SHARE EXCHANGE AGREEMENT
Exhibit 10.1
SHARE EXCHANGE AGREEMENT,
dated as of December 28, 2009 (the “Agreement”), by and among TITLE STARTS ONLINE , INC.,
a Nevada corporation (“Purchaser”), XXXX XXXXXX (the “Majority
Stockholder”), ADVANCED
MECHANICAL PRODUCTS, INC., an Ohio corporation, (the “Company”), and each
of the shareholders of the Company set forth on the signature page hereof
(collectively, the “Sellers”).
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WITNESSETH
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WHEREAS, the Company is in the
business of designing, selling and delivering modified automobiles with an all
electric drive-train and battery systems;
WHEREAS, the Sellers desire to
sell to Purchaser and the Purchaser desires to purchase from the Sellers, 100%
of the outstanding securities of the Company in exchange for shares of common
stock of the Purchaser and upon the terms and conditions hereinafter set
forth;
WHEREAS, immediately
subsequent to the closing of the Purchaser’s acquisition of the Company, the
Purchaser shall cause the holder of an aggregate of 3,105,000 shares (the
“Control Block”) of common stock (the “Majority Stockholder”) to return the
shares of common stock to the Company in consideration of the transfer of all of
the assets of the Purchaser to the Majority Stockholder;
WHEREAS, certain terms used in
this Agreement are defined in Article 1;
WHEREAS, it is intended that
the Acquisition shall qualify for United States federal income tax purposes as a
reorganization within the meaning of Section 368 of the Internal Revenue Code of
1986, as amended; and
NOW THEREFORE in consideration
of the premises and the mutual covenants, agreements, representations and
warranties contained herein, and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the parties hereto
hereby agree as follows:
ARTICLE
1.
DEFINITIONS
AND INTERPRETATION
1.1 Definitions. As
used in this Agreement, the following terms when capitalized in this Agreement
shall have the following meanings:
(a)
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“Affiliates" shall mean,
with respect to any Person, any and all other Persons that control, are
controlled by, or are under common control with, such Person. For purposes
of the foregoing, "control" of a Person shall mean direct or indirect
ownership of 50% or more of the securities or other interests of such
Person having by their terms ordinary voting power to elect or appoint a
majority of the board of directors or others performing similar functions
with respect to such Person.
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(b)
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“Acquisition” means the
Acquisition, at the Closing, of the Company by Purchaser pursuant to this
Agreement;
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(c)
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“Acquisition Shares”
means the 1,063,636 shares of common stock of the Purchaser to be issued
to the Sellers at Closing pursuant to the terms of the
Acquisition;
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(d)
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"Business Day" shall
mean any day other than Saturday, Sunday and any day on which banking
institutions in the United States are authorized by law or other
governmental action to close;
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(e)
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“Closing Date” means the
day on which all conditions precedent to the completion of the
transactions contemplated hereby have been satisfied or
waived;
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(f)
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"Claim Notice" means
written notification pursuant to Section 9.3 of a Third Party Claim as to
which indemnity under Section 9.1 is sought by an Indemnified
Party.
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(g)
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"Code" means the
Internal Revenue Code of 1986, as amended, and the rules and regulations
promulgated thereunder.
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(h)
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"Contract" shall mean an
agreement, written or oral, between the Company and any other Person which
obligates either the Company or such other Person to do or not to do a
particular thing.
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(i)
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"Election Notice" means
a written notice provided by the Sellers or Purchaser, as the case may be,
in respect of a Tax Claim to the effect that it elects to contest, and to
control the defense or prosecution of, such Tax Claim as provided in this
Agreement.
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(j)
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"ERISA" shall mean the
Employee Retirement Income Security Act of 1974, as
amended.
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(k)
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"ERISA Affiliate" shall
mean any entity that would be deemed to be a "single employer" with the
Company under Section 414(b), (c), (m) or (o) of the Code or Section 4001
of ERISA.
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(l)
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"Environmental
Liabilities" means any cost, damages, expense, liability,
obligation, or other responsibility arising from or under (a) any
Environmental Law and consisting of or relating to (i) any environmental
matters or conditions (including on-site or off-site contamination and
environmental regulation of chemical substances or products); (ii) fines,
penalties, judgments, awards, settlements, legal or administrative
proceedings, out-of-pocket damages and necessary and required response,
investigative, remedial, or inspection costs and expenses arising under
Environmental Law; (iii) financial responsibility under Environmental Law
for clean-up costs or corrective action, including any necessary and
required investigation, clean-up, removal, containment, or other
remediation or response actions required by Environmental Law and for any
natural resource damages; or (iv) any other compliance, corrective,
investigative, or remedial measures required under Environmental Law; or
(b) any common law causes of action, including, but not limited to,
negligence, trespass or nuisance, based on violation by the Company of
Environmental Laws, releases by the Company of Hazardous Materials or
actions or omissions by the Company that expose others to Hazardous
Materials. The terms "removal," "remedial," "response action", and
"release" shall have the meanings provided for such terms under, and shall
include the types of activities covered by, the United States
Comprehensive Environmental Response, Compensation, and Liability Act, 42
U.S.C. Section 9601 et seq., as amended
("CERCLA").
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(m)
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"Environmental Laws"
shall mean all federal, state and local Laws relating to public health, or
to pollution or protection of the environment (including, without
limitation, ambient air, surface water, groundwater, land surface or
subsurface strata) including, without limitation, the Clean Air Act, as
amended, CERCLA, the Resource Conservation and Recovery Act of 1976, as
amended ("RCRA"), the Toxic Substances Control Act, the Federal Water
Pollution Control Act, as amended, the Safe Drinking Water Act, as
amended, the Hazardous Materials Transportation Act, as amended, the Oil
Pollution Act of 1990, any state Laws implementing the foregoing federal
Laws, and all other Laws relating to or regulating (i) emissions,
discharges, releases, or cleanup of pollutants, contaminants, chemicals,
polychlorinated biphenyls (PCB's), oil and gas exploration and production
wastes, brine, solid wastes, or toxic or Hazardous Materials or wastes
(collectively, the "Polluting Substances"), (ii) the generation,
processing, distribution, use, treatment, handling, storage, disposal, or
transportation of Polluting Substances, or (iii) environmental
conservation or protection. References in this Agreement to Environmental
Laws existing or in effect as of a particular date shall include written
administrative interpretations and policies then existing or in
effect.
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(n)
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"Environmental Permit"
means any federal, state, local, provincial, or foreign permits, licenses,
approvals, consent or authorizations required by any Governmental or
Regulatory Authority under or in connection with any Environmental Law and
includes any and all orders, consent orders or binding agreements issued
or entered into by a Governmental or Regulatory Authority under any
applicable Environmental Law.
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(o)
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"Governmental or Regulatory
Authority" shall mean any federal, state, regional, municipal or
local court, legislative, executive, Native American or regulatory
authority or agency, board, commission, department or subdivision
thereof.
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(p)
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"Hazardous Activity"
means the distribution, generation, handling, importing, management,
manufacturing, processing, production, refinement, release, storage,
transfer, transportation, treatment, or use (including any withdrawal or
other use of groundwater) of Hazardous Materials in, on, under, about, or
from the Company’s facilities or any part thereof into the
environment.
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(q)
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"Hazardous Materials"
means (i) any petroleum or petroleum products, radioactive materials,
asbestos in any form that is, or that is likely to become, friable, urea
formaldehyde foam insulation and transformers or other equipment that
contain dielectric fluid containing levels of polychlorinated biphenyls
(PCBs), or (ii) any chemicals, materials, substances or wastes which are
now or hereafter become defined as or included in the definition of
"hazardous substances," "hazardous wastes," "hazardous materials,"
"extremely hazardous wastes," "restricted hazardous wastes," "toxic
substances," "toxic pollutants" or words of similar import, under any
applicable Environmental Law.
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(r)
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"Indemnified Party"
means any Person entitled to indemnification under any provision of
Article 9.
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(s)
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"Indemnifying Party"
means any Person obligated to provide indemnification under any provision
of Article 9.
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(t)
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"Law" shall mean any
federal, state, county, or local laws, statutes, regulations, rules,
codes, ordinances, orders, decrees, judgments or injunctions enacted,
adopted, issued or promulgated by any Governmental or Regulatory
Authority, from time to time.
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(u)
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"Lien" shall mean any
mortgage, deed of trust, pledge, lien, claim, security interest, covenant,
restriction, easement, preemptive right, or any other encumbrance or
charge of any kind.
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(v)
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"Material Contract"
shall have the meaning set forth in Section
4.14.
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(w)
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“Material Adverse
Effect” shall mean any material adverse effect on the business or
financial condition of the Company;
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(x)
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“Order” shall mean
any writ, judgment, decree, injunction or similar order of any
Governmental or Regulatory Authority (in each such case whether
preliminary or final).
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(y)
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“Place of Closing” means
the offices of the Law Offices of Xxxxxxx X. Xxxxxxx, or such
other place as Purchaser and the Sellers may mutually agree
upon;
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(z)
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"Permitted Lien" shall
mean: (a) liens created under any Lease, except any lien arising as a
result of any failure to timely make any payment or failure to perform any
other obligation or other default under such Lease; (b) liens for Taxes
that are not yet due and payable or that are being contested in good faith
by appropriate proceedings; (c) mechanics, materialmen's, landlords',
carriers', warehousemen's, and other liens imposed by law incurred in the
ordinary course of business; (d) zoning restrictions, land use
regulations, declarations, reservations, provisions, covenants,
conditions, waivers, restrictions on the use of property and third party
easements, rights of way, leases or similar matters that are recorded in
the county records where the effected property is located and do not
prohibit the use of the property as currently used; (e) the absence of
executed rights of way or easements, or a defect in any executed right of
way or easement, where such rights have been or can be otherwise obtained
through a proceeding under prescription or other operation of law; (f)
deposits or pledges to secure obligations under worker's compensation,
social security or similar laws, or under unemployment insurance; (g)
deposits or pledges to secure bids, tenders, contracts (other than
contracts for the payment of money), leases, statutory obligations, surety
and appeal bonds, performance bonds and other obligations of like nature
arising in the ordinary course of the Company's business and made, created
or arising prior to the Closing Date; (h) leases or subleases granted by
or to others; and (i) precautionary Uniform Commercial Code financing
statements regarding operating leases which leases are either disclosed
pursuant to Article 3 hereof or no longer in
effect.
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(aa)
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"Person" shall mean an
individual, partnership, joint venture, trust, corporation, limited
liability company or other legal entity or Governmental or Regulatory
Authority.
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(bb)
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“Post-Closing Period”
means any taxable period or portion thereof beginning after the Closing
Date. If a taxable period begins on or before the Closing Date and ends
after the Closing Date, then the portion of the taxable period that begins
on the day following the Closing Date shall constitute a Post-Closing
Period.
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(cc)
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"Pre-Closing Period"
means any taxable period or portion thereof that is not a Post-Closing
Period.
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(dd)
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“Purchaser Material Adverse
Effect” shall mean any material adverse effect on the business or
financial condition of the
Purchaser;
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(ee)
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“Remedial Action” shall
mean any removal,
remediation, response, clean up or other corrective action to respond to,
remove or otherwise address any Environmental
Liability.
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(ff)
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“Shares” means all of the
issued and outstanding shares of common stock of the Company as defined in
Section 3.3.
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(gg)
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"Taxes" shall mean any
and all taxes, charges, fees, levies or other assessments, including,
without limitation, all net income, gross income, gross receipts, excise,
stamp, real or personal property, ad valorem, withholding, estimated,
social security, unemployment, occupation, use, sales, service, service
use, license, net worth, payroll, franchise, severance, transfer,
recording or other taxes, assessments or charges imposed by any
Governmental or Regulatory Authority, whether computed on a separate,
consolidated, unitary, combined or other basis, and in each case such term
shall include any interest, penalties, or additions to tax attributable
thereto.
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(hh)
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"Tax Return" shall mean
any return, report or similar statement required to be filed with respect
to any Tax (including any attached schedules), including, without
limitation, any information return, claim for refund, amended return or
declaration of estimated Tax and including any return of an affiliated,
combined or unitary group.
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Any other
terms defined within the text of this Agreement will have the meanings so
ascribed to them.
1.2 Captions and Section
Numbers. The headings and section references in this Agreement
are for convenience of reference only and do not form a part of this Agreement
and are not intended to interpret, define or limit the scope, extent or intent
of this Agreement or any provision thereof.
1.3 Section References and
Schedules. Any reference to a particular “Article”, “Section”,
“paragraph”, “clause” or other subdivision is to the particular Article,
section, clause or other subdivision of this Agreement and any reference to a
Schedule by number will mean the appropriate Schedule attached to this Agreement
and by such reference the appropriate Schedule is incorporated into and made
part of this Agreement.
1.4 Severability of
Clauses. If any part of this Agreement is declared or held to
be invalid for any reason, such invalidity will not affect the validity of the
remainder which will continue in full force and effect and be construed as if
this Agreement had been executed without the invalid portion, and it is hereby
declared the intention of the parties that this Agreement would have been
executed without reference to any portion which may, for any reason, be
hereafter declared or held to be invalid.
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ARTICLE
2.
THE
ACQUISITION
2.1 The
Acquisition. Subject to the terms and conditions set forth in
this Agreement and in reliance on the representations, warranties, covenants and
conditions herein contained, the Sellers hereby agree to sell, assign and
deliver to Purchaser the Shares in exchange for the Acquisition Shares on the
Closing Date and to transfer to Purchaser on the Closing Date a 100% undivided
interest in and to the Shares free from all liens, mortgages, charges, pledges,
encumbrances or other burdens (other than those that may arise under federal or
state securities laws restricting the right to sell or transfer the Shares) with
all rights now or thereafter attached thereto.
2.2 Purchase Price;
Allocation. The purchase price for the purchase of the Shares
shall be the Acquisition Shares allocated on the basis of 129.75918 Acquisition
Share for each one Share held by Sellers in accordance with Exhibit A attached
hereto.
2.3 Adherence with Applicable
Securities Laws. Each of the Sellers agrees that he is
acquiring the Acquisition Shares for investment purposes and will not offer,
sell or otherwise transfer, pledge or hypothecate any of the Acquisition Shares
issued to him (other than pursuant to an effective Registration Statement under
the Securities Act of 1933, as amended (the “Securities Act”) directly or
indirectly unless:
(a)
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the
sale is to Purchaser;
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(b)
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the
sale is made pursuant to the exemption from registration under the
Securities Act,
provided by Rule 144 thereunder; or
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(c)
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the
Acquisition Shares are sold in a transaction that does not require
registration under the Securities Act or any applicable United States
state laws and regulations governing the offer and sale of securities, and
the vendor has furnished to Purchaser an opinion of counsel to that effect
or such other written opinion as may be reasonably required by
Purchaser.
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The
Sellers acknowledge that the certificates representing the Acquisition Shares
shall bear the following legend:
THESE
SECURITIES HAVE NOT BEEN REGISTERED
UNDER
THE SECURITIES ACT OF 1933. THEY MAY NOT
BE
SOLD, OFFERED FOR SALE, PLEDGED,
HYPOTHECATED
OR OTHERWISE TRANSFERRED IN
THE
ABSENCE OF A REGISTRATION STATEMENT WITH
RESPECT
TO THE SECURITIES UNDER SUCH ACT AND
THE
OPINION OF COUNSEL REASONABLY
SATISFACTORY
TO THE COMPANY THAT SUCH
REGISTRATION
IS NOT REQUIRED OR UNLESS SOLD
PURSUANT
TO RULE 144 OR RULE 144A OF
SUCH
ACT.
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2.4 Closing. The
parties hereto shall use their best efforts to close the transactions
contemplated by this Agreement (the “Closing”), by December 28,
2009.
ARTICLE
3.
REPESENTATIONS
AND WARRANTIES OF THE COMPANY AND THE AMP MAJORITY STOCKHOLDER
The
Company and Xxxxxxx Xxxxx(the “AMP Majority Stockholder”) hereby jointly and
severally represent and warrant to Purchaser, that:
3.1 Organization, Standing and
Power. The Company is a corporation duly organized, validly existing and
in good standing under the laws of the State of Ohio, with full corporate power
and corporate authority to (i) own, lease and operate its properties, (ii) carry
on the business as currently conducted by it. There are no states or
jurisdictions in which the character and location of any of the properties owned
or leased by the Company, or the conduct of the Company’s business makes it
necessary for the Company to qualify to do business as a foreign corporation,
except for those jurisdictions in which the failure to so qualify would not have
a Material Adverse Effect on the business or operations of the
Company.
3.2 Authorization of
Agreement. Each Seller has all requisite power, authority and
legal capacity to execute and deliver this Agreement, and each other agreement,
document, or instrument or certificate contemplated by this Agreement or to be
executed by such Seller in connection with the consummation of the transactions
contemplated by this Agreement (together with this Agreement, the “Seller
Documents”), and to consummate the transactions contemplated hereby and
thereby. This Agreement has been, and each of the Seller Documents
will be at or prior to the Closing, duly and validly executed and delivered by
each Seller and (assuming the due authorization, execution and delivery by the
other parties hereto and thereto) this Agreement constitutes, and each of the
Seller Documents when so executed and delivered will constitute, legal, valid
and binding obligations of each Seller, enforceable against each Seller in
accordance with their respective terms, subject to applicable bankruptcy,
insolvency, reorganization, moratorium and similar laws affecting creditors'
rights and remedies generally, and subject, as to enforceability, to general
principles of equity, including principles of commercial reasonableness, good
faith and fair dealing (regardless of whether enforcement is sought in a
proceeding at law or in equity).
3.3 Capitalization. The
authorized capital stock of the Company consists of 10,000 shares of common
stock, no par value, 8,197 shares of which are issued and outstanding (the
“Shares”). All of the Shares are duly authorized, validly issued, fully paid and
nonassessable. There are no options, warrants or other rights,
agreements, arrangements or commitments of any character relating to the issued
or unissued capital stock of the Company or obligating the Company to issue or
sell any shares of capital stock of or other equity interests in the Company.
There is no personal liability, and there are no preemptive rights with regard
to the capital stock of the Company, and no right-of-first refusal or similar
catch-up rights with regard to such capital stock. Except for the transactions
contemplated by this Agreement, there are no outstanding contractual obligations
or other commitments or arrangements of the Company to (A) repurchase, redeem or
otherwise acquire any shares of the shares of the Company (or any interest
therein) or (B) to provide funds to or make any investment (in the form of a
loan, capital contribution or otherwise) in any other entity, or (C) issue or
distribute to any person any capital stock of the Company, or (D) issue or
distribute to holders of any of the capital stock of the Company any evidences
of indebtedness or assets of the Company. All of the outstanding securities of
the Company have been issued and sold by the Company in full compliance in all
material respects with applicable federal and state securities
laws.
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3.4 Corporate
Records.
(a)
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The
Majority Stokholder and the Company have delivered to the Purchaser true,
correct and complete copies of the certificate of incorporation (certified
by the Secretary of State or other appropriate official of the applicable
jurisdiction of organization) and by-laws (certified by the secretary,
assistant secretary or other appropriate officer) or comparable
organizational documents of the
Company.
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(b)
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The
minute books of the Company previously made available to the Purchaser
contain complete and accurate records of all meetings and accurately
reflect all other corporate action of the stockholders and board of
directors (including committees thereof) of the Company. The
stock certificate books and stock transfer ledgers of the Company
previously made available to the Purchaser are true, correct and
complete. All stock transfer taxes levied or payable with
respect to all transfers of shares of the Company prior to the date hereof
have been paid and appropriate transfer tax stamps
affixed.
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3.5 Conflicts; Consents of Third
Parties.
(a)
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None
of the execution and delivery by the Company or any Seller of this
Agreement and the Seller Documents, the consummation of the transactions
contemplated hereby or thereby, or compliance by the Company or any Seller
with any of the provisions hereof or thereof will (i) conflict with, or
result in the breach of, any provision of the articles of incorporation or
by-laws or comparable organizational documents of the Company; (ii)
conflict with, violate, result in the breach or termination of, or
constitute a default under any note, bond, mortgage, indenture, license,
agreement or other instrument or obligation to which the Company is a
party or by which any of them or any of their respective properties or
assets is bound; (iii) violate any statute, rule, regulation, order or
decree of any governmental body or authority by which the Company is
bound; or (iv) result in the creation of any Lien upon the properties or
assets of the Company or any subsidiary of the Company except, in case of
clauses (ii), (iii) and (iv), for such violations, breaches or defaults as
would not, individually or in the aggregate, have a Material Adverse
Effect.
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(b)
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No
consent, waiver, approval, Order, permit or authorization of, or
declaration or filing with, or notification to, any Person or Governmental
or Regulatory Authority is required on the
part of any Seller, the Company in connection with the execution and
delivery of this Agreement or the Seller Documents, or the compliance by
each Seller or the Company as the case may be, with any of the provisions
hereof or thereof.
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ARTICLE
3A
REPESENTATIONS
AND WARRANTIES OF THE SELLERS
Each
Seller, on his onw behalf only, represents and warrants to Purchaser,
that:
3A.1 Ownership and Transfer of
Shares. Each Seller is the record and beneficial owner of the
Shares indicated as being owned by such Seller on Exhibit A, free and clear of
any and all Liens. Each Seller has the power and authority to sell,
transfer, assign and deliver such Shares as provided in this Agreement, and such
delivery will convey to the Purchaser good and marketable title to such Shares,
free and clear of any and all Liens.
3A.2 Investors. Each
of the Sellers represents and warrants to Purchaser that he or she is an
“accredited investor” as such term is defined under the Securities Act of 1933,
as amended.
ARTICLE
4.
REPRESENTATIONS
AND WARRANTIES OF PURCHASER AND MAJORITY STOCKHOLDER
Purchaser and the Majority Stockholder
hereby jointly and severally represent and warrant to the Company and the
Sellers, that:
4.1 Organization and Good
Standing.
The
Purchaser is a corporation duly organized, validly existing and in good standing
under the laws of the State of Nevada, with full corporate power and
corporate authority to (i) own, lease and operate its properties, (ii) carry on
the business as currently conducted by it. There are no states or jurisdictions
in which the character and location of any of the properties owned or leased by
the Purchaser, or the conduct of the Purchaser’s business makes it necessary for
the Purchaser to qualify to do business as a foreign corporation, except for
those jurisdictions in which the failure to so qualify would not have a Material
Adverse Effect on the business or operations of the Purchaser.
4.2 Authorization of
Agreement.
The
Purchaser has full corporate power and authority to execute and deliver this
Agreement and each other agreement, document, instrument or certificate
contemplated by this Agreement or to be executed by the Purchaser in connection
with the consummation of the transactions contemplated hereby and thereby (the
"Purchaser Documents"), and to consummate the transactions contemplated hereby
and thereby. The execution, delivery and performance by the Purchaser
of this Agreement and each Purchaser Document have been duly authorized by all
necessary corporate action on behalf of the Purchaser. This Agreement
has been, and each Purchaser Document will be at or prior to the Closing, duly
executed and delivered by the Purchaser and (assuming the due authorization,
execution and delivery by the other parties hereto and thereto) this Agreement
constitutes, and each Purchaser Document when so executed and delivered will
constitute, legal, valid and binding obligations of the Purchaser, enforceable
against the Purchaser in accordance with their respective terms, subject to
applicable bankruptcy, insolvency, reorganization, moratorium and similar laws
affecting creditors' rights and remedies generally, and subject, as to
enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).
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4.3 Capitalization.
The authorized capital stock of the
Purchaser consists of: 425,000,000 shares of common stock, $0.001 par
value per share, 3,300,000 shares of which are issued and
outstanding, and 75,000,000 shares of preferred stock, $0.001 par
value per share, none of which are issued and outstanding. All of the shares of
the Purchaser are duly authorized, validly issued, fully paid and nonassessable.
Schedule 4.3
sets forth a true and complete list of the holders of all outstanding shares of
the Purchaser as of the date of this Agreement. There are no options, warrants
or other rights, agreements, arrangements or commitments of any character
relating to the issued or unissued capital stock of the Purchaser or obligating
the Purchaser to issue or sell any shares of capital stock of or other equity
interests in the Purchaser. There is no personal liability, and there are no
preemptive rights with regard to the capital stock of the Purchaser, and no
right-of-first refusal or similar catch-up rights with regard to such capital
stock. There are no outstanding contractual obligations or other
commitments or arrangements of the Purchaser to (A) repurchase, redeem or
otherwise acquire any shares of the Shares (or any interest therein) or (B) to
provide funds to or make any investment (in the form of a loan, capital
contribution or otherwise) in any other entity, or (C) issue or distribute to
any person any capital stock of the Purchaser, or (D) issue or distribute to
holders of any of the capital stock of the Purchaser any evidences of
indebtedness or assets of the Purchaser. All of the outstanding securities of
the Purchaser have been issued and sold by the Purchaser in full compliance in
all material respects with applicable federal and state securities
laws.
4.4 Subsidiaries. Except
for Title Starts Online, LLC, a Missouri limited liability company, Purchaser
has no subsidiaries.
4.5 Corporate
Records.
(a)
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The
Purchaser has delivered to the Company true, correct and complete copies
of the articles of incorporation (each certified by the Secretary of State
or other appropriate official of the applicable jurisdiction of
organization) and by-laws (each certified by the secretary, assistant
secretary or other appropriate officer) or comparable organizational
documents of the Purchaser.
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(b)
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The
minute books of the Purchaser previously made available to the Sellers
contain complete and accurate records of all meetings and accurately
reflect all other corporate action of the stockholders and board of
directors (including committees thereof) of the Purchaser to the best of
the Purchaser’s knowledge. The stock certificate books and
stock transfer ledgers of the Purchaser previously made available to the
Sellers are true, correct and complete. All stock transfer
taxes levied or payable with respect to all transfers of shares of the
Purchaser prior to the date hereof have been paid and appropriate transfer
tax stamps affixed to the best of the Purchaser’s
knowledge.
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4.6 Conflicts; Consents of Third
Parties.
(a)
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None
of the execution and delivery by Purchaser of this Agreement and the
Purchaser Documents, the consummation of the transactions contemplated
hereby or thereby, or compliance by Purchaser with any of the provisions
hereof or thereof will (i) conflict with, or result in the breach of, any
provision of the articles of incorporation or by-laws or comparable
organizational documents of the Purchaser; (ii) conflict with, violate,
result in the breach or termination of, or constitute a default under any
note, bond, mortgage, indenture, license, agreement or other instrument or
obligation to which the Purchaser is a party or by which any of them or
any of their respective properties or assets is bound; (iii) violate any
statute, rule, regulation, order or decree of any governmental body or
authority by which the Purchaser is bound; or (iv) result in the creation
of any Lien upon the properties or assets of the Purchaser except, in case
of clauses (ii), (iii) and (iv), for such violations, breaches or defaults
as would not, individually or in the aggregate, have a Material Adverse
Effect.
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(b)
|
No
consent, waiver, approval, Order, permit or authorization of, or
declaration or filing with, or notification to, any Person or Governmental
or Regulatory Authority is required on the
part of Purchaser in connection with the execution and delivery of this
Agreement or the Purchaser Documents, or the compliance by Purchaser with
any of the provisions hereof or thereof, other than the filing of a
Current Report on Form 8-K, a Schedule 14f-1 and any applicable Schedule
13D amendments and Forms 4.
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4.7 Financial
Statements.
(a)
|
The
Sellers have reviewed copies of the audited balance sheets of the
Purchaser as at December 31, 2008 and 2007 and the related audited
statements of income and of cash flows of the Purchaser for the years then
ended and the copies of the unaudited balance sheets of the Purchaser as
at September 30, 2009 and the related unaudited statements of income and
of cash flows of the Purchaser for the years then ended (the “Financial
Statements”). Each of the Financial Statements is complete and
correct in all material respects, has been prepared in accordance with
GAAP (subject to normal year-end adjustments in the case of the unaudited
statements) and in conformity with the practices consistently applied by
the Purchaser without modification of the accounting principles used in
the preparation thereof and presents fairly the financial position,
results of operations and cash flows of the Purchaser as at the dates and
for the periods indicated.
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(b)
|
For
the purposes hereof, the audited balance sheet of the Purchaser as at
December 31, 2008 is referred to as the "Balance Sheet" and December 31,
2008 is referred to as the “Balance Sheet
Date”.
|
4.8 No Undisclosed
Liabilities. Purchaser has no indebtedness, obligations or
liabilities of any kind (whether accrued, absolute, contingent or otherwise, and
whether due or to become due) that would have been required to be reflected in,
reserved against or otherwise described on the Balance Sheet or in the notes
thereto in accordance with GAAP which was not fully reflected in, reserved
against or otherwise described in the Balance Sheet or the notes thereto or was
not incurred in the ordinary course of business consistent with past practice
since the Balance Sheet Date.
11
4.9 Absence of Certain
Developments. Except as expressly contemplated by this
Agreement, since the Balance Sheet Date:
(i)
|
there
has not been any material adverse change nor has there occurred any event
which is reasonably likely to result in a material adverse
change;
|
(ii)
|
there
has not been any damage, destruction or loss, whether or not covered by
insurance, with respect to the property and assets of the Purchaser having
a replacement cost of more than $25,000 for any single loss or $100,000
for all such losses;
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(iii)
|
there
has not been any declaration, setting aside or payment of any dividend or
other distribution in respect of any shares of capital stock of the
Purchaser or any repurchase, redemption or other acquisition by the
Purchaser of any outstanding shares of capital stock or other securities
of, or other ownership interest in, the
Purchaser;
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(iv)
|
the
Purchaser has not awarded or paid any bonuses to employees of the
Purchaser except to the extent accrued on the Balance Sheet or entered
into any employment, deferred compensation, severance or similar agreement
(nor amended any such agreement) or agreed to increase the compensation
payable or to become payable by it to any of the Purchaser's directors,
officers, employees, agents or representatives or agreed to increase the
coverage or benefits available under any severance pay, termination pay,
vacation pay, company awards, salary continuation for disability, sick
leave, deferred compensation, bonus or other incentive compensation,
insurance, pension or other employee benefit plan, payment or arrangement
made to, for or with such directors, officers, employees, agents or
representatives (other than normal increases in the ordinary course of
business consistent with past practice and that in the aggregate have not
resulted in a material increase in the benefits or compensation expense of
the Purchaser);
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(v)
|
there
has not been any change by the Purchaser in accounting or Tax reporting
principles, methods or policies;
|
(vi)
|
the
Purchaser has not entered into any transaction or Contract or conducted
its business other than in the ordinary course consistent with past
practice;
|
(vii)
|
the
Purchaser has not made any loans, advances or capital contributions to, or
investments in, any Person or paid any fees or expenses to any Seller or
any Affiliate of any Seller;
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(viii)
|
the
Purchaser has not mortgaged, pledged or subjected to any Lien, any of its
assets, or acquired any assets or sold, assigned, transferred, conveyed,
leased or otherwise disposed of any assets of the Purchaser, except for
assets acquired or sold, assigned, transferred, conveyed, leased or
otherwise disposed of in the ordinary course of business consistent with
past practice;
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12
(ix)
|
the
Purchaser has not discharged or satisfied any Lien, or paid any obligation
or liability (fixed or contingent), except in the ordinary course of
business consistent with past practice and which, in the aggregate, would
not be material to the Purchaser;
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(x)
|
the
Purchaser has not canceled or compromised any debt or claim or amended,
canceled, terminated, relinquished, waived or released any Contract or
right except in the ordinary course of business consistent with past
practice and which, in the aggregate, would not be material to the
Purchaser;
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(xi)
|
the
Purchaser has not made or committed to make any capital expenditures or
capital additions or betterments in excess of $25,000 individually or
$100,000 in the aggregate;
|
(xii)
|
the
Purchaser has not instituted or settled any material legal proceeding;
and
|
(xiii)
|
the
Purchaser has not agreed to do anything set forth in this Section
4.9.
|
4.10 Taxes.
(a)
|
(A)
all Tax Returns required to be filed by or on behalf of the Purchaser have
been filed with the appropriate taxing authorities in all jurisdictions in
which such Tax Returns are required to be filed (after giving effect to
any valid extensions of time in which to make such filings), and all such
Tax Returns were true, complete and correct in all material respects; (B)
all Taxes payable by or on behalf of the Purchaser or in respect of its
income, assets or operations have been fully and timely paid, and (C) the
Purchaser has not executed or filed with the IRS or any other taxing
authority any agreement, waiver or other document or arrangement extending
or having the effect of extending the period for assessment or collection
of Taxes (including, but not limited to, any applicable statute of
limitation), and no power of attorney with respect to any Tax matter is
currently in force.
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(b)
|
The
Purchaser has complied in all material respects with all applicable laws,
rules and regulations relating to the payment and withholding of Taxes and
has duly and timely withheld from employee salaries, wages and other
compensation and has paid over to the appropriate taxing authorities all
amounts required to be so withheld and paid over for all periods under all
applicable laws.
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(c)
|
The
Sellers have received complete copies of (A) all federal, state, local and
foreign income or franchise Tax Returns of the Purchaser relating to the
taxable periods since 2004 and (B) any audit report issued within the last
three years relating to Taxes due from or with respect to the Purchaser
its income, assets or operations.
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(d)
|
All
material types of Taxes paid and material types of Tax Returns filed by or
on behalf of the Purchaser have been paid and filed. No claim
has been made by a taxing authority in a jurisdiction where the Purchaser
does not file Tax Returns such that it is or may be subject to taxation by
that jurisdiction.
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(e)
|
All
deficiencies asserted or assessments made as a result of any examinations
by the IRS or any other taxing authority of the Tax Returns of or covering
or including the Purchaser have been fully paid, and there are no other
audits or investigations by any taxing authority in progress, nor have the
Sellers or the Purchaser received any notice from any taxing authority
that it intends to conduct such an audit or investigation. No
issue has been raised by a federal, state, local or foreign taxing
authority in any current or prior examination which, by application of the
same or similar principles, could reasonably be expected to result in a
proposed deficiency for any subsequent taxable
period.
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13
(f)
|
Neither
the Purchaser nor any other Person (including any of the Sellers) on
behalf of the Purchaser has (A) filed a consent pursuant to Section 341(f)
of the Code or agreed to have Section 341(f)(2) of the Code apply to any
disposition of a subsection (f) asset (as such term is defined in Section
341(f)(4) of the Code) owned by the Purchaser, (B) agreed to or is
required to make any adjustments pursuant to Section 481(a) of the Code or
any similar provision of state, local or foreign law by reason of a change
in accounting method initiated by the Purchaser or has any knowledge that
the Internal Revenue Service has proposed any such adjustment or change in
accounting method, or has any application pending with any taxing
authority requesting permission for any changes in accounting methods that
relate to the business or operations of the Purchaser, (C) executed or
entered into a closing agreement pursuant to Section 7121 of the Code or
any predecessor provision thereof or any similar provision of state, local
or foreign law with respect to the Purchaser, or (D) requested any
extension of time within which to file any Tax Return, which Tax Return
has since not been filed.
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(g)
|
No
property owned by the Purchaser is (i) property required to be treated as
being owned by another Person pursuant to the provisions of Section
168(f)(8) of the Internal Revenue Code of 1954, as amended and in effect
immediately prior to the enactment of the Tax Reform Act of 1986, (ii)
constitutes "tax-exempt use property" within the meaning of Section
168(h)(1) of the Code or (iii) is "tax-exempt bond financed property"
within the meaning of Section 168(g) of the
Code.
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(h)
|
The
Purchaser is not a foreign person within the meaning of Section 1445 of
the Code.
|
(i)
|
The
Purchaser is not a party to any tax sharing or similar agreement or
arrangement (whether or not written) pursuant to which it will have any
obligation to make any payments after the
Closing.
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(j)
|
There
is no contract, agreement, plan or arrangement covering any person that,
individually or collectively, could give rise to the payment of any amount
that would not be deductible by the Company, its Affiliates or their
respective affiliates by reason of Section 280G of the Code, or would
constitute compensation in excess of the limitation set forth in Section
162(m) of the Code.
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(k)
|
The
Purchaser is not subject to any private letter ruling of the IRS or
comparable rulings of other taxing
authorities.
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(l)
|
Except
as set forth on Schedule 4.10, there are no liens as a result of any
unpaid Taxes upon any of the assets of the
Purchaser.
|
(m)
|
The
Purchaser has no elections in effect for federal income tax purposes under
Sections 108, 168, 338, 441, 463, 472, 1017, 1033 or 4977 of the
code.
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4.11 Real
Property. The Purchaser does not own any real
property.
4.12 Tangible Personal
Property. The Purchaser does not own or lease any personal
property
14
4.13 Intangible
Property. The Purchaser does not own any patent, trademark,
trade name, service xxxx or copyright
4.14 Material
Contracts.
Schedule 4.14 sets forth all
of the following Contracts to which the Purchaser is a party or by which it is
bound (collectively, the "Material Contracts"): (i) Contracts with
any the Seller or any current officer or director of the Purchaser; (ii)
Contracts with any labor union or association representing any employee of the
Purchaser; (iii) Contracts pursuant to which any party is required to purchase
or sell a stated portion of its requirements or output from or to another party;
(iv) Contracts for the sale of any of the assets of the Purchaser other than in
the ordinary course of business or for the grant to any person of any
preferential rights to purchase any of its assets; (v) joint venture agreements;
(vi) Material Contracts containing covenants of the Purchaser not to compete in
any line of business or with any person in any geographical area or covenants of
any other person not to compete with the Purchaser in any line of business or in
any geographical area; (vii) Contracts relating to the acquisition by the
Purchaser of any operating business or the capital stock of any other person;
(viii) Contracts relating to the borrowing of money; or (ix) any other
Contracts, other than Real Property Leases, which involve the expenditure of
more than $100,000 in the aggregate or $25,000 annually or require performance
by any party more than one year from the date hereof. There have been
made available to the Sellers and their representatives true and complete copies
of all of the Material Contracts. Except as set forth on Schedule 4.14, all of the
Material Contracts and other agreements are in full force and effect and are the
legal, valid and binding obligation of the Purchaser, enforceable against them
in accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors' rights and
remedies generally and subject, as to enforceability, to general principles of
equity (regardless of whether enforcement is sought in a proceeding at law or in
equity). Except as set forth on Schedule 4.14, the Purchaser
is not in default in any material respect under any Material Contracts, nor, to
the knowledge of Purchaser, is any other party to any Material Contract in
default thereunder in any material respect.
4.15 Employee
Benefits.
The
Purchaser has not entered into any (i) "employee benefit plans", as defined in
Section 3(3) ERISA, and any other pension plans or employee benefit
arrangements, programs or payroll practices (including, without limitation,
severance pay, vacation pay, company awards, salary continuation for disability,
sick leave, retirement, deferred compensation, bonus or other incentive
compensation, stock purchase arrangements or policies, hospitalization, medical
insurance, life insurance and scholarship programs) maintained by the Purchaser
or to which the Purchaser contributes or is obligated to contribute thereunder
with respect to employees of the Purchaser ("Employee Benefit Plans") and (ii)
"employee pension plans", as defined in Section 3(2) of ERISA, maintained by the
Purchaser or any trade or business (whether or not incorporated) which are under
control, or which are treated as a single employer, with Purchaser as an ERISA
Affiliate or to which the Purchaser or any ERISA Affiliate contributed or is
obligated to contribute thereunder ("Pension Plans").
15
4.16 Labor.
(a)
|
The
Purchaser is not a party to any labor or collective bargaining agreement
and there are no labor or collective bargaining agreements which pertain
to employees of the Purchaser.
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(b)
|
No
employees of the Purchaser are represented by any labor
organization. No labor organization or group of employees of
the Purchaser has made a pending demand for recognition, and there are no
representation proceedings or petitions seeking a representation
proceeding presently pending or, to the best knowledge of the Purchaser,
threatened to be brought or filed, with the National Labor Relations Board
or other labor relations tribunal. There is no organizing
activity involving the Purchaser pending or, to the best knowledge of the
Purchaser, threatened by any labor organization or group of employees of
the Purchaser.
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(c)
|
There
are no (i) strikes, work stoppages, slowdowns, lockouts or arbitrations or
(ii) material grievances or other labor disputes pending or, to the best
knowledge of any Purchaser, threatened against or involving the
Purchaser. There are no unfair labor practice charges,
grievances or complaints pending or, to the best knowledge of Purchaser,
threatened by or on behalf of any employee or group of employees of the
Purchaser.
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4.17 Litigation.
There is
no suit, action, proceeding, investigation, claim or order pending or, to the
knowledge of the Purchaser, overtly threatened against the Purchaser (or to the
knowledge of the Purchaser, pending or threatened, against any of the officers,
directors or key employees of the Purchaser with respect to their business
activities on behalf of the Purchaser), or to which the Purchaser is otherwise a
party, which, if adversely determined, would have a Material Adverse Effect,
before any court, or before any governmental department, commission, board,
agency, or instrumentality; nor to the knowledge of the Purchaser is there any
reasonable basis for any such action, proceeding, or
investigation. The Purchaser is not subject to any judgment, order or
decree of any court or governmental agency except to the extent the same are not
reasonably likely to have a Material Adverse Effect and the Purchaser is not
engaged in any legal action to recover monies due it or for damages sustained by
it.
4.18 Compliance with Laws;
Permits. The Purchaser is in compliance with all Laws applicable to the
Purchaser or to the conduct of the business or operations of the Purchaser or
the use of its properties (including any leased properties) and assets, except
for such non-compliances as would not, individually or in the aggregate, have a
Material Adverse Effect. The Purchaser has all governmental permits
and approvals from state, federal or local authorities which are required for
the Purchaser to operate its business, except for those the absence of which
would not, individually or in the aggregate, have a Material Adverse
Effect.
4.19 Environmental
Matters.
(a)
|
the
operations of the Purchaser are in compliance with all applicable
Environmental Laws and all Environmental
Permits;
|
(b)
|
the
Purchaser has obtained all permits required under all applicable
Environmental Laws necessary to operate its
business;
|
16
(c)
|
the
Purchaser is not the subject of any outstanding written order or Contract
with any Governmental or Regulatory Authority or Person respecting (i)
Environmental Laws, (ii) Remedial Action, (iii) any release or threatened
release of a Hazardous Material or (iv) any Hazardous
Activity;
|
(d)
|
the
Purchaser has not received any written communication alleging that the
Purchaser may be in violation of any Environmental Law, or any
Environmental Permit, or may have any liability under any Environmental
Law;
|
(e)
|
the
Purchaser has no current contingent liability in connection with any
Hazardous Activity or release of any Hazardous Materials into the indoor
or outdoor environment (whether on-site or
off-site);
|
(f)
|
to
the Purchaser’s knowledge, there are no investigations of the business,
operations, or currently or previously owned, operated or leased property
of the Purchaser pending or threatened which could lead to the imposition
of any liability pursuant to Environmental
Law;
|
(g)
|
there
is not located at any of the properties of the Purchaser any (i)
underground storage tanks, (ii) asbestos-containing material or (iii)
equipment containing polychlorinated biphenyls;
and,
|
(h)
|
the
Purchaser has provided to the Sellers all environmentally related audits,
studies, reports, analyses, and results of investigations that have been
performed with respect to the currently or previously owned, leased or
operated properties of the
Purchaser.
|
4.20 Insurance. The
Purchaser does not carry any insurance of
any kind or nature.
4.21 Inventories; Receivables;
Payables.
(a)
|
The
inventories of the Purchaser are in good and marketable condition, and are
saleable in the ordinary course of business. Adequate reserves
have been reflected in the Balance Sheet for obsolete or otherwise
unusable inventory, which reserves were calculated in a manner consistent
with past practice and in accordance with GAAP consistently
applied.
|
(b)
|
All
accounts receivable of the Purchaser have arisen from bona fide
transactions in the ordinary course of business consistent with past
practice. All accounts receivable of the Purchaser reflected on
the Balance Sheet are good and collectible at the aggregate recorded
amounts thereof, net of any applicable reserve for returns or doubtful
accounts reflected thereon, which reserves are adequate and were
calculated in a manner consistent with past practice and in accordance
with GAAP consistently applied. All accounts receivable arising
after the Balance Sheet Date are good and collectible at the aggregate
recorded amounts thereof, net of any applicable reserve for returns or
doubtful accounts, which reserves are adequate and were calculated in a
manner consistent with past practice and in accordance with GAAP
consistently applied.
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(c)
|
All
accounts payable of the Purchaser reflected in the Balance Sheet or
arising after the date thereof are the result of bona fide transactions in
the ordinary course of business and have been paid or are not yet due and
payable.
|
17
4.22 Related Party
Transactions. Neither the Purchaser nor any Affiliates of
Purchaser has borrowed any moneys from or has outstanding any indebtedness or
other similar obligations to the Purchaser. Neither the Purchaser,
any Affiliate of the Purchaser nor any officer or employee of any of them (i)
owns any direct or indirect interest of any kind in, or controls or is a
director, officer, employee or partner of, or consultant to, or lender to or
borrower from or has the right to participate in the profits of, any Person
which is (A) a competitor, supplier, customer, landlord, tenant, creditor or
debtor of the Purchaser, (B) engaged in a business related to the business of
the Purchaser, or (C) a participant in any transaction to which the Purchaser is
a party or (ii) is a party to any Contract with the Purchaser.
4.23 No
Misrepresentation. No representation or warranty of Purchaser
contained in this Agreement or in any schedule hereto or in any certificate or
other instrument furnished by the Purchaser to Sellers pursuant to the terms
hereof, contains any untrue statement of a material fact or omits to state a
material fact necessary to make the statements contained herein or therein not
misleading.
4.24 Financial
Advisors. No Person has acted, directly or indirectly, as a
broker or finder for the Purchaser in connection with the transactions
contemplated by this Agreement and no Person is entitled to any fee or
commission or like payment in respect thereof.
4.25 Guarantees. There are
no written guarantees currently in effect heretofore issued by the Purchaser to
any bank or other lender in connection with any credit facilities extended by
such creditors to the Purchaser in connection with any other contracts or
agreements (collectively, the "Guarantees"), including the name of such creditor
and the amount of the indebtedness, together with any interest and fees
currently owing and expected to be outstanding as of the Closing.
4.26 Patriot
Act. The Purchaser certifies that it has not been designated,
and is not owned or controlled, by a “suspected terrorist” as defined in
Executive Order 13224. The Purchaser hereby acknowledges that the
Sellers seek to comply with all applicable Laws concerning money laundering and
related activities. In furtherance of those efforts, the Purchaser
hereby represents, warrants and agrees that: (i) none of the cash or
property owned by the Purchaser has been or shall be derived from, or related
to, any activity that is deemed criminal under United States law; and (ii) no
contribution or payment by the Purchaser has, and this Agreement will not, cause
the Purchaser to be in violation of the United States Bank Secrecy Act, the
United States International Money Laundering Control Act of 1986 or the United
States International Money Laundering Abatement and Anti-Terrorist Financing Act
of 2001.
4.27 Trading
Status. Purchaser’s common stock is traded on the OTC Bulletin
Board, under the trading symbol “TTSO”. Purchaser has at least one
market maker. As of the Closing, Purchaser’s Common Stock will be
listed for trading on the OTCBB with at least one market maker.
4.28 Reporting
Status. Purchaser is a reporting issuer under Section 12(g) of
the Securities Exchange Act of 1934 (the “’34 Act”). Purchaser is
now, and as of the Closing will be, current in its filings and will have filed
all of the filings required to have been made in the previous twelve
months.
4.29 Investment
Intention. Purchaser is acquiring the Shares for its own
account, for investment purposes only and not with a view to the distribution
(as such term is used in Section 2(11) of the Securities Act of 1933, as amended
(the "Securities Act") thereof. Purchaser understands that the Shares
have not been registered under the Securities Act and cannot be sold unless
subsequently registered under the Securities Act or an exemption from such
registration is available.
4.30 Acquisition Shares.
The Acquisition Shares issuable pursuant to the purchase price, when issued,
will be duly authorized and validly issued, fully paid and non-assessable, will
be delivered hereunder free and clear of any Liens, except that such Acquisition
Shares will be "restricted securities", as such term is defined in the rules and
regulations of the SEC promulgated under the Securities Act, and will be subject
to restrictions on transfers pursuant to such rules and
regulations.
18
ARTICLE
5.
COVENANTS
5.1 Access to
Information.
The
Company agrees that, prior to the Closing Date, the Purchaser shall be entitled,
through its officers, employees and representatives (including, without
limitation, its legal advisors and accountants), to make such investigation of
the properties, businesses and operations of the Company and its subsidiaries
and such examination of the books, records and financial condition of the
Company and its Subsidiaries as it reasonably requests and to make extracts and
copies of such books and records. Any such investigation and
examination shall be conducted during regular business hours and under
reasonable circumstances, and the Company shall cooperate, and shall cause the
Company and its Subsidiaries to cooperate, fully therein. No
investigation by the Purchaser prior to or after the date of this Agreement
shall diminish or obviate any of the representations, warranties, covenants or
agreements of the Sellers or the Company contained in this Agreement or the
Seller Documents. In order that the Purchaser may have full
opportunity to make such physical, business, accounting and legal review,
examination or investigation as it may reasonably request of the affairs of the
Company and its Subsidiaries, the Company shall cause the officers, employees,
consultants, agents, accountants, attorneys and other representatives of the
Company and its Subsidiaries to cooperate fully with such representatives in
connection with such review and examination.
5.2 Conduct of the Business
Pending the Closing.
(a)
|
Except
as otherwise expressly contemplated by this Agreement or with the prior
written consent of the Purchaser, the Majority Stockholder shall, and
shall cause the Company to:
|
(i)
|
conduct
the businesses of the Company only in the ordinary course consistent with
past practice;
|
(ii)
|
use
its best efforts to (A) preserve its present business operations,
organization (including, without limitation, management and the sales
force) and goodwill of the Company and (B) preserve its present
relationship with Persons having business dealings with the
Company;
|
(iii)
|
maintain
(A) all of the assets and properties of the Company in their current
condition, ordinary wear and tear excepted and (B) insurance upon all of
the properties and assets of the Company in such amounts and of such kinds
comparable to that in effect on the date of this
Agreement;
|
(iv)
|
(A)
maintain the books, accounts and records of the Company in the ordinary
course of business consistent with past practices, (B) continue to collect
accounts receivable and pay accounts payable utilizing normal procedures
and without discounting or accelerating payment of such accounts, and (C)
comply with all contractual and other obligations applicable to the
operation of the Company; and
|
(v)
|
comply
in all material respects with applicable laws, including, without
limitation, Environmental Laws.
|
(b)
|
Except
as otherwise expressly contemplated by this Agreement or with the prior
written consent of the Company, the Purchaser shall
not:
|
(i)
|
declare,
set aside, make or pay any dividend or other distribution in respect of
the capital stock of the Purchaser or repurchase, redeem or otherwise
acquire any outstanding shares of the capital stock or other securities
of, or other ownership interests in, the
Purchaser;
|
(ii)
|
transfer,
issue, sell or dispose of any shares of capital stock or other securities
of the Purchaser or grant options, warrants, calls or other rights to
purchase or otherwise acquire shares of the capital stock or other
securities of the Purchaser;
|
19
(iii)
|
effect
any recapitalization, reclassification, stock split or like change in the
capitalization of the Purchaser;
|
(iv)
|
amend
the certificate of incorporation or by-laws of the
Purchaser;
|
(v)
|
(A)
materially increase the annual level of compensation of any employee of
the Purchaser, (B) increase the annual level of compensation payable or to
become payable by the Purchaser to any of its executive officers, (C)
grant any unusual or extraordinary bonus, benefit or other direct or
indirect compensation to any employee, director or consultant, (D)
increase the coverage or benefits available under any (or create any new)
severance pay, termination pay, vacation pay, company awards, salary
continuation for disability, sick leave, deferred compensation, bonus or
other incentive compensation, insurance, pension or other employee benefit
plan or arrangement made to, for, or with any of the directors, officers,
employees, agents or representatives of the Purchaser or otherwise modify
or amend or terminate any such plan or arrangement or (E) enter into any
employment, deferred compensation, severance, consulting, non-competition
or similar agreement (or amend any such agreement) to which the Purchaser
is a party or involving a director, officer or employee of the Purchaser
in his or her capacity as a director, officer or employee of the
Purchaser;
|
(vi)
|
subject
to any Lien (except for leases that do not materially impair the use of
the property subject thereto in their respective businesses as presently
conducted), any of the properties or assets (whether tangible or
intangible) of the Purchaser;
|
(vii)
|
acquire
any material properties or assets or sell, assign, transfer, convey, lease
or otherwise dispose of any of the material properties or assets (except
for fair consideration in the ordinary course of business consistent with
past practice) of the Purchaser;
|
(viii)
|
cancel
or compromise any debt or claim or waive or release any material right of
the Purchaser except in the ordinary course of
business;
|
(ix)
|
enter
into any commitment for capital expenditures of the
Purchaser;
|
(x)
|
enter
into, modify or terminate any labor or collective bargaining agreement of
the Purchaser or, through negotiation or otherwise, make any commitment or
incur any liability to any labor organization with respect to the
Purchaser;
|
(xi)
|
permit
the Purchaser to enter into any transaction or to make or enter into any
Contract;
|
(xii)
|
permit
the Purchaser to enter into or agree to enter into any merger or
consolidation with, any corporation or other entity, and not engage in any
new business or invest in, make a loan, advance or capital contribution
to, or otherwise acquire the securities of any other
Person;
|
(xiii)
|
permit
the Purchaser to make any investments in or loans to, or pay any fees or
expenses to, or enter into or modify any Contract with any Affiliate;
or
|
(xiv)
|
agree
to do anything prohibited by this Section 6.2 or anything which would make
any of the representations and warranties of the Purchaser and the
Majority Stockholder in this Agreement untrue or incorrect in any material
respect.
|
5.3 Consents. The
Company shall use its best efforts, and the Purchaser shall cooperate with the
Company, to obtain at the earliest practicable date all consents and approvals
required to consummate the transactions contemplated by this
Agreement.
5.4 Other
Actions. The Company and the Purchaser shall use its best
efforts to (i) take all actions necessary or appropriate to consummate the
transactions contemplated by this Agreement and (ii) cause the fulfillment at
the earliest practicable date of all of the conditions to their respective
obligations to consummate the transactions contemplated by this
Agreement.
20
ARTICLE
6.
CONDITIONS
TO CLOSING
6.1 Conditions Precedent to
Obligations of Purchaser.
The
obligation of the Purchaser to consummate the transactions contemplated by this
Agreement is subject to the fulfillment, on or prior to the Closing Date, of
each of the following conditions (any or all of which may be waived by the
Purchaser in whole or in part to the extent permitted by applicable
law):
(a)
|
all
representations and warranties of the Company, the Majority Shareholder
and the Sellers contained herein shall be true and correct as of the date
hereof and as of the Closing Date;
|
(b)
|
all
representations and warranties of the Company, the Majority Shareholder
and the Sellers contained herein qualified as to materiality
shall be true and correct, and the representations and warranties of the
Sellers contained herein not qualified as to materiality shall be true and
correct in all material respects, at and as of the Closing Date with the
same effect as though those representations and warranties had been made
again at and as of that time;
|
(c)
|
the
Company, the Majority Shareholder and the Sellers shall have performed and
complied in all material respects with all obligations and covenants
required by this Agreement to be performed or complied with by them on or
prior to the Closing Date;
|
(d)
|
the
Purchaser shall have been furnished with certificates (dated the Closing
Date and in form and substance reasonably satisfactory to the Purchaser)
executed by the Chief Executive Officer and Chief Financial Officer of the
Company certifying as to the fulfillment of the conditions specified in
Sections 6.1(a), 6.2(b) and 6.2(c)
hereof;
|
(e)
|
there
shall not have been or occurred any material adverse change in the
business or operations of the
Company;
|
(f)
|
the
Sellers shall have obtained all consents and waivers referred to in
Section 3.5(b) there are none hereof, in a form reasonably satisfactory to
the Purchaser, with respect to the transactions contemplated by this
Agreement and the Seller Documents;
and
|
(g)
|
no
legal proceedings shall have been instituted or threatened or claim or
demand made against the Sellers, the Company or any of its Subsidiaries,
or the Purchaser seeking to restrain or prohibit or to obtain substantial
damages with respect to the consummation of the transactions contemplated
hereby, and there shall not be in effect any Order by a Governmental or
Regulatory Authority of competent jurisdiction restraining, enjoining or
otherwise prohibiting the consummation of the transactions contemplated
hereby.
|
6.2 Conditions Precedent to
Obligations of the Sellers.
The
obligations of the Sellers to consummate the transactions contemplated by this
Agreement are subject to the fulfillment, prior to or on the Closing Date, of
each of the following conditions (any or all of which may be waived by the
Sellers in whole or in part to the extent permitted by applicable
law):
(a)
|
all
representations and warranties of the Purchaser and the Majority
Stockholder contained herein shall be true and correct as of the date
hereof and as of the Closing Date;
|
(b)
|
all
representations and warranties of the Purchaser contained herein qualified
as to materiality shall be true and correct, and all representations and
warranties of the Purchaser contained herein not qualified as to
materiality shall be true and correct in all material respects, at and as
of the Closing Date with the same effect as though those representations
and warranties had been made again at and as of that
date;
|
21
(c)
|
the
Purchaser shall have performed and complied in all material respects with
all obligations and covenants required by this Agreement to be performed
or complied with by Purchaser on or prior to the Closing
Date;
|
(d)
|
the
Sellers shall have been furnished with certificates (dated the Closing
Date and in form and substance reasonably satisfactory to the Sellers)
executed by the Chief Executive Officer and Chief Financial Officer of the
Purchaser certifying as to the fulfillment of the conditions specified in
Sections 6.2(a), 6.2(b) and 6.2(c)
hereof;
|
(e)
|
there
shall not be in effect any Order by a Governmental or Regulatory Authority
of competent jurisdiction restraining, enjoining or otherwise prohibiting
the consummation of the transactions contemplated
hereby;
|
(f)
|
the
Sellers shall have obtained all consents and waivers referred to in
Section 4.6(b) hereof, in a form reasonably satisfactory to the Purchaser,
with respect to the transactions contemplated by this Agreement and the
Seller Documents; and
|
(g)
|
all
officers and members of the Board of Directors of the Purchaser shall have
provided an undated resignation and shall have appointed the designees of
the Sellers as members of the Board of
Directors.
|
ARTICLE
7.
TERMINATION
7.1 Material Change in the
Business of Company. Simultaneous execution and closing, if
any material loss or damage to the Company Business occurs prior to Closing and
such loss or damage, in Purchaser' reasonable opinion, cannot be substantially
repaired or replaced within sixty (60) days, Purchaser shall, within two (2)
days following any such loss or damage, by notice in writing to Company, at its
option, either:
(a)
|
terminate
this Agreement, in which case no party will be under any further
obligation to any other party; or
|
(b)
|
elect
to complete the Acquisition and the other transactions contemplated
hereby, in which case the proceeds and the rights to receive the proceeds
of all insurance covering such loss or damage will, as a condition
precedent to Purchaser' obligations to carry out the transactions
contemplated hereby, be vested in Company or otherwise adequately secured
to the satisfaction of Purchaser on or before the Closing
Date.
|
7.2 Material Change in the
Purchaser Business. If any material loss or damage to the
Purchaser Business occurs prior to Closing and such loss or damage, in Company's
reasonable opinion, cannot be substantially repaired or replaced within sixty
(60) days, Company shall, within two (2) days following any such loss or damage,
by notice in writing to Purchaser, at its option, either:
22
(a)
|
terminate
this Agreement, in which case no party will be under any further
obligation to any other party; or
|
(b)
|
elect
to complete the Acquisition and the other transactions contemplated
hereby, in which case the proceeds and the rights to receive the proceeds
of all insurance covering such loss or damage will, as a condition
precedent to Company's obligations to carry out the transactions
contemplated hereby, be vested in Purchaser or otherwise adequately
secured to the satisfaction of Company on or before the Closing
Date.
|
ARTICLE
8.
DOCUMENTS
TO BE DELIVERED
8.1 Documents to be Delivered by
the Majority Stockholder.
At the
Closing, the Majority Stockholder shall deliver, or cause to be delivered, to
the Purchaser the following:
(a)
|
copies
of all consents and waivers referred to in Section 6.1(f)
hereof;
|
(b)
|
certificates
of good standing with respect to the Company issued by the Secretary
of the State of the Ohio;
and
|
(c)
|
such
other documents as the Purchaser shall reasonably
request.
|
8.2 Documents to be Delivered by
the Purchaser.
At the
Closing, the Purchaser shall deliver to the Sellers the following:
(a)
|
the
Acquisition Shares;
|
(b) the
certificates referred to in Section 6.2(d) hereof;
(c) copies
of all consents and waivers referred to in Section 6.1(f) hereof;
|
(d) certificates
of good standing with respect to the Purchaser issued by the Secretary
of the State of the
Nevada;
|
(e)
|
resignation
of the officers of the Company effective as of the Closing Date and
resignation of the sole member of the Board of Directors of Purchaser, to
be effective 10 days after the mailing of the Schedule 14f-1 to the
shareholders of Purchaser;
|
(f)
|
resolution
of the Board of Directors appointing Xxxxxxx Xxxxx as a director of the
Purchaser, Xxxxxx X. Xxxxx and Xxxxxx X. Xxxxx as directors of the
Company, subject to Schedule 14f1 and Xxxxxxx Xxxxx as Chief Executive
Officer, Chief Financial Officer, Treasurer and Secretary of the
Corporation;
|
(g)
|
a
legal opinion acceptable to the Company;
and
|
(i) such
other documents as the Sellers shall reasonably request.
23
ARTICLE
9.
INDEMNIFICATION
9.1 Indemnification.
(a)
|
Subject
to Section 9.2 hereof, the Majority Stockholder hereby agree to j
indemnify and hold the Purchaser and their respective directors, officers,
employees, Affiliates, agents, representatives, heirs, successors and
assigns (collectively, the "Purchaser Indemnified Parties") harmless from
and against:
|
(i)
|
any
and all losses, liabilities, obligations, damages, costs and expenses
based upon, attributable to or resulting from the failure of any
representation or warranty of the the Majority Stockholder set forth in
Article 3 hereof, or any representation or warranty contained in any
certificate delivered by or on behalf of the the Majority Stockholder
pursuant to this Agreement, to be true and correct in all respects as of
the date made;
|
(ii)
|
any
and all losses, liabilities, obligations, damages, costs and expenses
based upon, attributable to or resulting from the breach of any covenant
or other agreement on the part of the the Majority Stockholder under this
Agreement or any Seller Document;
|
(iii)
|
any
and all losses, liabilities, obligations, damages, costs and expenses
based upon, attributable to or resulting from any act or omission of the
Company or the Majority Stockholder;
and
|
(iv)
|
any
and all expenses incident to the
foregoing.
|
(b)
|
Subject
to Section 9.2, Purchaser and the Majority Stockholder hereby agrees to
indemnify and hold the Sellers and their respective Affiliates, agents,
successors and assigns (collectively, the "Seller Indemnified Parties")
harmless from and against:
|
(i)
|
any
and all losses, liabilities, obligations, damages, costs and expenses
based upon, attributable to or resulting from the failure of any
representation or warranty of the Purchaser set forth in Section 4 hereof,
or any representation or warranty contained in any certificate delivered
by or on behalf of the Purchaser pursuant to this Agreement, to be true
and correct as of the date made;
|
(ii)
|
any
and all losses, liabilities, obligations, damages, costs and expenses
based upon, attributable to or resulting from the breach of any covenant
or other agreement on the part of the Purchaser under this Agreement;
and
|
(iii)
|
any
and all Expenses incident to the
foregoing.
|
9.2 Intentionally
omitted
9.3 Indemnification
Procedures.
24
(a)
|
In
the event that any legal proceedings shall be instituted or that any claim
or demand ("Claim") shall be asserted by any Person in respect of which
payment may be sought under Section 9.1 hereof, the Indemnified Party
shall reasonably and promptly cause written notice of the assertion of any
Claim of which it has knowledge which is covered by this indemnity to be
forwarded to the Indemnifying Party. The Indemnifying Party
shall have the right, at its sole option and expense, to be represented by
counsel of its choice, which must be reasonably satisfactory to the
Indemnified Party, and to defend against, negotiate, settle or otherwise
deal with any Claim which relates to any Losses indemnified against
hereunder. If the Indemnifying Party elects to defend against,
negotiate, settle or otherwise deal with any Claim which relates to any
losses indemnified against hereunder, it shall within five (5) days (or
sooner, if the nature of the Claim so requires) notify the Indemnified
Party of its intent to do so. If the Indemnifying Party elects
not to defend against, negotiate, settle or otherwise deal with any Claim
which relates to any Losses indemnified against hereunder, fails to notify
the Indemnified Party of its election as herein provided or contests its
obligation to indemnify the Indemnified Party for such Losses under this
Agreement, the Indemnified Party may defend against, negotiate, settle or
otherwise deal with such Claim. If the Indemnified Party
defends any Claim, then the Indemnifying Party shall reimburse the
Indemnified Party for the Expenses of defending such Claim upon submission
of periodic bills. If the Indemnifying Party shall assume the
defense of any Claim, the Indemnified Party may participate, at his or its
own expense, in the defense of such Claim; provided, however, that such
Indemnified Party shall be entitled to participate in any such defense
with separate counsel at the expense of the Indemnifying Party if, (i) so
requested by the Indemnifying Party to participate or (ii) in the
reasonable opinion of counsel to the Indemnified Party, a conflict or
potential conflict exists between the Indemnified Party and the
Indemnifying Party that would make such separate representation advisable;
and provided, further, that the Indemnifying Party shall not be required
to pay for more than one such counsel for all indemnified parties in
connection with any Claim. The parties hereto agree to
cooperate fully with each other in connection with the defense,
negotiation or settlement of any such
Claim.
|
(b)
|
After
any final judgment or award shall have been rendered by a court,
arbitration board or administrative agency of competent jurisdiction and
the expiration of the time in which to appeal therefrom, or a settlement
shall have been consummated, or the Indemnified Party and the Indemnifying
Party shall have arrived at a mutually binding agreement with respect to a
Claim hereunder, the Indemnified Party shall forward to the Indemnifying
Party notice of any sums due and owing by the Indemnifying Party pursuant
to this Agreement with respect to such matter and the Indemnifying Party
shall be required to pay all of the sums so due and owing to the
Indemnified Party by wire transfer of immediately available funds within
10 business days after the date of such
notice.
|
(c)
|
The
failure of the Indemnified Party to give reasonably prompt notice of any
Claim shall not release, waive or otherwise affect the Indemnifying
Party's obligations with respect thereto except to the extent that the
Indemnifying Party can demonstrate actual loss and prejudice as a result
of such failure.
|
ARTICLE
10.
POST-CLOSING
MATTERS
10.1 Within
four business day of the Closing, Purchaser, Company and the the Majority
Stockholder agree to use all their best efforts to:
(a)
|
issue
a news release reporting the
Closing;
|
(b)
|
file
a Form 8-K with the Securities and Exchange Commission disclosing the
terms of this Agreement with audited financial statements of Company as
well as any required pro forma financial information or other information
of Company and Purchaser as required by the rules and regulations of the
Securities and Exchange Commission;
and
|
(c)
|
file
with the Securities and Exchange Commission a report on Form 14f1
disclosing the change in control of Purchaser and, 10 days after such
filing, date the resolutions appointing to the board of directors of
Purchaser Xxxxxx X. Xxxxx and Xxxxxx X. Xxxxx, and forthwith date and
accept the resignation of Xxxx XxXxxx as a director of
Purchaser.
|
ARTICLE
11.
GENERAL
PROVISIONS
11.1 Notices. All
notices and other communications under this Agreement shall be in writing and
shall be deemed given when delivered personally or mailed by certified mail,
return receipt requested, to the parties (and shall also be transmitted by
facsimile to the Persons receiving copies thereof) at the following addresses
(or to such other address as a party may have specified by notice given to the
other party pursuant to this provision):
25
If to
Purchaser to:
0000
Xxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxxxx
Xxxx, XX 00000
Facsimile: 866.681.3091
with a
copies to:
Xxxxxx X.
Xxxxxxx, Esq.
Synergy
Law Group, LLC
000 Xxxx
Xxxxxxxx Xxxxxx
Xxxxx
000
Xxxxxxx,
XX 00000
Facsimile: 312.454.0261
If to
Company or Sellers to:
ADVANCED
MECHANICAL PRODUCTS, INC.
00000
Xxxxxxxxx Xx.
Xxxxxxxxxx,
XX 00000
Facsimile:
with a
copy to:
Law
Offices of Xxxxxxx X. Xxxxxxx PLLC
00 Xxxxx
Xxxxxx, Xxxxx 000
Xxxxxxxxx
Xxxxxx, XX 00000
Facsimile:
(000) 000-0000
All such
notices, requests and other communications will (i) if delivered personally to
the address as provided in this Section, be deemed given upon delivery, (ii) if
delivered by mail in the manner described above to the address as provided in
this Section, be deemed given upon receipt, and (iii) if delivered by courier to
the address as provided for in this Section, be deemed given on the earlier of
the second Business Day following the date sent by such courier or upon receipt.
Any party from time to time may change its address or other information for the
purpose of notices to that party by giving notice specifying such change to the
other party hereto.
11.2 Payment of Sales, Use or
Similar Taxes. All sales, use, transfer, intangible,
recordation, documentary stamp or similar Taxes or charges, of any nature
whatsoever, applicable to, or resulting from, the transactions contemplated by
this Agreement shall be borne by the Sellers.
11.3 Expenses. Except
as otherwise provided in this Agreement, the Company and the Purchaser shall
each bear its own expenses incurred in connection with the negotiation and
execution of this Agreement and each other agreement, document and instrument
contemplated by this Agreement and the consummation of the transactions
contemplated hereby and thereby.
11.4 Specific
Performance. The Sellers acknowledge and agree that the breach
of this Agreement would cause irreparable damage to the Purchaser and that the
Purchaser will not have an adequate remedy at law. Therefore, the
obligations of the Sellers under this Agreement, including, without limitation,
the Sellers' obligation to sell the Shares to the Purchaser, shall be
enforceable by a decree of specific performance issued by any court of competent
jurisdiction, and appropriate injunctive relief may be applied for and granted
in connection therewith. Such remedies shall, however, be cumulative
and not exclusive and shall be in addition to any other remedies which any party
may have under this Agreement or otherwise.
26
11.5 Further
Assurances. The Sellers, the Company and the Purchaser each
agrees to execute and deliver such other documents or agreements and to take
such other action as may be reasonably necessary or desirable for the
implementation of this Agreement and the consummation of the transactions
contemplated hereby.
11.6 Submission to Jurisdiction;
Consent to Service of Process.
(a)
|
The
parties hereto hereby irrevocably submit to the non-exclusive jurisdiction
of any federal or state court located within the State of New York over
any dispute arising out of or relating to this Agreement or any of the
transactions contemplated hereby and each party hereby irrevocably agrees
that all claims in respect of such dispute or any suit, action proceeding
related thereto may be heard and determined in such courts. The
parties hereby irrevocably waive, to the fullest extent permitted by
applicable law, any objection which they may now or hereafter have to the
laying of venue of any such dispute brought in such court or any defense
of inconvenient forum for the maintenance of such dispute. Each
of the parties hereto agrees that a judgment in any such dispute may be
enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law.
|
(b)
|
Each
of the parties hereto hereby consents to process being served by any party
to this Agreement in any suit, action or proceeding by the mailing of a
copy thereof in accordance with the provisions of Section
11.1.
|
11.7 Entire Agreement; Amendments
and Waivers. This Agreement (including the schedules and
exhibits hereto) represents the entire understanding and agreement between the
parties hereto with respect to the subject matter hereof and can be amended,
supplemented or changed, and any provision hereof can be waived, only by written
instrument making specific reference to this Agreement signed by the party
against whom enforcement of any such amendment, supplement, modification or
waiver is sought. No action taken pursuant to this Agreement,
including without limitation, any investigation by or on behalf of any party,
shall be deemed to constitute a waiver by the party taking such action of
compliance with any representation, warranty, covenant or agreement contained
herein. The waiver by any party hereto of a breach of any provision
of this Agreement shall not operate or be construed as a further or continuing
waiver of such breach or as a waiver of any other or subsequent
breach. No failure on the part of any party to exercise, and no delay
in exercising, any right, power or remedy hereunder shall operate as a waiver
thereof, nor shall any single or partial exercise of such right, power or remedy
by such party preclude any other or further exercise thereof or the exercise of
any other right, power or remedy. All remedies hereunder are
cumulative and are not exclusive of any other remedies provided by
law.
11.8 Governing
Law. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York.
11.9 Headings. Section
headings of this Agreement are for reference purposes only and are to be given
no effect in the construction or interpretation of this Agreement.
11.10 Severability. If
any provision of this Agreement is invalid or unenforceable, the balance of this
Agreement shall remain in effect.
27
11.11 Binding Effect;
Assignment. This Agreement shall be binding upon and inure to
the benefit of the parties and their respective successors and permitted
assigns. Nothing in this Agreement shall create or be deemed to
create any third party beneficiary rights in any person or entity not a party to
this Agreement except as provided below. No assignment of this
Agreement or of any rights or obligations hereunder may be made by either the
Sellers or the Purchaser (by operation of law or otherwise) without the prior
written consent of the other parties hereto and any attempted assignment without
the required consents shall be void; provided, however, that the Purchaser may
assign this Agreement and any or all rights or obligations hereunder (including,
without limitation, the Purchaser's rights to purchase the Shares and the
Purchaser's rights to seek indemnification hereunder) to any Affiliate of the
Purchaser. Upon any such permitted assignment, the references in this
Agreement to the Purchaser shall also apply to any such assignee unless the
context otherwise requires.
11.12 Counterparts. This
Agreement may be executed in counterparts and by facsimile, each of which when
executed by any party will be deemed to be an original and all of which
counterparts will together constitute one and the same Agreement. Delivery of
executed copies of this Agreement by telecopier will constitute proper delivery,
provided that originally executed counterparts are delivered to the parties
within a reasonable time thereafter.
[Remainder
of page intentionally left blank.]
28
IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.
By:/s/ Xxxx XxXxxx
Name:
Xxxx XxXxxx
Title:
President, Chief Executive
Officer,
Treasurer and Sole Director
ADVANCED
MECHANICAL PRODUCTS, INC.
By:/s/ Xxxxxxx X. Xxxxx
Name: Xxxxxxx X. Xxxxx
Title:
CEO
MAJORITY
STOCKHOLDER (WITH RESPECT TO ARTICLE 4 AND ARTICLE 9 ONLY):
/s/ Xxxx XxXxxx
Xxxx XxXxxx
AMP
MAJORITY STOCKHOLDER (WITH RESPECT TO ARTICLE 4 ONLY):
/s/ Xxxxxxx X. Xxxxx
Xxxxxxx X. Xxxxx
29
SHAREHOLDER
SIGNATURE PAGE FOLLOWS:
SHAREHOLDERS
/s/
Xxxxxxx X. Xxxxx
|
/s/
Xxxx X. Xxxxx
|
|||
Xxxxxxx
X. Xxxxx
|
Xxxx
X. Xxxxx
|
|||
|
|
|||
H. Xxxxxxxx Xxxxxx, Trustee of the H. Xxxxxxxx Xxxxxx Advanced Mechanical Products, Inc. Subchapter S. Trust | ||||
/s/
Xxxxxx X. Xxxxxx
|
/s/
H. Xxxxxxxx Xxxxxx
|
|||
Xxxxxx
X. Xxxxxx
|
Name:
H. Xxxxxxxx Xxxxxx
|
|||
|
Title:
Trustee
|
/s/
Xxxxxx Xxxxxx
|
/s/
Xxxxxxx X. Xxxxx, Xx.
|
|||
Xxxxxx
Xxxxxx
|
Xxxxxxx
X. Xxxxx, Xx.
|
|||
|
|
/s/
Xxxxxxxx X. Xxxx, M.D.
|
/s/
Xxxxxx Xxxx
|
|||
Xxxxxxxx
X. Xxxx, M.D.
|
Xxxxxx
Xxxx
|
|||
|
|
/s/
Xxxxxx X. Xxxxxxx
|
/s/
Xxxxx X. Xxxxxxxx
|
|||
Xxxxxx
X. Xxxxxxx
|
Xxxxx
X. Xxxxxxxx
|
|||
|
|
/s/
Xxxxxx Xxxxxxx
|
/s/
Xxxxxxx X. Xxxxxxxx
|
|||
Xxxxxx
Xxxxxxx
|
Xxxxxxx
X. Xxxxxxxx
|
|||
|
|
/s/
Xxxx Xxxxxx
|
/s/
Xxxxxxx Xxxxxx
|
|||
Xxxx
Xxxxxx
|
Xxxxxxx
Xxxxxx
|
|||
|
|
/s/
Xxxxx Xxxxxx, Xx.
|
/s/
Xxx Xxxxx
|
|||
Xxxxx
Xxxxxx, Xx.
|
Xxx
Xxxxx
|
|||
|
|
/s/
Xxxxxxx Xxxx
|
|
|||
Xxxxxxx
Xxxx
|
|
|||
|
|
30
EXHIBIT
A
Shares
|
Acquisition
Shares
|
|||||||
Xxxxxxx
X. Xxxxx
|
2,500 | 324,398 | ||||||
Xxxx
X. Xxxxx
|
1,485 | 192,692 | ||||||
Xxxxxx
X. Xxxxxx
|
1,035 | 134,301 | ||||||
H.
Xxxxxxxx Xxxxxx, Trustee of the H. Xxxxxxxx Xxxxxx Advanced Mechanical
Products, Inc. Subchapter S. Trust
|
810 | 105,105 | ||||||
Xxxxxx
Xxxxxx
|
810 | 105,105 | ||||||
Xxxxxxx
X. Xxxxx, Xx.
|
705 | 91,480 | ||||||
Xxxxxxxx
X. Xxxx
|
100 | 12,976 | ||||||
Xxxxxx
Xxxx
|
50 | 6,488 | ||||||
Xxxxxx
X. Xxxxxxx
|
100 | 12,976 | ||||||
Xxxxx
X. Xxxxxxxx
|
100 | 12,976 | ||||||
Xxxxxx
Xxxxxxx
|
100 | 12,976 | ||||||
Xxxxxxx
X. Xxxxxxxx
|
100 | 12,976 | ||||||
Xxxx
Xxxxxx
|
100 | 12,976 | ||||||
Xxxxxxx
Xxxxxx
|
50 | 6,488 | ||||||
Xxxxx
Xxxxxx
|
50 | 6,488 | ||||||
Xxx
Xxxxx
|
51 | 6,618 | ||||||
Xxxxxxx
Xxxx
|
51 | 6,618 | ||||||
8,197 | 1,063,636 |
31