EXHIBIT 7.1
PLAN OF REORGANIZATION AND EXCHANGE AGREEMENT
This Plan of Reorganization and Exchange Agreement (the "Agreement") is
made and entered into as of the 1st day of July 1999 by and between Commercial
Labor Management, Inc., a Nevada corporation ("CLMI"), Zeros & Ones, Inc., a
Delaware corporation ("ZOI"), Xxxxxxx Xxxxxxx, an individual ("Xxxxxxx"), and
KidVision, Inc., a Delaware corporation ("KidVision"), with respect to the
following facts:
RECITALS
A. This Agreement hereby supercedes and replaces the Plan of
Reorganization and Exchange Agreement made and entered into as of
March 26, 1999 by and between Zeros & Ones, Inc., a Delaware
corporation ("ZOI"), Xxxxxxx, and KidVision.
X. Xxxxxxx own 100% of the total issued and outstanding capital stock of
KidVision.
C. KidVision is engaged in the business of operating an e-commerce
catalog through which it distributes educational products and markets
X.x.X.: The Kids Educational Network, a portal Web site.
D. CLMI is a public reporting company trading on the OTC Bulletin Board.
CLMI was incorporated for the purpose of engaging in any lawful
business.
E. CLMI desires to acquire 100% of the total issued and outstanding stock
of KidVision in exchange for 500,000 shares of the common stock of
CLMI, to be issued to Xxxxxxx in accordance with this Agreement.
F. The plan of reorganization evidenced by this Agreement is intended to
be a tax free reorganization under Section 368 of the Internal Revenue
Code of 1986, as amended. It is part of an overall tax free plan of
reorganization pursuant to which CLMI is also acquiring 100% of the
assets of ZOI and 100% of the total issued and outstanding stock of
Quantum Arts, Inc., Wood Ranch Technology Group, Inc., Polygonal
Research Corporation, EKO Corporation and Pillar West Entertainment,
Inc.
NOW, THEREFORE, for good and valuable consideration the receipt and
sufficiency to which are hereby acknowledged by the parties to this Agreement,
and in light of the above recitals to this Agreement, the parties to this
Agreement hereby agree as follows:
1. EXCHANGE OF EQUITY INTERESTS
In consideration for the issuance of a total of 500,000 shares of the
Common Stock, par value $.001 per share, of CLMI to Xxxxxxx and the other
covenants of CLMI in this Agreement, Xxxxxxx hereby agrees to convey to CLMI all
of Xxxxxxx'x capital stock and right, title and interest in and to KidVision,
effective as of the date first above written.
2. CLOSING AND FURTHER ACTS
The closing of the exchange (the "Closing") will occur as soon practicable
after the execution of this Agreement by all parties hereto, but not later than
July 1, 1999 (the "Closing Date"). At the Closing, Xxxxxxx will tender to CLMI
certificates and any other documents evidencing 100% of Xxxxxxx'x ownership in
KidVision, and CLMI will deliver to Xxxxxxx a stock certificate evidencing a
total of 500,000 shares of the Common Stock, par value $.001 per share, of CLMI
being issued to Xxxxxxx pursuant to this Agreement. All parties to this
Agreement hereby agree to execute all other documents and take all other action
which are reasonably necessary or appropriate in order to effect all of the
transactions contemplated by this Agreement.
3. COVENANTS OF CLMI
3.1 MANAGEMENT OF CLMI AND KIDVISION AFTER CLOSING.
After the Closing, Xxxxxxx will be a director and the Chief Executive
Officer of KidVision. CLMI agrees that for the first year after the Closing,
KidVision will have a Board of Directors consisting of three to five members,
one of which will be Xxxxxxx, one of which will be designated by Xxxxxx Xxxxx,
and the other one or more of whom will be mutually agreed upon by Xxxxxx Xxxxx
and Xxxxxxx.
3.2 PERCENTAGE OWNERSHIP IN CLMI.
After the Closing and after the acquisition by CLMI of the assets or
outstanding stock of ZOI, Quantum Arts, Inc., EKO Corporation, Polygonal
Research Corporation, Wood Ranch Technology Corporation and Pillar West
Entertainment, Inc., CLMI will have a total of 7,000,000 shares of its Common
Stock outstanding, and 320,000 warrants to purchase an additional 320,000 shares
of CLMI's Common Stock for a purchase price of $3.00 per share for a period of
three years from the date of issue of the Warrants, which is
expected to occur on or about July 1, 1999. CLMI will have no other equity
securities or securities convertible into equity securities of CLMI outstanding
on the Closing Date.
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4. REPRESENTATIONS AND WARRANTIES OF KIDVISION AND XXXXXXX.
KidVision and Xxxxxxx represent and warrant to CLMI as follows:
4.1 POWER AND AUTHORITY; BINDING NATURE OF AGREEMENT.
KidVision and Xxxxxxx have full power and authority to enter into this
Agreement and to perform their obligations hereunder. The execution,
delivery and performance of this Agreement by them has been duly authorized
by all necessary action on their part. Assuming that this Agreement is a
valid and binding obligation of each of the other parties hereto, this
Agreement is a valid and binding obligation of KidVision and Xxxxxxx.
4.2 SUBSIDIARIES.
There is no corporation, general partnership, limited partnership, joint
venture, association, trust or other entity or organization which KidVision
directly or indirectly controls or in which KidVision directly or indirectly
owns any equity or other interest.
4.3 GOOD STANDING.
KidVision (i) is duly organized, validly existing and in good standing
under the laws of the jurisdiction in which it is incorporated, (ii) has all
necessary power and authority to own its assets and to conduct its business as
it is currently being conducted, and (iii) is duly qualified or licensed to do
business and is in good standing in every jurisdiction (both domestic and
foreign) where such qualification or licensing is required.
4.4 CHARTER DOCUMENTS AND CORPORATE RECORDS.
KidVision has delivered to CLMI complete and correct copies of (i) the
articles of incorporation, bylaws and other charter or organizational
documents of KidVision, including all amendments thereto, (ii) the stock
records of KidVision, and (iii) the minutes and other records of the meetings
and other proceedings of the shareholders and directors of KidVision.
KidVision is not in violation or breach of (i) any of the provisions of its
articles of incorporation, bylaws or other charter or organizational
documents, or (ii) any resolution adopted by its shareholders or directors.
There have been no meetings or other proceedings of the shareholders or
directors of KidVision that are not fully reflected in the appropriate minute
books or other written records of KidVision.
4.5 CAPITALIZATION.
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The authorized capital stock of KidVision consists of fifteen hundred
(1,500) shares of common stock, no par value, of which 1,500 shares are issued
and outstanding. All of the outstanding shares of the capital stock of KidVision
are validly issued, fully paid and nonassessable, and have been issued in full
compliance with all applicable federal, state, local and foreign securities laws
and other laws. There are no (i) outstanding options, warrants or rights to
acquire any shares of the capital stock or other securities of KidVision, (ii)
outstanding securities or obligations which are convertible into or exchangeable
for any shares of the capital stock or other securities of KidVision, or (iii)
contracts or arrangements under which KidVision is or may become bound to sell
or otherwise issue any shares of its capital stock or any other securities.
4.6 FINANCIAL STATEMENTS.
KidVision has delivered to CLMI the following financial statements (the
"KidVision Financial Statements"): the unaudited balance sheet of KidVision as
of December 31, 1998 (the "December 31, 1998 Balance Sheet"). Except as stated
therein or in the notes thereto, the KidVision Financial Statements: (a)
present fairly the financial position of KidVision as of the respective dates
thereof; and (b) have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis throughout the periods
covered.
4.7 ABSENCE OF CHANGES.
Except as otherwise disclosed to CLMI in writing in Exhibit A to this
Agreement, since December 31, 1998:
(a) There has not been any material adverse change in the
business, condition, assets, operations or prospects of KidVision and no
event has occurred that might have an adverse effect on the business,
condition, assets, operations or prospects of KidVision.
(b) KidVision has not (i) declared, set aside or paid any dividend
or made any other contribution in respect of any shares of capital stock,
nor (ii) repurchased, redeemed or otherwise reacquired any shares of
capital stock or other securities.
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(c) KidVision has not sold or otherwise issued any shares of
capital stock or any other securities.
(d) KidVision has not amended its articles of incorporation, bylaws
or other charter or organizational documents, nor has it effected or been a
party to any merger, recapitalization, reclassification of shares, stock
split, reverse stock split, reorganization or similar transaction.
(e) KidVision has not formed any subsidiary or contributed any
funds or other assets to any subsidiary.
(f) KidVision has not purchased or otherwise acquired any assets,
nor has it leased any assets from any other person, except in the ordinary
course of business consistent with past practice.
(g) KidVision has not made any capital expenditure outside the
ordinary course of business or inconsistent with past practice, or in an
amount exceeding three thousand dollars ($3,000), and the total amount of
the capital expenditures made by KidVision has not exceeded ten thousand
dollars ($10,000).
(h) KidVision has not sold or otherwise transferred any assets to
any other person, except in the ordinary course of business consistent with
past practice and at a price equal to the fair market value of the assets
transferred.
(i) There has not been any loss, damage or destruction to any of
the properties or assets of KidVision (whether or not covered by
insurance).
(j) KidVision has not written off as uncollectible any
indebtedness or accounts receivable, except for write-offs that were made
in the ordinary course of business consistent with past practice and that
involved less than one hundred dollars ($100) singly and less than one
thousand dollars ($1,000) in the aggregate.
(k) KidVision has not leased any assets to any other person except
in the ordinary course of business consistent with past practice and at a
rental rate equal to the fair rental value of the leased assets.
(l) KidVision has not mortgaged, pledged, hypothecated or
otherwise encumbered any assets, except in the ordinary course of business
consistent with past practice.
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(m) KidVision has not entered into any contract or incurred any
debt, liability or other obligation (whether absolute, accrued, contingent
or otherwise), except for (i) contracts that were entered into in the
ordinary course of business consistent with past practice and that have
terms of less than six months and do not contemplate payments by or to
KidVision which will exceed, over the term of the contract, three thousand
dollars ($3,000) in the aggregate, and (ii) current liabilities incurred in
the ordinary course of business consistent with the past practice.
(n) KidVision has not made any loan or advance to any other
person, except for advances that have been made to customers in the
ordinary course of business consistent with past practice and that have
been properly reflected as "accounts receivables."
(o) KidVision has not paid any bonus to, or increased the amount
of the salary, fringe benefits or other compensation or remuneration
payable to, any of the directors, officers or employees of KidVision.
(p) No contract or other instrument to which KidVision is or was a
party or by which KidVision or any of KidVision's assets are or were bound
has been amended or terminated, except in the ordinary course of business
consistent with past practice.
(q) KidVision has not discharged any lien or discharged or paid any
indebtedness, liability or other obligation, except for current liabilities
that (i) are reflected in the December 31, 1998 Balance Sheet or have been
incurred since December 31, 1998 in the ordinary course of business
consistent with past practice, and (ii) have been discharged or paid in the
ordinary course of business consistent with past practice.
(r) KidVision has not forgiven any debt or otherwise released or
waived any right or claim, except in the ordinary course of business
consistent with past practice.
(s) KidVision has not changed its methods of accounting or its
accounting practices in any respect.
(t) KidVision has not entered into any transaction outside the
ordinary course of business or inconsistent with past practice.
(u) KidVision has not agreed or committed (orally or in writing) to
do any of the things described in clauses (b) through (t) of this Section
4.7.
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4.8 ABSENCE OF UNDISCLOSED LIABILITIES.
KidVision has no debt, liability or other obligation of any nature (whether
due or to become due and whether absolute, accrued, contingent or otherwise)
that is not reflected or reserved against in the December 31, 1998 Balance
Sheet, except for obligations incurred since December 31, 1998 in the ordinary
course of business consistent with past practice.
4.9 CONTRACTS.
KidVision has delivered to CLMI complete and correct copies of all of the
contracts and other instruments including all amendment hereto. All of such
contracts and other instruments are valid and in full force and effect, and are
enforceable in accordance with their terms. There is no existing default by any
person under any of said contracts or other instruments, and there exists no
condition or set of circumstance which, with notice or lapse of time or both,
would constitute such a default.
4.10 TITLE TO PERSONAL PROPERTY.
KidVision has good, valid and marketable title to all of its personal
property (both tangible and intangible) and interests therein, including without
limitation all of the personal property reflected in the December 31, 1998
Balance Sheet. All of such personal property and interests therein are owned
free and clear of any liens, pledges, security interests, claims, equities,
options, charges, encumbrances or restrictions.
4.11 TAX MATTERS.
All federal, state, local and foreign tax returns required to be filed by
KidVision have been properly prepared and duly filed, and all taxes required to
be paid by, or claimed by any federal, state, local or foreign taxing authority
to be payable by, the Company have been paid in full. The provisions for taxes
reflected in the December 31, 1998 Balance Sheet are adequate for all taxes
payable with respect to the period prior to December 31, 1998. There is no (i)
pending audit or examination of KidVision (or of any of the tax returns thereof)
being conducted by any federal, state, local or foreign taxing authority, (ii)
pending or threatened claim or dispute relating to the payment of any taxes by
KidVision, (iii) basis upon which any federal, state, local or foreign taxing
authority may make any claim for the payment of additional taxes by KidVision,
or (iv) outstanding agreement or waiver extending the statutory limitations
period applicable to the payment of any taxes by KidVision.
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4.12. COMPLIANCE WITH LAWS; LICENSES AND PERMITS.
KidVision, to its knowledge, is not in violation of, nor has it failed to
conduct its business in full compliance with, any applicable federal, state,
local or foreign laws, regulations, rules, treaties, rulings, orders, directives
or decrees. KidVision has delivered to CLMI complete and correct copies of all
of the licenses, permits, authorizations and franchises to which KidVision is
subject and all said licenses, permits, authorizations and franchises are valid
and in full force and effect. Said licenses, permits, authorizations and
franchises constitute all of the licenses, permits, authorizations and
franchises necessary to permit KidVision to conduct its business in the manner
in which it is now being conducted, and KidVision is not in violation or breach
of any of the terms, requirements or conditions of any of said licenses,
permits, authorizations or franchises.
4.13. TITLE TO XXXXXXX'X STOCK.
Xxxxxxx has good, valid and marketable title to all of Xxxxxxx'x stock in
KidVision, and can convey good title to said stock to CLMI free and clear of any
liens, claims, encumbrances or security interests.
4.14. LITIGATION.
There is no action, suit, proceeding, dispute, litigation, claim, complaint
or investigation by or before any court, tribunal, governmental body,
governmental agency or arbitrator pending or, to KidVision's knowledge,
threatened against or with respect to KidVision which (i) if adversely
determined would have an adverse effect on the business, condition, assets,
operations or prospects of KidVision, or (ii) challenges or would challenge any
of the actions required to be taken by the KidVision under this Agreement.
There exists no basis for any such action, suit, proceeding, dispute,
litigation, claim, complaint or investigation.
4.15 NON-CONTRAVENTION.
Neither (a) the execution and delivery of this Agreement, nor (b) the
performance of this Agreement will: (i) contravene or result in a violation of
any of the provisions of the articles of incorporation, bylaws or other charter
or organizational documents of KidVision; (ii) contravene or result in a
violation of any resolution adopted by the shareholders or directors of
KidVision; (iii) result in a violation or breach of, or give any person the
right to declare (whether with or without notice or lapse of time) a default
under or to terminate, any agreement or other instrument to which KidVision or
Xxxxxxx is a party or by which KidVision or any of its assets or Xxxxxxx is
bound; (iv) give any person the right to accelerate the maturity of any
indebtedness or other obligation of KidVision; (v) result in the loss of any
license or other contractual
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right of KidVision; (vi) result in the loss of, or in a violation of any of
the terms, provisions or conditions of, any governmental license, permit,
authorization or franchise of KidVision; (vii) result in the creation or
imposition of any lien, charge, encumbrance or restriction on any of the
assets of KidVision or on Xxxxxxx'x stock in KidVision; (viii) result in the
reassessment or revaluation of any property of KidVision or by any taxing
authority or other governmental authority; (ix) result in the imposition of,
or subject KidVision to any liability for, any conveyance or transfer tax or
any similar tax; or (x) result in a violation of any law, rule, regulation,
treaty, ruling, directive, order, arbitration award, judgment or decree to
which KidVision or any of its assets or any of Xxxxxxx'x stock in KidVision
is subject.
4.16. APPROVALS.
No authorization, consent or approval of, or registration or filing with,
any governmental authority or any other person is required to be obtained or
made by KidVision or Xxxxxxx in connection with the execution, delivery or
performance of this Agreement, including the sale to CLMI of the shares of
Xxxxxxx'x stock in KidVision being acquired by CLMI hereunder.
4.17. BROKERS.
KidVision has not agreed to pay any brokerage fees, finder's fees or other
fees or commissions with respect to the transactions contemplated by this
Agreement, and, to KidVision's knowledge, no person is entitled, or intends to
claim that it is entitled, to receive any such fees or commissions in connection
with such transaction.
4.18. FULL DISCLOSURE.
Neither this Agreement (including the exhibits hereto) nor any statement,
certificate or other document delivered to CLMI by or on behalf of KidVision or
Xxxxxxx contains any untrue statement of a material fact or omits to state a
material fact necessary to make the representations and other statements
contained herein and therein not misleading.
4.19. REPRESENTATIONS TRUE ON CLOSING DATE.
The representations and warranties of KidVision and Xxxxxxx set forth in
this Agreement are true and correct on the date hereof, and will be true and
correct on the Closing Date as though such representations and warranties were
made as of the Closing Date.
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4.20 NON-DISTRIBUTIVE INTENT.
The shares of CLMI stock being acquired by Xxxxxxx pursuant to this
Agreement are not being acquired by Xxxxxxx with a view to the public
distribution of them. Xxxxxxx acknowledges and agrees that the CLMI stock
acquired by him pursuant to this Agreement has not been registered or qualified
under federal or state securities laws, and may not be sold, conveyed,
transferred, assigned or hypothecated without being registered under the
Securities Act of 1933, as amended, and applicable state law, or in the
alternative submission of evidence reasonably satisfactory to CLMI that an
exemption from registration is available.
5. REPRESENTATIONS AND WARRANTIES OF CLMI.
CLMI represents and warrants to KidVision and Xxxxxxx as follows:
5.1 POWER AND AUTHORITY; BINDING NATURE OF AGREEMENT.
CLMI has full power and authority to enter into this Agreement and to
perform its obligations hereunder. The execution, delivery and performance of
this Agreement by CLMI has been duly authorized by all necessary action on its
part. Assuming that this Agreement is a valid and binding obligation of each of
the other parties hereto, this Agreement is a valid and binding obligation of
CLMI.
5.2 GOOD STANDING.
CLMI (i) is duly organized, validly existing and in good standing under the
laws of the jurisdiction in which it is incorporated, (ii) has all necessary
power and authority to own its assets and to conduct its business as it is
currently being conducted, and (iii) is duly qualified or licensed to do
business and is in good standing in every jurisdiction (both domestic and
foreign) where such qualification or licensing is required.
5.3 CHARTER DOCUMENTS AND CORPORATE RECORDS.
CLMI has delivered to Xxxxxxx and KidVision complete and correct copies of
(i) the articles of incorporation, bylaws and other charter or organizational
documents of CLMI, including all amendments thereto, (ii) the stock records of
CLMI, and (iii) the minutes and other records of the meetings and other
proceedings of the shareholders and directors of CLMI. CLMI is not in violation
or breach of (i) any of the provisions of its articles of incorporation, bylaws
or other charter or organizational documents, or (ii) any resolution adopted by
its shareholders or directors. There have been no meetings or other proceedings
of the shareholders or directors of CLMI that are not
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fully reflected in the appropriate minute books or other written records of the
Company.
5.4 CAPITALIZATION.
The authorized capital stock of CLMI consists of 50,000,000 shares of
common stock, par value $.001 per share, of which 7,000,000 shares will be
issued and outstanding as indicated in Section 3.2 of this Agreement, and
2,000,000 shares of preferred stock par value $.001 per shares, none of which is
issued and outstanding. All of the outstanding shares of the capital stock of
CLMI are validly issued, fully paid and nonassessable, and have been issued in
full compliance with all applicable federal, state, local and foreign securities
laws and other laws. Except as disclosed in Section 3.2 or pursuant to Section
5.5 or elsewhere in this Agreement, there are no (i) outstanding options,
warrants or rights to acquire any shares of the capital stock or other
securities of CLMI, (ii) outstanding securities or obligations which are
convertible into or exchangeable for any shares of the capital stock or other
securities of CLMI, or (iii) contracts or arrangements under which CLMI is or
may become bound to sell or otherwise issue any shares of its capital stock or
any other securities.
5.5 FINANCIAL STATEMENTS.
CLMI has delivered to Xxxxxxx and KidVision the following financial
statements (the "CLMI Financial Statements"): (i) the balance sheet of CLMI as
of December 31, 1998; and (ii) the statements of income and retained earnings,
stockholders' equity and changes in financial position of CLMI for the year
ended December 31, 1998; and (iii) supporting supplemental schedules. Except as
stated therein or in the notes thereto, the CLMI Financial Statements: (a)
present fairly the financial position of CLMI as of the respective dates thereof
and the results of operations and changes in financial position of CLMI for the
respective periods covered thereby; and (b) have been prepared in accordance
with generally accepted accounting principles applied on a consistent basis
throughout the periods covered.
5.6 ABSENCE OF CHANGES.
Except as otherwise disclosed to Xxxxxxx or KidVision in writing in Exhibit
A to this Agreement, since December 31, 1998, there has not been any material
adverse change in the business, condition, assets, operations or prospects of
CLMI and no event has occurred that might have an adverse effect on the
business, condition, assets, operations or prospects of CLMI.
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5.7 ABSENCE OF UNDISCLOSED LIABILITIES.
CLMI has no debt, liability or other obligation of any nature (whether due
or to become due and whether absolute, accrued, contingent or otherwise) that is
not reflected or reserved against in the December 31, 1998 Balance Sheet, except
for obligations incurred since December 31, 1998 in the ordinary course of
business consistent with past practice.
5.8 LITIGATION.
There is no action, suit, proceeding, dispute, litigation, claim, complaint
or investigation by or before any court, tribunal, governmental body,
governmental agency or arbitrator pending or, to CLMI's knowledge, threatened
against or with respect to CLMI which (i) if adversely determined would have an
adverse effect on the business, condition, assets, operations or prospects of
CLMI, or (ii) challenges or would challenge any of the actions required to be
taken by CLMI under this Agreement. There exists no basis for any such action,
suit, proceeding, dispute, litigation, claim, complaint or investigation.
5.9 NON-CONTRAVENTION.
Neither (a) the execution and delivery of this Agreement, nor (b) the
performance of this Agreement will: (i) contravene or result in a violation of
any of the provisions of the articles of incorporation, bylaws or other charter
or organizational documents of CLMI; (ii) contravene or result in a violation of
any resolution adopted by the shareholders or directors of CLMI; (iii) result in
a violation or breach of, or give any person the right to declare (whether with
or without notice or lapse of time) a default under or to terminate, any
agreement or other instrument to which CLMI is a party or by which CLMI or any
of its assets are bound; (iv) give any person the right to accelerate the
maturity of any indebtedness or other obligation of CLMI; (v) result in the loss
of any license or other contractual right of CLMI; (vi) result in the loss of,
or in a violation of any of the terms, provisions or conditions of, any
governmental license, permit, authorization or franchise of CLMI; (vii) result
in the creation or imposition of any lien, charge, encumbrance or restriction on
any of the assets of CLMI; (viii) result in the reassessment or revaluation of
any property of CLMI by any taxing authority or other governmental authority;
(ix) result in the imposition of, or subject CLMI to any liability for, any
conveyance or transfer tax or any similar tax; or (x) result in a violation of
any law, rule, regulation, treaty, ruling, directive, order, arbitration award,
judgment or decree to which CLMI or any of its assets is subject.
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5.10 APPROVALS.
No authorization, consent or approval of, or registration or filing with,
any governmental authority or any other person is required to be obtained or
made by CLMI in connection with the execution, delivery or performance of this
Agreement.
5.11 BROKERS.
CLMI has not agreed to pay any brokerage fees, finder's fees or other fees
or commissions with respect to the transactions contemplated by this Agreement,
and, to CLMI's knowledge, no person is entitled, or intends to claim that it is
entitled, to receive any such fees or commissions in connection with such
transactions.
5.12 FULL DISCLOSURE.
Neither this Agreement (including the exhibits hereto) nor any statement,
certificate or other document delivered to Xxxxxxx or KidVision by or on behalf
of CLMI contains any untrue statement of a material fact or omits to state a
material fact necessary to make the representations and other statements
contained herein and therein not misleading.
5.13 REPRESENTATIONS TRUE ON CLOSING DATE.
The representations and warranties of CLMI set forth in this Agreement are
true and correct on the date hereof, and will be true and correct on the Closing
Date as though such representations and warranties were made as of the Closing
Date.
6. INJUNCTIVE RELIEF
6.1. DAMAGES INADEQUATE.
Each party acknowledges that it would be impossible to measure in money the
damages to the other party if there is a failure to comply with any covenants
and provisions of this Agreement, and agrees that in the event of any breach of
any covenant or provision, the other party to this Agreement will not have an
adequate remedy at law.
6.2. INJUNCTIVE RELIEF.
It is therefore agreed that the other party to this Agreement who is
entitled to the benefit of the covenants and provisions of this Agreement which
have been breached, in addition to any other rights or remedies which they may
have, shall be entitled to immediate injunctive relief to enforce such covenants
and provisions, and
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that in the event that any such action or proceeding is brought in equity to
enforce them, the defaulting or breaching party will not urge a defense that
there is an adequate remedy at law.
7. WAIVERS.
If any party shall at any time waive any rights hereunder resulting from
any breach by the other party of any of the provisions of this Agreement, such
waiver is not to be construed as a continuing waiver of other breaches of the
same or other provisions of this Agreement. Resort to any remedies referred to
herein shall not be construed as a waiver of any other rights and remedies to
which such party is entitled under this Agreement or otherwise.
8. SUCCESSORS AND ASSIGNS.
Each covenant and representation of this Agreement shall inure to the
benefit of and be binding upon each of the parties, their personal
representatives, assigns and other successors in interest.
9. ENTIRE AND SOLE AGREEMENT.
This Agreement supercedes and replaces the Plan of Reorganization and
Exchange Agreement made and entered into on March 26, 1999 by and between ZOI,
Xxxxxxx, and KidVision. This Agreement constitutes the entire agreement between
the parties and supersedes all other agreements, representations, warranties,
statements, promises and undertakings, whether oral or written, with respect to
the subject matter of this Agreement. This Agreement may be modified or amended
only by a written agreement signed by the parties against whom the amendment is
sought to be enforced.
10. GOVERNING LAW.
This Agreement shall be governed by and construed in accordance with the
laws of the State of California, and the venue for any action hereunder shall be
in the appropriate forum in the County of Los Angeles, State of California.
11. COUNTERPARTS.
This Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and
such counterparts shall constitute but one and the same instrument.
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12. ATTORNEYS' FEES AND COSTS.
In the event that either party must resort to legal action in order to
enforce the provisions of this Agreement or to defend such action, the
prevailing party shall be entitled to receive reimbursement from the
nonprevailing party for all reasonable attorneys' fees and all other costs
incurred in commencing or defending such action, or in enforcing this Agreement,
including but not limited to post judgment costs.
13. ASSIGNMENT.
This Agreement shall not be assignable by any party without prior written
consent of the other parties.
14. REMEDIES.
Except as otherwise expressly provided herein, none of the remedies set
forth in this Agreement are intended to be exclusive, and each party shall have
all other remedies now or hereafter existing at law, in equity, by statute or
otherwise. The election of any one or more remedies shall not constitute a
waiver of the right to pursue other available remedies.
15. SECTION HEADINGS.
The section headings in this Agreement are included for convenience only,
are not a part of this Agreement and shall not be used in construing it.
16. SEVERABILITY.
In the event that any provision or any part of this Agreement is held to
be illegal, invalid or unenforceable, such illegality, invalidity or
unenforceability shall not affect the validity or enforceability of any other
provision or part of this Agreement.
17. NOTICES.
Each notice or other communication hereunder shall be in writing and shall
be deemed to have been duly given on the earlier of (i) the date on which such
notice or other communication is actually received by the intended recipient
thereof, or (ii) the date five (5) days after the date such notice or other
communication is mailed by registered or certified mail (postage prepaid) to the
intended recipient at the following address (or at such other address as the
intended recipient shall have specified in a written notice given to the other
parties hereto);
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IF TO CLMI:
Commercial Labor Management, Inc.
c/o Richardson & Associates
0000 Xxxxx Xxxxxx, Xxxxx 000
Xxxxx Xxxxxx, Xxxxxxxxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
IF TO ZOI:
Zeros & Ones, Inc.
00000 Xxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000
Attention: Xxxxxx Xxxxx, President
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
IF TO KIDVISION OR XXXXXXX:
Xxxxxxx Xxxxxxx
KidVision, Inc.
00000 Xxxxxxx Xxxxxxxxx, Xxxxx 000
Xxxxxx, Xxxxxxxxxx 00000
Telephone: (000) 000-0000
Facsimile: (000) 000-0000
18. PUBLICITY.
No press release, notice to any third party or other publicity concerning
the transactions contemplated by this Agreement shall be issued, given or
otherwise disseminated without the prior approval of each of the parties hereto;
provided, however, that such approval shall not be unreasonably withheld.
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IN WITNESS WHEREOF, this Agreement has been entered into as of the date
first above written.
CLMI: COMMERCIAL LABOR MANAGEMENT, INC.
By:
--------------------------------------
Xxxxxx X. Xxxxxx, President
ZOI: ZEROS & ONES, INC.
By:
--------------------------------------
Xxxxxx Xxxxx, President
XXXXXXX: By:
--------------------------------------
Xxxxxxx Xxxxxxx
KIDVISION: KIDVISION, INC.
By:
--------------------------------------
Xxxxxxx Xxxxxxx, President
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EXHIBIT A
MATERIAL CHANGES
None.
