AGREEMENT AND PLAN OF MERGER
EXHIBIT 10.1
AGREEMENT
AND PLAN OF MERGER
THIS AGREEMENT AND PLAN OF
MERGER is made as of the 3rd day of March, 2009
AMONG:
TRICORD HURRICANE HOLDINGS,
INC., a corporation formed pursuant to the laws of the State of Nevada
and having an office for business located at 0000 Xxxxx Xxxxxxxxxx Xxx., Xxxxx,
XX 00000
(“TriCord”)
AND:
ARIA ACQUISITION, INC., a
corporation formed pursuant to the laws of the State of Nevada and a wholly
owned subsidiary of TriCord
(the
“Acquirer”)
AND:
ARIA INTERNATIONAL,
INCORPORATED, a corporation formed pursuant to the laws of the State of
Delaware and having an office for business located at 0000 00xx Xxxxxx,
Xxxxxxxxx, XX 00000.
(“ARIA”)
WHEREAS:
A. ARIA is a
Delaware corporation which specializes in special surveillance and
communications solutions;
B. The ARIA
shareholders own an aggregate of 10,000,000 ARIA Shares, being 100% of the
presently issued and outstanding ARIA Shares;
C. TriCord is a
reporting company whose common stock is quoted on the OTC Bulletin Board and
which has been engaged in a search for potential merger and acquisition
candidates; and
D. The
respective Boards of Directors of TriCord, ARIA and the Acquirer deem it
advisable and in the best interests of TriCord, ARIAand the Acquirer that the
Acquirer merge with and into ARIA (the “Merger”) pursuant to this Agreement and
the Certificate of Merger, and the applicable provisions of the laws of the
State of Nevada.
NOW THEREFORE, WITNESSETH THAT
in consideration of the premises and the mutual covenants, agreements,
representations and warranties contained herein, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged, the
parties hereto hereby agree as follows:
ARTICLE
1
DEFINITIONS
AND INTERPRETATION
Definitions
1.1
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In
this Agreement the following terms will have the following
meanings:
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(a)
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“Acquisition Shares”
means the 88,815,000 TriCord Common Shares, which shares are to be issued
and delivered to the ARIA Shareholders at
Closing;
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(b)
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“Agreement” means this
agreement and plan of merger among TriCord, the Acquirer, and
ARIA;
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(c)
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“ARIA Accounts
Receivable” means all accounts receivable and other amounts owing
to ARIA;
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(d)
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“ARIA Assets” means all
the property and assets of the ARIA Business of every kind and description
wherever situated including, without limitation, ARIA Inventory, ARIA
Material Contracts, ARIA Accounts Receivable, ARIA Cash, ARIA Intangible
Assets and ARIA Goodwill, and all credit cards, charge cards and banking
cards issued to ARIA;
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(e)
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“ARIA Business” means all
aspects of the business conducted by ARIA and its
subsidiaries;
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(f)
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“ARIA Cash” means all
cash on hand or on deposit to the credit of ARIA on the Closing
Date;
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(g)
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“ARIA Common Shares” means the shares
of common stock, par value $0.001, in the capital of
Aria;
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(h)
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“ARIA Financial
Statements” means collectively, the audited financial statements of
ARIA for the fiscal year ending December 31, 2008, which shall be
delivered at Closing, all of which will be prepared in accordance with
United States generally accepted accounting principles and the
requirements of Regulation S-X as promulgated by the
Commission;
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(i)
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“ARIA Goodwill” means the
goodwill of the ARIA Business together with the exclusive right of ARIA to
represent itself as carrying on the ARIA Business in succession of ARIA
subject to the terms hereof, and the right to use any words indicating
that the ARIA Business is so carried on including the right to use the
name “ARIA” or any variation thereof as part of the name of or in
connection with the ARIA Business or any part thereof carried on or to be
carried on by ARIA, the right to all corporate, operating and trade names
associated with the ARIA Business, or any variations of such names as part
of or in connection with the ARIA Business, all telephone listings and
telephone advertising contracts, all lists of customers, books and records
and other information relating to the ARIA Business, all necessary
licenses and authorizations and any other rights used in connection with
the ARIA Business;
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(j)
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“ARIA Intangible Assets” means
all of the intangible assets of ARIA, including, without limitation, ARIA
Goodwill, all trademarks, logos, copyrights, designs, and other
intellectual and industrial property of
ARIA;
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(k)
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“ARIA Inventory” means all
inventory and supplies of the ARIA Business as of September 30, 2008 as
increased or decreased in the ordinary course of
business;
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(l)
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“ARIA Material Contracts”
means the burden and benefit of and the right, title and interest of ARIA
in, to and under all trade and non-trade contracts, engagements or
commitments, whether written or oral, to which ARIA is entitled in
connection with the ARIA Business under which ARIA is obligated to pay or
entitled to receive the sum of Ten Thousand Dollars ($10,000) or more
annually including, without limitation, any pension plans, profit sharing
plans, bonus plans, loan agreements, security agreements, indemnities and
guarantees, any agreements with employees, lessees, licensees, managers,
accountants, suppliers, agents, distributors, officers, directors,
attorneys or others which cannot be terminated without liability on not
more than one month’s notice;
and
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(m)
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“ARIA Shareholders” means all
of the holders of the issued and outstanding ARIA
Shares;
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(n)
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“Closing” means the
completion, on the Closing Date, of the transactions contemplated hereby
in accordance with Article 9
hereof;
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-2-
(o)
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“Closing Date” means the
day on which all conditions precedent to the completion of the transaction
as contemplated hereby have been satisfied or
waived;
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(p)
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“Commission” means the
Securities and Exchange
Commission;
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(q)
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“DGCL” means the Delaware
General Corporation Law;
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(r)
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“Effective Time” means
the date of the filing of an appropriate Certificate of Merger in the form
required by the State of Nevada provided that the Merger shall become
effective as provided in the
DGCL;
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(s)
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“Exchange Act” means the
Securities Exchange Act of 1934, as
amended;
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(t)
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“Merger” means the
merger, at the Effective Time, of ARIA and the Acquirer pursuant to this
Agreement;
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(u)
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“Milestone 1 Shares”
shall have the meaning set forth in Section 10.2
hereof;
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(v)
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“Milestone 2 Shares”
shall have the meaning set forth in Section 10.2
hereof;
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(w)
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“NRS” means the Nevada
Revised Statutes
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(x)
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“Place of Closing” means
the offices of Sichenzia Xxxx Xxxxxxxx Xxxxxxx LLP, or such other place as
TriCord and ARIA may mutually agree
upon;
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(y)
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“Securities Act” means
the Securities Act of 1933, as
amended;
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(z)
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“SEC Reports” means all
forms, reports and documents filed and required to be filed by TriCord
with the Commission under the Exchange
Act;
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(aa)
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“Surviving Company” means
ARIA following the merger with the
Acquirer;
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(bb)
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“TriCord Business” means all
aspects of any business conducted by TriCord and its
subsidiaries;
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(cc)
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“TriCord Common Shares” means
the shares of common stock, par value $0.001, in the capital of
TriCord;
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(dd)
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“TriCord Financial Statements”
means, collectively, the audited financial statements of TriCord for the
two fiscal years ended December 31, 2007 and 2006, and the unaudited
financial statements of TriCord for the period ending September 30,
2008;
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Any other
terms defined within the text of this Agreement will have the meanings so
ascribed to them.
Captions
and Section Numbers
1.2 The
headings and section references in this Agreement are for convenience of
reference only and do not form a part of this Agreement and are not intended to
interpret, define or limit the scope, extent or intent of this Agreement or any
provision hereof.
Section
References and Schedules
1.3 Any
reference to a particular “Article”, “section”, “paragraph”, “clause” or other
subdivision is to the particular Article, section, clause or other subdivision
of this Agreement and any reference to a Schedule by letter will mean the
appropriate Schedule attached to this Agreement and by such reference the
appropriate Schedule is incorporated into and made part of this
Agreement.
-3-
Severability of Clauses
1.4 If
any part of this Agreement is declared or held to be invalid for any reason,
such invalidity will not affect the validity of the remainder which will
continue in full force and effect and be construed as if this Agreement had been
executed without the invalid portion, and it is hereby declared the intention of
the parties that this Agreement would have been executed without reference to
any portion which may, for any reason, be hereafter declared or held to be
invalid.
ARTICLE
2
THE
MERGER
The
Merger
2.1 At
Closing, the Acquirer shall be merged with and into ARIA pursuant to this
Agreement and the separate corporate existence of the Acquirer shall cease and
ARIA, as it exists from and after the Closing, shall be the Surviving
Company.
Effect
of the Merger
2.2 The
Merger shall have the effect provided therefore by the NRS. Without limiting the
generality of the foregoing, and subject thereto, at Closing (i) all the rights,
privileges, immunities, powers and franchises, of a public as well as of a
private nature, and all property, real, personal and mixed, and all debts due on
whatever account, including without limitation subscriptions to shares, and all
other choices in action, and all and every other interest of or belonging to or
due to ARIA or the Acquirer, as a group, subject to the terms hereof, shall be
taken and deemed to be transferred to, and vested in, the Surviving Company
without further act or deed; and all property, rights and privileges,
immunities, powers and franchises and all and every other interest shall be
thereafter as effectually the property of the Surviving Company, as they were of
ARIA and the Acquirer, as a group, and (ii) all debts, liabilities, duties and
obligations of ARIA and the Acquirer, as a group, subject to the terms hereof,
shall become the debts, liabilities and duties of the Surviving Company and the
Surviving Company shall thenceforth be responsible and liable for all debts,
liabilities, duties and obligations of ARIA and the Acquirer, as a group, and
neither the rights of creditors nor any liens upon the property of ARIA or the
Acquirer, as a group, shall be impaired by the Merger, and may be enforced
against the Surviving Company.
Articles
of Incorporation; Bylaws; Directors and Officers
2.3 The
Articles of Incorporation of the Surviving Company from and after the Closing
shall be the Articles of Incorporation of TriCord as in effect immediately prior
to the Closing until thereafter amended in accordance with the provisions
therein and as provided by the applicable provisions of the NRS. The
Bylaws of the Surviving Company from and after the Closing shall be the Bylaws
of TriCord as in effect immediately prior to the Closing, continuing until
thereafter amended in accordance with their terms, the Articles of Incorporation
of the Surviving Company and as provided by the NRS. The directors
and officers of the Surviving Company from and after the Closing shall be the
directors and officers of ARIA immediately prior to the Closing.
Conversion
of Securities
2.4 At
the Effective Time, by virtue of the Merger and without any action on the part
of the Acquirer or ARIA, the shares of capital stock of each of ARIA and the
Acquirer shall be converted as follows:
(a)
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Capital Stock of the
Acquirer. Each issued and outstanding share of the Acquirer’s
capital stock shall continue to be issued and outstanding and shall be
converted into one share of validly issued, fully paid, and non-assessable
common stock of the Surviving Company. Each stock certificate of the
Acquirer evidencing ownership of any such shares shall continue to
evidence ownership of such shares of capital stock of the Surviving
Company.
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(b)
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Conversion of
ARIA
Shares. Each
ARIA Share that is issued and outstanding at the Effective Time, shall
automatically be cancelled and extinguished and converted, without any
action on the part of the holder thereof, into the right to receive 8.8815
Acquisition Shares for each ARIA Share. All such ARIA Shares, when so
converted, shall no longer be outstanding and shall automatically be
cancelled and retired and shall cease to exist, and each holder of a
certificate representing any such shares shall cease to have any rights
with respect thereto, except the right to receive the Acquisition Shares
paid in consideration therefor upon the surrender of such certificate in
accordance with this
Agreement.
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2.5 Dissenting
Shareholders
(a)
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Notwithstanding
any provision of this Agreement to the contrary, each share of ARIA common
stock that is issued and outstanding immediately prior to the Closing and
that is held by a shareholder of ARIA who has not voted in favor of this
Agreement or consented thereto in writing and who shall have otherwise
perfected such holder’s dissenters’ rights in accordance with and as
contemplated by Section 262 of the DGCL (each such shareholder, a
“Dissenting Stockholder”, and each share of ARIA common stock held by such
shareholder, a “Dissenting Share”) shall not be canceled, extinguished and
converted, but shall be entitled to receive from the Surviving Corporation
the value of the shares of ARIA common stock held by such Dissenting
Stockholder as determined pursuant to Section 262 of the DGCL; provided,
however, that if such Dissenting Stockholder fails to perfect, or
effectively withdraws or loses such holder’s right to appraisal of and
payment for such holder’s shares under Section 262 of the DGCL, each share
of ARIA common stock of such Dissenting Stockholder shall thereupon be
deemed to have been converted into and to have become exchangeable for, as
of the Closing, the right to receive shares of TriCord common stock, and
such share of ARIA common stock shall no longer be a Dissenting
Share. In such event, ARIA shall deliver the number of shares
of TriCord common Stock to which such shareholder is entitled (without
interest) upon surrender by such shareholder of the certificate or
certificates representing the shares of ARIA common stock held by such
shareholder.
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(b)
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ARIA
shall provide notice in accordance with the DGCL to each shareholder that
is entitled to appraisal rights; provided that if the ARIA shareholders
have approved the Merger by written consent pursuant to Section 228 of the
DGCL, ARIA shall provide notice promptly, and in any event within five (5)
business days, after such stockholder approval is
obtained. ARIA shall give prompt notice to TriCord of any
demands received by ARIA for appraisal of shares of ARIA common
stock. The Surviving Corporation shall promptly pay to any
Dissenting Stockholder any and all amounts due and owing to such holder as
a result of any settlement of, or determination by the court of the city
or county in Virginia where its registered office is
located with respect to, such
demands.
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ARTICLE
3
REPRESENTATIONS
AND WARRANTIES
OF
TRICORD
Representations
and Warranties
3.1 TriCord
and the Acquirer jointly and severally represent and warrant in all material
respects to ARIA, with the intent that ARIA will rely thereon in entering into
this Agreement and in approving and completing the transactions contemplated
hereby, that:
-5-
TriCord
- Corporate Status and Capacity
(a)
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Incorporation.
TriCord is a corporation duly incorporated and validly existing under the
laws of the State of Nevada, and is in good standing with the office of
the Secretary of State for the State of
Nevada.
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(b)
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Carrying on
Business. TriCord and its subsidiaries, currently do not carry on
any material business activity in any jurisdiction. The nature of the
TriCord Business does not require TriCord and its subsidiaries to
register or otherwise be qualified to carry on business in any
jurisdiction other than the respective states of their organization, where
TriCord and its subsidiaries are each dully qualified and
authorized to do business;
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(c)
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Corporate
Capacity. TriCord has the corporate power, capacity and authority
to own its assets and to enter into and complete this
Agreement;
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(d)
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Reporting Status;
Listing. TriCord’s common stock is not registered under Section
12(g) of the Exchange Act and TriCord is not required to file current
reports with the Commission pursuant to Section 13(a) of the Exchange Act.
The TriCord Common Shares are quoted on the OTC Bulletin Board under the
symbol “TRIH”. None of TriCord’s subsidiaries has common stock that is
registered under Section 12(g) of the Exchange Act and none of TriCord’s
subsidiaries is required to file current reports with Commission pursuant
to Section 13(a) or 15(d) of the Exchange
Act;
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(e)
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SEC Reports.
TriCord has filed all SEC Reports with the Commission under the Securities
Act and the Exchange Act, including pursuant to Section 13(a) or 15(d)
thereof, for the two years preceding the date hereof (or such shorter
period as TriCord was required by law or regulation to file such material)
on a timely basis or has received a valid extension of time of filing ans
has filed any such reports prior to the expiration of any such extension..
The SEC Reports, at the time filed, complied as to form in all material
respects with the requirements of the Exchange Act. None of the SEC
Reports, including without limitation any financial statements or
schedules included therein, contains any untrue statements of a material
fact or omits to state a material fact necessary in order to make the
statements made, in light of the circumstances under which they were made,
not misleading;
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Acquirer
- Corporate Status and Capacity
(f)
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Incorporation.
The Acquirer is a corporation duly incorporated and validly existing under
the laws of the State of Nevada, and is in good standing with the office
of the Secretary of State for the State of
Nevada;
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(g)
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Carrying on
Business. Other than corporate formation and organization, the
Acquirer has not carried on business activities to
date;
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(h)
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Corporate
Capacity. The Acquirer has the corporate power, capacity and
authority to enter into and complete this
Agreement;
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TriCord
- Capitalization
(i)
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Authorized
Capital. The authorized capital of TriCord consists of 300,000,000
shares of common stock, $0.001 par value, of which 57,103,7721shares are presently issued
and outstanding and 10,000,000 shares of Preferred Stock, no par value, of
which 0 shares are presently issued and
outstanding..
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___________________________
1 Not including (i) 4,000,000 shares issuable under the
current private placement memorandum dated February 20, 2009; (ii) warrants to
acquire 2,106,388 shares which remain unexercised; and (iii) the Acquisition
Shares to be issued pursuant to thie Agreement.
-6-
(j)
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No Option.
Except as provided in, contemplated by, or set forth in this Agreement or
the SEC Reports, no person, firm or corporation has any agreement or
option or any right capable of becoming an agreement or option for the
acquisition of any common or preferred shares of TriCord or for the
purchase, subscription or issuance of any of the unissued shares in the
capital of TriCord;
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Acquirer
- Capitalization
(k)
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Authorized
Capital. The authorized capital of the Acquirer consists of 300
shares of common stock, of which 300 shares of common stock are presently
issued and outstanding and which are owned by
TriCord;
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(l)
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No Option. No
person, firm or corporation has any agreement or option or any right
capable of becoming an agreement or option for the acquisition of any
common or preferred shares in Acquirer or for the purchase, subscription
or issuance of any of the unissued shares in the capital of
Acquirer;
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TriCord
- Records and Financial Statements
(m)
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Charter
Documents. The charter documents of TriCord and the Acquirer are as
set forth as exhibits to the officers certificate to be delivered at
Closing pursuant to Section 9.3
hereof;
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(n)
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Corporate Minute
Books. TriCord and its subsidiaries, are not in
violation or breach of, or in default with respect to, any term of their
respective Certificates of Incorporation (or other charter documents) or
by-laws;
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(o)
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TriCord Financial
Statements. The TriCord Financial Statements present fairly, in all
material respects, the assets and liabilities (whether accrued, absolute,
contingent or otherwise) of TriCord, including the assets and liabilities,
if any of TriCord’s subsidiaries, as of the respective dates thereof, and
the results of operations and changes in financial position of TriCord
during the period covered thereby, in all material respects and have been
prepared in accordance with generally accepted accounting principles
consistently applied throughout the periods
indicated;
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(p)
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TriCord Accounts Payable and
Liabilities. Except for the TriCord accounts payable balance of
$53,799.14 as of March 2, 2009, there are no material liabilities,
contingent or otherwise, of TriCord or its subsidiaries, which are not
reflected in the TriCord Financial Statements except those incurred in the
ordinary course of business since the date of the TriCord Financial
Statements, and neither TriCord nor its subsidiaries have guaranteed or
agreed to guarantee any debt, liability or other obligation of any person,
firm or corporation;
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(q)
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TriCord Accounts
Receivable. There are no accounts receivable of TriCord or any of
TriCord’s subsidiaries; which are not reflected in the TriCord Financial
Statements except those incurred in the ordinary course of business since
the date of the TriCord Financial Statements, and neither TriCord nor its
subsidiaries have guaranteed or agreed to guarantee any debt, liability or
other obligation of any person, firm or
corporation;
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(r)
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No Debt. Except
for the amount payable to the Oklahoma Center for the Advancement of
Science and Technology (OCAST) as of March 2, 2009 in the aggregate amount
of $160,000, which is due no later than July 2012, neither TriCord nor its
subsidiaries are, on the date hereof and on Closing, materially
indebted to any, person or entity or other third party, including any
affiliate, director or officer of
TriCord;
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-7-
(s) |
No Related Party Debt
to TriCord. No
director or officer or affiliate of TriCord or its subsidiaries, is
now indebted to or under any financial obligation to TriCord or its
subsidiaries on any account whatsoever, except for advances on account of
travel and other expenses not exceeding One Thousand Dollars ($1,000) in
total;
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(t)
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No Dividends.
No dividends or other distributions on any shares in the capital of
TriCord have been made, declared or authorized since the date of the
TriCord Financial Statements;
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(u)
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No Payments. No
payments of any kind have been made or authorized since the date of the
TriCord Financial Statements to or on behalf of officers, directors,
shareholders or employees of TriCord or its subsidiaries or under any
management agreements with TriCord or its subsidiaries, except payments
made in the ordinary course of business and at the regular rates of salary
or other remuneration payable to
them;
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(v)
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No Pension
Plans. Except as disclosed in the SEC Reports, there are no
pension, profit sharing, group insurance or similar plans or other
deferred compensation plans affecting TriCord or its
subsidiaries;
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(w)
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No Adverse
Events. Since September 30,
2008,
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(i)
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there
has not been any material adverse change in the properties, results of
operations, financial position or condition (financial or otherwise) of
TriCord, its subsidiaries, its assets or liabilities or any damage, loss
or other change in circumstances materially affecting TriCord, the TriCord
Business or TriCord’s right to carry on the TriCord Business, other than
non-material changes in the ordinary course of business or as contemplated
pursuant to this Agreement,
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(ii)
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there
has not been any damage, destruction, loss or other event (whether or not
covered by insurance) materially and adversely affecting TriCord, its
subsidiaries, or the TriCord
Business,
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(iii)
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there
has not been any material increase in the compensation payable or to
become payable by TriCord to any of TriCord’s officers, employees or
agents or any bonus, payment or arrangement made to or with any of
them,
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(iv)
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the
TriCord Business has been and continues to be carried on in the ordinary
course,
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(v)
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TriCord
has not waived or surrendered any right of material
value,
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(vi)
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Neither
TriCord nor its subsidiaries have discharged, satisfied or paid any lien
or encumbrance or obligation or liability other than current liabilities
in the ordinary course of business;
and
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(vii)
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no
capital expenditures have been authorized or made by
TriCord.
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TriCord
- Income Tax Matters
(x)
|
Tax Returns. As
of the Closing Date, all tax returns of TriCord and its subsidiaries,
required by law to be filed have been filed and are true, complete and
correct, and any taxes payable in accordance with any return filed by
TriCord and its subsidiaries, or in accordance with any notice of
assessment or reassessment issued by any taxing authority have been so
paid and no amounts are owed to any taxing authority as of the Closing
Date. Without limiting the generality of the foregoing, TriCord hereby
repreents that no amounts are owed to any taxing authorities by TriCord
and/or its subsidiaries, for the period commencing on the
formation(incorporation) of TriCord though the Closing
Date;
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-8-
(y)
|
Current Taxes.
Adequate provisions have been made for taxes payable for the current
period for which tax returns are not yet required to be filed and there
are no agreements, waivers, or other arrangements providing for an
extension of time with respect to the filing of any tax return by, or
payment of, any tax, governmental charge or deficiency by TriCord or its
subsidiaries. There are no contingent tax liabilities or any
grounds which would prompt a reassessment including aggressive treatment
of income and expenses in filing earlier tax returns for TriCord or its
subsidiaries;
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TriCord
- Applicable Laws and Legal Matters
(z)
|
Licenses.
TriCord and its subsidiaries hold all licenses and permits as may be
requisite for carrying on the TriCord Business in the manner in which it
has heretofore been carried on, which licenses and permits have been
maintained and continue to be in good standing except where the failure to
obtain or maintain such licenses or permits would not have a material
adverse effect on the TriCord
Business;
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(aa)
|
Applicable
Laws. Neither TriCord nor its subsidiaries have been charged with
or received notice of breach of any laws, ordinances, statutes,
regulations, by-laws, orders or decrees to which they are subject or which
apply to them the violation of which would have a material adverse effect
on the TriCord Business, and to TriCord’s knowledge, neither TriCord nor
its subsidiaries are in breach of any laws, ordinances, statutes,
regulations, bylaws, orders or decrees the contravention of which would
result in a material adverse impact on the TriCord
Business;
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(bb)
|
Pending or Threatened
Litigation. There is no litigation or administrative or
governmental proceeding pending or threatened against or relating to
TriCord, its subsidiaries, or the TriCord Business nor does TriCord have
any knowledge of any act or omission of TriCord or its subsidiaries that
would form any material basis for any such action or
proceeding;
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(cc)
|
No Bankruptcy.
Neither TriCord nor its subsidiaries have made any voluntary assignment or
proposal under applicable laws relating to insolvency and bankruptcy and
no bankruptcy petition has been filed or presented against TriCord or its
subsidiaries and no order has been made or a resolution passed for the
winding-up, dissolution or liquidation of TriCord or its
subsidiaries;
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(dd)
|
Labor Matters.
Neither TriCord nor its subsidiaries are party to any collective agreement
relating to the TriCord Business with any labor union or other association
of employees and no part of the TriCord Business has been certified as a
unit appropriate for collective bargaining or, to the knowledge of
TriCord, has made any attempt in that
regard;
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(ee)
|
Finder’s Fees. Unless
otherwise disclosed, neither TriCord nor its subsidiaries are party to any
agreement which provides for the payment of finder’s fees, brokerage fees,
commissions or other fees or amounts which are or may become payable to
any third party in connection with the execution and delivery of this
Agreement and the transactions contemplated
herein;
|
Execution
and Performance of Agreement
(ff)
|
Authorization and
Enforceability. The execution and delivery of this Agreement, and
the completion of the transactions contemplated hereby, have been duly and
validly authorized by all necessary corporate action on the part of
TriCord and the Acquirer;
|
(gg)
|
No Violation or
Breach. The execution and performance of this Agreement will
not:
|
(i)
|
violate
the charter documents of TriCord or the Acquirer or result in any breach
of, or default under, any loan agreement, mortgage, deed of trust, or any
other agreement to which TriCord or its subsidiaries are a
party,
|
-9-
(ii)
|
give
any person any right to terminate or cancel any agreement or any right or
rights enjoyed by TriCord or its
subsidiaries,
|
(iii)
|
result
in any alteration of TriCord’s or its subsidiaries’ obligations under any
agreement to which TriCord or its subsidiaries are
party,
|
(iv)
|
result
in the creation or imposition of any lien, encumbrance or restriction of
any nature whatsoever in favor of a third party upon or against the assets
of TriCord,
|
(v)
|
result
in the imposition of any tax liability to TriCord or its subsidiaries
relating to the assets of TriCord,
or
|
(vi)
|
violate
any court order or decree to which either TriCord or its subsidiaries is
subject;
|
The
TriCord Business
(hh)
|
Maintenance of
Business. Since the date of the TriCord Financial Statements,
TriCord and its subsidiaries have not entered into any material agreement
or commitment except in the ordinary course and except as provided in,
contemplated by, or set forth in this Agreement, or in the SEC
Reports;
|
(ii)
|
Subsidiaries.
Except for the Acquirer and TriCord Hurricane Products, Inc., a Florida
corporation, TriCord does not own any subsidiaries and does not otherwise
own, directly or indirectly, any shares or interest in any other
corporation, partnership, joint venture or firm. References in
this Agreement to any subsidiaries of the TriCord shall include the
Acquirer and any other subsidiary that TriCord may have but has
not disclosed in this Agreement;
|
TriCord
- Acquisition Shares
(jj)
|
Acquisition
Shares. The Acquisition Shares when delivered to the holders of
ARIA Shares pursuant to the Merger shall be validly issued and outstanding
as fully paid and non-assessable shares and the Acquisition Shares shall
be transferable upon the books of TriCord, in all cases subject to the
provisions and restrictions of all applicable securities laws;
and
|
(kk)
|
Securities Law
Compliance. Except as set forth in the SEC Reports,
TriCord has not issued any shares of its common stock (or securities
convertible into or exercisable for shares of common
stock). Neither TriCord nor any person acting on its behalf has
taken or will take any action (including, without limitation, any offering
of any securities of TriCord under circumstances which would require the
integration of such offering with the offering of the Acquisition Shares
issued to the ARIA Shareholders) which subject the issuance or sale of
such shares to the ARIA Shareholders to the registration requirements of
Section 5 of the Securities Act.
|
Non-Merger
and Survival
3.2 The
representations and warranties of TriCord and the Acquirer contained herein are
true and correct as of the date of this Agreement and will be true at and as of
Closing in all material respects as though such representations and warranties
were made as of such time. Notwithstanding the completion of the
transactions contemplated hereby, the waiver of any condition contained herein
(unless such waiver expressly releases a party from any such representation or
warranty) or any investigation made by the ARIA Shareholders, the
representations and warranties of TriCord shall survive the Closing for a period
of two (2) years.
-10-
Indemnity
3.3 TriCord
shall indemnify and save harmless ARIA and the ARIA Shareholders from and
against any and all claims, demands, actions, suits, proceedings, assessments,
judgments, damages, costs, losses and expenses, including any payment made in
good faith in settlement of any claim, resulting from the breach by TriCord of
any representation, covenant or warranty made under this Agreement or from any
misrepresentation in or omission from any certificate or other instrument
furnished or to be furnished by TriCord and/or the Acquirer to ARIA
hereunder.
ARTICLE
4
COVENANTS
OF TriCord
Covenants
4.1
TriCord
covenants and agrees with ARIA that TriCord will:
(a)
|
Conduct of
Business. Until the Closing, conduct its business diligently and in
the ordinary course consistent with the manner in which it generally has
been operated up to the date of execution of this
Agreement;
|
(b)
|
Access. Until
the Closing, give the ARIA Shareholders and their representatives full
access to all of the properties, books, contracts, commitments and records
of TriCord, and furnish to the ARIA Shareholders and their representatives
all such information as they may reasonably
request;
|
(c)
|
Procure
Consents. Until the Closing, take all reasonable steps required to
obtain, prior to Closing, any and all third party consents required to
permit the Merger;
|
(d)
|
Public
Information. Make and keep public information available,
as those terms are understood and defined in Rule 144 (defined below);
and
|
(e)
|
SEC
Filings. File with the Commission in a timely manner,
all reports and other documents required of TriCord under either the
Securities Act or the Exchange Act.
|
(f)
|
Tax Returns.
TriCord shall on and after the Closing Date be responsible for any taxes
owed or penalties thereon pertaining to the failure of TriCord and its
subsidiaries to file tax returns with the appropriate jurisdictions for
any periods prior to Closing.
|
Authorization
4.2
|
TriCord
hereby agrees to authorize and direct any and all federal, state,
municipal, foreign and international governments and regulatory
authorities having jurisdiction respecting TriCord and its subsidiaries to
release any and all information in their possession respecting TriCord and
its subsidiaries to ARIA. TriCord shall promptly execute and deliver to
ARIA any and all consents to the release of information and specific
authorizations which ARIA reasonably requires to gain access to any and
all such information.
|
Reports
Under the Exchange Act
4.3
|
With
a view to making available to the ARIA Shareholders the benefits of Rule
144 promulgated under the Securities Act or any other similar rule or
regulation of the Commission that may at any time permit the ARIA
Shareholders to sell securities of TriCord to the public without
registration and without imposing restrictions arising under the federal
securities laws on the purchases thereof (“Rule 144”), and provided that
the applicable holding period imposed by Rule 144 has been met, TriCord
agrees to furnish to each ARIA Shareholder, so long as such ARIA
Shareholder owns TriCord Common Shares, promptly upon request, (i) a
written statement by TriCord that it has complied with the reporting
requirements of Rule 144, the Securities Act and the Exchange Act, (ii) a
copy of the most recent annual or quarterly report of TriCord and such
other reports and documents so filed by TriCord, and (iii) such other
information as may be reasonably requested to permit the ARIA Shareholders
to sell such securities pursuant to Rule 144 without
registration.
|
-11-
Survival
4.4
|
The
covenants set forth in this Article shall survive the Closing for the
benefit of the ARIA Shareholders and shall continue to survive for a
period not to exceed one year from the Closing
Date.
|
ARTICLE
5
REPRESENTATIONS
AND WARRANTIES OF
ARIA
Representations
and Warranties
5.1 ARIA
represents and warrants in all material respects to TriCord, with the intent
that it will rely thereon in entering into this Agreement and in approving and
completing the transactions contemplated hereby, that:
ARIA-
Corporate Status and Capacity
(a)
|
Incorporation.
ARIA is a corporation duly incorporated and validly existing under the
laws of the State of Delaware, and is in good standing with the office of
the Secretary of State for the State of
Delaware;
|
(b)
|
Carrying on
Business. ARIA carries on business primarily in the States of
Virginia and California and does not carry on any material business
activity in any other jurisdiction. The nature of the ARIA Business does
not require ARIA to register or otherwise be qualified to carry on
business in any other jurisdiction;
|
(c)
|
Corporate
Capacity. ARIA has the corporate power, capacity and authority to
own the ARIA Assets and to carry on the ARIA Business and ARIA has the
corporate power, capacity and authority to enter into and complete this
Agreement;
|
ARIA-
Capitalization
(d)
|
Authorized
Capital. The authorized capital of ARIA consists of 10,000,000
shares of common stock, $0.001 par value, of which all 10,000,000 shares
are presently issued and outstanding and 2,000,000 shares of Preferred
Stock, .001 par value, of which 0 shares are presently issued and
outstanding.
|
(e)
|
Ownership of ARIA
Shares. The issued and outstanding share capital of ARIA consist of
10,000,000 common shares (being the ARIA Shares), which shares on Closing
shall be validly issued and outstanding as fully paid and non-assessable
shares. The ARIA Shareholders will be at Closing the registered and
beneficial owner of the ARIA Shares. The ARIA Shares owned by the ARIA
Shareholders will on Closing be free and clear of any and all liens,
charges, pledges, encumbrances, restrictions on transfer and adverse
claims whatsoever not created by or through TriCord and/or the
Acquirer;
|
|
|
(f)
|
No
Restrictions. There are no restrictions on the transfer, sale or
other disposition of ARIA Shares contained in the charter documents of
ARIA or under any agreement;
|
-12-
ARIA- Records and Financial Statements
(g)
|
Charter
Documents. The charter documents of ARIA have not been altered
since its incorporation date, except as filed in the record books of ARIA,
and ARIA is not in violation or breach of, or in default with respect to,
any term of its Articles of Incorporation (or other charter documents) or
by-laws;
|
(h)
|
ARIA Financial
Statements. The ARIA Financial Statements present fairly, in all
material respects, the assets and liabilities (whether accrued, absolute,
contingent or otherwise) of ARIA as of the respective dates thereof, and
the results of operations and changes in financial position of ARIA during
the periods covered thereby, and will be prepared in accordance with
generally accepted accounting principles consistently applied throughout
the periods indicated;
|
(i)
|
ARIA Accounts Payable and
Liabilities. There are no material liabilities, contingent or
otherwise, of ARIA which are not reflected in the ARIA Financial
Statements except those incurred in the ordinary course of business since
the date of the ARIA Financial
Statements;
|
(j)
|
No Dividends.
No dividends or other distributions on any shares in the capital of ARIA
have been made, declared or authorized since the date of the ARIA
Financial Statements;
|
|
ARIA-
Income Tax Matters
(k)
|
Tax Returns.
All tax returns and reports of ARIA required by law to be filed have been
filed and to the best of ARIA’s knowledge and belief are true, complete
and correct, and any taxes payable in accordance with any return filed by
ARIA or in accordance with any notice of assessment or reassessment issued
by any taxing authority have been so
paid;
|
(l)
|
Current Taxes.
Adequate provisions have been made for taxes payable for the current
period for which tax returns are not yet required to be filed and there
are no agreements, waivers, or other arrangements providing for an
extension of time with respect to the filing of any tax return by, or
payment of, any tax, governmental charge or deficiency by ARIA. ARIA is
not aware of any contingent tax liabilities or any grounds which would
prompt a reassessment including aggressive treatment of income and
expenses in filing earlier tax
returns;
|
ARIA-
Applicable Laws and Legal Matters
(m)
|
Licenses. ARIA
holds all licenses and permits as may be requisite for carrying on the
ARIA Business in the manner in which it has heretofore been carried on,
which licenses and permits have been maintained and continue to be in good
standing except where the failure to obtain or maintain such licenses or
permits would not have a material adverse effect on the ARIA
Business;
|
(n)
|
Applicable
Laws. ARIA has not been charged with or received notice of breach
of any laws, ordinances, statutes, regulations, by-laws, orders or decrees
to which it is subject or which applies to it the violation of which would
have a material adverse effect on the ARIA Business, and, to ARIA’s
knowledge and belief, ARIA is not in breach of any laws, ordinances,
statutes, regulations, by-laws, orders or decrees the contravention of
which would result in a material adverse impact on the ARIA
Business;
|
(o)
|
Pending or Threatened
Litigation. There is no material litigation or administrative or
governmental proceeding pending or threatened against or relating to ARIA,
the ARIA Business, or any of the ARIA Assets, nor does ARIA have any
knowledge of any deliberate act or omission of ARIA that would form any
material basis for any such action or
proceeding;
|
-13-
(p)
|
No Bankruptcy.
ARIA has not made any voluntary assignment or proposal under applicable
laws relating to insolvency and bankruptcy and no bankruptcy petition has
been filed or presented against ARIA and no order has been made or a
resolution passed for the winding-up, dissolution or liquidation of
ARIA;
|
(q)
|
Labor Matters.
ARIA is not a party to any collective agreement relating to the ARIA
Business with any labor union or other association of employees and no
part of the ARIA Business has been certified as a unit appropriate for
collective bargaining or, to the knowledge of ARIA, has made any attempt
in that regard and ARIA has no reason to believe that any current
employees will leave ARIA’s employ as a result of this
Merger;
|
Execution
and Performance of Agreement
(r)
|
Authorization and
Enforceability. The execution and delivery of this Agreement, and
the completion of the transactions contemplated hereby, have been duly and
validly authorized by all necessary corporate action on the part of ARIA
and the ARIA Shareholders;
|
(s)
|
No Violation or
Breach. The execution and performance of this Agreement will
not
|
(i)
|
violate
the charter documents of ARIA or result in any breach of, or default
under, any loan agreement, mortgage, deed of trust, or any other agreement
to which ARIA is a party,
|
(ii)
|
give
any person any right to terminate or cancel any agreement including,
without limitation, ARIA Material Contracts, or any right or rights
enjoyed by ARIA,
|
(iii)
|
result
in any material alteration of ARIA’s obligations under any agreement to
which ARIA is a party including, without limitation, the ARIA Material
Contracts,
|
(iv)
|
result
in the creation or imposition of any lien, encumbrance or restriction of
any nature whatsoever in favor of a third party upon or against the ARIA
Assets,
|
(v)
|
result
in the imposition of any tax liability to ARIA relating to ARIA Assets or
the ARIA Shares, or
|
(vi)
|
violate
any court order or decree to which ARIA is
subject;
|
ARIA
Assets - Ownership and Condition
(t)
|
No Option. No
person, firm or corporation has any agreement or option or a right capable
of becoming an agreement for the purchase of any of the ARIA
Assets;
|
|
(u)
|
ARIA Material
Contracts. The ARIA Material Contracts constitute all of the
material contracts of ARIA;
|
(v)
|
No Default.
There has not been any default in any material obligation of ARIA or any
other party to be performed under any of the ARIA Material Contracts, each
of which is in good standing and in full force and effect and unamended,
and ARIA is not aware of any default in the obligations of any other party
to any of the ARIA Material
Contracts;
|
ARIA
Assets - ARIA Goodwill and Other Assets
(w) |
ARIA
does not have any knowledge of any infringement by ARIA of any patent,
trademark, copyright or trade
secret;
|
-14-
The
Business of ARIA
(x)
|
Maintenance of
Business. Since the date of the ARIA Financial Statements, the ARIA
Business has been carried on in the ordinary course, and ARIA has not
entered into any material agreement or commitment except in the ordinary
course; and
|
(y)
|
Subsidiaries.
ARIA does not have any subsidiaries and does not otherwise own, directly
or indirectly, any shares or interest in any other corporation,
partnership, joint venture or firm.
|
Non-Merger
and Survival
5.2 The
representations and warranties of ARIA contained herein will be true at and as
of Closing in all material respects as though such representations and
warranties were made as of such time. Notwithstanding the completion
of the transactions contemplated hereby, the waiver of any condition contained
herein (unless such waiver expressly releases a party from any such
representation or warranty) or any investigation made by TriCord, the
representations and warranties of ARIA shall survive the Closing for a period of
two (2) years.
Indemnity
5.3 ARIA
agrees to indemnify and save harmless TriCord from and against any and all
claims, demands, actions, suits, proceedings, assessments, judgments, damages,
costs, losses and expenses, including any payment made in good faith in
settlement of any claim (subject to the right of ARIA to defend any such claim),
resulting from the breach by ARIA of any representation or warranty of ARIA made
under this Agreement or from any misrepresentation in or omission from any
certificate or other instrument furnished or to be furnished by ARIA to TriCord
hereunder. Legal fees and other costs of defending and prosecuting
this action shall be borne by ARIA.
ARTICLE
6
COVENANTS
OF ARIA
Covenants
6.1 ARIA
covenants and agrees with TriCord that it will:
(a)
|
Conduct of
Business. Until the Closing, conduct the ARIA Business diligently
and in the ordinary course consistent with the manner in which the ARIA
Business generally has been operated up to the date of execution of this
Agreement;
|
(b)
|
Preservation of
Business. Until the Closing, use their best efforts to
preserve the ARIA Business and the ARIA
Assets;
|
|
(c)
|
Procure
Consents. Until the Closing, take all reasonable steps required to
obtain, prior to Closing, any and all third party consents required to
permit the Merger and to preserve and maintain the ARIA Assets, including
the ARIA Material Contracts; and
|
(d)
|
Reporting and Internal
Controls. From and after the Effective Time, forthwith take all
required actions to implement internal controls on the business of the
Surviving Company to ensure that the Surviving Company complies with
Section 13(b)(2) of the Exchange
Act.
|
Authorization
6.2 ARIA
hereby agrees to authorize and direct any and all federal, state, municipal,
foreign and international governments and regulatory authorities having
jurisdiction respecting ARIA to release any and all information in their
possession respecting ARIA to TriCord. ARIA shall promptly execute
and deliver to TriCord any and all consents to the release of information and
specific authorizations which TriCord reasonably require to gain access to any
and all such information.
-15-
Survival
6.3 The
covenants set forth in this Article shall survive the Closing for the benefit of
TriCord.
ARTICLE
7
CONDITIONS
PRECEDENT
Conditions
Precedent in favor of TriCord
7.1 TriCord’s
obligations to carry out the transactions contemplated hereby are subject to the
fulfillment (or waiver by TriCord) of each of the following conditions precedent
on or before the Closing:
(a)
|
all
documents or copies of documents, securities issuances and wire transfers
required to be executed and delivered to TriCord as set forth in
Article 9 hereof will have been so executed and
delivered;
|
(b)
|
all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by ARIA at or prior to the Closing will have been
complied with or performed;
|
|
(c)
|
title
to the ARIA Shares held by the ARIA Shareholders will be free and clear of
all mortgages, liens, charges, pledges, security interests, encumbrances
or other claims whatsoever not created by or through TriCord and/or the
Acquirer;
|
(d)
|
the
Certificate of Merger shall be executed by ARIA in form acceptable for
filing with the Nevada Secretary of
State;
|
(e)
|
reserved;
|
(f)
|
subject
to Article 8 hereof, there will not have
occurred:
|
|
(i)
|
any
material adverse change in the financial position or condition of ARIA,
its liabilities or the ARIA Assets or any damage, loss or other change in
circumstances materially and adversely affecting the ARIA Business or the
ARIA Assets or ARIA’s right to carry on the ARIA Business, other than
changes in the ordinary course of business, none of which has been
materially adverse, or
|
(ii)
|
any
damage, destruction, loss or other event, including changes to any laws or
statutes applicable to ARIA or the ARIA Business (whether or not covered
by insurance) materially and adversely affecting ARIA, the ARIA Business
or the ARIA Assets;
|
(g)
|
the
transactions contemplated hereby shall have been approved by all other
regulatory authorities having jurisdiction over the subject matter hereof,
if any; and
|
(h) |
all
representations and warranties of ARIA contained herein shall be true and
correct as of the Closing Date.
|
Waiver
by TriCord
7.2 The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of TriCord and any such condition may be waived in whole or in
part by TriCord at or prior to Closing by delivering to ARIA a written waiver to
that effect signed by TriCord. In the event that the conditions precedent set
out in the preceding section are not satisfied on or before the Closing, TriCord
shall be released from all obligations under this Agreement.
-16-
Conditions Precedent in Favor of ARIA
7.3 The
obligations of ARIA to carry out the transactions contemplated hereby are
subject to the fulfillment of each of the following conditions precedent on or
before the Closing:
(a)
|
all
documents or copies of documents required to be executed and delivered to
ARIA or the ARIA Shareholders hereunder will have been so executed and
delivered;
|
(b)
|
reserved;
|
(c)
|
all
directors and officers of TriCord shall have tendered their resignations
in a form reasonably acceptable to ARIA, and the ARIA’s Shareholders’
nominees shall have been appointed to TriCord’s board of directors in a
form reasonably acceptable to ARIA;
|
(d)
|
ARIA
shall be in receipt of the ARIA Financial
Statements;
|
(e)
|
reserved;
|
(f)
|
TriCord
shall have no liabilities (or all outstanding liabilities shall be
satisfied at Closing);
|
(g)
|
all
of the terms, covenants and conditions of this Agreement to be complied
with or performed by TriCord or the Acquirer at or prior to the Closing
shall have been complied with or
performed;
|
(h)
|
ARIA
shall have completed its review and inspection of the books and records of
TriCord and its subsidiaries and shall be reasonably satisfied with same
in all material respects;
|
(i)
|
TriCOrd shall
have delivered an instruction letter to the transfer agent to issue the
Acquisition Shares to be issued pursuant to the terms of the Merger to the
ARIA Shareholders and the Acquisition Shares will be registered on the
books of TriCord in the name of the ARIA Shareholders at the Effective
Time;
|
(j)
|
title
to the Acquisition Shares will be free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances or other claims
whatsoever;
|
(k)
|
the
Certificate of Merger shall be executed by the Acquirer in form acceptable
for filing with the Nevada Secretary of
State;
|
(l)
|
reserved;
|
(m)
|
subject
to Article 8 hereof, there will not have
occurred
|
(i)
|
any
material adverse change in the financial position or condition of TriCord,
its subsidiaries, their assets or liabilities or any damage, loss or other
change in circumstances materially and adversely affecting TriCord or the
TriCord Business or TriCord’s right to carry on the TriCord Business,
other than changes in the ordinary course of business, none of which has
been materially adverse, or
|
(ii)
|
any
damage, destruction, loss or other event, including changes to any laws or
statutes applicable to TriCord or the TriCord Business (whether or not
covered by insurance) materially and adversely affecting TriCord, its
subsidiaries or its assets;
|
-17-
(n)
|
the
transactions contemplated hereby shall have been approved by all other
regulatory authorities having jurisdiction over the subject matter hereof,
if any; and
|
(o) |
all
representations and warranties of TriCord and the Acquirer contained
herein shall be true and correct as of the Closing
Date.
|
Waiver
by ARIA
7.4 The
conditions precedent set out in the preceding section are inserted for the
exclusive benefit of ARIA and any such condition may be waived in whole or in
part by ARIA at or prior to the Closing by delivering to TriCord a written
waiver to that effect signed by ARIA. In the event that the conditions precedent
set out in the preceding section are not satisfied on or before the Closing ARIA
shall be released from all obligations under this Agreement.
Nature
of Conditions Precedent
7.5 The
conditions precedent set forth in this Article are conditions of completion of
the transactions contemplated by this Agreement and are not conditions precedent
to the existence of a binding agreement. Each party acknowledges receipt of the
sum of $1.00 and other good and valuable consideration as separate and distinct
consideration for agreeing to the conditions precedent in favor of the other
party or parties set forth in this Article.
Confidentiality
7.6 Notwithstanding
any provision herein to the contrary, the parties hereto agree that the
existence and terms of this Agreement are confidential and that if this
Agreement is terminated pursuant to the preceding section the parties agree to
return to one another any and all financial, technical and business documents
delivered to the other party or parties in connection with the negotiation and
execution of this Agreement and shall keep the terms of this Agreement and all
information and documents received from ARIA and TriCord and the contents
thereof confidential and not utilize nor reveal or release same, provided,
however, that TriCord may be required to issue news releases regarding the
execution and consummation of this Agreement and file a Current Report on Form
8-K with the Commission respecting the proposed Merger contemplated hereby
together with such other documents as are required to maintain the currency of
TriCord’s filings with the Commission.
ARTICLE
8
RISK
Material
Change in the Business of ARIA
8.1 If
any material loss or damage to the ARIA Business occurs prior to Closing and
such loss or damage, in TriCord’s reasonable opinion, cannot be substantially
repaired or replaced within sixty (60) days, TriCord shall, within two (2) days
following any such loss or damage, by notice in writing to ARIA, 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 Merger 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
TriCord’s obligations to carry out the transactions contemplated hereby,
be vested in ARIA or otherwise adequately secured to the satisfaction of
TriCord on or before the Closing
Date.
|
-18-
Material Change in the TriCord Business
8.2 If
any material loss or damage to the TriCord Business occurs prior to Closing and
such loss or damage, in ARIA’s reasonable opinion, cannot be substantially
repaired or replaced within sixty (60) days, ARIA shall, within two (2) days
following any such loss or damage, by notice in writing to TriCord, 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 Merger 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
ARIA’s obligations to carry out the transactions contemplated hereby, be
vested in TriCord or otherwise adequately secured to the satisfaction of
ARIA on or before the Closing Date.
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ARTICLE
9
CLOSING
Closing
9.1 The
Merger and the other transactions contemplated by this Agreement will be closed
on or before March 2, 2009, in accordance with the closing procedure set out in
this Article.
Documents
to be Delivered by ARIA
9.2 On
or before the Closing, ARIA will deliver or cause to be delivered to
TriCord:
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(a)
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an
executed copy of this Agreement;
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(b)
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all
reasonable consents or approvals required to be obtained by ARIA for the
purposes of completing the Merger and preserving and maintaining the
interests of ARIA under any and all ARIA Material Contracts and in
relation to ARIA Assets;
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(c)
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an
officers certificate containing articles, bylaws, and certified copies of
such resolutions of the shareholders and directors of ARIA as are required
to be passed to authorize the execution, delivery and implementation of
this Agreement;
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(d)
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such
other documents as TriCord may reasonably require to give effect to the
terms and intention of this
Agreement.
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Documents
to be Delivered by TriCord
9.3 On
or before the Closing, TriCord and the Acquirer shall deliver or cause to be
delivered to ARIA:
(a)
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an
executed copy of this Agreement;
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(b)
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an
irrevocable instruction letter to the transfer agent to issue share
certificates representing the Acquisition Shares duly registered in the
names of the ARIA Shareholders;
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(c)
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an
officers certificate containing articles, bylaws, and certified copies of
such resolutions of the directors of TriCord and the Acquirer as are
required to be passed to authorize the execution, delivery and
implementation of this Agreement;
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(d)
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a
certified copy of a resolution of the directors of TriCord dated as of the
Closing Date appointing the nominees of the ARIA Shareholders to the board
of directors of TriCord;
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(e)
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resignations
of each of the officers and directors of TriCord in a form reasonably
acceptable to ARIA;
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(f)
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such
other documents as ARIA may reasonably require to give effect to the terms
and intention of this Agreement.
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ARTICLE
10
POST-CLOSING
MATTERS
General
10.1 Forthwith
after the Closing, TriCord and ARIA agree to use all their best efforts
to:
(a)
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file
the Certificate of Merger with the Secretary of State of Nevada;
and
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(b)
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issue
a news release reasonably acceptable to each party reporting the Closing;
and
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(c)
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file
a Form 8-K with the Securities and Exchange Commission disclosing the
terms of this Agreement which includes audited financial statements of
ARIA as well as pro forma financial information of ARIA and TriCord as
required by Regulation S-X as promulgated by the Commission (all at no
cost to the ARIA Shareholders); and
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(d)
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take
such steps as required to change the name of TriCord to “Aria
International Holdings, Inc.” as of the earliest practical date following
the date hereof but in any event within 60 days of the
Closing;
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10.2 The
parties agree that the certain additional TriCord Common Shares shall be issued
to the Aria Shareholders based upon the financial performace of Aria in
accordance with the following:
(a)
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If
the gross revenue booked by TriCord within the first 12 months from the
Closing is equal to or greater than $20 million but less than $30 million
(“Milestone 1”), TriCord shall issue additional such shares to bring
Aria’s total ownership of TriCord to seventy percent (70%) of TriCord
based on the total share ownership of 152,025,160 shares of Common Stock
issued and outstanding upon completion of the private placement offering
dated February 20 , 2009 (i.e. 15,202,516 Milestone 1
Shares).
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(b)
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If
the gross revenue booked by TriCord within the first 18 months from the
Closing is equal to or greater than $30 million (“Milestone 2”), TriCord
shall issue additional such shares to bring Aria’s total ownership of
TriCord to eighty percent (80%) of TriCord based on the total share
ownership of 152,025,160 shares of Common Stock issued and outstanding
upon completion of the private placement offering dated February 20 , 2009
(i.e. 15,202,516 Milestone 2
Shares).
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(c)
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All
such shares of common stock issue as a result of achieving Milestone 1 and
Milestone 2 as set forth in Section 10.2(a) and (b) above may be issued as
shares at the current market price as of the Milestone 1 or 2 date or at
the option of Aria, as warrants to purchase common shares at a purchase
price of ten cents ($0.10) per share over a period of ten (10)
years.
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ARTICLE
11
GENERAL
PROVISIONS
Arbitration
11.1 The
parties hereto shall attempt to resolve any dispute, controversy, difference or
claim arising out of or relating to this Agreement by negotiation in good
faith. If such good negotiation fails to resolve such dispute,
controversy, difference or claim within thirty (30) days after any party
delivers to any other party a notice of its intent to submit such matter to
arbitration, then any party to such dispute, controversy, difference or claim
may submit such matter to arbitration.
Any
action or proceeding seeking to enforce any provision of, or based upon any
right arising out of, this Agreement shall be settled by binding arbitration by
a panel of three (3) arbitrators in accordance with the Commercial Arbitration
Rules of the American Arbitration Association and governed by the laws of the
State of Delaware (without regard to the choice-of-law rules or principles of
that jurisdiction). Judgment upon the award may be entered in any
court located in the State of New York, and all the parties hereto hereby
expressly waive any objections or defense based upon lack of personal
jurisdiction.
Each
of the plaintiff and defendant party to the arbitration shall select one (1)
arbitrator (or where multiple plaintiffs and/or defendants exist, one (1)
arbitrator shall be chosen collectively by such parties comprising the
plaintiffs and one (1) arbitrator shall be chosen collectively by those parties
comprising the defendants) and then the two (2) arbitrators shall mutually agree
upon the third arbitrator. Where no agreement can be reached on
the selection of either a third arbitrator or an arbitrator to be named by
either a group of plaintiffs or a group of defendants, any implicated party may
apply to a judge of the courts of the State of New York, to name an
arbitrator. Process in any such action or proceeding may
be served on any party anywhere in the world.
Indemnification
Provisions
11.2 Notice to
Indemnifying Party. If any party (the “Indemnitee”) receives notice
of any claim or the commencement of any action or proceeding with respect to
which the other party (or parties) is obligated to provide indemnification (the
“Indemnifying Party”) pursuant to Sections 3.3 or 5.3 hereof, the Indemnitee
shall give the Indemnifying Party written notice thereof within a reasonable
period of time following the Indemnitee’s receipt of such
notice. Such notice shall describe the claim in reasonable detail and
shall indicate the amount (estimated if necessary) of the losses that have been
or may be sustained by the Indemnitee. The Indemnifying Party may,
subject to the other provisions of this Section 11.2, compromise or defend, at
such Indemnifying Party’s own expense and by such Indemnifying Party’s own
counsel, any such matter involving the asserted liability of the Indemnitee in
respect of a third-party claim. If the Indemnifying Party elects to
compromise or defend such asserted liability, it shall within thirty (30) days
(or sooner, if the nature of the asserted liability so requires) notify the
Indemnitee of its intent to do so, and the Indemnitee, shall reasonably
cooperate, at the request and reasonable expense of the Indemnifying Party, in
the compromise of, or defense against, such asserted liability. The
Indemnifying Party will not be released from any obligation to indemnify the
Indemnitee hereunder with respect to a claim without the prior written consent
of the Indemnitee, unless the Indemnifying Party delivers to the Indemnitee a
duly executed agreement settling or compromising such claim with no monetary
liability to or injunctive relief against the Indemnitee and a complete release
of the Indemnitee with respect thereto. The Indemnifying Party shall
have the right to conduct and control the defense of any third-party claim made
for which it has been provided notice hereunder. All costs and fees
incurred with respect to any such claim will be borne by the Indemnifying
Party. The Indemnitee will have the right to participate, but not
control, at its own expense, the defense or settlement of any such claim;
provided, that if the Indemnitee and the Indemnifying Party shall have
conflicting claims or defenses, the Indemnifying Party shall not have control of
such conflicting claims or defenses and the Indemnitee shall be entitled to
appoint a separate counsel for such claims and defenses at the cost and expense
of the Indemnifying Party. If the Indemnifying Party chooses to
defend any claim, the Indemnitee shall make available to the Indemnifying Party
any books, records or other documents within its control that are reasonably
required for such defense.
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Notice
11.3 Any
notice required or permitted to be given by any party will be deemed to be given
when in writing and delivered to the address for notice of the intended
recipient by personal delivery, prepaid certified or registered mail,
or Facsimile. Any notice delivered by mail shall be deemed to have been received
on the fourth business day after and excluding the date of mailing, except in
the event of a disruption in regular postal service in which event such notice
shall be deemed to be delivered on the actual date of receipt. Any notice
delivered personally or by Facsimile shall be deemed to have been received on
the actual date of delivery.
Addresses
for Service
11.4 The
address for service of notice of each of the parties hereto is as
follows:
(a)
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TriCord
or the Acquirer:
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TriCord
Hurricane Holdings,Inc.
0000
Xxxxx Xxxxxxxxxx Xxx., Xxxxx, XX 00000
Attn: Xxxxx
X. Xxxxx, President
Phone: (000)
000-0000
With a
copy to:
Sichenzia
Xxxx Xxxxxxxx Xxxxxxx, LLP
00
Xxxxxxxx, 00xx
Xxxxx
Xxx Xxxx,
XX 00000
Attn:
Xxxx Xxxxxxxxx, Esq.
Phone
(000) 000-0000
Fax (000)
000-0000
(b)
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ARIA:
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ARIA
International, Incorporated
0000
00xx
Xxxxxx
Xxxxxxxxx,
XX 00000
Attn: Xxxxxxx
Xxxxxx
Phone:
(000) 000-0000
Facsimile:
(000) 000-0000
With a
copy to:
Xxxxx
& Stinberger, LLP
000 Xxxx
X Xxxxxx, Xxxxx 0000
Xxx
Xxxxx, XX 00000
Attn:
Xxxxxxx X. Xxxxx, Esq.
Phone:
(000) 000-0000
Facsimile:
(000) 000-0000
Change
of Address
11.5 Any
party may, by notice to the other parties change its address for notice to some
other address in North America and will so change its address for notice
whenever the existing address or notice ceases to be adequate for delivery by
hand. A post office box may not be used as an address for service.
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Further Assurances
11.6 Each
of the parties will execute and deliver such further and other documents and do
and perform such further and other acts as any other party may reasonably
require to carry out and give effect to the terms and intention of this
Agreement.
Time
of the Essence
11.7 Time
is expressly declared to be the essence of this Agreement.
Entire
Agreement
11.8 The
provisions contained herein constitute the entire agreement among ARIA, the
Acquirer and TriCord respecting the subject matter hereof and supersede all
previous communications, representations and agreements, whether verbal or
written, among ARIA, the Acquirer and TriCord with respect to the subject matter
hereof.
Enurement
11.9 This
Agreement will enure to the benefit of and be binding upon the parties hereto
and their respective heirs, executors, administrators, successors and permitted
assigns.
Assignment
11.10 This
Agreement is not assignable without the prior written consent of the parties
hereto.
Expenses
11.11
Each party agrees to pay, without right of reimbursement from any other party
and regardless of whether or not the transaction is consummated, the costs
incurred by it in connection with this transaction, including legal fees and
other costs incidental to the negotiation of the terms of the transaction and
the preparation of related documentation; notwithstanding anything to the
contrary herein.
Counterparts
11.12 This
Agreement may be executed in counterparts, each of which when executed by any
party will be deemed to be an original and all of which counterparts will
together constitute one and the same Agreement. Delivery of executed copies of
this Agreement by Facsimile will constitute proper delivery, provided that
originally executed counterparts are delivered to the parties within a
reasonable time thereafter.
Applicable
Law
11.13 This
Agreement is subject to the laws of the State of New York.
Disclosures
of Conflicts of Interest
11.14 All
parties acknowledge that:
In
connection with the Merger and our present relationship with Aria, the parties
acknowledge that the law firm of Xxxxx & Xxxxxxxxxxx, LLP (“S&S”)
represents Aria International as its General Counsel and Secretary and one or
more of its partners have been a shareholder of Aria International since
December 19, 2008, which could create a potential or actual
conflict. However, S&S has never had any attorney-client
relationship with TriCord.
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Termination
11.15 This
Agreement may only be terminated at any time prior to the Closing
Date:
(a) upon mutual
written consent authorized by the Board of Directors of TriCord and ARIA;
or
(b) by either
TriCord or ARIA if the Closing shall not have been consummated by the close of
business on March 31, 2009.
[Remainder
of page intentionally left blank.]
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IN WITNESS WHEREOF the parties
have executed this Agreement effective as of the day and year first above
written.
TRICORD HURRICANE HOLDINGS, INC. | |
By: /s/ Xxxxx X. Xxxxx | |
Xxxxx X. Xxxxx,
President
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ARIA ACQUSITION, INC. | |
By: /s/ Xxxxx X. Xxxxx | |
Xxxxx X. Xxxxx,
President
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|
ARIA INTERNATIONAL INCORPORATED | |
By: /s/ Xxxxxxx X. Xxxxxx | |
Xxxxxxx X.
Xxxxxx, President
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