate power, capacity and authority to
own the Map Assets and to enter into and complete this
Agreement;
|
(d)
|
Reporting Status;
Listing. Map is required to file current reports with the
Securities and Exchange Commission pursuant to section 13 of the
Securities Exchange Act of 1934. At present, there is no
trading market for Map;
|
Map
- Capitalization
(e)
|
Authorized
Capital. The authorized capital of Map consists of 85,000,000
shares of capital stock, divided into two classes: (i) 75,000,000
designated as common stock, par value $0.0001, of which 2,500,000 shares
of Common Stock are validly issued and outstanding, fully paid and
non-assessable; and (ii) 10,000,000 shares designated as preferred stock
at $0.0001 par value, of which none are issued and
outstanding.
|
(f)
|
No Option, Warrant or
Other Right. No person, firm or corporation has any agreement,
option, warrant, preemptive right or any other right capable of becoming
an agreement, option, warrant or right for the acquisition of Map Common
Shares or for the purchase, subscription or issuance of any of the
unissued shares in the capital of
Map;
|
6
Map
- Records and Financial Statements
(g)
|
Charter
Documents. The charter documents of Map and its subsidiaries have
not been altered since the incorporation of each, respectively, except as
filed in the record books of Map;
|
(h)
|
Corporate Minute
Books. The corporate minute books of Map and its subsidiaries are
complete and each of the minutes contained therein accurately reflect the
actions that were taken at a duly called and held meeting or by consent
without a meeting. All actions by Map which required director or
shareholder approval are reflected on the corporate minute books of Map
and its subsidiaries. Map is not in violation or breach of, or in default
with respect to, any term of its Certificates of Incorporation (or other
charter documents) or by-laws.
|
(i)
|
Map Financial
Statements. The Map Financial Statements present fairly, in all
material respects, the assets and liabilities (whether accrued, absolute,
contingent or otherwise) of Map, and the sales and earnings of the Map
Business during the periods covered thereby, in all material respects and
have been prepared in substantial accordance with generally accepted
accounting principles consistently
applied;
|
(j)
|
Map Accounts Payable
and Liabilities. There are no material liabilities, contingent or
otherwise, of Map which are not reflected in the Map Financial Statements
except those incurred in the ordinary course of business since the date of
the said schedule and the Map Financial Statements, and Map has not
guaranteed or agreed to guarantee any debt, liability or other obligation
of any person, firm or corporation.
|
(k)
|
Map Accounts
Receivable. All the Map Accounts Receivable result from bona fide
business transactions and services actually rendered without, to the
knowledge and belief of Map, any claim by the obligor for set-off or
counterclaim. Without limiting the generality of the foregoing, all
accounts receivable of Map as of September 30, 2007, are described in
Schedule
“A” hereto;
|
(l)
|
No Debt to Related
Parties. Map will not, and on the Closing will not be, indebted to
any affiliate, director or officer of Map except accounts payable on
account of bona fide business transactions of Map incurred in normal
course of the Map Business, including employment agreements, none of which
are more than 30 days in arrears;
|
(m)
|
No Related Party Debt
to Map. No director or officer or affiliate of Map is now indebted
to or under any financial obligation to Map or any subsidiary on any
account whatsoever, except for advances on account of travel and other
expenses not exceeding $1,000 in
total;
|
(n)
|
No Dividends.
No dividends or other distributions on any shares in the capital of Map
have been made, declared or authorized since the date of Map Financial
Statements;
|
(o)
|
No Payments. No
payments of any kind have been made or authorized since the date of the
Map Financial Statements to or on behalf of officers, directors,
shareholders or employees of Map or its subsidiaries or under any
management agreements with Map or its subsidiaries, except payments made
in the ordinary course of business and at the regular rates of salary or
other remuneration payable to them;
|
7
(p)
|
No Pension
Plans. There are no pension, profit sharing, group insurance or
similar plans or other deferred compensation plans affecting
Map;
|
(q)
|
No Adverse
Events. Since the date of the Map Financial
Statements:
|
(i)
|
there
has not been any material adverse change in the consolidated financial
position or condition of Map, its liabilities or the Map Assets or any
damage, loss or other change in circumstances materially affecting Map,
the Map Business or the Map Assets or Map’ right to carry on the Map
Business, other than changes in the ordinary course of
business,
|
(ii)
|
there
has not been any damage, destruction, loss or other event (whether or not
covered by insurance) materially and adversely affecting Map, the Map
Business or the Map Assets,
|
(iii)
|
there
has not been any material increase in the compensation payable or to
become payable by Map to any of Map’ officers, employees or agents or any
bonus, payment or arrangement made to or with any of
them,
|
(iv)
|
the
Map Business has been and continues to be carried on in the ordinary
course,
|
(v)
|
Map
has not waived or surrendered any right of material
value,
|
(vi)
|
Map
has not discharged or satisfied or paid any lien or encumbrance or
obligation or liability other than current liabilities in the ordinary
course of business, and
|
(vii)
|
no
capital expenditures in excess of $10,000 individually or $30,000 in total
have been authorized or made.
|
Map
- Income Tax Matters
(r)
|
Tax Returns.
All tax returns and reports of Map required by law to be filed have been
filed and are true, complete and correct, and any taxes payable in
accordance with any return filed by Map and its subsidiaries or in
accordance with any notice of assessment or reassessment issued by any
taxing authority have been so paid;
|
8
(s)
|
Current Taxes.
Adequate provisions have been made for taxes payable for the current
period for which tax returns are not yet required to be filed and there
are no agreements, waivers, or other arrangements providing for an
extension of time with respect to the filing of any tax return by, or
payment of, any tax, governmental charge or deficiency by Map or its
subsidiaries. Map is not aware of any contingent tax
liabilities or any grounds which would prompt a reassessment including
aggressive treatment of income and expenses in filing earlier tax
returns;
|
Map
- Applicable Laws and Legal Matters
(t)
|
Licenses. Map
and its subsidiaries hold all licenses and permits as may be requisite for
carrying on the Map Business in the manner in which it has heretofore been
carried on, which licenses and permits have been maintained and continue
to be in good standing except where the failure to obtain or maintain such
licenses or permits would not have a material adverse effect on the Map
Business;
|
(u)
|
Applicable
Laws. Map has not been charged with or received notice of breach of
any laws, ordinances, statutes, regulations, by-laws, orders or decrees to
which they are subject or which apply to them the violation of which would
have a material adverse effect on the Map Business, and Map is not in
breach of any laws, ordinances, statutes, regulations, bylaws, orders or
decrees the contravention of which would result in a material adverse
impact on the Map Business;
|
(v)
|
Pending or Threatened
Litigation. There is no material litigation or administrative or
governmental proceeding pending or threatened against or relating to Map,
the Map Business, or any of the Map Assets nor does Map have any knowledge
of any deliberate act or omission of Map or its subsidiaries that would
form any material basis for any such action or
proceeding;
|
(w)
|
No Bankruptcy.
Map has not made any voluntary assignment or proposal under applicable
laws relating to insolvency and bankruptcy and no bankruptcy petition has
been filed or presented against Map and no order has been made or a
resolution passed for the winding-up, dissolution or liquidation of
Map;
|
(x)
|
Labor Matters.
Map is not a party to any collective agreement relating to the Map
Business with any labor union or other association of employees and no
part of the Map Business has been certified as a unit appropriate for
collective bargaining or, to the knowledge of Map, has made any attempt in
that regard;
|
(y)
|
Finder's Fees.
Map is not a party to any agreement which provides for the payment of
finder's fees, brokerage fees, commissions or other fees or amounts which
are or may become payable to any third party in connection with the
execution and delivery of this Agreement and the transactions contemplated
herein;
|
Execution
and Performance of Agreement
(z)
|
Authorization and
Enforceability. The execution and delivery of this Agreement, and
the completion of the transactions contemplated hereby, have been duly and
validly authorized by all necessary corporate action on the part of
Map;
|
(aa)
|
No Violation or
Breach. The execution and performance of this Agreement will
not:
|
(i)
|
violate
the charter documents of Map or result in any breach of, or default under,
any loan agreement, mortgage, deed of trust, or any other agreement to
which Map is a party,
|
(ii)
|
give
any person any right to terminate or cancel any agreement including,
without limitation, the Map Material Contracts, or any right or rights
enjoyed by Map,
|
9
(iii)
|
result
in any alteration of Map’ obligations under any agreement to which Map is
a party including, without limitation, the Map Material
Contracts,
|
(iv)
|
result
in the creation or imposition of any lien, encumbrance or restriction of
any nature whatsoever in favor of a third party upon or against the Map
Assets,
|
(v)
|
result
in the imposition of any tax liability to Map relating to the Map Assets,
or
|
(vi)
|
violate
any court order or decree to which either Map is
subject;
|
The
Map Assets - Ownership and Condition
(bb)
|
Business
Assets. The Map Assets comprise all of the property and assets of
the Map Business, and no other person, firm or corporation owns any assets
used by Map in operating the Map Business, whether under a lease, rental
agreement or other arrangement;
|
(cc)
|
Title. Map is
the legal and beneficial owner of the Map Assets, free and clear of all
mortgages, liens, charges, pledges, security interests, encumbrances or
other claims whatsoever;
|
(dd)
|
No Option. No
person, firm or corporation has any agreement or option or a right capable
of becoming an agreement for the purchase of any of the Map
Assets;
|
(ee)
|
Map Insurance
Policies. Map maintains the public liability insurance and
insurance against loss or damage to the Map Assets and the Map
Business;
|
(ff)
|
No Default.
There has not been any default in any material obligation of Map or any
other party to be performed under any of the Map Material Contracts, each
of which is in good standing and in full force and effect and unamended,
and Map is not aware of any default in the obligations of any other party
to any of the Map Material
Contracts;
|
(gg)
|
No Compensation on
Termination. There are no agreements, commitments or understandings
relating to severance pay or separation allowances on termination of
employment of any employee of Map. Map is not obliged to pay benefits or
share profits with any employee after termination of employment except as
required by law;
|
Map
Assets - Map Equipment
(hh)
|
Map Equipment.
The Map Equipment has been maintained in a manner consistent with that of
a reasonably prudent owner and such equipment is in good working
condition;
|
Map
Assets - Map Goodwill and Other Assets
(ii)
|
Map Goodwill.
Map does not carry on the Map Business under any other business or trade
names. Map does not have any knowledge of any infringement by Map of any
patent, trademarks, copyright or trade
secret;
|
10
The
Map Business
(jj)
|
Maintenance of
Business. Since the date of the Map Financial Statements, Map has
not entered into any material agreement or commitment except in the
ordinary course and except as disclosed
herein;
|
(kk)
|
Subsidiaries.
Map does not own any subsidiaries and does not otherwise own, directly or
indirectly, any shares or interest in any other corporation, partnership,
joint venture or firm; and
|
Map
- Acquisition Shares
(ll)
|
Acquisition
Shares. The Acquisition Shares when delivered to the Vanity
Shareholders pursuant to the Acquisition shall be validly issued and
outstanding as fully paid and non-assessable shares and the Acquisition
Shares shall be transferable upon the books of Map, in all cases subject
to the provisions and restrictions of all applicable securities
laws.
|
Non-Merger
and Survival
3.2 The
representations and warranties of Map contained herein will be true at and as of
Closing in all material respects as though such representations and warranties
were made as of such time. Notwithstanding the completion of the
transactions contemplated hereby, the waiver of any condition contained herein
(unless such waiver expressly releases a party from any such representation or
warranty) or any investigation made by Vanity or the Vanity Shareholders, the
representations and warranties of Map shall survive the Closing.
Indemnity
3.3 Map
agrees to indemnify and save harmless Vanity and the Vanity Shareholders from
and against any and all claims, demands, actions, suits, proceedings,
assessments, judgments, damages, costs, losses and expenses, including any
payment made in good faith in settlement of any claim (subject to the right of
Map to defend any such claim), resulting from the failure to disclose the
existence of any material liability or the breach by it of any representation or
warranty made under this Agreement or from any misrepresentation in or omission
from any certificate or other instrument furnished or to be furnished by Map to
Vanity or the Vanity Shareholders hereunder.
ARTICLE
4
COVENANTS
OF MAP
Covenants
4.1 Map
covenants and agrees with Vanity and the Vanity Shareholders that it
will:
(a)
|
Conduct of
Business. Until the Closing, conduct the Map Business diligently
and in the ordinary course consistent with the manner in which the Map
Business generally has been operated up to the date of execution of this
Agreement;
|
(b)
|
Preservation of
Business. Until the Closing, use its best efforts to
preserve the Map Business and the Map Assets and, without limitation,
preserve for Vanity Map’s and its subsidiaries’ relationships with any
third party having business relations with
them;
|
11
(c)
|
Access. Until
the Closing, give Vanity, the Vanity Shareholders, and their
representatives full access to all of the properties, books, contracts,
commitments and records of Map, and furnish to Vanity, the Vanity
Shareholders and their representatives all such information as they may
reasonably request; and
|
(d)
|
Procure
Consents. Until the Closing, take all reasonable steps required to
obtain, prior to Closing, any and all third party consents required to
permit the Acquisition and to preserve and maintain the Map Assets
notwithstanding the change in control of Vanity arising from the
Acquisition.
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Authorization
4.2 Map
hereby agrees to authorize and direct any and all federal, state, municipal,
foreign and international governments and regulatory authorities having
jurisdiction respecting Map and its subsidiaries to release any and all
information in their possession respecting Map and its subsidiaries to the
Vanity Shareholders. Map shall promptly execute and deliver to the Vanity
Shareholders any and all consents to the release of information and specific
authorizations which the Vanity Shareholders reasonably requires to gain access
to any and all such information.
Survival
4.3 The
covenants set forth in this Article shall survive the Closing for the benefit of
Vanity and the Vanity Shareholders.
ARTICLE
5
REPRESENTATIONS
AND WARRANTIES OF
THE
VANITY SHAREHOLDERS
Representations
and Warranties
5.1 The
Vanity Shareholders hereby jointly and severally represent and warrant in all
material respects to Map, with the intent that it will rely thereon in entering
into this Agreement and in approving and completing the transactions
contemplated hereby, that:
Vanity
- Company Status and Capacity
(a)
|
Formation.
Vanity is a corporation duly incorporated and validly subsisting under the
laws of the State of Delaware and in good standing with the office of the
Secretary of State for the State of
Delaware;
|
(b)
|
Carrying on
Business. Vanity carries on the Vanity Business primarily in the
State of New York and carries on material business activity in other
jurisdiction. The nature of the Vanity Business does not require Vanity to
register or otherwise be qualified to carry on business in any
jurisdiction;
|
(c)
|
Legal Capacity.
Vanity has the legal power, capacity and authority to own Vanity Assets,
to carry on the Business of Vanity and to enter into and complete this
Agreement;
|
Vanity
- Capitalization
(d)
|
Authorized
Capital. The authorized capital of Vanity consists of 100,000,000
shares of common stock, $0.0001 par value, and 5,000,000 shares of
preferred stock, $0.0001 par value;
|
12
(e)
|
Ownership of Vanity
Shares. The issued and outstanding shares of Vanity common stock
will on Closing consist of 21,392,109 shares of common stock, $0.0001 par
value, (being the Vanity Shares), which shares on Closing shall be validly
issued and outstanding as fully paid and non-assessable shares. The Vanity
Shareholders will be at Closing the registered and beneficial owners of
the Vanity Shares. The Vanity Shares owned by the Vanity Shareholders will
on Closing be free and clear of any and all liens, charges, pledges,
encumbrances, restrictions on transfer and adverse claims
whatsoever;
|
(f)
|
Options, Warrants or
Other Rights. No person, firm or corporation has any agreement,
option, warrant, preemptive right or any other right capable of becoming
an agreement, option, warrant or right for the acquisition of Vanity
Shares held by the Vanity Shareholders or for the purchase, subscription
or issuance of any of the unissued shares in the capital of
Vanity;
|
(g)
|
No
Restrictions. There are no restrictions on the transfer, sale or
other disposition of Vanity Shares contained in the charter documents of
Vanity or under any agreement;
|
Vanity
- Records and Financial Statements
(h)
|
Charter
Documents. The charter documents of Vanity have not been altered
since its formation date, except as filed in the record books of
Vanity;
|
(i)
|
Minute Books.
The minute books of Vanity are complete and each of the minutes contained
therein accurately reflect the actions that were taken at a duly called
and held meeting or by consent without a meeting. All actions by Vanity
which required director or shareholder approval are reflected on the
corporate minute books of Vanity. Vanity is not in violation or breach of,
or in default with respect to, any term of its Certificate of
Incorporation (or other charter documents) or
by-laws.
|
(j)
|
Vanity Financial
Statements. The Vanity Financial Statements present fairly, in all
material respects, the assets and liabilities (whether accrued, absolute,
contingent or otherwise) of Vanity as of the date thereof, and the sales
and earnings of the Vanity Business during the periods covered thereby, in
all material respects, and have been prepared in substantial accordance
with generally accepted accounting principles consistently
applied;
|
(k)
|
Vanity Accounts
Payable and Liabilities. There are no material liabilities,
contingent or otherwise, of Vanity which are not reflected in the Vanity
Financial Statements except those incurred in the ordinary course of
business since the date of the said schedule and the Vanity Financial
Statements, and Vanity has not guaranteed or agreed to guarantee any debt,
liability or other obligation of any person, firm or corporation. Without
limiting the generality of the foregoing, all accounts payable and
liabilities of Vanity as of December 31, 2005 are described in the Vanity
Financial Statements;
|
(l)
|
Vanity Accounts
Receivable. All the Vanity Accounts Receivable result from bona
fide business transactions and services actually rendered without, to the
knowledge and belief of the Vanity Shareholders, any claim by the obligor
for set-off or counterclaim. Without limiting the generality of
the foregoing, all accounts receivable of Vanity as of December 31, 2006,
March 31, 2007 and June 30, 2006, are described in Schedule “B”
hereto;
|
(m)
|
No Debt to Related
Parties. Vanity is not and on Closing will not be, indebted to the
Vanity Shareholders nor to any family member thereof, nor to any
affiliate, director or officer of Vanity or the Vanity Shareholders except
accounts payable on account of bona fide business transactions of Vanity
incurred in normal course of Vanity Business, including employment
agreements with the Vanity Shareholders, none of which are more than 30
days in arrears;
|
13
(n)
|
No Related Party Debt
to Vanity. No Vanity Shareholder nor any director, officer or
affiliate of Vanity is now indebted to or under any financial obligation
to Vanity on any account whatsoever, except for advances on account of
travel and other expenses not exceeding $5,000 in
total;
|
(o)
|
No Dividends.
No dividends or other distributions on any shares in the capital of Vanity
have been made, declared or authorized since the date of the Vanity
Financial Statements;
|
(p)
|
No Payments. No
payments of any kind have been made or authorized since the date of the
Vanity Financial Statements to or on behalf of the Vanity Shareholders or
to or on behalf of officers, directors, shareholders or employees of
Vanity or under any management agreements with Vanity, except payments
made in the ordinary course of business and at the regular rates of salary
or other remuneration payable to
them;
|
(q)
|
No Pension
Plans. There are no pension, profit sharing, group insurance or
similar plans or other deferred compensation plans affecting Vanity,
except as set forth in the Vanity Financial
Statements;
|
(r)
|
No Adverse
Events. Since June 30, 2007:
|
(i)
|
there
has not been any material adverse change in the consolidated financial
position or condition of Vanity, its liabilities or the Vanity Assets or
any damage, loss or other change in circumstances materially affecting
Vanity, the Vanity Business or the Vanity Assets or Vanity’s right to
carry on the Vanity Business, other than changes in the ordinary course of
business,
|
(ii)
|
there
has not been any damage, destruction, loss or other event (whether or not
covered by insurance) materially and adversely affecting Vanity, the
Vanity Business or the Vanity
Assets,
|
(iii)
|
there
has not been any material increase in the compensation payable or to
become payable by Vanity to the Vanity Shareholders or to any of Vanity's
officers, employees or agents or any bonus, payment or arrangement made to
or with any of them,
|
(iv)
|
the
Vanity Business has been and continues to be carried on in the ordinary
course,
|
(v)
|
Vanity
has not waived or surrendered any right of material
value,
|
(vi)
|
Vanity
has not discharged or satisfied or paid any lien or encumbrance or
obligation or liability other than current liabilities in the ordinary
course of business, and
|
14
(vii)
|
no
capital expenditures in excess of $10,000 individually or $30,000 in total
have been authorized or made;
|
Vanity
- Income Tax Matters
(s)
|
Tax Returns.
All tax returns and reports of Vanity required by law to be filed have
been filed and are true, complete and correct, and any taxes payable in
accordance with any return filed by Vanity or in accordance with any
notice of assessment or reassessment issued by any taxing authority have
been so paid;
|
(t)
|
Current Taxes.
Adequate provisions have been made for taxes payable for the current
period for which tax returns are not yet required to be filed and there
are no agreements, waivers, or other arrangements providing for an
extension of time with respect to the filing of any tax return by, or
payment of, any tax, governmental charge or deficiency by Vanity. Vanity
is not aware of any contingent tax liabilities or any grounds which would
prompt a reassessment including aggressive treatment of income and
expenses in filing earlier tax
returns;
|
Vanity
- Applicable Laws and Legal Matters
(u)
|
Licenses.
Vanity holds all licenses and permits as may be requisite for carrying on
the Vanity Business in the manner in which it has heretofore been carried
on, which licenses and permits have been maintained and continue to be in
good standing except where the failure to obtain or maintain such licenses
or permits would not have a material adverse effect on the Vanity
Business;
|
(v)
|
Applicable
Laws. Vanity has not been charged with or received notice of breach
of any laws, ordinances, statutes, regulations, by-laws, orders or decrees
to which they are subject or which applies to them the violation of which
would have a material adverse effect on the Vanity Business, and, to the
knowledge of the Vanity Shareholders, Vanity is not in breach of any laws,
ordinances, statutes, regulations, by-laws, orders or decrees the
contravention of which would result in a material adverse impact on the
Vanity Business;
|
(w)
|
Pending or Threatened
Litigation. There is no material litigation or administrative or
governmental proceeding pending or threatened against or relating to
Vanity, the Vanity Business, or any of the Vanity Assets, nor do the
Vanity Shareholders have any knowledge of any deliberate act or omission
of Vanity that would form any material basis for any such action or
proceeding;
|
(x)
|
No Bankruptcy.
Vanity has not made any voluntary assignment or proposal under applicable
laws relating to insolvency and bankruptcy and no bankruptcy petition has
been filed or presented against Vanity and no order has been made or a
resolution passed for the winding-up, dissolution or liquidation of
Vanity;
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(y)
|
Labor Matters.
Vanity is not party to any collective agreement relating to the Vanity
Business with any labor union or other association of employees and no
part of the Vanity Business has been certified as a unit appropriate for
collective bargaining or, to the knowledge of the Vanity Shareholders, has
made any attempt in that regard;
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(z)
|
Finder's Fees.
Vanity is not a party to any agreement which provides for the payment of
finder's fees, brokerage fees, commissions or other fees or amounts which
are or may become payable to any third party in connection with the
execution and delivery of this Agreement and the transactions contemplated
herein;
|
15
Execution
and Performance of Agreement
(aa)
|
Authorization and
Enforceability. The execution and delivery of this Agreement, and
the completion of the transactions contemplated hereby, have been duly and
validly authorized by all necessary corporate action on the part of
Vanity;
|
(bb)
|
No Violation or
Breach. The execution and performance of this Agreement will
not
|
(i)
|
violate
the charter documents of Vanity or result in any breach of, or default
under, any loan agreement, mortgage, deed of trust, or any other agreement
to which Vanity is a party,
|
(ii)
|
give
any person any right to terminate or cancel any agreement including,
without limitation, Vanity Material Contracts, or any right or rights
enjoyed by Vanity,
|
(iii)
|
result
in any alteration of Vanity's obligations under any agreement
to which Vanity is a party including, without limitation, the
Vanity Material Contracts,
|
(iv)
|
result
in the creation or imposition of any lien, encumbrance or restriction of
any nature whatsoever in favor of a third party upon or against the Vanity
Assets,
|
(v)
|
result
in the imposition of any tax liability to Vanity relating to Vanity Assets
or the Vanity Shares, or
|
(vi)
|
violate
any court order or decree to which either Vanity is
subject;
|
Vanity
Assets - Ownership and Condition
(cc)
|
Business
Assets. The Vanity Assets, comprise all of the property and assets
of the Vanity Business, and neither the Vanity Shareholders nor any other
person, firm or corporation owns any assets used by Vanity in operating
the Vanity Business, whether under a lease, rental agreement or other
arrangement, other than as disclosed in Schedules “N” or “Q”
hereto;
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(dd)
|
Title. Vanity
is the legal and beneficial owner of the Vanity Assets, free and clear of
all mortgages, liens, charges, pledges, security interests, encumbrances
or other claims whatsoever, save and except as disclosed in Schedules “N”
or “Q” hereto;
|
(ee)
|
No Option. No
person, firm or corporation has any agreement or option or a right capable
of becoming an agreement for the purchase of any of the Vanity
Assets;
|
(ff)
|
Vanity Insurance
Policies. Vanity maintains the public liability insurance and
insurance against loss or damage to the Vanity Assets and the Vanity
Business as described in Schedule “P”
hereto;
|
(gg)
|
Vanity Material
Contracts. The Vanity Material Contracts listed in Schedule “R”
constitute all of the material contracts of
Vanity;
|
16
(hh)
|
No Default.
There has not been any default in any material obligation of Vanity or any
other party to be performed under any of Vanity Material Contracts, each
of which is in good standing and in full force and effect and unamended
(except as disclosed in Schedule “R”), and Vanity is not aware of any
default in the obligations of any other party to any of the Vanity
Material Contracts;
|
(ii)
|
No Compensation on
Termination. There are no agreements, commitments or understandings
relating to severance pay or separation allowances on termination of
employment of any employee of Vanity. Vanity is not obliged to
pay benefits or share profits with any employee after termination of
employment except as required by
law;
|
Vanity
Assets - Vanity Equipment
(jj)
|
Vanity
Equipment. The Vanity Equipment has been maintained in a manner
consistent with that of a reasonably prudent owner and such equipment is
in good working condition;
|
Vanity
Assets - Vanity Goodwill and Other Assets
(kk)
|
Vanity
Goodwill. Vanity carries on the Vanity Business only under the name
"Vanity Technologies, Inc." and variations thereof and under no other
business or trade names. The Vanity Shareholders do not have any knowledge
of any infringement by Vanity of any patent, trademark, copyright or trade
secret;
|
The
Business of Vanity
(ll)
|
Maintenance of
Business. Since the date of the Vanity Financial Statements, the
Vanity Business has been carried on in the ordinary course and Vanity has
not entered into any material agreement or commitment except in the
ordinary course; and
|
(mm)
|
Subsidiaries.
Vanity does not own any subsidiaries and does not otherwise own, directly
or indirectly, any shares or interest in any other corporation,
partnership, joint venture or firm and Vanity does not own any subsidiary
and does not otherwise own, directly or indirectly, any shares or interest
in any other corporation, partnership, joint venture or
firm.
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Non-Merger
and Survival
5.2 The
representations and warranties of Vanity contained herein will be true at and as
of Closing in all material respects as though such representations and
warranties were made as of such time. Notwithstanding the completion
of the transactions contemplated hereby, the waiver of any condition contained
herein (unless such waiver expressly releases a party from any such
representation or warranty) or any investigation made by Map, the
representations and warranties of Vanity shall survive the Closing.
17
ARTICLE
6
COVENANTS
OF VANITY AND
THE
VANITY SHAREHOLDERS
Covenants
6.1 Vanity
and the Vanity Shareholders covenant and agree with Map that they
will:
(a)
|
Conduct of
Business. Until the Closing, conduct the Vanity Business diligently
and in the ordinary course consistent with the manner in which the Vanity
Business generally has been operated up to the date of execution of this
Agreement;
|
(b)
|
Preservation of
Business. Until the Closing, use their best efforts to
preserve the Vanity Business and the Vanity Assets and, without
limitation, preserve for Map Vanity’s relationships with their suppliers,
customers and others having business relations with
them;
|
(c)
|
Procure
Consents. Until the Closing, take all reasonable steps required to
obtain, prior to Closing, any and all third party consents required to
permit the Acquisition and to preserve and maintain the Vanity Assets,
including the Vanity Material Contracts, notwithstanding the change in
control of Vanity arising from the
Acquisition;
|
Authorization
6.2 Vanity
hereby agrees to authorize and direct any and all federal, state, municipal,
foreign and international governments and regulatory authorities having
jurisdiction respecting Vanity to release any and all information in their
possession respecting Vanity to Map. Vanity shall promptly execute
and deliver to Map any and all consents to the release of information and
specific authorizations which Map reasonably require to gain access to any and
all such information.
Survival
6.3
The covenants set forth in this Article shall survive the Closing for the
benefit of Map.
ARTICLE
7
CONDITIONS
PRECEDENT
Conditions
Precedent in favor of Map
7.1 Map’s
obligations to carry out the transactions contemplated hereby are subject to the
fulfillment of each of the following conditions precedent on or before the
Closing:
(a)
|
all
documents or copies of documents required to be executed and delivered to
Map hereunder will have been so executed and
delivered;
|
(b)
|
all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by Vanity or the Vanity Shareholders at or prior to the
Closing will have been complied with or
performed;
|
(c)
|
title
to the Vanity Shares held by the Vanity Shareholders and to the Vanity
Assets will be free and clear of all mortgages, liens, charges, pledges,
security interests, encumbrances or other claims whatsoever, save and
except as disclosed herein, and the Vanity Shares shall be duly
transferred to Map;
|
18
(d)
|
subject
to Article 8 hereof, there will not have
occurred
|
(i)
|
any
material adverse change in the financial position or condition of Vanity,
its liabilities or the Vanity Assets or any damage, loss or other change
in circumstances materially and adversely affecting Vanity, the Vanity
Business or the Vanity Assets or Vanity's right to carry on the Vanity
Business, other than changes in the ordinary course of business, none of
which has been materially adverse,
or
|
(ii)
|
any
damage, destruction, loss or other event, including changes to any laws or
statutes applicable to Vanity or the Vanity Business (whether or not
covered by insurance) materially and adversely affecting Vanity, the
Vanity Business or the Vanity
Assets;
|
(e)
|
the
transactions contemplated hereby shall have been approved by all other
regulatory authorities having jurisdiction over the subject matter hereof,
if any;
|
(f)
|
the
transactions contemplated hereby shall have been approved by the Board of
Directors and shareholders of
Vanity;
|
(g)
|
on
or prior to the Closing Date, Vanity and/or the Vanity Shareholders shall
have acquired all of the ordinary shares held by Vanity Shareholders that
are not participating in this Agreement so that Map shall acquire 100% of
the presently issued and outstanding Vanity Shares;
and
|
(h)
|
on
or prior to the Closing Date, Vanity shall have delivered the Vanity
Financial Statements.
|
Waiver
by Map
7.2 The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of Map and any such condition may be waived in whole or in
part by Map at or prior to the Closing by delivering to Vanity a written waiver
to that effect signed by Map. In the event that the conditions precedent set out
in the preceding section are not satisfied on or before the Closing, Map shall
be released from all obligations under this Agreement.
Conditions
Precedent in Favor of Vanity and the Vanity Shareholders
7.3 The
obligations of Vanity and the Vanity Shareholders to carry out the transactions
contemplated hereby are subject to the fulfillment of each of the following
conditions precedent on or before the Closing:
(a)
|
all
documents or copies of documents required to be executed and delivered to
Vanity hereunder will have been so executed and
delivered;
|
(b)
|
all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by Map at or prior to the Closing will have been
complied with or performed;
|
(c)
|
Map
will have delivered the Acquisition Shares to be issued pursuant to the
terms of the Acquisition to Vanity at the Closing and the Acquisition
Shares will be registered on the books of Map in the name of the holder of
Vanity Shares at the time of
Closing;
|
19
(d)
|
title
to the Acquisition Shares will be free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances or other claims
whatsoever;
|
(e)
|
subject
to Article 8 hereof, there will not have
occurred
|
(i)
|
any
material adverse change in the financial position or condition of Map, its
subsidiaries, their liabilities or the Map Assets or any damage, loss or
other change in circumstances materially and adversely affecting Map, the
Map Business or the Map Assets or Map’ right to carry on the Map Business,
other than changes in the ordinary course of business, none of which has
been materially adverse, or
|
(ii)
|
any
damage, destruction, loss or other event, including changes to any laws or
statutes applicable to Map or the Map Business (whether or not covered by
insurance) materially and adversely affecting Map, its subsidiaries, the
Map Business or the Map Assets;
|
|
(f)
|
the
transactions contemplated hereby shall have been approved by all other
regulatory authorities having jurisdiction over the subject matter hereof,
if any;
|
|
(g)
|
the
transactions contemplated hereby shall have been approved by the Board of
Directors of Map;
|
(i)
|
each
of the directors and officers of Map shall have resigned as directors
and/or officers of Map;
|
(j)
|
Xxxxxx
Xxxxxxxxx shall have been appointed as the Chairman of the Board of the
Board of Directors of Map and Xxxxxxx Xxxxx, Xxxxxx Xxxxxxx and Xxxxx
Lauzaskas shall be appointed as members of the Board of
Directors.
|
Waiver
by Vanity and the Vanity Shareholders
7.4 The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of Vanity and the Vanity Shareholders and any such condition
may be waived in whole or in part by Vanity or the Vanity Shareholders at or
prior to the Closing by delivering to Map a written waiver to that effect signed
by Vanity and the Vanity Shareholders. In the event that the conditions
precedent set out in the preceding section are not satisfied on or before the
Closing, Vanity and the Vanity Shareholders shall be released from all
obligations under this Agreement.
Nature
of Conditions Precedent
7.5 The
conditions precedent set forth in this Article are conditions of completion of
the transactions contemplated by this Agreement and are not conditions precedent
to the existence of a binding agreement. Each party acknowledges receipt of the
sum of $10.00 and other good and valuable consideration as separate and distinct
consideration for agreeing to the conditions of precedent in favor of the other
party or parties set forth in this Article.
Termination
7.6 Notwithstanding
any provision herein to the contrary, if the Closing does not occur on or before
March 31, 2008 (the “Termination Date”), this Agreement will be at an end and
will have no further force or effect, unless otherwise agreed upon by the
parties in writing.
20
Confidentiality
7.7 Notwithstanding
any provision herein to the contrary, the parties hereto agree that the
existence and terms of this Agreement are confidential and that if this
Agreement is terminated pursuant to the preceding section the parties agree to
return to one another any and all financial, technical and business documents
delivered to the other party or parties in connection with the negotiation and
execution of this Agreement and shall keep the terms of this Agreement and all
information and documents received from Vanity and Map and the contents thereof
confidential and not utilize nor reveal or release same, provided, however, that
Map will be required to issue a news release regarding the execution and
consummation of this Agreement and file a Current Report on Form 8-K with the
Securities and Exchange Commission respecting the proposed Acquisition
contemplated hereby together with such other documents as are required to
maintain the currency of Map’s filings with the Securities and Exchange
Commission.
ARTICLE
8
RISK
Material
Change in the Business of Vanity
8.1 If
any material loss or damage to the Vanity Business occurs prior to Closing and
such loss or damage, in Map's reasonable opinion, cannot be substantially
repaired or replaced within sixty (60) days, Map shall, within two (2) days
following any such loss or damage, by notice in writing to Vanity, at its
option, either:
(a)
|
terminate
this Agreement, in which case no party will be under any further
obligation to any other party; or
|
(b)
|
elect
to complete the Acquisition and the other transactions contemplated
hereby, in which case the proceeds and the rights to receive the proceeds
of all insurance covering such loss or damage will, as a condition
precedent to Map' obligations to carry out the transactions contemplated
hereby, be vested in Vanity or otherwise adequately secured to the
satisfaction of Map on or before the Closing
Date.
|
Material
Change in the Map Business
8.2 If
any material loss or damage to the Map Business occurs prior to Closing and such
loss or damage, in Vanity's reasonable opinion, cannot be substantially repaired
or replaced within sixty (60) days, Vanity shall, within two (2) days following
any such loss or damage, by notice in writing to Map, at its option,
either:
(a)
|
terminate
this Agreement, in which case no party will be under any further
obligation to any other party; or
|
(b)
|
elect
to complete the Acquisition and the other transactions contemplated
hereby, in which case the proceeds and the rights to receive the proceeds
of all insurance covering such loss or damage will, as a condition
precedent to Vanity's obligations to carry out the transactions
contemplated hereby, be vested in Map or otherwise adequately secured to
the satisfaction of Vanity on or before the Closing
Date.
|
21
ARTICLE
9
CLOSING
Closing
9.1 The
Acquisition and the other transactions contemplated by this Agreement will be
closed at the Place of Closing on Closing Date in accordance with the closing
procedure set out in this Article.
Documents
to be Delivered by Vanity
9.2 On
or before the Closing, Vanity and the Vanity Shareholders will deliver or cause
to be delivered to Map:
(a)
|
copies
of the charter documents of Vanity, including amendments thereof, and all
corporate records documents and instruments of Vanity, the corporate seal
of Vanity and all books and accounts of
Vanity;
|
(b)
|
certified
copies of such resolutions and minutes of the shareholders and directors
of Vanity as are required to be passed to authorize the execution,
delivery and implementation of this
Agreement;
|
(c)
|
an
acknowledgement from Vanity and the Vanity Shareholders of the
satisfaction of the conditions precedent set forth in section 7.3
hereof;
|
(d)
|
the
certificates or other evidence of ownership of the Vanity Shares, together
with such other documents or instruments required to effect transfer of
ownership of the Vanity Shares to Map;
and
|
(e)
|
such
other documents as Map may reasonably require to give effect to the terms
and intention of this Agreement.
|
Documents
to be Delivered by Map
9.3 On
or before the Closing, Map shall deliver or cause to be delivered to Vanity and
the Vanity Shareholders:
(a)
|
share
certificates representing the Acquisition Shares duly registered in the
names of the holders of shares of Vanity Common
Stock;
|
(b)
|
certified
copies of such resolutions of the directors of Map as are required to be
passed to authorize the execution, delivery and implementation of this
Agreement;
|
(c)
|
a
certified copy of a resolution of the directors of Map dated as of the
Closing Date appointing the nominees of Vanity as officers of Vanity and
appointing the nominee of the Vanity Shareholders to the board of
directors of Map;
|
(d)
|
resignations
of all of the officers and directors of Map as of the Closing
Date;
|
(e)
|
an
acknowledgement from Map of the satisfaction of the conditions precedent
set forth in section 7.1 hereof;
|
(f)
|
certificate
or incorporation and good standing certificate of Map;
and
|
22
(g)
|
such
other documents as Vanity may reasonably require to give effect to the
terms and intention of this
Agreement.
|
ARTICLE
10
POST-CLOSING
MATTERS
Forthwith after the Closing, Map,
Vanity and the Vanity Shareholders, as the case may be, agree to use all their
best efforts to:
(a)
|
change
the name of Map to “Vanity Events Holding, Inc.” of such other name as
determined by the Board of Directors of
Map.
|
ARTICLE
11
GENERAL
PROVISIONS
Arbitration
11.1 The
parties hereto shall attempt to resolve any dispute, controversy, difference or
claim arising out of or relating to this Agreement by negotiation in good
faith. If such good negotiation fails to resolve such dispute,
controversy, difference or claim within fifteen (15) days after any party
delivers to any other party a notice of its intent to submit such matter to
arbitration, then any party to such dispute, controversy, difference or claim
may submit such matter to arbitration in the City of New York, New
York.
Notice
11.2 Any
notice required or permitted to be given by any party will be deemed to be given
when in writing and delivered to the address for notice of the intended
recipient by personal delivery, prepaid single certified or registered mail, or
telecopier. Any notice delivered by mail shall be deemed to have been received
on the fourth business day after and excluding the date of mailing, except in
the event of a disruption in regular postal service in which event such notice
shall be deemed to be delivered on the actual date of receipt. Any notice
delivered personally or by telecopier shall be deemed to have been received on
the actual date of delivery.
Addresses
for Service
11.3 The
address for service of notice of each of the parties hereto is as
follows:
(a)
|
Map:
|
x/x
Xxxxxxxxx Xxxx Xxxxxxxx Xxxxxxx LLP
00
Xxxxxxxx, 00xx
Xx.
Xxx Xxxx,
Xxx Xxxx 00000
Attention: Xxxxxxx Xxxxxxx,
Esq.
(b)
|
Vanity
or the Vanity Shareholders:
|
The Empire State Building
000 Xxxxx
Xxxxxx, Xxxxx 0000
Xxx Xxxx,
Xxx Xxxx 00000
Attention:
Xxxxxx Xxxxxxxxx
Telephone
no. 000-000-0000
Facsimile
no. 000-000-0000
23
Change
of Address
11.4 Any
party may, by notice to the other parties change its address for notice to some
other address in North America and will so change its address for notice
whenever the existing address or notice ceases to be adequate for delivery by
hand. A post office box may not be used as an address for service.
Further
Assurances
11.5 Each
of the parties will execute and deliver such further and other documents and do
and perform such further and other acts as any other party may reasonably
require to carry out and give effect to the terms and intention of this
Agreement.
Time
of the Essence
11.6 Time
is expressly declared to be the essence of this Agreement.
Entire
Agreement
11.7 The
provisions contained herein constitute the entire agreement among Vanity, the
Vanity Shareholders and Map respecting the subject matter hereof and supersede
all previous communications, representations and agreements, whether verbal or
written, among Vanity, the Vanity Shareholders and Map with respect to the
subject matter hereof.
Enurement
11.8 This
Agreement will enure to the benefit of and be binding upon the parties hereto
and their respective heirs, executors, administrators, successors and permitted
assigns.
Assignment
11.9 This
Agreement is not assignable without the prior written consent of the parties
hereto.
Counterparts
11.10 This
Agreement may be executed in counterparts, each of which when executed by any
party will be deemed to be an original and all of which counterparts will
together constitute one and the same Agreement. Delivery of executed copies of
this Agreement by telecopier will constitute proper delivery, provided that
originally executed counterparts are delivered to the parties within a
reasonable time thereafter.
Applicable
Law
11.11 This
Agreement shall be enforced, governed by and construed in accordance with the
laws of the State of New York applicable to agreements made and to be performed
entirely within such state, without regard to the principles of conflict of
laws The parties hereto hereby submit to the exclusive jurisdiction
of the United States federal courts located in New York, New York with respect
to any dispute arising under this Agreement, the agreements entered into in
connection herewith or the transactions contemplated hereby or thereby. All
parties irrevocably waive the defense of an inconvenient forum to the
maintenance of such suit or proceeding. All parties further agree
that service of process upon a party mailed by first class mail shall be deemed
in every respect effective service of process upon the party in any such suit or
proceeding. Nothing herein shall affect either party’s right to serve
process in any other manner permitted by law. All parties agree that
a final non-appealable judgment in any such suit or proceeding shall be
conclusive and may be enforced in other jurisdictions by suit on such judgment
or in any other lawful manner. The party which does not prevail in
any dispute arising under this Agreement shall be responsible for all fees and
expenses, including attorneys’ fees, incurred by the prevailing party in
connection with such dispute.
24
IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.
By:_
_________________________
Name:
Xxxxxxx Xxxxxxxxx
Title:
Chief Executive Officer
VANITY
EVENTS, INC.
By:_
_________________________
Name:
Xxxxxxx Xxxxxxxxx
Title:
Chief Executive Officer
SHAREHOLDERS
OF VANITY EVENTS, INC.
______________________________ ______________________________
Name: Name:
Number of
Shares:
Number of Shares:
______________________________ ______________________________
Name: Name:
Number of
Shares:
Number of Shares:
______________________________ ______________________________
Name: Name:
Number of
Shares:
Number of
Shares:
______________________________ ______________________________
Name: Name:
Number of
Shares: Number
of Shares:
______________________________ ______________________________
Name: Name:
Number of
Shares: Number
of Shares:
25