SHARE EXCHANGE AGREEMENT
Exhibit 2.1
THIS
SHARE EXCHANGE AGREEMENT (the “Agreement”) is made this 30th day
of April , 2020 (the “Effective Date”), by and among
GoIP Global, Inc., a Colorado corporation (“GoIP”), TransWorld Enterprises
Inc., a Delaware Corporation (“TransWorld or TW”) and
the shareholders of TW listed on Exhibit A hereto (the
“Shareholders”). GoIP, TransWorld, and the Shareholders
are sometimes referred to herein individually as a
“Party” and
collectively as the “Parties.”
BACKGROUND
A. WHEREAS, the Shareholders are the
holders of all of the issued and outstanding shares of common
stock, par value $0.001 per share, of the TW (the " Interests");
B. WHEREAS, the Shareholders have agreed to
transfer to GoIP, and GoIP has agreed to acquire from the
Shareholders, all of the Interests, in exchange for the issuance of
(i) 1,000,000 shares of Series D Preferred Stock, with such rights
and privileges as detailed in the Certificate of Designation
included herewith as Exhibit B (the “Series D Preferred Stock”) to the
Shareholders holding shares of common stock of TW, which Shares
shall represent 80% of the issued and outstanding shares of common
stock of GoIP, par value $0.001 per share (the “Common Stock”) immediately after
the closing of the transactions contemplated herein (including the
Reverse Split (as defined in Article V.7 below)) and (ii) 1,000,000
shares of Series F Preferred Stock, with such rights and privileges
as detailed in the Certificate of Designation included herewith as
Exhibit C (the “Series F
Preferred Stock” and collectively with the Series D
Preferred Stock, the “Shares”) to the Shareholders of TW
who hold shares of preferred stock, in each case, on the terms and
conditions as set forth herein;
C. NOW, THEREFORE, in consideration of the
foregoing premises, and the covenants, representations and
warranties set forth herein, and for other good and valuable
consideration, the receipt and sufficiency of which is hereby
acknowledged and accepted, the Parties, intending to be legally
bound, hereby agree as follows:
Article I
definitions
1.1 Definitions.
For purposes of this Agreement, and in addition to other terms
defined elsewhere in this Agreement, the following terms have the
meaning assigned to them below:
(a) an
“affiliate” of
any person means another person that directly or indirectly,
through one or more intermediaries, controls, is controlled by, or
is under common control with, such first person.
(b) “material
adverse change” or “material adverse
effect” means, when used in connection with TW or GoIP, any
change or effect that either individually or in the aggregate with
all other such changes or effects is materially adverse to the
business, assets, properties, condition (financial or otherwise) or
results of operations of such Party and its subsidiaries taken as a
whole (after giving effect to the consummation of the Share
Exchange);
(c) “ordinary course of business” means
the ordinary course of business consistent with past custom and
practice (including with respect to quantity and
frequency).
(d) “person” means an individual,
corporation, partnership, joint venture, association, trust,
unincorporated organization or other entity.
(e) “subsidiary” of any person means
another person, an amount of the voting securities, other voting
ownership or voting partnership interests of which is sufficient to
elect at least a majority of its board of directors or other
governing body (or, if there are no such voting interests, fifty
percent (50%) or more of the equity interests of which) that is
owned directly or indirectly by such first person; and
(f) “security interest” means any
mortgage, pledge, lien, encumbrance, deed of trust, lease, charge,
right of first refusal, easement, servitude, proxy, voting trust or
agreement, transfer restriction under any Member or similar
agreement or any other security interest, other than (i)
mechanic’s, materialmen’s, and similar liens, (ii)
statutory liens for taxes not yet due and payable, (c) purchase
money liens and liens securing rental payments under capital lease
arrangements, (iii) pledges or deposits made in the ordinary course
of business in connection with workers’ compensation,
unemployment insurance or other similar social security
legislation; and (iv) encumbrances, security deposits or reserves
required by law or by any Governmental Entity.
(g) “TW
Conditions” means the
satisfaction of the following conditions after the execution of
this Agreement by TW: (i) completion of one or a series of
financing transaction by TW which result in aggregate gross
proceeds of at least $1,000,000 on or prior to July 31, 2020; or
(ii) the acquisition of at least 51% of the assets or equity
securities by GoIP of an operating business.
Article II
Purchase
and Sale
2.1 Share
Exchange. At
the Closing, the Shareholders shall sell, transfer, convey, assign
and deliver the Interests, representing 100% of the Interests to
GoIP, and in consideration thereof, GoIP shall issue the
consideration set forth in II.2 below (the "Share Exchange"). To
the extent the TW Conditions are not satisfied on or prior to July
31, 2020, the parties agree to act in good faith to take all
necessary and appropriate steps to unwind the Share Exchange such
that the transactions contemplated by this Agreement shall be
unwound, be null and void and have no further force or
effect.
2.2 Consideration.
Upon the terms and subject to the satisfaction of the conditions
contained in this Agreement, in consideration of the sale,
conveyance, assignment and transfer of the Interests, GoIP agrees
to ratably issue to the Shareholders the Shares.
2.3 Closing.
Unless earlier terminated, the closing of the Share Exchange (the
“Closing”) will
take place at the location mutually selected by GoIP and TW no
later than at 5:00pm. U.S. Eastern Standard Time on the business
day three (3) days following the date of satisfaction of the
conditions set forth in Article VI (the “Closing Date”), unless another
date, time or place is agreed to in writing by TW and GoIP. The
Parties agree that they intend to close the transactions
contemplated hereby on or before May 8, 2020 and further agree to
use best efforts to meet such date for Closing.
2.4 Closing
Deliveries.
On or prior to the Closing Date, GoIP shall
deliver or cause to be delivered to the Shareholders and TW, as
applicable, the following: (i) book entry confirmation of the
issuance of the Shares, registered in the name of the Shareholders
in such percentages as listed on Exhibit A, (ii) executed copies of
all written agreements required by this Agreement, and (iii) such
other closing documents as may be reasonably requested by TW or the
Shareholders. On or prior to the Closing Date, TW and Shareholders,
as applicable, shall deliver or cause to be delivered to GoIP all
the following: (i) book entry delivery of the Interests, (ii)
executed copies of all written agreements required by this
Agreement, and (iii) such other closing documents as may be
reasonably requested by GoIP.
2.5 Section
368 Reorganization. For U.S. federal income Tax purposes,
the Share Exchange is intended to constitute a "reorganization"
within the meaning of Section 368(a)(1)(B) of the Code. The Parties
hereby adopt this Agreement as a "plan of reorganization" within
the meaning of Sections 1.368-2(g) and 1.368-3(a) of the Treasury
Regulations. Notwithstanding the foregoing or anything else to the
contrary contained in this Agreement, the Parties acknowledge and
agree that no Party is making any representation or warranty as to
the qualification of the transactions contemplated by this
Agreement as a reorganization under Section 368 of the Code or as
to the effect, if any, that any transaction consummated prior to or
after the Closing Date has or may have on any such reorganization
status. The Parties acknowledge and agree that each (i) has had the
opportunity to obtain independent legal and tax advice with respect
to the transaction contemplated by this Agreement, and (ii) is
responsible for paying its own Taxes, including without limitation,
any adverse tax consequences that may result if the transaction
contemplated by this Agreement is not determined to qualify as a
reorganization under Section 368 of the Code.
Article III
REPRESENTATIONS
AND WARRANTIES
3.1 Representations
and Warranties of TW. TW represents and warrants to GoIP as
follows:
(a) Organization, Standing and
Power. TW is a duly organized, validly existing and in good
standing under the laws of its state of organization or
incorporation and has the requisite power and authority and all
government licenses, authorizations, permits, consents and
approvals required to own, lease and operate its properties and
carry on its business as now being conducted. TW is duly qualified
or licensed to do business and is in good standing in each
jurisdiction in which the nature of its business or the ownership
or leasing of its properties makes such qualification or licensing
necessary, other than in such jurisdictions where the failure to be
so qualified or licensed (individually or in the aggregate) would
not have a material adverse effect.
(b) Corporate Authority;
Noncontravention. TW has all requisite power and authority
to enter into this Agreement and to consummate the transactions
contemplated by this Agreement. The execution and delivery of this
Agreement by TW and the consummation by TW of the transactions
contemplated hereby have been duly authorized by all necessary
action on the part of TW. This Agreement has been duly executed and
when delivered by TW shall constitute a valid and binding
obligation of TW, enforceable against TW in accordance with its
terms, except as such enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of
creditors’ rights generally or by general principles of
equity. The execution and delivery of this Agreement do not, and
the consummation of the transactions contemplated by this Agreement
and compliance with the provisions hereof will not, conflict with,
or result in any breach or violation of, or default (with or
without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of or
“put” right with respect to any obligation or to a loss
of a material benefit under, or result in the creation of any
security interest upon any of the properties or assets of TW under,
(i) TW’s certificates or articles of organization, operating
agreements or other organizational or charter documents of TW, (ii)
any loan or credit agreement, note, bond, mortgage, indenture,
lease or other material agreement, instrument, permit, concession,
franchise or license applicable to TW, its properties or assets, or
(iii) subject to the governmental filings and other matters
referred to in the following sentence, any judgment, order, decree,
statute, law, ordinance, rule, regulation or arbitration award
applicable to TW, its properties or assets, other than, in the case
of clauses (ii) and (iii), any such conflicts, breaches,
violations, defaults, rights, losses or security interests that
individually or in the aggregate could not have a material adverse
effect with respect to TW or could not prevent, hinder or
materially delay the ability of TW to consummate the transactions
contemplated by this Agreement.
(c) Governmental Authorization. No
consent, approval, order or authorization of, or registration,
declaration or filing with, or notice to, any United States or
Delaware court, administrative agency or commission, or other
federal, state or local government or other governmental authority,
agency, domestic or foreign (a “Governmental Entity”), is required
by or with respect to TW in connection with the execution and
delivery of this Agreement by TW or the consummation by TW of the
transactions contemplated hereby.
(d) Certain Fees. No brokerage or
finder’s fees or commissions are or will be payable by TW or
Shareholders to any broker, financial advisor or consultant,
finder, placement agent, investment banker, bank or other person
with respect to the transactions contemplated by this
Agreement.
(e) Litigation. There is no suit,
action or proceeding or investigation pending or, to the knowledge
of TW, threatened against or affecting TW or any basis for any such
suit, action, proceeding or investigation that, individually or in
the aggregate, could reasonably be expected to have a material
adverse effect with respect to TW or prevent, hinder or materially
delay the ability of TW to consummate the transactions contemplated
by this Agreement, nor is there any judgment, decree, injunction,
rule or order of any Governmental Entity or arbitrator outstanding
against TW having, or which, insofar as reasonably could be
foreseen by TW, in the future could have, any such
effect.
(f) Liabilities. TW has no
liabilities or obligations of any nature (whether fixed or unfixed,
secured or unsecured, known or unknown and whether absolute,
accrued, contingent, or otherwise) except for liabilities or
obligations disclosed to GoIP in writing prior to Closing. Further,
there shall be no debt or liability owed by TW as of
Closing.
(g) Board Recommendation. The Board
of Directors of TW have unanimously determined that the terms of
this Agreement and transactions contemplated hereby are fair to and
in the best interests of the Shareholders of TW.
(h) Ownership of Interests. The
Shareholders own all of the issued and outstanding Interests, free
and clear of all liens and other encumbrances.
(i) Material
Agreements.
(i) Schedule III.1(i)
contains a complete and accurate list of each contract, agreement,
instrument, lease, and commitment (including license agreements) to
which TW is a party (the “TW
Contracts”). TW has delivered, or will deliver prior
to Closing, a copy of each TW Contract to GoIP. Except as otherwise
set forth on Schedule III.1(i):
(ii) TW
is not in default under any TW Contract, nor, to TW’s best
knowledge, does there exist any event that, with notice or the
passage of time or both, would constitute a default or event of
default by TW under any TW Contract.
(iii) No
power of attorney or similar authorization given by TW is currently
in effect or outstanding. No TW Contract limits the freedom of TW
to compete in any line of business or with any person.
(iv) Each
of the TW Contracts is valid, binding, and enforceable by TW in
accordance with its terms, except as such enforcement may be
limited by bankruptcy, insolvency or other similar laws affecting
the enforcement of creditors’ rights generally or by general
principles of equity and is in full force and effect.
(v) TW is not aware of
any default by any other party to any TW Contract or of any event
that (whether with or without notice, lapse of time, or both) would
constitute a default by any other party with respect to obligations
of that party under any TW Contract, and, to the knowledge of TW,
there are no facts that exist indicating that any of the TW
Contracts may be totally or partially terminated or suspended by
the other parties.
(vi) [Intentionally
Omitted].
(vii) TW
is not a party to any credit facility or loan TW Contracts whereby
TW is obligated to any third-party to either fund or make payments
on any loan or amounts due and owing.
(j) Compliance with Anti-Corruption
Laws. Neither TW nor to the knowledge of TW, any director,
officer, member, agent, employee or other person acting on behalf
of TW has, in the course of its actions for, or on behalf of, TW
(i) used any corporate funds for any unlawful contribution, gift,
entertainment or other unlawful expenses relating to political
activity; (ii) made any direct or indirect unlawful payment to any
foreign or domestic government official or employee from corporate
funds; or (iii) made any unlawful bribe, rebate, payoff, influence
payment, kickback or other unlawful payment to any foreign or
domestic government official or employee.
(k) OFAC. Neither TW, nor to the
knowledge of TW, any director, officer, agent, member, employee,
affiliate or person acting on behalf of TW, is currently subject to
any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department.
(l) Financial Information. All
financial information of TW provided to GoIP (the
“Financials”),
fairly presents the financial position of TW as of the date
provided. Except as contemplated by or permitted under this
Agreement, there are no adjustments to the Financials that would,
individually or in the aggregate, have a material adverse effect on
TW’s financial condition or results of operations as reported
in the Financials.
(m) Full Disclosure. All of the
representations and warranties made by TW and the Shareholders in
this Agreement, and all statements set forth in the certificates
delivered by TW at the Closing pursuant to this Agreement, are
true, correct and complete in all material respects and do not
contain any untrue statement of a material fact or omit to state
any material fact necessary in order to make such representations,
warranties or statements, in light of the circumstances under which
they were made, misleading. The copies of all documents furnished
by TW pursuant to the terms of this Agreement are complete and
accurate copies of the original documents. The schedules,
certificates, and any and all other statements and information,
whether furnished in written or electronic form, to GoIP or its
representatives by or on behalf of any of TW or its affiliates in
connection with the negotiation of this Agreement and the
transactions contemplated hereby do not contain any material
misstatement of fact or omit to state a material fact or any fact
necessary to make the statements contained therein not
misleading.
3.2 Representations
and Warranties of GoIP. GoIP represents and warrants to TW
as follows, which shall be true and correct as of
Closing:
(a) Organization, Standing and Corporate
Power. GoIP is duly organized, validly existing and in good
standing under the laws of the State of Colorado and has the
requisite corporate power and authority and all government
licenses, authorizations, permits, consents and approvals required
to own, lease and operate its properties and carry on its business
as now being conducted. GoIP is duly qualified or licensed to do
business and is in good standing in each jurisdiction in which the
nature of its business or the ownership or leasing of its
properties makes such qualification or licensing necessary, other
than in such jurisdictions where the failure to be so qualified or
licensed (individually or in the aggregate) would not have a
material adverse effect with respect to GoIP.
(b) Corporate Authority;
Noncontravention. GoIP has all requisite corporate and other
power and authority to enter into this Agreement and to consummate
the transactions contemplated by this Agreement. The execution and
delivery of this Agreement by GoIP and the consummation by GoIP of
the transactions contemplated hereby have been (or at Closing will
have been) duly authorized by all necessary corporate action on the
part of GoIP. This Agreement has been duly executed and when
delivered by GoIP shall constitute a valid and binding obligation
of GoIP, enforceable against GoIP in accordance with its terms,
except as such enforcement may be limited by bankruptcy, insolvency
or other similar laws affecting the enforcement of creditors’
rights generally or by general principles of equity. The execution
and delivery of this Agreement do not, and the consummation of the
transactions contemplated by this Agreement and compliance with the
provisions hereof will not, conflict with, or result in any breach
or violation of, or default (with or without notice or lapse of
time, or both) under, or give rise to a right of termination,
cancellation or acceleration of or “put” right with
respect to any obligation or to loss of a material benefit under,
or result in the creation of any security interest upon any of the
properties or assets of GoIP under, (i) its articles of
incorporation, bylaws, or other charter documents of GoIP (ii) any
loan or credit agreement, note, bond, mortgage, indenture, lease or
other agreement, instrument, permit, concession, franchise or
license applicable to GoIP, its properties or assets, or (iii)
subject to the governmental filings and other matters referred to
in the following sentence, any judgment, order, decree, statute,
law, ordinance, rule, regulation or arbitration award applicable to
GoIP, its properties or assets, other than, in the case of clauses
(ii) and (iii), any such conflicts, breaches, violations, defaults,
rights, losses or security interests that individually or in the
aggregate could not have a material adverse effect with respect to
GoIP or could not prevent, hinder or materially delay the ability
of GoIP to consummate the transactions contemplated by this
Agreement.
(c) Government Authorization. No
consent, approval, order or authorization of, or registration,
declaration or filing with, or notice to, any Governmental Entity,
is required by or with respect to GoIP in connection with the
execution and delivery of this Agreement by GoIP, or the
consummation by GoIP of the transactions contemplated
hereby.
(d) Litigation; Labor Matters; Compliance
with Laws. There is no suit, action or proceeding or
investigation pending or, to the knowledge of GoIP, threatened
against or affecting GoIP or any basis for any such suit, action,
proceeding or investigation that, individually or in the aggregate,
could reasonably be expected to have a material adverse effect with
respect to GoIP or prevent, hinder or materially delay the ability
of GoIP to consummate the transactions contemplated by this
Agreement, nor is there any judgment, decree, injunction, rule or
order of any Governmental Entity or arbitrator outstanding against
GoIP having, or which, insofar as reasonably could be foreseen by
GoIP, in the future could have, any such effect.
(f) Subsidiaries. GoIP does not own
directly or indirectly, any equity or other ownership interest in
any company, corporation, partnership, joint venture or
otherwise.
(g) Capital Structure of GoIP. The
authorized capital stock of GoIP consists of 6,800,000,000 shares
of common stock, par value $0.0001 per share and 10,000,000 shares
of preferred stock, par value $0.0001 per share. There are
6,370,638,755 shares of common stock issued and outstanding as of
the Closing Date. As of the Closing Date, GoIP will have the
following classes of preferred stock authorized: Series A, Series
B, Series C, Series D, Series E and Series F of which 100,000,
5,000,000, 1,000,000, 1,000,000, 1,000,000 and 1,000,000 are
authorized, respectively. GoIP has taken steps to have all issued
and outstanding shares of Series A, Series B and Series C preferred
stock converted into shares of common stock on or prior to the
Closing Date such that no shares of each of such Series is
outstanding as of the date of this Agreement. There will be
1,000,000 Series D Preferred Stock, 543,250 shares of Series E
Preferred Stock and 1,000,000 shares of Series F Preferred Stock
issued and outstanding as of the Closing Date. All issued and
outstanding shares of common stock are duly authorized, validly
issued, fully paid, non-assessable and free of preemptive rights
and other similar rights. GoIP is not a party to or bound by any
written or oral contract or agreement which grants to any person an
option, warrant or right of first refusal or other right of any
character to acquire at any time, or upon the happening of any
stated events, any shares of or interest in GoIP, whether or not
presently authorized, issued or outstanding. Except as set forth in
Schedule III.2(g), there are outstanding (i) no shares of capital
stock or other voting securities of GoIP, (ii) no securities of
GoIP or any of its subsidiaries convertible into or exchangeable
for shares of capital stock or voting securities of GoIP, (iii) no
options or other rights to acquire from GoIP or any of its
subsidiaries, and no obligations of GoIP or any of its subsidiaries
to issue, any capital stock, voting securities or securities
convertible into or exchangeable for capital stock or voting
securities of GoIP, and (iv) no equity equivalents, interest in the
ownership or earnings of GoIP or any of its subsidiaries or other
similar rights. There are no outstanding obligations of GoIP or any
of its subsidiaries to repurchase, redeem or otherwise acquire any
securities of GoIP, except as set forth in Schedule III.2(g). The
Shares to be issued pursuant to this Agreement (including any
shares of Common Stock issuable upon conversion thereunder) will
be, when issued, duly authorized, validly issued, fully paid and
nonassessable, not subject to preemptive rights, and issued in
compliance with all applicable state and federal laws concerning
the issuance of securities. Shares of common stock of GoIP are
quoted on the OTC Pink Marketplace under the symbol
“GOIG.”
(h) Financial Statements. The
financial statements of GoIP included in the reports, schedules,
forms, statements and other documents filed by GoIP with
XXXXxxxxxx.xxx (“OTC”) (collectively, and in each
case including all exhibits and schedules thereto and documents
incorporated by reference therein, the “GoIP OTC Documents”), comply as to
form in all material respects with applicable accounting
requirements, have been prepared in accordance with U.S. generally
accepted accounting principles applied on a consistent basis during
the periods involved (except as may be indicated in the notes
thereto) and fairly present the financial position of GoIP as of
the dates thereof and the results of operations and changes in cash
flows for the periods then ended (subject, in the case of unaudited
quarterly statements, to normal year-end audit adjustments as
determined by GoIP’s independent accountants). Except as set
forth in the GoIP OTC Documents, at the date of the most recent
unaudited financial statements of GoIP included in the GoIP OTC
Documents, GoIP has not incurred any liabilities or obligations of
any nature (whether accrued, absolute, contingent or otherwise)
which, individually or in the aggregate, could reasonably be
expected to have a material adverse effect with respect to GoIP.
GoIP has delivered to GoIP on or prior to the Closing Date such
financial statements as would be required to make GoIP current in
its obligations with OTC. GoIP hereby represents and warrants that
the GoIP OTC Documents are able to be audited by a certified public
accountant in order to satisfy any requirements which may be
necessary for GoIP to include financial statements in any filing to
be made with the Securities and Exchange Commission on or after the
Closing Date. The balance sheet of GoIP as of the Closing Date is
set forth on Schedule III.2(h).
(i) Absence of Certain Changes or
Events. Except as disclosed in Schedule III.2(i), since the
date of the most recent financial statements included in the GoIP
OTC Documents, GoIP has conducted its business only in the ordinary
course consistent with past practice in light of its current
business circumstances, and there is not and has not been
any:
(i) material adverse
change with respect to GoIP.
(ii) event
which, if it had taken place following the execution of this
Agreement, would not have been permitted by Section 4.1 without
prior consent of the TW.
(iii) condition,
event or occurrence which could reasonably be expected to prevent,
hinder or materially delay the ability of GoIP to consummate the
transactions contemplated by this Agreement.
(iv) incurrence,
assumption or guarantee by GoIP of any indebtedness for borrowed
money other than in the ordinary course and in amounts and on terms
consistent with past practices or as disclosed to TW in
writing.
(v) creation or other
incurrence by GoIP of any security interest on any asset other than
in the ordinary course consistent with past practices.
(vi) transaction
or commitment made, or any contract or agreement entered into, by
GoIP relating to its assets or business (including the acquisition
or disposition of any assets) or any relinquishment by GoIP of any
contract or other right, in either case, material to GoIP, other
than transactions and commitments in the ordinary course consistent
with past practices and those contemplated by this
Agreement;
(vii) labor
dispute, other than routine, individual grievances, or, to the
knowledge of GoIP, any activity or proceeding by a labor union or
representative thereof to organize any employees of GoIP or any
lockouts, strikes, slowdowns, work stoppages or threats by or with
respect to such employees;
(viii) change
in any compensation to officer, director or other affiliate of GoIP
or the grant of any equity compensation to any such
person;
(ix) payment,
prepayment or discharge of liability other than in the ordinary
course of business or any failure to pay any liability when
due.
(x) write-offs or
write-downs of any assets of GoIP.
(xi) creation,
termination or amendment of, or waiver of any right under, any
material contract of GoIP.
(xii) damage,
destruction or loss having, or reasonably expected to have, a
material adverse effect on GoIP.
(xiii) other
condition, event or occurrence which individually or in the
aggregate could reasonably be expected to have a material adverse
effect or give rise to a material adverse change with respect to
GoIP; or
(xiv) agreement
or commitment to do any of the foregoing.
(j) Certain Fees. No brokerage or
finder’s fees or commissions are or will be payable by GoIP
to any broker, financial advisor or consultant, finder, placement
agent, investment banker, bank or other person with respect to the
transactions contemplated by this Agreement.
(k) Litigation; Labor Matters; Compliance
with Laws.
(i) There is no suit,
action or proceeding or investigation pending or, to the knowledge
of GoIP, threatened against or affecting GoIP or any basis for any
such suit, action, proceeding or investigation that, individually
or in the aggregate, could reasonably be expected to have a
material adverse effect with respect to GoIP or prevent, hinder or
materially delay the ability of GoIP to consummate the transactions
contemplated by this Agreement, nor is there any judgment, decree,
injunction, rule or order of any Governmental Entity or arbitrator
outstanding against GoIP having, or which, insofar as reasonably
could be foreseen by GoIP, in the future could have, any such
effect.
(ii) GoIP
is not a party to, or bound by, any collective bargaining
agreement, contract or other agreement or understanding with a
labor union or labor organization, nor is it the subject of any
proceeding asserting that it has committed an unfair labor practice
or seeking to compel it to bargain with any labor organization as
to wages or conditions of employment nor is there any strike, work
stoppage or other labor dispute involving it pending or, to its
knowledge, threatened, any of which could have a material adverse
effect with respect to GoIP.
(iii) The
conduct of the business of GoIP complies with all statutes, laws,
regulations, ordinances, rules, judgments, orders, decrees or
arbitration awards applicable thereto.
(l) Benefit Plans. GoIP is not a
party to any benefit plan under which GoIP currently has an
obligation to provide benefits to any current or former employee,
officer or director of GoIP.
(m) Certain Employee Payments. GoIP
is not a party to any employment agreement which could result in
the payment to any current, former or future director or employee
of GoIP of any money or other property or rights or accelerate or
provide any other rights or benefits to any such employee or
director as a result of the transactions contemplated by this
Agreement, whether or not (i) such payment, acceleration or
provision would constitute a “parachute payment”
(within the meaning of Section 280G of the Internal Revenue Code,
as amended), or (ii) some other subsequent action or event would be
required to cause such payment, acceleration or provision to be
triggered.
(n) Material Contract Defaults.
GoIP is not, or has not, received any notice or has any knowledge
that any other party is, in default in any respect under any GoIP
Material Contract; and there has not occurred any event that with
the lapse of time or the giving of notice or both would constitute
such a material default. For purposes of this Agreement, a
“GoIP Material
Contract” means any contract, agreement or commitment
that is effective as of the Closing Date to which GoIP is a party
(i) with expected receipts or expenditures in excess of $5,000,
(ii) requiring GoIP to indemnify any person, (iii) granting
exclusive rights to any party, (iv) evidencing indebtedness for
borrowed or loaned money in excess of $5,000 or more, including
guarantees of such indebtedness, or (v) which, if breached by GoIP
in such a manner would (A) permit any other party to cancel or
terminate the same (with or without notice of passage of time) or
(B) provide a basis for any other party to claim money damages
(either individually or in the aggregate with all other such claims
under that contract) from GoIP or (C) give rise to a right of
acceleration of any material obligation or loss of any material
benefit under any such contract, agreement or
commitment.
(o) Properties. GoIP has valid land
use rights for all real property that is material to its business
and good, clear and marketable title to all the tangible properties
and tangible assets reflected in the latest balance sheet as being
owned by GoIP or acquired after the date thereof which are,
individually or in the aggregate, material to GoIP’s business
(except properties sold or otherwise disposed of since the date
thereof in the ordinary course of business), free and clear of all
material Security interests, encumbrances, claims, security
interest, options and restrictions of any nature whatsoever. Any
real property and facilities held under lease by GoIP are held by
them under valid, subsisting and enforceable leases of which GoIP
is in compliance, except as could not, individually or in the
aggregate, have or reasonably be expected to result in a material
adverse effect.
(p) Intellectual Property. GoIP
owns or has valid rights to use the Trademarks, trade names, domain
names, copyrights, patents, logos, licenses and computer software
programs (including, without limitation, the source codes thereto)
that are necessary for the conduct of its business as now being
conducted, all as set forth on Schedule III.2(p). All of
GoIP’s licenses to use Software programs are current and have
been paid for the appropriate number of users. To the knowledge of
GoIP, none of GoIP’s Intellectual Property or GoIP License
Agreements infringe upon the rights of any third party that may
give rise to a cause of action or claim against GoIP or its
successors. The term “GoIP
License Agreements” means any license agreements
granting any right to use or practice any rights under any
Intellectual Property (except for such agreements for off-the-shelf
products that are generally available for less than $10,000), and
any written settlements relating to any Intellectual Property, to
which GoIP is a party or otherwise bound.
(q) Board Determination. The Board
of Directors of GoIP has unanimously determined that the terms of
the Share Exchange are fair to and in the best interests of GoIP
and its shareholders.
(r) Compliance with Anti-Corruption
Laws. Neither GoIP nor to the knowledge of GoIP, any
director, officer, agent, employee or other person acting on behalf
of GoIP has, in the course of its actions for, or on behalf of,
GoIP (i) used any corporate funds for any unlawful contribution,
gift, entertainment or other unlawful expenses relating to
political activity; (ii) made any direct or indirect unlawful
payment to any foreign or domestic government official or employee
from corporate funds; (iii) violated or is in violation of any
applicable U.S. laws; or (iv) made any unlawful bribe, rebate,
payoff, influence payment, kickback or other unlawful payment to
any foreign or domestic government official or
employee.
(s) OFAC. Neither GoIP, nor to the
knowledge of GoIP, any director, officer, agent, employee,
affiliate or person acting on behalf of GoIP, is currently subject
to any U.S. sanctions administered by the Office of Foreign Assets
Control of the U.S. Treasury Department.
(t) Money Laundering Laws. The
operations of GoIP are and have been conducted at all times in
compliance with all money laundering laws, and no action, suit or
proceeding by or before any court or governmental agency, authority
or body or any arbitrator involving GoIP with respect to money
laundering laws is pending or, to the best knowledge of GoIP,
threatened.
(u) Liabilities. GoIP has no
liabilities or obligations of any nature (whether fixed or unfixed,
secured or unsecured, known or unknown and whether absolute,
accrued, contingent, or otherwise) except for liabilities or
obligations disclosed to TW in writing and set forth on Schedule
III.2(u).
(v) Material
Agreements.
(i) Schedule III.2(v)
contains a complete and accurate list of each contract, agreement,
instrument, lease, and commitment (including license agreements) to
which GoIP is a party (the “GoIP Contracts”). GoIP has
delivered a copy of each GoIP Contract to TW. Except as otherwise
set forth on Schedule III.2(v):
(ii) GoIP
is not in default under any GoIP Contract, nor, to GoIP’s
best knowledge, does there exist any event that, with notice or the
passage of time or both, would constitute a default or event of
default by GoIP under any GoIP Contract.
(iii) No
power of attorney or similar authorization given by GoIP is
currently in effect or outstanding. No GoIP Contract limits the
freedom of GoIP to compete in any line of business or with any
person.
(iv) Each
of the GoIP Contracts is valid, binding, and enforceable by GoIP in
accordance with its terms and is in full force and effect. There is
no pending or threatened proceeding that would interfere with the
quiet enjoyment of any leasehold of which GoIP is the lessee or
sublessee. All other parties to the GoIP Contracts have consented
or, before the Closing, will have consented (when such consent is
necessary) to the consummation of the transaction contemplated by
this Agreement without requiring modification of GoIP’s
rights or obligations under any GoIP Contract.
(v) GoIP is not aware
of any default by any other party to any GoIP Contract or of any
event that (whether with or without notice, lapse of time, or both)
would constitute a default by any other party with respect to
obligations of that party under any GoIP Contract, and, to the
knowledge of GoIP, there are no facts that exist indicating that
any of the GoIP Contracts may be totally or partially terminated or
suspended by the other parties.
(vi) To
GoIP’s knowledge, no GoIP Contract will result in any loss to
GoIP on the performance thereof (including any liability for
penalties or damages, whether liquidated, direct, indirect,
incidental, or consequential).
(w) GoIP is not a party
to any credit facility or loan Contracts whereby GoIP is obligated
to any third-party to either fund or make payments on any loan or
amounts due and owing.
(x) Organizational Documents. GoIP
has delivered or made available to TW a true and correct copy of
the Certificate of Incorporation, as amended and Bylaws, as amended
of GoIP and any other organizational documents of GoIP, each as
amended, and each such instrument is in full force and effect as of
the Closing Date (the " Organizational Documents"). GoIP is not in
violation of any of the provisions of its Organizational Documents.
GoIP has also delivered or made available to TW a true and correct
copy of the minute book of GoIP as is in full force and effect as
of the Closing Date (the “Minute Book”). All
information contained in the Minute Book has not been revoked as of
the Closing Date.
(y) Tax Matters. Tax Returns. GoIP
has not filed any tax returns required to be filed (if any) by or
on behalf of GoIP, as applicable, and has not been required to pay
any taxes (whether or not reflected on any tax return). No
governmental authority in any jurisdiction has made a claim,
assertion or threat to GoIP that GoIP is or may be subject to
taxation by such jurisdiction; there are no liens with respect to
taxes on the GoIP’s property or assets; and there are no tax
rulings, requests for rulings, or closing agreements relating to
GoIP for any period (or portion of a period) that would affect any
period after the date hereof.
(z) Transactions With
Affiliates and Employees. No
officer, director, employee or stockholder of the GoIP or any
Affiliate of any such Person, has or has had, either directly or
indirectly, an interest in any transaction with GoIP (other than
for services as employees, officers and directors), including any
contract or other arrangement providing for the furnishing of
services to or by, providing for rental of real or personal
property to or from, or otherwise requiring payments to or from any
such Person or, to the knowledge of GoIP, any entity in which any
such Person has an interest or is an officer, director, trustee or
partner.
(aa) Bank
Accounts and Safe Deposit Boxes. GoIP has such bank accounts at such banks and with
such account numbers as set forth on Schedule
III.2(aa).
(bb) Investment
Company. Neither GoIP nor its
affiliate, immediately following the Closing, will become, an
"investment company" within the meaning of the Investment Company
Act of 1940, as amended.
(cc) Foreign
Corrupt Practices. GoIP, nor,
to the Knowledge of GoIP, any director, officer, agent, employee or
other Person acting on behalf of GoIP has, in the course of its
actions for, or on behalf of, GoIP (a) used any corporate funds for
any unlawful contribution, gift, entertainment or other unlawful
expenses relating to political activity; (b) made any direct or
indirect unlawful payment to any foreign or domestic government
official or employee from corporate funds; (c) violated or is in
violation of any provision of the U.S. Foreign Corrupt Practices
Act of 1977, as amended; or (d) made any unlawful bribe, rebate,
payoff, influence payment, kickback or other unlawful payment to
any foreign or domestic government official or
employee.
(dd) Bankruptcy
and Indebtedness. GoIP has not
taken any steps to seek protection pursuant to any Law or statute
relating to bankruptcy, insolvency, reorganization, receivership,
liquidation or winding up, nor does GoIP have any Knowledge or
reason to believe that any of its respective creditors intend to
initiate involuntary bankruptcy proceedings or any actual knowledge
of any fact which would reasonably lead a creditor to do so.
Except as set forth in Section V. 12,
there is no outstanding secured and unsecured indebtedness of GoIP,
or for which the Company has commitments.
(ee) Listing
and Maintenance Requirements. GoIP’s
Common Stock is currently quoted on FINRA's Over-the-Counter
Markets ("OTC") under the symbol ("GOIG") and GoIP has not, in the
24 months preceding the date hereof, received any notice from the
OTC or FINRA or any trading market on which the Common Stock is or
has been listed or quoted to the effect that Acquiror is not in
compliance with the quoting, listing or maintenance requirements of
the OTC or such other trading market. GoIP is, and has no reason to
believe that it will not, in the foreseeable future, continue to be
in compliance with all such quoting, listing and maintenance
requirements.
(ff) No
SEC or FINRA Inquiries. Neither
GoIP nor any of its present officers or directors is, or has ever
been, the subject of any formal or informal inquiry or
investigation by the SEC or FINRA.
(gg) DTC
Eligible. The Common Stock is DTC eligible and DTC has not
placed a “freeze” or a “chill” on the
Common Stock and the Company has no reason to believe that DTC has
any intention to make the Common Stock not DTC eligible, or place a
“freeze” or “chill” on the Common
Stock.
(hh) Promotional
Stock Activities. Neither the GoIP, its officers, or any
affiliates or agents of GoIP have engaged in any stock promotional
activity that could give rise to a complaint or inquired by the
Securities and Exchange Commission alleging (i) a violation of the
anti-fraud provisions of the federal securities laws, (ii)
violations of the anti-touting provisions, (iii) improper
“gun-jumping; or (iv) promotion without proper disclosure of
compensation.
(ii) Full
Disclosure. All of the representations and warranties made
by GoIP in this Agreement, and all statements set forth in the
certificates delivered by GoIP at the Closing pursuant to this
Agreement, are true, correct and complete in all material respects
and do not contain any untrue statement of a material fact or omit
to state any material fact necessary in order to make such
representations, warranties or statements, in light of the
circumstances under which they were made, misleading. The copies of
all documents furnished by GoIP pursuant to the terms of this
Agreement are complete and accurate copies of the original
documents. The schedules, certificates, and any and all other
statements and information, whether furnished in written or
electronic form, to TW or its representatives by or on behalf of
GoIP and its stockholders in connection with the negotiation of
this Agreement and the transactions contemplated hereby do not
contain any material misstatement of fact or omit to state a
material fact or any fact necessary to make the statements
contained therein not misleading.
III.3 Representations
and Warranties of the Shareholders. Each Shareholder
represents and warrants to GoIP as follows:
(a) Ownership of the Interests, The
Shareholder owns all of his/her/its Interests, free and clear of
all liens and encumbrances, and has the absolute right and
authority to transfer such Interests to GoIP.
(b) Power of Shareholder to Execute
Agreement. The Shareholder has the full right, power, and
authority to execute, deliver, and perform this Agreement, and this
Agreement is the legal binding obligation of the Shareholder and is
enforceable against the Shareholder in accordance with its terms,
except that (i) such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium, or other similar laws now
or hereafter in effect relating to creditors’ rights, and
(ii) the remedy of specific performance and injunctive and other
forms of equitable relief may be subject to equitable defenses and
to the discretion of the court before which any proceeding
therefore may be brought.
(c) Agreement Not in Breach of Other
Instruments Affecting Shareholder. The execution and
delivery of this Agreement, the consummation of the transactions
hereby contemplated, and the fulfillment of the terms hereof will
not result in the breach of any term or provisions of, or
constitute a default under, or conflict with, or cause the
acceleration of any obligation under any agreement or other
instrument of any description to which the Shareholder is a party
or by which the Shareholder is bound, or any judgment, decree,
order, or award of any court, governmental body, or arbitrator or
any applicable law, rule, or regulation.
Article IV
COVENANTS RELATING TO CONDUCT OF BUSINESS PRIOR TO
EXCHANGE
IV.1 Negative
Covenants. From the
date of this Agreement and until the Closing Date, or until the
prior termination of this Agreement, TW and GoIP shall not, unless
mutually agreed to in writing:
(a) engage in any
transaction, except in the normal and ordinary course of business,
or create or suffer to exist any security interest upon any of its
assets or which will not be discharged in full prior to the
closing.
(b) sell, assign or
otherwise transfer any of its assets, or cancel or compromise any
debts or claims relating to their assets, other than for fair
value, in the ordinary course of business, and consistent with past
practice.
(c) issue any ownership
interests or make other changes to its capital
structure.
(d) permit any material
adverse change to occur with respect to its business or assets;
or
(e) make any material
change with respect to its business in accounting or bookkeeping
methods, principles or practices.
IV.2 Affirmative
Covenants. From
the date of this Agreement and until the Closing Date, or until the
prior termination of this Agreement, TW and GoIP shall, unless
mutually agreed to in writing:
(a) obtain all consents
and approvals necessary to effectuate the Share
Exchange.
(b) use best efforts to
preserve intact its present business organizations, keep available
the services of its employees and preserve its material
relationships with customers, suppliers, licensors, licensees,
distributors and others, to the end that its good will and ongoing
business not be impaired prior to the Closing; and
(c) pay all expenses
and debt that becomes due and payable.
Article V
ADDITIONAL
AGREEMENTS
5.1 Access
to Information
(a) Access to Information. TW and
GoIP shall, and shall cause their respective officers, employees,
counsel, financial advisors and other representatives to, afford to
GoIP and TW and their respective representatives reasonable access
during normal business hours during the period prior to the Closing
to its properties, books, contracts, commitments, personnel and
records and, during such period, shall furnish, promptly upon
request, all information concerning its business, properties,
financial condition, operations and personnel as such other Party
may from time to time reasonably request.
(b) Confidentiality. All
information furnished by either Party hereto will be treated as the
sole property of the Party furnishing the information (the
“Disclosing
Party”) until consummation of the transactions
contemplated herein, and if such transactions do not occur, each
Party shall return to the Disclosing Party all documents or other
material containing or reflecting or referring to such information
and all copies thereof. Other than as required by law the Parties
will keep confidential all information contained herein or produced
by the Parties in connection with the transactions referenced
herein and will not directly or indirectly use such information for
any competitive or other commercial purpose.
(c) Effect on Representations. No
investigation pursuant to this Section 5.1 shall affect any
representations or warranties of the Parties herein or the
conditions to the obligations of the Parties hereto.
5.2 Best
Efforts. Upon the terms and subject to the conditions set
forth in this Agreement, each of the Parties agrees to use its best
efforts to take, or cause to be taken, all actions, and to do, or
cause to be done, and to assist and cooperate with the other
Parties in doing, all things necessary, proper or advisable to
consummate and make effective, in the most expeditious manner
practicable, the Share Exchange and the other transactions
contemplated by this Agreement. GoIP and TW shall mutually
cooperate in order to facilitate the achievement of the benefits
reasonably anticipated from the Share Exchange.
5.3 Public
Announcements. The Parties will not issue any press release
or other public statements with respect to the transactions
contemplated by this Agreement, except as may be required by
applicable law or court process or approved by the other
Parties.
5.4 Expenses.
All costs and expenses incurred in connection with this Agreement
and the transactions contemplated hereby shall be paid by the Party
incurring such expenses.
5.5 No
Solicitation. Prior to Closing, each officer, director, and
key employee of GOIP (collectively, “Key Persons”)
shall enter into a non-solicitation agreement (“NCND”)
with TW, in the form satisfactory to TW, whereby the Key Persons
agree not to disclose any of TW’s confidential information,
and, for a period of two (2) years following Closing, in any
capacity, directly or indirectly, (i) use TW’s proprietary
information or trade secrets; or (ii) hire or attempt to hire or
otherwise solicit any employees or TW in employment in or services
to any undertaking with which it is associated.
5.6 Preferred
Shares. Prior to
Closing, GoIP will take all steps necessary to approve, including
obtaining board and shareholder approval, and file with the state
of Colorado the Certificate of Designations for the
Shares.
5.7 Reverse
Split. Following execution of this Agreement, GoIP shall (i)
cause a majority of its voting shares and its board of directors to
approve a 500-to-1 reverse stock split of its common stock (the
“Reverse
Split”), (ii) notify and obtain approval from FINRA of
the Reverse Split, and (iii) file such documents as necessary with
the state of Colorado to effectuate the Reverse Split.
5.8 Officers
and Directors. GoIP shall take all actions and do all things
reasonably necessary to have the proposed officers and directors
selected by the Shareholders (the “Proposed Management”) approved by
the stockholders and/or board of directors, as necessary, at
Closing. All current directors of GoIP shall resign and submit a
notice of resignation to the Board of Directors of GoIP, effective
as of the Closing Date.
5.9 Adjustments. The
operation of TW business and related income and expenses up to the
close of business on the day before the Closing will be for the
account of the Shareholders and thereafter for the account of the
GoIP.
5.10 Promotional
Activities. GoIP
shall not, following the Closing Date, directly or indirectly,
conduct any stock promotion activities, in writing, orally or
otherwise, without the prior written consent of TW.
5.11 Existing
Preferred Shares. GoIP shall take all steps necessary to
have all preferred shares held by Xxxxxx Global Associates Inc
converted to shares of common stock and all such preferred stock
shall be cancelled and terminated.
5.12 GoIP
Debt. Except for debt relating to the Note of $300,000 owed
to Xxxxxx Global Associates Inc (the “Xxxxxx Debt”), a Note in the
amount of $12,500 payable to Sky Direct LLC and the liabilities set
forth on Schedule V.12 hereto, GoIP shall have no debt or
liabilities on its books as of the Closing Date. In addition, on or prior to the Closing Date, GoIP
shall take all necessary steps and provide written evidence to TW
that the Xxxxxx Debt is modified as follows: (i) the Xxxxxx Debt
shall only be convertible at a fixed price of $0.25 per share upon
consummation of the Reverse Split and (ii) there shall be a
requirement that at any time after the Closing Date, upon receipt
of net proceeds in excess of $100,000 by GoIP or TW, GoIP shall pay
down the Xxxxxx Note equal to two percent (2%) of the cash not
subject to restriction that is received in connection with such
financing.
5.13 Bank
Accounts. Following execution of this Agreement, GoIP shall
take all necessary steps, as soon as practicable, but in no event
no later than seven (7) days after the Closing Date, to add Xxxxxxx
Xxx as a signatory to GoIP’s bank accounts identified on
Schedule III.2(aa). In addition, following the execution of this
Agreement, any check, withdrawal, wire or other deduction from any
GoIP bank account in excess of $5,000 shall require the approval
and signature of Xxxxxxx Xxx, or such other representative of TW as
may be identified on or after the date of this
Agreement.
5.14 Audit
Requirement. GoIP shall undertake an audit of its financial
statements and GoIP OTC Documents as soon as practicable after the
Closing Date. To the extent GoIP cannot complete an audit of its
financial statements and GoIP OTC Documents in accordance with the
requirements of the Securities and Exchange Commission on or prior
to the ninety (90) day anniversary of the Closing Date (the
“Audit Deadline”), If such audit cannot be completed on
or prior to the Audit Deadline, TW shall have the right to unwind
the transactions contemplated by this Agreement. GoIP and TW shall
act in good faith and take such further assurances as are necessary
to comply with the requirements set forth in this Section to the
extent the audit requirement is not completed by the Audit
Deadline.
Article VI
CONDITIONS PRECEDENT
6.1 Conditions
to Each Party’s Obligation to Effect the Share
Exchange. The obligation of each Party to effect the Share
Exchange and otherwise consummate the transactions contemplated by
this Agreement is subject to the satisfaction, at or prior to the
Closing, of each of the following conditions:
(a) No Restraints. No temporary
restraining order, preliminary or permanent injunction or other
order preventing the consummation of the Share Exchange shall have
been issued by any court of competent jurisdiction or any other
Governmental Entity having jurisdiction and shall remain in effect,
and there shall not be any applicable legal requirement enacted,
adopted or deemed applicable to the Share Exchange that makes
consummation of the Share Exchange illegal.
(b) Governmental Approvals. All
authorizations, consents, orders, declarations or approvals of, or
filings with, or terminations or expirations of waiting periods
imposed by, any Governmental Entity having jurisdiction which the
failure to obtain, make or occur would have a material adverse
effect on GoIP or TW shall have been obtained, made or
occurred.
(c) No Litigation. There shall not
be pending or threatened any suit, action or proceeding before any
court, Governmental Entity or authority (i) pertaining to the
transactions contemplated by this Agreement or (ii) seeking to
prohibit or limit the ownership or operation by TW, GoIP or any of
its subsidiaries, or to dispose of or hold separate any material
portion of the business or assets of TW or GoIP.
(d) Member Approval. The
Shareholders shall have adopted and approved this Agreement and the
Share Exchange in accordance with applicable law.
6.2 Conditions
Precedent to Obligations of GoIP. The obligation of GoIP to
effect the Share Exchange and otherwise consummate the transactions
contemplated by this Agreement are subject to the satisfaction, at
or prior to the Closing, of each of the following
conditions:
(a) Representations, Warranties and
Covenants. The representations and warranties of TW and the
Shareholders in this Agreement shall be true and correct in all
material respects (except for such representations and warranties
that are qualified by their terms by a reference to materiality or
material adverse effect, which representations and warranties as so
qualified shall be true and correct in all respects) both when made
and on and as of the Closing, and (ii) TW and the Shareholders
shall each have performed and complied in all material respects
with all covenants, obligations and conditions of this Agreement
required to be performed and complied with by each of them prior to
the Closing.
(b) Consents. GoIP shall have
received evidence, in form and substance reasonably satisfactory to
it, that such licenses, permits, consents, approvals,
authorizations, qualifications and orders of governmental
authorities and other third parties as necessary in connection with
the transactions contemplated hereby have been obtained.
(c) Officer’s Certificate of
TW. GoIP shall have received a certificate executed on
behalf of TW by an executive officer of TW confirming that the
conditions set forth in Sections VI.1 and VI.2(a) have been
satisfied.
(d) No Material Adverse Change.
There shall not have occurred any change in the business, condition
(financial or otherwise), results of operations or assets
(including intangible assets) and properties of TW that,
individually or in the aggregate, could reasonably be expected to
have a material adverse effect on TW.
(e) Secretary’s Certificate of
TW. GoIP shall have received a certificate, dated as of the
Closing Date, from the Secretary of TW, certifying (i) as to the
incumbency and signatures of the officers of TW, who shall execute
this Agreement and documents at the Closing and (ii) that attached
thereto is a true and complete copy of (A) the articles or
certificate of incorporation of TW and all amendments thereto, (B)
the bylaws of TW and all amendments thereto, and (C) resolutions of
the Board of Directors of TW and its Shareholders authorizing the
execution, delivery and performance of this Agreement by
TW.
(f) Liabilities. There shall be no
liabilities on the books of TW.
(g) Schedules and Agreement. TW and
the Shareholders, as applicable, shall have provided GoIP with all
schedules and agreements, duly executed, required by this
Agreement.
6.3 Conditions
Precedent to Obligation of TW and Shareholders. The
obligations of TW to and the Shareholders to effect the Share
Exchange and otherwise consummate the transactions contemplated by
this Agreement are subject to the satisfaction, at or prior to the
Closing, of each of the following conditions:
(a) Representations, Warranties and
Covenants. The representations and warranties of GoIP in
this Agreement shall be true and correct in all material respects
(except for such representations and warranties that are qualified
by their terms by a reference to materiality or material adverse
effect, which representations and warranties as so qualified shall
be true and correct in all respects) both when made and on and as
of the Closing, and GoIP shall have performed and complied in all
material respects with all covenants, obligations and conditions of
this Agreement required to be performed and complied with by it
prior to the Closing.
(b) Consents. TW shall have
received evidence, in form and substance reasonably satisfactory to
it, that such licenses, permits, consents, approvals,
authorizations, qualifications and orders of governmental
authorities and other third parties as necessary in connection with
the transactions contemplated hereby have been obtained.
(c) Officer’s Certificate of
GoIP. TW shall have received a certificate executed on
behalf of GoIP by an executive officer of GoIP, confirming that the
conditions set forth in Sections VI.1 and VI.3(a) have been
satisfied.
(d) Secretary’s Certificate of
GoIP. TW shall have received a certificate, dated as of the
Closing Date, from the Secretary of GoIP, certifying (i) as to the
incumbency and signatures of the officers of GoIP, who shall
execute this Agreement and documents at the Closing and (ii) that
attached thereto is a true and complete copy of (A) the articles or
certificate of incorporation of GoIP and all amendments thereto,
(B) the bylaws of GoIP and all amendments thereto, and (C)
resolutions of the Board of Directors of GoIP and its Shareholders
authorizing the execution, delivery and performance of this
Agreement by GoIP.
(e) Resignations. The current directors of
GoIP shall submit written resignations from their respective
positions with GoIP and GoIP shall provide copies of such
resignations to TW.
(f) Liabilities. There shall be no
liabilities on the books of GoIP other than those created per the
terms and limitations of the Xxxxxx Debt. The promissory note
representing the Xxxxxx Debt shall have been amended in accordance
with Section V.12 hereof.
(g) Due Diligence. TW shall be
satisfied with its due diligence investigations.
(h) Reverse Split. The Reverse
Split shall have been approved by the board of directors and
shareholders of GoIP and submitted to FINRA.
(i) Filings
with Secretary of State of Colorado. The Series D Preferred Stock and
Series E Preferred Stock shall have been duly approved and
designated by GoIP and the Certificate of Designations for such
shall have been filed with the state of Colorado.
(j) Preferred
Share Cancellation.
All preferred shares of GoIP held by Xxxxxx Global Associates Inc
shall have been cancelled pursuant to the terms of that certain
Return to Treasury Agreement to be entered into on or prior to the
Closing Date.
(k) Schedules and Agreement. GoIP
shall have provided TW and the Shareholders, as applicable, with
all schedules and agreements, duly executed, required by this
Agreement.
Article VII
TERMINATION,
AMENDMENT AND WAIVER
7.1 Termination.
This Agreement may be terminated and abandoned at any time prior to
the Closing Date:
(a) by mutual written
consent of GoIP and TW.
(b) by either GoIP or
TW if any Governmental Entity shall have issued an order, decree or
ruling or taken any other action permanently enjoining, restraining
or otherwise prohibiting the Share Exchange and such order, decree,
ruling or other action shall have become final and
nonappealable;
(c) by TW for any
reason during the period from full execution of this Agreement
until the date thirty (30) days therefrom (the “Due Diligence Period”).
(d) by GoIP or TW if a
material breach of this Agreement or material adverse change shall
have occurred relative to the other Party before Closing and is not
cured within five (5) days after GoIP or TW tenders notice of the
breach to the other Party.
(e) by GoIP or TW if
the Closing has not occurred by April 30, 2020, unless TW has
provided GoIP with written notice of its intent to extend
Closing.
7.2 Effect
of Termination. In the event of termination of this
Agreement by either TW or GoIP as provided in Section 7.1, this
Agreement shall forthwith become void and have no effect, without
any liability or obligation on the part of GoIP, the Shareholders
or TW except those provisions that specifically survive
termination. Nothing contained in this Section shall relieve any
Party for any breach of the representations, warranties, covenants
or agreements set forth in this Agreement.
7.3 Amendment.
This Agreement may not be amended except by an instrument in
writing signed on behalf of each of the Parties.
7.4 Extension;
Waiver. Any agreement on the part of a Party to an extension
or waiver of another Party’s obligations hereunder shall be
valid only if set forth in an instrument in writing signed on
behalf of such Party. The failure of any Party to this Agreement to
assert any of its rights under this Agreement or otherwise shall
not constitute a waiver of such rights.
7.5 Return
of Documents. In the event of termination of this Agreement
for any reason, GoIP and TW will return to the other Party all of
the other Party’s documents, work papers, and other materials
(including copies) relating to the transactions contemplated in
this Agreement, whether obtained before or after execution of this
Agreement. GoIP, the Shareholders and TW will not use any
information so obtained from the other Party for any purpose and
will take all reasonable steps to have such other Party’s
information kept confidential.
Article VIII
INDEMNIFICATION
AND RELATED MATTERS
8.1 Survival
of Representations and Warranties. The representations and
warranties in this Agreement or in any instrument delivered
pursuant to this Agreement and the indemnification requirements
contained in this Article VIII shall survive the Closing or earlier
termination of this Agreement to the fullest extent permitted by
law and for a period of twelve (12) months thereafter (the
“Survival
Date”).
8.2 Indemnification
by Transworld. Except as
otherwise limited by this ARTICLE VIII, Transworld shall indemnify,
defend and hold harmless GoIP and any successor or assign thereof
(collectively, the “GoIP
Indemnitees”) from and
against, and pay or reimburse GoIP Indemnitees for, any and all
losses, actions, orders, liabilities, damages (including
consequential damages), diminution in value, taxes, interest,
penalties, liens, amounts paid in settlement and reasonable costs
and expenses (including reasonable expenses of investigation and
court costs and reasonable attorneys’ fees and expenses),
(any of the foregoing, a “Loss”) suffered or incurred by, or imposed upon,
any GoIP Indemnitee arising in whole or in part out of or resulting
directly or indirectly from: (a) any inaccuracy in or breach of any
representation or warranty made by Transworld in this Agreement
(including all schedules, exhibits and annexes hereto and all
certificates, documents, instruments and undertakings furnished
pursuant to this Agreement to which Transworld is a party or made
in connection herewith); (b) any nonfulfillment or breach of any
covenant, obligation or agreement made by or on behalf of
Transworld in this Agreement (including all schedules, exhibits and
annexes hereto and all certificates, documents, instruments and
undertakings furnished pursuant to this Agreement to which
Transworld is a party or made in connection herewith and
therewith); or (c) enforcing GoIP Indemnitees’
indemnification rights provided for hereunder.
8.3 Indemnification
by GoIP. Except as otherwise
limited by this ARTICLE VIII, GoIP shall indemnify, defend and hold
harmless Transworld and its Representatives and any successor or
permitted assign thereof (collectively, the
“Transworld
Indemnitees”) from and
against, and pay or reimburse Transworld Indemnitees for, any and
all Losses, suffered or incurred by, or imposed upon, any
Transworld Indemnitee arising in whole or in part out of or
resulting directly or indirectly from: (a) any inaccuracy in or
breach of any representation or warranty made by GoIP in this
Agreement (including all schedules, exhibits and annexes hereto and
all certificates, documents, instruments and undertakings furnished
pursuant to this Agreement to which GoIP is a party or made in
connection herewith); (b) any nonfulfillment or breach of any
covenant, obligation or agreement made by or on behalf of GoIP in
this Agreement (including all schedules, exhibits and annexes
hereto and all certificates, documents, instruments and
undertakings furnished pursuant to this Agreement to which GoIP is
a party or made in connection herewith and therewith); or (c)
enforcing Transworld Indemnitees’ indemnification rights
provided for hereunder.
8.4 Indemnification
Procedures.
(a) For the purposes of this Agreement, (i) the term
“Indemnitee” shall refer to the Person or Persons
indemnified, or entitled, or claiming to be entitled, to be
indemnified, pursuant to the provisions of Section VIII. 2 or VIII.
3 as the case may be, and (ii) the term “Indemnitor” shall refer to the Person or Persons
having the actual or alleged obligation to indemnify pursuant to
such provisions.
(b) In
order to make a claim for indemnification hereunder, the Indemnitee
must provide written notice (a “Claim Notice”) of such claim to the Indemnitor (and with
respect to any claim against GoIP prior to the Expiration Date, the
Escrow Agent), which Claim Notice shall include (i) a reasonable
description of the facts and circumstances which relate to the
subject matter of such indemnification claim to the extent then
known and (ii) the amount of Losses suffered by the Indemnitee in
connection with the claim to the extent known or reasonably
estimable (provided, that the Indemnitee may thereafter in good
faith adjust the amount of Losses with respect to the claim by
providing a revised Claim Notice to the Indemnitor and, if
applicable, the Escrow Agent); provided, that the copy of any Claim
Notice provided to the Escrow Agent shall be redacted for any
confidential or proprietary information of the Indemnitor or the
Indemnitees described in clause (i) above.
(c) In
the case of any claim for indemnification under this Agreement
arising from a claim of a third party (including any Governmental
Authority), an Indemnitee must give a Claim Notice the Indemnitor
of such third party claim promptly (and in any event within thirty
(30) days) after the Indemnitee’s receipt of notice of such
claim; provided, that the failure to timely provide such notice
will not relieve an Indemnitor of its indemnification obligations
except to the extent that the Indemnitor is actually harmed
thereby. The Indemnitor will have the right to defend and to direct
the defense against any such claim in its name and at its expense,
and with counsel selected by the Indemnitor unless: (i) the
Indemnitor fails to acknowledge fully its obligations to the
Indemnitee within fifteen (15) days after receiving notice of such
third party claim or contests, in whole or in part, its
indemnification obligations therefor; (ii) if the Indemnitor is
Transworld, (A) the applicable third party claimant is a
Governmental Authority or a then-current customer of GoIP or any of
its Affiliates or (B) an adverse judgment with respect to the claim
will establish a precedent materially adverse to the continuing
business interests of GoIP or its Affiliates; (iii) there is a
conflict of interest between the Indemnitor and the Indemnitee in
the conduct of such defense such that representation of both
Indemnitor and Indemnitee by the same counsel would violate
professional standards of conduct for attorneys in the jurisdiction
where the Indemnitor’s counsel is practicing on behalf of the
Indemnitor; (iv) the applicable third party alleges claims of
fraud, willful misconduct or intentional misrepresentation; (v)
such claim is criminal in nature, could reasonably be expected to
lead to criminal proceedings, or seeks an injunction or other
equitable relief against the Indemnitee; or (vi) the claim seeks or
is reasonably expected to seek damages or other amounts that would
result in all or any portion of the Indemnitee’s right to
indemnification for such claim (when combined in the aggregate with
the amount of all other pending and finally determined claims
against the Indemnitor) being either (A) if the Indemnitor is GoIP,
in excess of the then remaining Escrow Shares unless GoIP provides
evidence reasonably acceptable to TW of GoIP’s ability to pay
all potential amounts with respect to such claim and all other
pending and finally determined claims against GoIP, along with
security or an escrow arrangement reasonably acceptable to TW for
such amounts, or (B) limited by the Indemnification Cap. If the
Indemnitor elects, and is entitled, to compromise or defend such
claim, it will within fifteen (15) days (or sooner, if the nature
of the claim so requires) notify the Indemnitee of its intent to do
so, and the Indemnitee will, at the request and expense of the
Indemnitor, cooperate in the defense of such claim. If the
Indemnitor elects not to, or is not entitled under this Section to,
compromise or defend such claim, fails to notify the Indemnitee of
its election as herein provided or refuses to acknowledge or
contests its obligation to indemnify under this Agreement, the
Indemnitee may pay, compromise or defend such claim.
Notwithstanding anything to the contrary contained herein, the
Indemnitor will have no indemnification obligations with respect to
any such claim which has been or will be settled by the Indemnitee
without the prior written consent of the Indemnitor (which consent
will not be unreasonably withheld, delayed or conditioned);
provided, however, that notwithstanding the foregoing, the
Indemnitee will not be required to refrain from paying any claim
which has matured by a court judgment or decree, unless an appeal
is duly taken therefrom and exercise thereof has been stayed, nor
will it be required to refrain from paying any claim where the
delay in paying such claim would result in the foreclosure of a
lien upon any of the property or assets then held by the Indemnitee
or where any delay in payment would cause the Indemnitee material
economic loss. The Indemnitor’s right to direct the defense
will include the right to compromise or enter into an agreement
settling any claim by a third party; provided, further, that no
such compromise or settlement will obligate the Indemnitee to agree
to any settlement that requires the taking or restriction of any
action (including the payment of money and competition
restrictions) by the Indemnitee (other than the delivery of a
release for such claim and customary confidentiality obligations),
except with the prior written consent of the Indemnitee (such
consent not to be unreasonably withheld, conditioned or delayed).
Notwithstanding the Indemnitor’s right to compromise or
settle in accordance with the immediately preceding sentence, the
Indemnitor may not settle or compromise any claim over the
objection of the Indemnitee; provided, however, that consent by the
Indemnitee to settlement or compromise will not be unreasonably
withheld, delayed or conditioned. The Indemnitee will have the
right to participate in the defense of any claim with counsel
selected by it subject to the Indemnitor’s right to direct
the defense. The fees and disbursements of such counsel will be at
the expense of the Indemnitee; provided, however, that, in the case
of any claim which seeks injunctive or other equitable relief
against the Indemnitee, the fees and disbursements of such counsel
will be at the expense of the Indemnitor.
(d) With respect to any direct
indemnification claim under this Agreement that does not arise from
a third-party claim, the Indemnitor will have a period of thirty
(30) days after receipt of the Claim Notice within which to respond
thereto. If the Indemnitor does not respond within such thirty (30)
days, the Indemnitor will be deemed to have accepted responsibility
for the Losses set forth in the Claim Notice and will have no
further right to contest the validity of the Claim Notice. If the
Indemnitor responds within such thirty (30) days after the receipt
of the Claim Notice and rejects such claim in whole or in part, the
Indemnitee will be free to pursue such remedies as may be available
to it under this Agreement, any other documents entered into in
connection with the transactions set forth herein or applicable
law.
8.5 Limitations on
Indemnification. No Indemnitor
shall be liable for an indemnification claim made under clause (a)
of Section VIII.2 or Section VIII.3, as the case may be: (a) for
which a claim for indemnification is not asserted hereunder on or
before the Survival Date; (b) unless and until the aggregate amount
of Losses incurred by GoIP Indemnitees in the aggregate under
clause (a) of Section VIII.2 or by Transworld Indemnitees in the
aggregate under clause (a) of Section VIII.3, as applicable,
exceeds Twenty-Five Thousand U.S. Dollars ($25,000) (the
“Basket”) in which case the applicable Indemnitor
shall be obligated to the applicable Indemnitee for the amount of
all Losses of such Indemnitees from the first dollar of Losses of
the Indemnitees required to reach the Basket; or (c) to the extent
Losses incurred by GoIP Indemnitees in the aggregate under clause
(a) of Section 7.2 or by Transworld Indemnitees in the aggregate
under clause (a) of Section 7.3, as applicable, exceed an amount
equal to the value of the Escrow Shares (the
“Indemnification
Cap”). Notwithstanding
the foregoing: (i) the Indemnification Cap shall not apply to
indemnification claims to the extent amounts are actually paid
under insurance maintained by the Indemnitor (or any of its
Affiliates); and (ii) the Basket and the Indemnification Cap shall
not apply to indemnification claims that are based in whole or in
part upon fraud, willful misconduct or intentional
misrepresentation. The Indemnification Cap and Basket shall apply
only to indemnification claims made under clause (a) of Section
VIII.2 or Section VIII.3 and shall not affect or apply to any other
indemnification claim made pursuant to this Agreement, including
those asserted under any other clause of Section VIII.2 or Section
VIII.3.
8.6 General
Indemnification Provisions. The
amount of any Losses suffered or incurred by any Indemnitee shall
be reduced by the amount of any insurance proceeds or other cash
receipts paid to the Indemnitee or any Affiliate thereof as a
reimbursement with respect to such Losses (and no right of
subrogation shall accrue to any insurer hereunder, except to the
extent that such waiver of subrogation would prejudice any
applicable insurance coverage), including any indemnification
received by the Indemnitee or such Affiliate from an unrelated
party with respect to such Losses, net of the costs of collection
and any related anticipated future increases in insurance premiums
resulting from such Loss or insurance payment. No investigation or
knowledge by a party of a breach of a representation or warranty of
another party hereto shall affect the representations and
warranties of the breaching party or the recourse available to such
first party under any provision of this Agreement (including this
ARTICLE VIII) with respect thereto. For all purposes of this
ARTICLE VIII including for purposes determining whether there has
been a breach giving rise to the indemnification claim and the
amount of Losses, all of the representations, warranties and
covenants set forth in this Agreement (including the schedules,
exhibits and annexes hereto) that are qualified by materiality,
Material Adverse Effect or words of similar import or effect will
be deemed to have been made without any such qualification. In any
claim for indemnification under this Agreement, no Person shall be
required to indemnify any Person for punitive damages or special
damages, unless such punitive damages, or special damages are
actually awarded to a third party.
8.7 Escrow;
Timing of Payment; Right to Set-Off. All claims for indemnification by a TW
Indemnitee pursuant to this ARTICLE VII shall first be asserted
against the Xxxxxx Debt (the “Escrow
Amount”) in accordance
with this Agreement. Any indemnification obligation of an
Indemnitor under this ARTICLE VIII will be paid within five (5)
Business Days after the determination of such obligation in
accordance with Section 7.4 and GoIP and Transworld will provide or
cause to be provided any written instructions or other information
or documents required to do so). The provisions of this ARTICLE
VIII notwithstanding, at the sole discretion of TW and without
limiting any other rights of TW Indemnitees under this Agreement or
any other documents executed hereunder or at law or equity, to the
extent that a TW Indemnitee is determined in accordance with this
Agreement to be entitled to indemnification hereunder, if GoIP
fails or refuses to promptly indemnify such TW Indemnitee as
provided herein then Transworld (or any other TW Indemnitee) may
offset the full amount to which such TW Indemnitee is entitled, in
whole or in part, by reducing the amount of any payment or other
obligation due to GoIP pursuant to this Agreement or any document
executed in connection herewith, and any amounts owed by GoIP
pursuant to any outstanding indemnification claim by a Transworld
Indemnitee.
8.8 Exclusive
Remedies. Except as otherwise
set forth herein, the parties acknowledge and agree that their sole
and exclusive remedy with respect to any and all claims (other than
claims arising from fraud on the part of a party hereto in
connection with the transactions contemplated by this Agreement)]
for any breach of any representation, warranty, covenant, agreement
or obligation set forth herein or otherwise relating to the subject
matter of this Agreement, shall be pursuant to the indemnification
provisions set forth in this ARTICLE VIII. In furtherance of the
foregoing, each party hereby waives, to the fullest extent
permitted under law, any and all rights, claims and causes of
action for any breach of any representation, warranty, covenant,
agreement or obligation set forth herein or otherwise relating to
the subject matter of this Agreement it may have against the other
parties hereto and their Affiliates and each of their respective
Representatives arising under or based upon any Law, except
pursuant to the indemnification provisions set forth in this
ARTICLE VIII. Nothing in this Section shall limit any
Person’s right to seek and obtain any equitable relief to
which any Person shall be entitled pursuant to this
Agreement.
Article IX
GENERAL
PROVISIONS
9.1 Notices.
All notices or other communications required or permitted hereunder
shall be in writing shall be deemed duly given (i) if by personal
delivery, when so delivered, (ii) if mailed, three (3) business
days after having been sent by registered or certified mail, return
receipt requested, postage prepaid and addressed to the intended
recipient, (iii) if sent through an overnight delivery service in
circumstances to which such service guarantees next day delivery,
the following day, or (iv) when sent by facsimile with telephonic
confirmation or electronic mail with confirmation of transmission
by the transmitting equipment, the same day, in each case to the
addresses, facsimile numbers, or electronic mail addresses
designated in writing by each Party hereto to the other Party. Any
Party may change the address, facsimile number, or electronic mail
address to which notices and other communications hereunder are to
be delivered by giving the other Party no less than ten (10)
days’ prior notice in the manner herein set forth. All
notices to the Shareholders shall be sent “care of”
TW.
9.2 Interpretation.
When a reference is made in this Agreement to a Section, Exhibit or
Schedule, such reference shall be to a Section of, or an Exhibit or
Schedule to, this Agreement unless otherwise indicated. The
headings contained in this Agreement are for reference purposes
only and shall not affect in any way the meaning or interpretation
of this Agreement. All Exhibits and Schedules to this Agreement are
hereby incorporated into and made a part of this Agreement. In this
Agreement, words importing the singular number include the plural
and vice versa and words importing gender include all genders.
Whenever the words “include,” “includes” or
“including” are used in this Agreement, they shall be
deemed to be followed by the words “without
limitation.”
9.3 Entire
Agreement; No Third-Party Beneficiaries. This Agreement and
the other agreements and documents referred to herein constitute
the entire agreement, and supersede all prior agreements and
understandings, both written and oral, among the Parties with
respect to the subject matter of this Agreement. This Agreement is
not intended to confer upon any person other than the Parties any
rights or remedies.
9.4 Governing
Law; Federal Waiver. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of New
York, USA, regardless of the laws that might otherwise govern under
applicable principles of conflicts of laws thereof. The Parties expressly acknowledge
and agree that (i) the use, possession, cultivation, manufacture,
transportation, purchase and sale of cannabis is federally illegal,
(ii) the federal laws and certain states’ laws regarding the
use, possession, cultivation, transportation, manufacture and
furnishing of cannabis (the “Industry”) are in conflict; (iii)
engaging in the lawful conduct of business operations in the
Industry under state law may risk criminal or civil forfeiture,
violation of federal law, and heightened risk of criminal or civil
prosecution, crime and violence.
9.5 Assignment.
Neither this Agreement nor any of the rights, interests or
obligations under this Agreement shall be assigned, in whole or in
part, by operation of law or otherwise by any of the Parties
without the prior written consent of the other Parties. Any
assignment in contradiction of the above shall be null and void.
Subject to the preceding sentence, this Agreement will be binding
upon, inure to the benefit of, and be enforceable by, the Parties
and their respective successors and assigns.
9.6 Severability.
Whenever possible, each provision or portion of any provision of
this Agreement will be interpreted in such manner as to be
effective and valid under applicable law but if any provision or
portion of any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or
rule in any jurisdiction, such invalidity, illegality or
unenforceability will not affect any other provision or portion of
any provision in such jurisdiction, and this Agreement will be
reformed, construed and enforced in such jurisdiction as if such
invalid, illegal or unenforceable provision or portion of any
provision had never been contained herein.
9.7 Counterparts.
This Agreement may be executed simultaneously in two or more
counterparts, any one of which need not contain the signatures of
more than one Party, but all such counterparts taken together will
constitute one and the same Agreement. This Agreement, to the
extent delivered by means of a facsimile machine or electronic mail
(any such delivery, an “Electronic Delivery”), shall be
treated in all manner and respects as an original agreement or
instrument and shall be considered to have the same binding legal
effect as if it were the original signed version thereof delivered
in person. At the request of any Party hereto, each other Party
hereto shall re-execute original forms hereof and deliver them in
person to all other Parties. No Party hereto shall raise the use of
Electronic Delivery to deliver a signature or the fact that any
signature or agreement or instrument was transmitted or
communicated through the use of Electronic Delivery as a defense to
the formation of a contract, and each such Party forever waives any
such defense, except to the extent such defense related to lack of
authenticity.
9.8 Attorneys’
Fees. In the event any suit or other legal proceeding is
brought for the enforcement of any of the provisions of this
Agreement, the Parties hereto agree that the prevailing Party or
Parties shall be entitled to recover from the other Party or
Parties upon final judgment on the merits reasonable
attorneys’ fees, including attorneys’ fees for any
appeal, and costs incurred in bringing such suit or
proceeding.
9.9 Section
Headings. The headings of Articles and Sections in this
Agreement are provided for convenience only and will not affect its
construction or interpretation. All references to "Article" or
"Articles" or "Section" or "Sections" refer to the corresponding
Article or Articles or Section or Sections of this Agreement,
unless the context indicates otherwise.
9.10 Construction.
The Parties have participated jointly in the negotiation and
construction of this Agreement. Each Party has retained independent
legal counsel to advise on this Agreement. In the event an
ambiguity or question of intent or interpretation arises, this
Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or
disfavoring any Party by virtue of the authorship of any of the
provisions of this Agreement. Any reference to any federal, state,
local, or foreign statute or Law shall be deemed also to refer to
all rules and regulations promulgated thereunder, unless the
context requires otherwise. Unless otherwise expressly provided,
the word "including" shall mean including without limitation. The
Parties intend that each representation, warranty, and covenant
contained herein shall have independent significance. If any Party
has breached any representation, warranty, or covenant contained
herein in any respect, the fact that there exists another
representation, warranty, or covenant relating to the same subject
matter (regardless of the relative levels of specificity) which the
Party has not breached shall not detract from or mitigate the fact
that the Party is in breach of such representation, warranty, or
covenant. All words used in this Agreement will be construed to be
of such gender or number as the circumstances require.
9.11 Counterparts.
This Agreement may be executed in one or more counterparts, each of
which will be deemed to be an original copy of this Agreement and
all of which, when taken together, will be deemed to constitute one
and the same agreement. In the event that any signature is
delivered by facsimile transmission or by e-mail delivery of a
".pdf" format data file, such signature shall create a valid and
binding obligation of the Party executing (or on whose behalf such
signature is executed) with the same force and effect as if such
facsimile or ".pdf" signature page were an original
thereof.
9.12 Specific
Performance. Each of the Parties acknowledges and agrees
that the other Parties would be damaged irreparably in the event
any of the provisions of this Agreement are not performed in
accordance with their specific terms or otherwise are breached.
Accordingly, each of the Parties agrees that the other Parties
shall be entitled to an injunction or injunctions to prevent
breaches of the provisions of this Agreement and to enforce
specifically this Agreement and the terms and provisions hereof in
any action instituted in any court of the U.S. or any state thereof
having jurisdiction over the Parties and the matter, in addition to
any other remedy to which they may be entitled, at law or in
equity, except that in no way may a Party terminating prior to the
Closing Date in accordance with this Agreement be required to close
the Share Exchange.
[Signature
Page Follows, Remainder of Page Intentionally Blank]
IN
WITNESS WHEREOF, the undersigned have caused their duly authorized
officers to execute this Share Exchange Agreement as of the date
first above written.
GoIP:
By:
Xxxxx X. Xxxxxx, CEO
|
TransWorld Enterprises Inc:
By:
Xxxx Xxxxx, Interim CEO
|
Signatures of the Shareholders are contained on the following
member Counterpart Signature Page:
KORR ACQUISITIONS GROUP, INC.
_______________________________
Name:
Xxxxxxx Xxx
Title:
|
KORR VALUE, LP
By:
KORR Acquisitions Group, Inc, its general partner
_______________________________
Name:
Xxxxxxx Xxx
Title:
|
_______________________________
Xxxx
Xxxxxxxx
|
_______________________________
Xxxx
Xxx
|
_______________________________
Xxxxxx
Xxx
|
_______________________________
Xxxxxxxx
Xxx
|
_______________________________
Xxxxxxxx
Xxx
|
_______________________________
Xxxxx
Xxx
|
_______________________________
Xxxx
Xxxxxxxxxx
|
_______________________________
Xxxx
Xxxxx
|
_______________________________
Xxxxxx
Deutsch
|
VIVACE MAXVICTOR LLC
_______________________________
Name:
Title:
|
SCHEDULE I
Shareholder
|
Class
of Shares to be issued
|
Number
of Shares to be issued
|
KORR
Acquisitions Group, Inc.
|
Series
F Preferred Stock
|
1,000,000
|
KORR
Acquisitions Group, Inc.
|
Series
D Preferred Stock
|
666,667
|
KORR
Value, LP
|
Series
D Preferred Stock
|
166,667
|
Xxxx
Xxxxxxxx
|
Series
D Preferred Stock
|
3,333
|
Xxxx
Xxx
|
Series
D Preferred Stock
|
33,333
|
Xxxxxx
Xxx
|
Series
D Preferred Stock
|
16,667
|
Xxxxxxxx
Xxx
|
Series
D Preferred Stock
|
16,667
|
Xxxxxxxx
Xxx
|
Series
D Preferred Stock
|
16,667
|
Xxxxx
Xxx
|
Series
D Preferred Stock
|
16,667
|
Xxxx
Xxxxxxxxxx
|
Series
D Preferred Stock
|
33,333
|
Xxxx
Xxxxx
|
Series
D Preferred Stock
|
16,667
|
Xxxxxx
Deutsch
|
Series
D Preferred Stock
|
6,667
|
Vivace
Maxvictor LLC
|
Series
D Preferred Stock
|
6,667
|