AGREEMENT AND PLAN OF MERGER
Exhibit
2.1
This
Agreement and Plan of Merger (“Agreement”) is made and
entered into as of April 1, 2008, by and among General Mayhem LLC, a California
limited liability company, with its principal office at 00000 Xxxxxxx Xxxx.
Xxxxx 000, Xxxxxxxx Xxxxx, XX 00000 (“General”), WestCoast Golf
Experiences, Inc., a Nevada corporation, with its principal office at 0000
Xxxxxx Xxxxx, Xxxxx 000, Xxxxxx, Xxxxxxxxxx 00000 (“West”), and General Mayhem
Acquisition Corp., a newly-formed wholly-owned subsidiary of West (“Acquisition
Sub”).
RECITALS
A. West
and General intend to effect a reverse triangular merger (the “Merger”), pursuant to which
General will merge with and into Acquisition Sub and Acquisition Sub will
survive and retain the name “General Mayhem Acquisition
Corp.” .
B. Prior
to the Merger, West shall have effected an 13-for-one split (the “Stock Split”) of the
authorized number of shares of its common stock and all of its then-issued and
outstanding common stock, par value $.001 per share.
C. Simultaneous
with the Closing (as defined below), Xxxxx Xxxxx (the “Majority Stockholder”) shall
agree to have 25,943,182 shares of West common stock then held by the Majority
Stockholder cancelled by West pursuant to a stock cancellation agreement of even
date herewith to which West and the Majority Stockholder are parties (the “Cancellation
Agreement”).
D. Simultaneous
with the Closing, West and certain investors (the “Investors”), who are parties
to subscription agreements of even effective date herewith (the “Subscription Agreements”),
will close the $890,000 private placement transaction contemplated by the
Subscription Agreements.
E. For
federal income tax purposes, the parties intend that the Merger Transactions
will qualify as a tax-free reorganization within the meaning of
Section 368(a) of the Internal Revenue Code of 1986, as amended, and the
rules and regulations promulgated thereunder (the “Tax Code”).
NOW, THEREFORE, in
consideration of the foregoing and the representations, warranties and mutual
covenants herein made, the parties hereby agree to the foregoing and as
follows:
Section
1. Definitions. Capitalized
terms not otherwise defined herein have the meanings set forth in the attached
Schedule
1.
Section
2. Merger.
(a) Effecting the
Merger. Upon the terms and subject to the conditions contained
in this Agreement, at the Effective Time, General shall be merged with and into
Acquisition Sub, and the separate corporate existence of General shall thereupon
cease.
1
(b) Effect on Capital
Stock. Subject to the terms and conditions of this Agreement,
at the Effective Time, by virtue of the Merger and without any action on the
part of West, General and Acquisition Sub or the holders of any of the following
securities, the following shall occur:
(i)
Conversion of General
Units. Each membership unit of General issued and outstanding
on the Closing Date (“General
Units”) shall, by virtue of the Merger and without any action on the part
of General, West, Acquisition Sub or the holders of the General Units, be
converted into and will become 26,000,000 validly issued, fully
paid and non-assessable shares of common stock of West (“Share Ratio”), on a post-Stock Split
basis, such that holders of the General Units as of the Closing Date will hold a
total of 26,000,000 shares of West on a
post-Stock Split basis following the conversion.
(ii)
Fractional
Shares. No fractional shares will be issued, and any right to
receive a fractional share will be rounded-up to the nearest whole
share.
(iii) Cancellation of General
Units. At the Effective Time, the General Units will be deemed
canceled and retired and will cease to exist, and each holder of a certificate
for General Units will cease to have any rights with respect thereto; provided, however, that,
following the Closing Date, upon surrender of an original certificate
representing General Units, West will deliver a stock certificate for shares of
common stock of West to which such person is entitled pursuant to the Share
Ratio, bearing any necessary or appropriate restrictive legend. The
effect of the Merger shall be as provided in the applicable provisions of Nevada
Law.
(c) Lost, Stolen or Destroyed
Certificates. If any certificate evidencing General Units
shall have been lost, stolen or destroyed, upon the making of an affidavit of
that fact by the person claiming the certificate to be lost, stolen or destroyed
and, if required by West, the posting of an indemnity bond, in such reasonable
amount as West or the transfer agent may direct, as collateral security against
any claim that may be made with respect to the certificate, West will issue in
exchange for the lost, stolen or destroyed certificate the applicable number of
shares of West common stock.
Section
3. Closing.
(a) Closing Date. On the
terms and subject to the conditions of this Agreement, the closing of the Merger
(the “Closing”) shall
take place at the offices of M2 Law Professional Corporation, 000 Xxxxxxx Xxxxx,
Xxxxx 000, Xxxxxxx Xxxxx, Xxxxxxxxxx 00000, at 10:00 a.m., local time, on the
date of this Agreement or such other time, date or place as West and General may
otherwise agree (the “Closing
Date”).
(b) Documents to be Delivered by
West. On or before the Closing, West will deliver or cause to
be delivered to General:
(i)
the original or certified copies of the charter documents of West, including
amendments thereof, and all corporate records documents and instruments of West,
the corporate seal of West and all books and accounts of West;
2
(ii) all reasonable
consents or approvals required to be obtained by West for the purposes of
completing the Merger and preserving and maintaining the interests of West under
any and all West Material Contracts and in relation to West Assets;
(iii) a
certified copy of a resolution of the directors of West dated as of the Closing
Date appointing the nominee of General set forth on the General Schedule to the
board of directors of West ;
(iv) resignations of all
of the directors of West as of the Closing Date;
(v) certified copies of
such resolutions of the directors of West as are required to be passed to
authorize the execution, delivery and implementation of this Agreement;
and
(vi) good standing
certificate of West.
Section
4. New Directors and
Officers. On or before the Closing, but effective ten days
following the Closing (“Director Effective Date”), or
as soon thereafter as may be permitted by the rules and regulations promulgated
by the Securities and Exchange Commission (the “SEC”), or state or federal
law, (i) West’s officers and directors shall resign and be duly represented by
General’s designees and (ii) the Board of West will appoint an individual
designated by General to fill a vacancy on the Board to serve as director of
West from and after the Director Effective Date and, subsequent to such
designation, the then-current member of the Board shall resign effective upon
the Director Effective Date. On the Closing Date or as soon
thereafter as practicable, West shall file with the SEC and transmit to the
stockholders of record of West on such date the information required by Exchange
Act Rule 14f-1 with regard hereto. Effective as of the Closing, the
current officers of West shall be replaced with individuals designated as
officers by General.
Section
5. Taking of Necessary Action; Further
Action. If,
at any time after the Effective Time, any further action is necessary or
desirable to carry out the purposes of this Agreement and to vest CrowdGather
(and/or its successor in interest) with full right, title and possession to all
assets, property, rights, privileges, powers and franchises of General and
Acquisition Sub, the officers and directors of General and Acquisition Sub shall
be fully authorized (in the name of Acquisition Sub, General and otherwise) to
take all such necessary action.
Section
6. General’s Representations and
Warranties. General represents and warrants to West that the
statements contained in this Section are true and correct as of the Closing
Date, and do not contain any facts, or omit any facts, that render the
statements herein to be misleading, except (i) where any variation would not be
reasonably likely to have an Adverse Effect, and (ii) as set forth herein and in
the disclosure schedule delivered by General to West (the “General Schedule”), arranged
in sections corresponding to the paragraphs in this Section; the disclosure in
any section or paragraph will qualify other paragraphs in this Section to the
extent that it is reasonably apparent from a reading of the disclosure that it
also qualifies or applies to such other paragraphs.
3
(a) Organization. General
is a limited liability company validly existing and in good standing under the
laws of the State of California and has all requisite power and authority and
possesses all necessary governmental approvals necessary to own, lease and
operate its properties, to carry on its business as now being conducted, to
execute and deliver this Agreement and the agreements contemplated herein, and
to consummate the transactions contemplated hereby and
thereby. General is duly qualified to do business and is in good
standing in all jurisdictions in which its ownership of property or the
character of its business requires such qualification, except where the failure
to be so qualified would not reasonably be expected to have an Adverse
Effect. Certified copies of the Articles of Organization of General, as amended
to date, each as currently in effect, have been made available to West, are
complete and correct, and no amendments have been made thereto or have been
authorized since the date thereof. General is not in violation of any
of the provisions of its Articles of Organization or Operating
Agreement.
(b) Capitalization.
(i) General’s
authorized capital ownership interests consists solely of 26,000,000 membership
Units.
(ii) There are 26,000,000
membership Units outstanding and no other authorized or issued Units or other
measure of capital ownership of General. There are no agreements, arrangements
or understandings to which General is a party (written or oral) to issue any
other units or other measures of capital ownership of General. All of the
outstanding membership Units of General were duly and validly issued and fully
paid, are non-assessable and free of preemptive rights, and were issued in
compliance with all applicable state and federal securities laws.
(iii) There are no
outstanding (A) options, warrants, or other rights to purchase from General any
units or other measures of capital ownership of General; (B) debt securities or
instruments convertible into or exchangeable for units or other measures of
capital ownership of General; or (C) commitments of any kind for the issuance of
additional units or options, warrants or other securities of
General.
(iv) There are no options
or other rights to acquire such Units or other measures of capital ownership and
there are no preemptive rights or agreements, arrangements or understandings to
issue preemptive rights with respect to the issuance or sale of any units or
other measures of capital ownership of General created by statute, the Articles
of Organization or Operating Agreement, or any agreement or other arrangement to
which General is a party or to which it is bound and there are no agreements,
arrangements or understandings to which General is a party (written or oral)
pursuant to which General has the right to elect to satisfy any liability by
issuing any units or other measures of capital ownership of
General.
(v) Other than the
Operating Agreement, General is not a party or subject to any agreement or
understanding, and, to General's knowledge, there is no agreement, arrangement
or understanding between or among any persons which affects, restricts or
relates to voting, giving of written consents, distributions, allocation of
profits and losses, or transferability of units or other measures of capital
ownership of General, including any voting trust agreement or
proxy.
4
(c) No
Subsidiaries. General does not own any capital stock or other
equity interest in any corporation, partnership, joint venture or other
entity.
(d) Authorization. General
has all requisite power and authority to execute and deliver this Agreement, to
perform its obligations hereunder, and to consummate the transactions
contemplated hereby. The execution and delivery of this Agreement by
General and the consummation by General of the transactions contemplated hereby
have been duly and validly authorized by all necessary member and/or capital
owner action by General and no other corporate proceedings on the part of
General and no other member vote or consent is necessary to authorize this
Agreement or to consummate the transactions contemplated hereby. This
Agreement has been duly and validly executed and delivered by
General. This Agreement and all other agreements and obligations
entered into and undertaken in connection with the transactions contemplated
hereby to which General is a party constitute the valid and legally binding
obligations of General, enforceable against General in accordance with their
respective terms, except as may be limited by principles of equity or applicable
bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or
other similar laws relating to or affecting the rights and remedies of creditors
generally. The execution, delivery and performance by General of this
Agreement and the agreements provided for herein, and the consummation by
General of the transactions contemplated hereby and thereby, will not, with or
without the giving of notice or the passage of time or both, violate the
provisions of the Articles of Organization or Operating Agreement of General, or
to General’s Knowledge (i) violate the provisions of any law, rule or
regulation applicable to General, (ii) violate any judgment, decree, order
or award of any court, governmental body or arbitrator; or (iii) conflict
with or result in the breach or termination of any term or provision of, or
constitute a default under, or cause any acceleration under, or cause the
creation of any lien, charge or encumbrance upon the properties or assets of
General pursuant to, any indenture, mortgage, deed of trust or other instrument
or agreement to which General is a party or by which General or any of its
properties is or may be bound.
(e) No
Conflict. The execution and delivery of this Agreement by
General does not require any consent or approval under, result in any breach of,
result in any loss of any benefit under, or constitute a change of control or
default (or an event which with notice or lapse of time or both would become a
default) under; give to others any right of termination, vesting, amendment,
acceleration or cancellation of; or result in the creation of any lien or
encumbrance on any property or asset of General pursuant to; any material
agreement of General or other instrument or obligation of General.
(f) Litigation. There
is no action, suit, legal or administrative proceeding or investigation pending
or, to General’s Knowledge, threatened against or involving General (either as a
plaintiff or defendant) before any court or governmental agency, authority, body
or arbitrator. There is not in existence on the date hereof any
order, judgment or decree of any court, tribunal or agency to General’s
Knowledge enjoining or requiring General to take any action of any kind with
respect to its business, assets or properties.
(g) Insurance. The
General Schedule sets forth a listing of all current General insurance
policies. All current insurance policies are in full force and
effect, are in amounts of a nature that are adequate and customary for General’s
business, and to General’s Knowledge are sufficient for compliance with all
legal requirements and agreements to which it is a party or by which it is
bound. All premiums due on current policies or renewals have been
paid, and there is no material default under any of the policies.
5
(h) Personal
Property. General has good and marketable title to all of its
tangible personal property free and clear of all liens, leases, encumbrances,
claims under bailment and storage agreements, equities, conditional sales
contracts, security interests, charges, and restrictions, except for liens, if
any, for personal property taxes not due. Such property is used by
General in the ordinary course of its business and is sufficient for continued
conduct of General’s business after the Closing Date in substantially the same
manner as conducted prior to the Closing Date. Such property is in
good operating condition and repair, normal wear and tear excepted, and normal
maintenance has been performed.
(i) Intangible
Property. General is the sole and exclusive owner of all
right, title and interest in and to all material items of intangible property
(including formula and process know-how) necessary for the operation of all
material aspects of General’s business as it is currently conducted free and
clear of all liens, security interests, charges, encumbrances, equities or other
adverse claims. General has the right and authority to use, and to
continue to use after the Closing Date, such property in connection with the
conduct of its business in the manner presently conducted, and to its Knowledge
such use or continuing use does not and will not materially infringe upon or
violate any rights of any other person.
(j) Real
Property. General is a party to a lease agreement regarding
corporate offices located in California, details of which are contained in the
General Schedule. Except as set forth in the preceding sentence,
General does not have any interests in any parcel of real property, improved or
otherwise.
(k) Tax
Matters. Within the times and in the manner prescribed by law,
General has filed all federal, state and local tax returns and all tax returns
for other governing bodies having jurisdiction to levy taxes upon it that are
required to be filed. General has paid all taxes, interest,
penalties, assessments and deficiencies that have become due, including without
limitation income, franchise, real estate, and sales and withholding
taxes. No examinations of the federal, state or local tax returns of
General are currently in progress or threatened and no deficiencies have been
asserted or to its Knowledge assessed against General as a result of any audit
by the Internal Revenue Service or any state or local taxing authority and no
such deficiency has been proposed or threatened.
(l) Books and
Records. The general ledger and books of account of General,
all minute books of General, all federal, state and local income, franchise,
property and other tax returns filed by General, all of which have been made
available to West, are in all material respects complete and correct and have
been maintained in accordance with good business practice and in accordance with
all applicable procedures required by laws and regulations.
(m) Contracts and
Commitments. The General Schedule lists all material contracts
and agreements to which General is a party, whether written or oral, other than
those between General and West. Each such contract is a valid and
binding agreement of General, enforceable against General in accordance with its
terms, is in full force and effect and represents the material terms of the
agreement between the respective parties. General has materially
complied with all obligations required pursuant to such contracts to have been
performed by General on its part and neither General nor, to its knowledge, any
other party to such contract is in breach of or default in any material respect
under any such contract.
6
(n) Compliance with
Laws. General has all requisite licenses, permits and
certificates, including environmental, health and safety permits, from federal,
state and local authorities necessary to conduct its business as currently
conducted and own and operate its assets, except where the failure to have such
permits would not reasonably be expected to have an Adverse
Effect. General is not in violation of any federal, state or local
law, regulation or ordinance (including, without limitation, laws, regulations
or ordinances relating to building, zoning, environmental, disposal of hazardous
waste, land use or similar matters) relating to its business or its
properties.
(o) Employee Benefit
Plans. The General Schedule lists all employee benefit plans
as defined in ERISA Section 3(3), and all bonus, stock option, stock purchase,
incentive, deferred compensation, supplemental retirement, severance and other
similar employee benefit plans, and all material unexpired severance agreements
with any current or former employee of General. With respect to such
plans, individually and in the aggregate, no event has occurred and, to its
Knowledge, there exists no condition or set of circumstances in connection with
which General could be subject to any liability that is reasonably likely to
have an Adverse Effect under ERISA, the Tax Code or any other applicable
law.
(p) Indebtedness to and from
Affiliates. Except as set forth in the General Schedule,
General is not indebted, directly or to its Knowledge indirectly, to any
officer, director or 10% stockholder of General in any amount other than for
salaries for services rendered or reimbursable business expenses, and no such
person is indebted to General except for advances made to employees of General
in the ordinary course of business to meet reimbursable business
expenses.
(q) Banking
Facilities. The General Schedule sets forth a true, correct,
and complete list of: (i) each bank, savings and loan or similar
financial institution in which General has an account or safety deposit box and
the numbers of the accounts or safety deposit boxes maintained by General
thereat; and (ii) the names of all signatories authorized to draw on each such
account or to have access to any such safety deposit box facility.
(r) Regulatory
Approvals. All consents, approvals, authorizations or other
requirements prescribed by any law, rule or regulation that must be obtained or
satisfied by General and that are necessary for the execution and delivery by
General of this Agreement or any documents to be executed and delivered by
General in connection therewith have been, or prior to the Closing Date will be,
obtained and satisfied.
(s) No
Brokers. No broker or finder has acted for General in
connection with this Agreement or the transactions contemplated hereby, and no
broker or finder is entitled to any brokerage or finder’s fee or other
commissions in respect of such transactions based upon agreements, arrangements
or understandings made by or on behalf of General.
7
(t) Disclosure. The
information concerning General set forth in this Agreement, the exhibits and
schedules hereto, and any document, statement or certificate furnished or to be
furnished in connection herewith does not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated herein or therein or necessary to make the statements and facts contained
herein or therein, in light of the circumstances in which they are made, not
false or misleading.
(u) Tax
Treatment. Neither General nor, to the Knowledge of General,
any of its Affiliates has taken or agreed to take action that would prevent the
Merger Transactions from constituting a reorganization qualifying under the
provisions of Section 368 of the Tax Code.
Section
7. West’s and Acquisition Sub’s
Representations and Warranties. Each of West and
Acquisition Sub represents and warrants to General and the surviving corporation
that the statements contained in this Section are true and correct as of the
Closing Date and do not contain any facts, or omit any facts, that render the
statements herein to be misleading, except (i) where any variation would not be
reasonably likely to have an Adverse Effect, and (ii) as set forth herein and in
the disclosure schedule delivered by West and Acquisition Sub to General (the
“West Schedule”),
arranged in sections corresponding to the paragraphs in this Section; the
disclosure in any section or paragraph will qualify other paragraphs in this
Section to the extent that it is reasonably apparent from a reading of the
disclosure that it also qualifies or applies to such other
paragraphs.
(a) Organization.
(i) West is a
corporation validly existing and in good standing under the laws of the State of
Nevada and has all requisite power and authority and possesses all necessary
governmental approvals necessary to own, lease and operate its properties, to
carry on its business as now being conducted, to execute and deliver this
Agreement and the agreements contemplated herein, and to consummate the
transactions contemplated hereby and thereby. West is duly qualified
to do business and is in good standing in all jurisdictions in which its
ownership of property or the character of its business requires such
qualification, except where the failure to be so qualified would not reasonably
be expected to have an Adverse Effect. Certified copies of the
Articles of Incorporation and Bylaws, as amended to date, each as currently in
effect, have been made available to General, are complete and correct, and no
amendments have been made thereto or have been authorized since the date
thereof. West is not in violation of any of the provisions of its
Articles of Incorporation or Bylaws.
(ii) Acquisition Sub is a
corporation validly existing and in good standing under the laws of the State of
Nevada and has all requisite power and authority and possesses all necessary
governmental approvals necessary to own, lease and operate its properties, to
carry on its business as now being conducted, to execute and deliver this
Agreement and the agreements contemplated herein, and to consummate the
transactions contemplated hereby and thereby. Certified copies of the
Articles of Incorporation and Bylaws, as amended to date, have been made
available to General, are complete and correct, and no amendments have been made
thereto or have been authorized since the date thereof. Acquisition
Sub is not in violation of any of the provisions of its Articles of
Incorporation or Bylaws.
8
(iii) West has delivered
or made available to General a true and correct copy of the Articles of
Incorporation and Bylaws of each of West and Acquisition Sub, each as amended to
date, and each such instrument is in full force and effect. Neither West nor
Acquisition Sub is in violation of any of the provisions of its Articles of
Incorporation or Bylaws or equivalent governing instruments.
(iv) West is required to
file current reports with the SEC pursuant to Section 13 of the Securities
Exchange Act of 1934 and are eligible for quotation on the Over-the-Counter
Bulletin Board, and all reports required to be filed by West with the SEC or
FINRA have been filed.
(b) Capitalization.
(i) West’s
authorized capital stock consists solely of 975,000,000 (post-Stock Split)
shares of common stock, $0.001 par value.
(ii) There
are 39,000,000 (post-Stock Split) shares of common stock issued and
outstanding as of the date hereof (which number excludes the actions
contemplated by the Cancellation Agreement and the Subscription Agreements), no
shares of preferred stock of West is issued and outstanding, and no shares of
common stock of West is held in the treasury of West. All of the
issued and outstanding shares of common stock of West were duly and validly
issued and fully paid, are non-assessable and free of preemptive rights, and
were issued in compliance with all applicable state and federal securities
laws.
(iii) No person, firm, or
corporation has any agreement, option, warrant, preemptive right or other rights
capable of becoming an agreement, option, warrant or right for the acquisition
of shares of West’s common stock or for the purchase, subscription or issuance
of any of the unissued shares in the capital of West or Acquisition
Sub.
(iv) West owns all of the
outstanding capital stock of Acquisition Sub, free and clear of all liens,
claims, options, charges, and encumbrances of whatsoever nature.
(c) Authorization. Each
of West and Acquisition Sub has all requisite power and authority to execute and
deliver this Agreement, to perform its obligations hereunder and to consummate
the transactions contemplated hereby. The execution and delivery of
this Agreement by West and Acquisition Sub and the consummation by West and
Acquisition Sub of the transactions contemplated hereby have been duly and
validly authorized by all necessary corporate action by West and Acquisition
Sub, respectively, and no other corporate proceedings on the part of West or
Acquisition Sub, respectively, and no stockholder vote or consent is necessary
to authorize this Agreement or to consummate the transactions contemplated
hereby. This Agreement has been duly and validly executed and
delivered by West and Acquisition Sub. This Agreement and all other
agreements and obligations entered into and undertaken in connection with the
transactions contemplated hereby to which West or Acquisition Sub is a party
constitute the valid and legally binding obligations of West and Acquisition
Sub, respectively, enforceable against West and Acquisition Sub, respectively,
in accordance with its terms, except as may be limited by principles of equity
or applicable bankruptcy, reorganization, insolvency, moratorium, fraudulent
conveyance or other similar laws relating to or affecting the rights and
remedies of creditors generally. The execution, delivery and
performance by West and Acquisition Sub of this Agreement and the agreements
provided for herein, and the consummation by West and Acquisition Sub of the
transactions contemplated hereby and thereby, will not, with or without the
giving of notice or the passage of time or both, violate the provisions of the
Articles of Incorporation or Bylaws of West or Acquisition Sub or, to West’s or
Acquisition Sub’s Knowledge, (i) violate the provisions of any law, rule or
regulation applicable to West or Acquisition Sub, (ii) violate any judgment,
decree, order or award of any court, governmental body or arbitrator; or (iii)
conflict with or result in the breach or termination of any term or provision
of, or constitute a default under, or cause any acceleration under, or cause the
creation of any lien, charge or encumbrance upon the properties or assets of
West or Acquisition Sub pursuant to, any indenture, mortgage, deed of trust or
other instrument or agreement to which West or Acquisition Sub is a party or by
which West or Acquisition Sub or any of their respective properties is or may be
bound.
9
(d) No
Conflict. The execution and delivery of this Agreement by West
and Acquisition Sub does not require any consent or approval under, result in
any breach of, any loss of any benefit under or constitute a change of control
or default (or an event which with notice or lapse of time or both would become
a default) under, or give to others any right of termination, vesting,
amendment, acceleration or cancellation of, or result in the creation of any
lien or encumbrance on any property or asset of West or Acquisition Sub pursuant
to any material agreement of West or Acquisition Sub or other instrument or
obligation of West or Acquisition Sub.
(e) SEC
Filings.
(i)
Except as disclosed on the West Schedule, West has filed all forms,
reports and documents required to be filed with the SEC since it first became a
public reporting company. All such required forms, reports and documents
(including the financial statements, exhibits and schedules thereto and those
documents that West may file subsequent to the date hereof) are collectively
referred to herein as the “West
SEC Reports." As of their respective dates, the West SEC Reports (i) were
prepared in accordance with the requirements of the Securities Act or the
Exchange Act, as the case may be, and the rules and regulations of the SEC
thereunder applicable to such West SEC Reports, and (ii) did not at the time
they were filed (or if amended or superseded by a filing prior to the date of
this Agreement, then on the date of such filing) contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein
or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading.
(ii) West has heretofore
furnished to General a complete and correct copy of any amendments or
modifications to the West SEC Reports, if any, which have not yet been filed
with the SEC but which will be required to be filed, to agreements, documents or
other instruments which previously had been filed by West with the SEC pursuant
to the Securities Act or the Exchange Act.
(f) Litigation. There
is no private or governmental action, suit,
legal or administrative proceeding or investigation pending or, to West’s
Knowledge, threatened against or involving West or Acquisition Sub (either as a
plaintiff or defendant) before any court or governmental agency, foreign or
domestic, authority, body or arbitrator. There is not in existence on
the date hereof any order, judgment or decree of any court, tribunal or agency
to West’s Knowledge enjoining or requiring West or Acquisition Sub to take any
action of any kind with respect to its business, assets or
properties.
10
(g) Tax
Matters.
(i)
Tax Returns. All tax
returns and reports of West 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 West or in accordance with any notice of assessment or reassessment
issued by any taxing authority have been so paid.
(ii) 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 West. West 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.
(h) Records and Financial
Statements.
(i)
Charter
Documents. The charter documents of West have not been altered
since the incorporation of each, respectively, except as filed in the record
books of West.
(ii) West Financial Statements.
The West Financial Statements as included in the West SEC Reports present
fairly, in all material respects, the assets and liabilities (whether accrued,
absolute, contingent or otherwise) of West, as of the respective dates thereof,
and the sales and earnings of the West Business during the periods covered
thereby, in all material respects and have been prepared in substantial
accordance with generally accepted accounting principles consistently
applied.
(iii) West Accounts Payable and
Liabilities. There are no material liabilities, contingent or otherwise,
of West or Acquisition Sub which are not disclosed in the West Schedule or
reflected in the West Financial Statements except those incurred in the ordinary
course of business since the date of the said schedule and the West Financial
Statements, and West has not guaranteed or agreed to guarantee any debt,
liability or other obligation of any person, firm or corporation. Without
limiting the generality of the foregoing, all accounts payable and liabilities
of West as of the date hereof, are described in the West Schedule.
(iv) No Debt to Related Parties.
Except as disclosed in the West Schedule, West, nor the Acquisition Sub is not,
and on Closing will not be, indebted to any affiliate, director or officer of
West except accounts payable on account of bona fide business transactions of
West incurred in normal course of the West Business, including employment
agreements, none of which are more than 30 days in arrears.
(v) No Adverse Events. Since the
date of the most recent West Financial Statements filed in the West SEC
Reports:
11
(A) there has
not been any material adverse change in the financial position or condition of
West, its liabilities or the West Assets or any damage, loss or other change in
circumstances materially affecting West, the West Business or the West Assets or
West’s right to carry on the West Business, other than changes in the ordinary
course of business,
(B) there has
not been any damage, destruction, loss or other event (whether or not covered by
insurance) materially and adversely affecting West, the West Business or the
West Assets,
(C) there has
not been any material increase in the compensation payable or to become payable
by West to any of West’s officers, employees or agents or any bonus, payment or
arrangement made to or with any of them,
(D) the West
Business has been and continues to be carried on in the ordinary
course,
(E) West has not
waived or surrendered any right of material value,
(F) West has not
discharged or satisfied or paid any lien or encumbrance or obligation or
liability other than current liabilities in the ordinary course of business,
and
(G) no capital
expenditures in excess of $10,000 individually or $30,000 in total have been
authorized or made.
(i) Contracts and
Commitments. There is no material contract to which West is a
party other than those specified in its filings with the
SEC. Acquisition Sub is not a party to any material
contract. Other than this Agreement, West is not a party to any agreement or understanding
pursuant to which any securities of any class of capital stock are to be issued
or created or transferred. West has not acquired any shares of Common Stock, and has no formal
or informal agreements or understandings pursuant to which it can or will
acquire any shares of Common Stock. Neither West nor
any officer, director or 10% stockholder of West has any agreements,
plans, understandings or proposals, whether
formal or informal or whether oral or in writing, pursuant to which it granted
or may have issued or granted any individual or entity any convertible security
or any interest in West or the West’s earnings or
profits, however defined.
(j) Applicable Laws and Legal
Matters.
(i) Licenses. West holds all
licenses and permits as may be requisite for carrying on the West 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 West Business.
(ii) Applicable Laws. West has not
been charged with or received notice of breach of any laws, ordinances,
statutes, regulations, by-laws, orders or decrees to which they are subject or
which apply to them the violation of which would have a material adverse effect
on the West Business, and West is not in breach of any laws, ordinances,
statutes, regulations, bylaws, orders or decrees the contravention of which
would result in a material adverse impact on the West Business.
12
(iii) Pending or Threatened
Litigation. There is no material litigation or administrative or
governmental proceeding pending or threatened against or relating to West, the
West Business, or any of the West Assets nor does West have any knowledge of any
deliberate act or omission of West or its subsidiaries that would form any
material basis for any such action or proceeding.
(iv) No Bankruptcy. West 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 West and no order has been made or a resolution passed for the
winding-up, dissolution or liquidation of West.
(v) Labor Matters. West is not a
party to any collective agreement relating to the West Business with any labor
union or other association of employees and no part of the West Business has
been certified as a unit appropriate for collective bargaining or, to the
knowledge of West, has made any attempt in that regard.
(vi) Finder's Fees. West is not a
party to any agreement which provides for the payment of finder's fees,
brokerage fees, commissions or other fees or amounts which are or may become
payable to any third party in connection with the execution and delivery of this
Agreement and the transactions contemplated herein.
(k) Ownership and
Condition.
(i)
Business Assets. The
West Assets comprise all of the property and assets of the West Business, and no
other person, firm or corporation owns any assets used by West in operating the
West Business, whether under a lease, rental agreement or other arrangement,
other than as disclosed in the West Schedule.
(ii) Title. West is the legal and
beneficial owner of the West Assets, free and clear of all mortgages, liens,
charges, pledges, security interests, encumbrances or other claims whatsoever,
save and except as disclosed in the West Schedule.
(iii) 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 West Assets.
(iv) West Insurance Policies. West
does not maintain any public liability insurance and insurance against loss or
damage to the West Assets and the West Business.
(v) West Material Contracts. The
West Material Contracts listed in the West Schedule, if any, constitutes all of
the material contracts of West.
(vi) No Default. There has not
been any default in any material obligation of West or any other party to be
performed under any of the West Material Contracts, each of which is in good
standing and in full force and effect and unamended (except as disclosed in the
West Schedule hereto), and West is not aware of any default in the obligations
of any other party to any of the West Material Contracts.
13
(vii) No Compensation on
Termination. There are no agreements, commitments or understandings
relating to severance pay or separation allowances on termination of employment
of any employee of West, except as listed on the West Schedule. West is not
obliged to pay benefits or share profits with any employee after termination of
employment except as required by law.
(l) West
Business.
(i)
Maintenance of
Business. Since the date of the most recent West Financial Statements
filed in the West SEC Reports, West has not entered into any material agreement
or commitment except in the ordinary course and except as disclosed
herein.
(ii) Subsidiaries. Except
for Acquisition Sub, West 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.
(iii) Acquisition
Shares. The shares of West’s common stock when delivered to
the holders of the General Units pursuant to the Merger shall be validly issued
and outstanding as fully paid and non-assessable shares and the shares of West’s
common stock shall be transferable upon the books of West, in all cases subject
to the provisions and restrictions of all applicable securities
laws.
(m) Employee Benefit
Plans. Except as disclosed in its filings with the SEC, West
has no (A) employee benefit plans as defined in ERISA Section 3(3), (B) bonus,
stock option, stock purchase, incentive, deferred compensation, supplemental
retirement, severance or other similar employee benefit plans, or (C) material
unexpired severance agreements with any current or former employee of
West. With respect to such plans, individually and in the aggregate,
no event has occurred and, to its Knowledge, there exists no condition or set of
circumstances in connection with which West could be subject to any liability
that is reasonably likely to have an Adverse Effect under ERISA, the Tax Code or
any other applicable law.
(n) Absence of Liens and
Encumbrances. West has good and valid title to, or, in the
case of leased properties and assets, valid leasehold interests in, all of its
tangible properties and assets, real, personal and mixed, used in its business,
free and clear of any Liens and Encumbrances except (i) as reflected in the West
Financial Statements, (ii) for liens for taxes not yet due and payable and (iii)
for such imperfections of title and encumbrances, if any, which would not be
reasonably expected to have an Adverse Effect.
(o) Indebtedness to and from
Affiliates. Except as disclosed on the West Schedule, West is not
indebted, directly or to its Knowledge indirectly, to any officer, director or
10% stockholder of West in any amount other than for salaries for services
rendered or reimbursable business expenses, and no such person is indebted to
West except for advances made to employees of West in the ordinary course of
business to meet reimbursable business expenses.
14
(p) Board
Approval. The Board of Directors of West and Acquisition Sub
has, as of the date of this Agreement, (i) determined that the Merger is fair
to, advisable and in the best interests of West and Acquisition Sub’s
stockholders, (ii) has approved the issuance of shares of common stock pursuant
to the Merger and (iii) duly approved the Merger, this Agreement and the
transactions contemplated hereby.
(q) Banking
Facilities. West has no account or safety deposit box at any
bank, savings and loan or similar financial institution or other similar
facility.
(r) Regulatory
Approvals. All consents, approvals, authorizations or other
requirements prescribed by any law, rule or regulation that must be obtained or
satisfied by West and Acquisition Sub and that are necessary for the execution
and delivery by West and Acquisition Sub of this Agreement or any documents to
be executed and delivered by West and Acquisition Sub in connection therewith
have been obtained and satisfied.
(s) No
Brokers. No broker or finder has acted for West or Acquisition
Sub in connection with this Agreement or the transactions contemplated hereby,
and no broker or finder is entitled to any brokerage or finder’s fee or other
commissions in respect of such transactions based upon agreements, arrangements
or understandings made by or on behalf of West or Acquisition Sub.
(t) Disclosure. The
information concerning each of West and Acquisition Sub set forth in its reports
and filings with the SEC, this Agreement, the exhibits and schedules hereto, and
any document, statement or certificate furnished or to be furnished in
connection herewith (as applicable) does not and will not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated herein or therein or necessary to make the statements and facts contained
herein or therein, in light of the circumstances in which they are made, not
false or misleading.
(u) Certificates. The
certificates representing the shares of West delivered pursuant to this
Agreement are subject to certain trading restrictions imposed by the Securities
Act and applicable state securities or “blue sky” laws.
Section
8. Conditions to the
Merger. The respective obligation of each party to effect the
Merger and the other transactions contemplated herein shall be subject to the
fulfillment at or prior to the Closing Date of the following conditions, any or
all of which may be waived, in whole or in part by the parties hereto, to the
extent permitted by applicable law:
(a) The
Stock Split shall have been consummated and duly approved by the requisite vote
under applicable Nevada law and the West charter documents and by the directors
of West.
(b) The
transactions contemplated by the Cancellation Agreement and the Subscription
Agreements shall be effective at the Effective Time.
(c) Any
governmental or third party approvals required to effect the Merger Transactions
shall have been obtained.
15
(d) Each
of the parties hereto shall have delivered to each other complete and accurate
Schedules to this Agreement and such Schedules shall have been approved by the
recipient.
Section
9. General Conditions to the
Merger. The obligation of General to effect the Merger shall
be subject to the fulfillment at or prior to the Closing Date of the following
conditions, unless waived by General:
(a) Each
of the representations and warranties of West and Acquisition Sub contained in
this Agreement shall be true and correct as of the date of this Agreement,
except to the extent that any changes, circumstances or events making such
representations and warranties not true or correct would not, individually or in
the aggregate, constitute an Adverse Effect.
(b) West
and Acquisition Sub shall have performed or complied in all material respects
with all agreements and covenants required by this Agreement to be performed or
complied with by it.
(c) From
the date of this Agreement through the Effective Time, there shall not have
occurred any change, circumstance or event concerning West or Acquisition Sub
that has had or could be reasonably likely to have an Adverse
Effect.
(d) Each
of the directors of West shall have resigned as directors of West pursuant to
Section 4
herein.
(e) The
nominees of General, set forth in the General Schedule, annexed hereto, shall
have been appointed as members of the board of directors of West.
Section
10. West and Acquisition Sub
Conditions. The obligations of West and Acquisition Sub to
effect the Merger shall be subject to the fulfillment at or prior to the Closing
Date of the following conditions, unless waived by West:
(a) Each
of the representations and warranties of General contained in this Agreement
shall be true and correct as of the date of this Agreement, except to the extent
that any changes, circumstances or events making such representations and
warranties not true or correct would not, individually or in the aggregate,
constitute an Adverse Effect.
(b) General
shall have performed or complied in all material respects with all agreements
and covenants required by this Agreement to be performed or complied with by it
on or prior to the Effective Time.
(c) From
the date of this Agreement through the Effective Time, there shall not have
occurred any change, circumstance or event concerning General that has had or
could be reasonably likely to have an Adverse Effect.
(d) West
shall have received from each holder of shares of General capital stock (1) an
investor suitability questionnaire in form and substance satisfactory to West,
containing customary investment representations and certifying that such holder
is an “accredited investor” as defined in Regulation D of the Securities Act or
(2) confirmation of receipt of the appropriate disclosures required pursuant to
Rule 506 under Regulation D of the Securities Act.
16
Section
11. Indemnification.
(a) West
agrees to indemnify General, and hold it harmless from and in respect of any (i)
assessment, loss, damage, liability, cost and expense (including, without
limitation, interest, penalties, and reasonable attorneys’ fees) in excess of
$1,000.00 in the aggregate, imposed upon or incurred by General resulting from a
breach of this Agreement or the covenants or conditions made by West; (ii)
inaccuracy in any of the representations and warranties made by West herein in
this Agreement; or (iii) any and all liabilities arising out of or in connection
with: (A) any of the assets of West or any subsidiary prior to the Closing; or
(B) the operations of West prior to the Closing. Assertion by the General
to its right to indemnification under this Section 11.1(a) shall not preclude
assertion by General of any other rights or the seeking of any other remedies
against West.
(b) General
agrees to indemnify West, and hold it harmless from and in respect of any
assessment, loss, damage, liability, cost and expense (including, without
limitation, interest, penalties, and reasonable attorneys’ fees) in excess of
$1,000.00 in the aggregate, imposed upon or incurred by General resulting from a
breach of this Agreement. Assertion by West to its right to
indemnification under this Section 11.1(b) shall not preclude assertion by West
of any other rights or the seeking of any other remedies against
General.
(c) All
rights to indemnification by General and West existing in favor of each
individual who is an officer or director of General or West of the date of this
Agreement (each such individual, an “Indemnified Person”) for his
acts and omissions as a director or officer of General or West occurring prior
to the Effective Time, as provided in General or West's Articles of
Incorporation or Bylaws (as in effect as of the date of this Agreement) shall
survive the Merger Transactions and shall continue in full force and effect (to
the fullest extent such rights to indemnification are available under and are
consistent with applicable law) for a period of six years from the Closing
Date.
Section
12. Confidentiality. Each
party shall ensure that any nonpublic information provided to it by any other
party in confidence shall be treated as strictly confidential and that all such
confidential information that each party or any of its respective officers,
directors, employees, attorneys, agents, investment bankers, or accountants may
now possess or may hereinafter create or obtain relating to the financial
condition, results of operations, businesses, properties, assets, liabilities,
or future prospects of the other such parties, any affiliate thereof, or any
customer or supplier thereof shall not be published, disclosed, or made
accessible by any of them to any other person at any time or used by any of
them, in each case without the prior written consent of the other party; provided, however, that the
restrictions of this Section shall not apply (a) as may otherwise be required by
law, (b) as may be necessary or appropriate in connection with the enforcement
of this Agreement, or (c) to the extent such information was in the public
domain when received or thereafter enters the public domain other than because
of disclosures by the receiving party. Each such party shall, and
shall cause all of such other persons who received confidential information,
from time to time to deliver to the disclosing party all tangible evidence of
such confidential information to which the restrictions of this Section apply
upon written request.
17
Section
13. Miscellaneous.
(a) Survival. The
representations and warranties of the parties will terminate at the Effective
Time and only those covenants that by their terms survive the Effective Time
shall survive the Effective Time. This Section 12 shall survive the
Effective Time.
(b) Press Releases and Public
Announcements. No party will issue any press release or make
any public announcement relating to the subject matter of this Agreement without
the prior written approval of the other party; provided, however, that any
party may make any public disclosure it believes in good faith is required by
applicable law or any listing requirement or trading agreement.
(c) No Third-Party
Beneficiaries. This Agreement will not confer any rights or
remedies upon any person other than the parties and their respective successors
and permitted assigns.
(d) Notices. All
notices required or permitted under this Agreement will be in writing and will
be given by certified or regular mail or by any other reasonable means
(including personal delivery, facsimile, or reputable express courier) to the
party to receive notice at the following addresses or at such other address as
any party may, by notice, direct:
|
To
West or
|
WestCoast
Golf Experiences, Inc.
|
|
Acquisition
Sub:
|
Attention: President
|
|
0000
Xxxxxx Xxxxx
|
|
Xxxxx
000
|
|
Xxxxxx,
Xxxxxxxxxx 00000
|
|
With
a copy to:
|
M2
Law Professional Corporation
|
|
(which
will not
|
Attention: Xxxxxxx
Xxxxxxxxxxxx, Esq.
|
|
constitute
notice)
|
000
Xxxxxxx Xxxxxx Xxxxx, Xxxxx 000
|
|
Xxxxxxx
Xxxxx, Xxxxxxxxxx 00000
|
|
Fax
number: (000) 000-0000
|
|
To
General:
|
General
Mayhem LLC
|
|
Attention: Xxxxxx
Xxxxxxx
|
|
00000
Xxxxxxx Xxxx. Xxxxx 000
|
|
Xxxxxxxx
Xxxxx, XX 00000
|
|
Fax
number: _________
|
|
With
a copy to:
|
Sichenzia
Xxxx Xxxxxxxx Xxxxxxx LLP
|
|
(which
will not
|
Attention: Xxxxxxx
Xxxxxxxxx, Esq.
|
|
constitute
notice)
|
00
Xxxxxxxx, 00xx Xxxxx
|
|
Xxx
Xxxx, XX 00000
|
|
Fax
number: (000) 000-0000
|
18
All
notices given by certified mail will be deemed as given on the delivery date
shown on the return mail receipt, and all notices given in any other manner will
be deemed as given when received.
(e) Waiver. The
rights and remedies of the parties to this Agreement are cumulative and not
alternative. Neither the failure nor any delay by any party in
exercising any right, power, or privilege under this Agreement or the documents
referred to in this Agreement will operate as a waiver of such right, power, or
privilege, and no single or partial exercise of any right, power, or privilege
will preclude any other or further exercise of such right, power, or privilege
or the exercise of any other right, power, or privilege. To the
maximum extent permitted by applicable law, (a) no claim or right arising from
this Agreement or the documents referred to in this Agreement can be discharged
by one party, in whole or in part, by a waiver or renunciation of the claim or
right unless in writing signed by the waiving party, (b) no waiver that may be
given by a party will be applicable except in the specific instance for which it
is given, and (c) no notice to or demand on one party will be deemed to be
a waiver of any obligation of such party or of the right of the party giving
such notice or demand to take further action without notice or demand as
provided in this Agreement or the documents referred to in this
Agreement.
(f) Further
Assurances. The parties agree (a) to furnish upon request to
each other such further information, (b) to execute and deliver to each other
such other documents, and (c) to do such other acts and things, all as the
other party may reasonably request for the purpose of carrying out the intent of
this Agreement and of the documents referred to in this Agreement.
(g) Successors and
Assigns. This Agreement will be binding upon and inure to the
benefit of the parties and their respective successors and permitted
assigns. No party may assign either this Agreement or any of its
rights, interests, or obligations hereunder without the prior written approval
of the other party, which may be granted or withheld at the sole discretion of
such other party. Any unauthorized assignment is void.
(h) Severability. Any
provision of this Agreement that is invalid, illegal or unenforceable in any
jurisdiction will, as to that jurisdiction, be ineffective to the extent of such
invalidity, illegality or unenforceability, without affecting in any way the
remaining provisions hereof in such jurisdiction or rendering that or any other
provision of this Agreement invalid, illegal or unenforceable in any other
jurisdiction.
(i) Amendment. This
Agreement may be amended by the parties hereto by action taken by or on behalf
of their respective Boards of Directors at any time prior to the Effective
Time. This Agreement may not be amended by the parties hereto except
by execution of an instrument in writing signed on behalf of each of General,
West and Acquisition Sub.
(j) Expenses. Each
party will pay all fees and expenses (including, without limitation, legal and
accounting fees and expenses) incurred by such party in connection with the
transactions contemplated by this Agreement.
(k) Governing
Law. This Agreement will be governed by and construed in
accordance with the laws of the State of Nevada, without giving effect to
principles of conflicts of laws.
19
(l) Counterparts;
Signatures. This Agreement may be executed in one or more
counterparts, each of which will be deemed to be an original, but all of which
will be one and the same document. Facsimiles and electronic copies
in portable document format (“PDF”) containing original
signatures shall be deemed for all purposes to be originally signed copies of
the documents that are the subject of such facsimiles or PDF
versions.
(m) Entire
Agreement. This Agreement, the schedules and exhibits hereto,
and the agreements and instruments to be delivered by the parties on Closing
represent the entire understanding and agreement between the parties and
supersede all prior oral and written and all contemporaneous oral negotiations,
commitments and understandings.
[Signatures
on Following Page]
20
IN
WITNESS WHEREOF, the parties hereto have executed this Agreement and Plan of
Merger as of the date first above written.
WESTCOAST
GOLF EXPERIENCES, INC.
|
||||
|
By |
/s/
Xxxxxxx
Xxxxxxx
|
||
|
Name: |
Xxxxxxx
Xxxxxxx
|
||
|
Title: |
President
|
GENERAL
MAYHEM ACQUISITION CORP.
|
||||
|
By |
/s/
Xxxxxxx
Xxxxxxx
|
||
|
Name: |
Xxxxxxx
Xxxxxxx
|
||
|
Title: |
President
|
GENERAL MAYHEM LLC | ||||
|
By |
/s/
Sanjay
Sabnanai
|
||
|
Name: |
Sanjay
Sabnanai
|
||
|
Title: |
Manager
|
21
Schedule
1
Definitions
“Adverse Effect” means, with
respect to each party, any effect or change that would have a material adverse
effect on the results of operations, financial condition, assets, properties or
business of the party, taken as a whole, or on the ability of the party to
consummate timely the transactions contemplated hereby.
“Affiliate” has the meaning set
forth in Exchange Act Rule 12b-2.
“ERISA” means the Employee
Retirement Income Security Act of 1974, as amended, and the regulations
promulgated thereunder.
“Effective Time” means the time
of acceptance for record of the Articles of Merger by the Secretary of State of
the State of Nevada in accordance with the Nevada Revised Statute (but not
earlier than the Closing Date) or at such later time that the parties hereto
shall have agreed upon and designated in such filing in accordance with
applicable law as the effective time of the Merger.
“Encumbrances” means any and
all encumbrances, charges, claims equitable interests, liens, options, pledges,
security interests, mortgages, rights of first refusal or restrictions of any
kind and nature.
“Exchange Act” means the
Securities Exchange Act of 1934, as amended, and the rules and regulations
promulgated thereunder.
“Knowledge” means the actual
knowledge of the executive officers of a party, without independent
investigation.
“Liens” means any liens,
claims, encumbrances, security interests and rights of redemption.
“Securities Act” means the
Securities Act of 1933, as amended, and the rules and regulations promulgated
thereunder.
“West Assets” means the
undertaking and all the property and assets of the West Business of every kind
and description wheresoever situated including, without limitation, West
Equipment, West Inventory, West Material Contracts, West Accounts Receivable,
West Cash, West Intangible Assets and West Goodwill, and all credit cards,
charge cards and banking cards issued to West.
“West Business” means all
aspects of any business conducted by West and its subsidiaries.
22
WEST
SCHEDULE
This
constitutes the West Schedule (the “West
Schedule”) delivered by WestCoast Golf Experiences, Inc., a Nevada
corporation (“West”),
pursuant to that certain Agreement and Plan of Merger (the “Agreement”)
dated as of April 1, 2008 by and among West, General Mayhem, LLC, a California
limited liability company, and General Mayhem Acquisition Corp., a newly-formed
wholly-owned subsidiary of West (“Acquisition
Sub”). Unless the context otherwise requires, all capitalized
terms used in this West Schedule shall have the respective meanings assigned to
them in the Agreement.
No
reference to or disclosure of any item or other matter in this West Schedule
shall be construed as an admission or indication that such item or other matter
is material or that such item or other matter is required to be referred to or
disclosed in this West Schedule. No disclosure in this West Schedule
relating to any possible breach or violation of any agreement, law or regulation
shall be construed as an admission or indication that any such breach or
violation exists or has actually occurred. The headings contained in
this West Schedule are for convenience of reference only, shall not be deemed to
be a part of the West Schedule and shall not be referred to in connection with
the construction or interpretation of this West Schedule.
This West
Schedule and the information and disclosures contained in this West Schedule are
intended only to qualify and limit the representations and warranties of West
contained in the Agreement and shall not be deemed to expand in any way the
scope or effect of any such representations or warranties.
References
to any document do not purport to be complete and are qualified in their
entirety by the contents of such document itself. The contents of any such
document referred to in this West Schedule are incorporated by reference in this
West Schedule as though fully set forth herein.
The
disclosures herein will qualify other paragraphs in Section 6 of the Agreement
to the extent that it is reasonably apparent from a reading of the disclosure
that it also qualifies or applies to such other paragraphs.
(h) Records and Financial
Statements.
(iii) West Accounts Payable and
Liabilities.
$6,890 is
due and payable to Xxxxx Xxxxx, West’s former officer and director.
$40,000
is due and payable to M2 Law Professional Corporation, West’s legal
counsel.
$10,000
is due and payable to one of West’s minority shareholders.
(iv) No Debt to Related
Parties.
$6,890 is
due and payable to Xxxxx Xxxxx, West’s former officer and director.
23
(k)
Ownership and
Condition
(i) Business
Assets.
In connection with the
Stock Cancellation Agreement, West has agreed to transfer the rights to certain
computer equipment valued at $670 to Xxxxx Xxxxx, West’s former officer and
director.
(ii) Title
In connection with the
Stock Cancellation Agreement, West has agreed to transfer the rights to certain
computer equipment valued at $670 to Xxxxx Xxxxx, West’s former officer and
director.
(v) West Material
Contracts.
None.
(vii) No Compensation on
Termination.
In
connection with the resignation of Xxxxxxx Xxxxxxx as the sole officer and
director pursuant the Agreement, West has agreed to pay a one-time severance
payment of $50,000 to Xx. Xxxxxxx.
(o) Indebtedness to and from
Affiliates.
$6,890 is
due and payable to Xxxxx Xxxxx, West’s former officer and director.
$10,000
is due and payable to one of West’s minority shareholders.
24
GENERAL
SCHEDULE
This
constitutes the General Schedule (the “General
Schedule”) delivered by General Mayhem, LLC, a California limited
liability company (“General”),
pursuant to that certain Agreement and Plan of Merger (the “Agreement”)
dated as of April 1, 2008 by and among General, WestCoast Golf Experiences,
Inc., a Nevada corporation (“West”),
and General Mayhem Acquisition Corp., a newly-formed wholly-owned subsidiary of
West (“Acquisition
Sub”). Unless the context otherwise requires, all capitalized
terms used in this General Schedule shall have the respective meanings assigned
to them in the Agreement.
No
reference to or disclosure of any item or other matter in this General Schedule
shall be construed as an admission or indication that such item or other matter
is material or that such item or other matter is required to be referred to or
disclosed in this General Schedule. No disclosure in this General
Schedule relating to any possible breach or violation of any agreement, law or
regulation shall be construed as an admission or indication that any such breach
or violation exists or has actually occurred. The headings contained
in this General Schedule are for convenience of reference only, shall not be
deemed to be a part of the General Schedule and shall not be referred to in
connection with the construction or interpretation of this General
Schedule.
This
General Schedule and the information and disclosures contained in this General
Schedule are intended only to qualify and limit the representations and
warranties of General contained in the Agreement and shall not be deemed to
expand in any way the scope or effect of any such representations or
warranties.
References
to any document do not purport to be complete and are qualified in their
entirety by the contents of such document itself. The contents of any such
document referred to in this General Schedule are incorporated by reference in
this General Schedule as though fully set forth herein.
The
disclosures herein will qualify other paragraphs in Section 6 of the Agreement
to the extent that it is reasonably apparent from a reading of the disclosure
that it also qualifies or applies to such other paragraphs.
25
The
General Schedule
Schedule
6(g) – Insurance
None.
Schedule
6(j) – Real Property
Sublease
between General and The Xxxx Organization commencing February 15, 2008 and
ending December 31, 2008. Office space is approximately 1578 square
feet. Monthly rent is $3,471.60.
Schedule
6(m) – Contracts and Commitments
·
|
Websites
and Domain Name Acquisition and Transfer Agreement, by and between General
and Typhoon Capital Consultants, LLC (“Typhoon”), dated March 27,
2008.
|
Schedule
6(o) – Employee Benefit Plans
None.
Schedule
6(p) – Indebtedness to and from Affiliates
·
|
Promissory
Note, by General to Typhoon, dated March 27, 2008, in the amount of
$306,000.00; and
|
·
|
Promissory
Note, by General to Typhoon, dated March 27, 2008, in the amount of
$94,020.00.
|
*The term
of the Promissory Notes is 2 years and interest will accrue at the rate of 10%
per annum if the Notes are not repaid by May 28, 2008.
Schedule
6(q) – Banking Facilities
Xxxxx
Fargo Bank
000 X.
Xxxxxx Xxxxx
Xxxxxxx
Xxxxx, XX 00000
Checking
Account # 8020221076
Signer(s): Xxxxxx
Xxxxxxx