AGREEMENT AND PLAN OF REORGANIZATION
THIS AGREEMENT AND PLAN OF
REORGANIZATION (the “Agreement”) is dated June 17, 2008, and is by and between
Suncross Exploration Corporation, a Nevada corporation (the “Company”) and Team
Nation Holding Corporation, a California corporation (“Team
Nation”).
R
E C I T A L S
WHEREAS, the shareholders of Team
Nation ("Shareholders") own the shares of capital stock of Team Nation as set
forth in Schedule 1 attached hereto, constituting all of the issued
and outstanding stock of Team Nation (the “Team Nation
Shares”);
WHEREAS, the Company is a
public company, required to file reports under Section 15(d) of the Securities
Exchange Act of 1934 (the "Exchange Act") and whose common stock is listed on
the OTC Electronic Bulletin Board under the symbol SNXX.OB;
WHEREAS, the Board of Directors of the
Company and Team Nation deem it advisable that the acquisition by the Company of
Team Nation be effected through an exchange (the "Exchange") of Team Nation
Shares pursuant to this Agreement;
WHEREAS, the Company desires to acquire
all of the outstanding Team Nation Shares for shares of Common Stock of the
Company.
A
G R E E M E N T
NOW, THEREFORE, in consideration of the
mutual covenants and agreements contained herein and in reliance upon the
representations and warranties hereinafter set forth, the parties agree as
follows:
I. EXCHANGE
1.01 Exchange. The
Shareholders shall exchange all of their Team Nation Shares for a total of
25,000,000 shares of Common Stock of the Company (the "Common Stock") at the
Closing of this Agreement. Immediately prior to Closing there shall be
20,771,750 shares of Common Stock outstanding, so that after Closing the Company
shall have outstanding 45,771,750 shares of Common Stock.
1.02. Closing. The
Closing of the transactions contemplated by this Agreement (the "Closing") is
subject to due diligence and the completion of the events set forth in Section
6.01 hereof, but in any event is expected to take place on or before
June 30, 2008 at the corporate offices of Team Nation.
1.03. Deliveries. Upon
Closing, the parties are delivering the following documents:
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1.03(a). The
items and documents set forth in Sections 1.01 and
1.02.
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1.03(b). The
Company shares of Common Stock described in Section
1.01.
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1.03(c). The
Company shall deliver the resignations of all of its current officers and
directors, and board resolutions electing Xxxxxx Xxxxx, Xxxxxx X. Xxxxxxx,
Xxxxxx Xxxxx and Xxxxx Xxxxxxxx to the Board of Directors of the Company,
Xxxxxx X. Xxxxxxx as President, Xxxxxx Xxxxx as Chief Executive Officer,
Xxxxxx X. Xxxxx as Executive Vice President, Xxxxx Xxxxxxxx as Executive
Vice President and Xxxxx Xxxx as Vice President and Chief Financial
Officer.
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1.04. Filings. Immediately
following the Closing, the Company shall file the following
documents:
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1.04(a). A
Current Report on Form 8-K with the U.S. Securities and Exchange
Commission, reporting the transactions set forth in this
Agreement.
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1.04(b). A
Certificate of Amendment to the Certificate of Incorporation of the
Company with the Nevada Secretary of State changing the name of the
Company to "Team Nation Holdings Corporation" or a similar name as may be
determined by the Board of
Directors.
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II.
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REPRESENTATIONS
AND WARRANTIES OF TEAM NATION AND
COFFEE
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Team Nation represents and
warrants to the Company as follows, as of the date of this Agreement and as
of the Closing:
2.01. Organization.
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2.01(a). Team
Nation is a corporation duly organized, validly existing and in
good standing under the laws of the State of California; Team Nation
has the corporate power and authority to carry on its
business as presently conducted; and Team Nation is qualified to
do business in all jurisdictions where the failure to be so
qualified would have a material adverse effect on its
business.
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2.02. Capitalization.
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2.02(a). The
authorized capital stock and the issued and outstanding shares of Team
Nation is as set forth on Exhibit 2.02(a). All of the issued
and outstanding shares of Team Nation are duly authorized,
validly issued, fully paid and
nonassessable.
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2.02(b). Except
as set forth in Exhibit 2.02(b) there are no outstanding options,
warrants, or rights to purchase any securities of Team
Nation.
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2.03. Subsidiaries
and Investments. Team Nation does not own any capital stock or
have any interest in any corporation, partnership or other form of
business organization, except as described in Exhibit 2.03
hereto.
2.04. Financial
Statements. The financial statements of Team Nation as of and
for the two years ended December 31, 2007, including the balance sheet as of
December 31, 2007 and the related audited statement of operations, cash flows
and changes in stockholders' equity for the two years then ended present fairly
the financial position and results of operations of Team Nation, on a consistent
basis.
2.05. No
Undisclosed Liabilities. To the best knowledge of Team Nation,
other than as described in Exhibit 2.05 attached hereto, Team Nation is not
subject to any material liability or obligation of any nature,
whether absolute, accrued, contingent, or otherwise and whether
due or to become due, which is not reflected or reserved against in
the Financial Statements, except those incurred in the normal course of
business.
2.06. Absence
of Material Changes. Since December 31, 2007, except as
described in any Exhibit attached hereto or as required or permitted under
this Agreement, there has not been:
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2.06(a). any
material adverse change in the condition (financial or otherwise) of the
properties, assets, liabilities or business of Team Nation, except
changes in the ordinary course of business which,
individually and in the aggregate, have not been
materially adverse;
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2.06(b). any
redemption, purchase or other acquisition of any shares of the capital
stock of Team Nation, or any issuance of any shares of capital stock or
the granting, issuance or exercise of any rights, warrants, options
or commitments by Team Nation relating to their authorized or
issued capital stock; or
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2.06(c). any
change or amendment to the Certificate of Incorporation of Team
Nation.
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2.07. Litigation. Except
as set forth in Exhibit 2.07 attached hereto, to the best knowledge of Team
Nation there is no litigation, proceeding or investigation pending or
threatened against Team Nation affecting any of its properties or assets
against any officer, director, or stockholder of Team Nation that might result,
either in any case or in the aggregate, in any material adverse change in
the business, operations, affairs or condition of Team Nation or its
properties or assets, or that might call into question the
validity of this Agreement, or any action taken or to be taken
pursuant hereto.
2.08. Title To
Assets. Team Nation has good and marketable title to all of
its assets and properties now carried on its books including
those reflected in the balance sheets contained in the Financial
Statements, free and clear of all liens, claims, charges, security interests or
other encumbrances, except as described in Exhibit 2.08
attached hereto or any other Exhibit.
2.09. Transactions
with Affiliates, Directors and Shareholders. Except as
set forth in Exhibit 2.09 attached hereto, there are and have been no
contracts, agreements, arrangements or other transactions between Team
Nation, and any officer, director, or stockholder of Team Nation,
or any corporation or other entity controlled by the Shareholders, a
member of the Shareholders' families, or any affiliate of the
Shareholders.
2.10. No
Conflict. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby will not
conflict with or result in a breach of any term or provision of, or
constitute a default under, the Articles of Incorporation or Bylaws of Team
Nation, or any agreement, contract or instrument to which Team
Nation is a party or by which it or any of its assets are bound.
2.11. Disclosure. To
the actual knowledge of Team Nation, neither this Agreement, the Financial
Statements nor any other agreement, document, certificate or written
or oral statement furnished to the Company by or on behalf of Team Nation in
connection with the transactions contemplated hereby, contains
any untrue statement of a material fact or when taken as a whole omits to
state a material fact necessary in order to make the
statements contained herein or therein not
misleading.
2.12. Authority. Team
Nation has full power and authority to enter into this Agreement and to
carry out the transactions contemplated herein. The execution
and delivery of this Agreement and the consummation of the transactions
contemplated hereby, have been duly authorized and approved by the Board of
Directors of Team Nation and, other than the actions described in Section 6.01,
no other corporate proceedings on the part of Team Nation are necessary to
authorize this Agreement and the transactions contemplated
hereby.
III. REPRESENTATIONS
AND WARRANTIES OF THE COMPANY
The Company hereby represents and
warrants to Team Nation as follows, as of the date of this Agreement and as
of the Closing:
3.01. Organization.
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3.01(a). The
Company is a corporation duly organized, validly existing, and in good
standing under the laws of the State of Nevada; has the corporate power
and authority to carry on its business as presently conducted; and is
qualified to do business in all jurisdictions where the failure to be
so qualified would have a material adverse effect on the business of the
Company.
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3.01(b). The
copies of the Articles of Incorporation, of the Company, as
certified by the Secretary of State of Nevada, and the Bylaws of the
Company are complete and correct copies of the Certificate of
Incorporation and the Bylaws of the Company as amended and
in effect on the date hereof. All minutes of meetings and
actions in writing without a meeting of the Board of Directors and
shareholders of the Company are contained in the minute book of the
Company and no minutes or actions in writing without a meeting have been
included in such minute book since such delivery to Team Nation that have
not also been delivered to Team
Nation.
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3.02. Capitalization
of the Company. The authorized capital stock of the Company
consists of 100,000,000 shares of Common Stock, par value $.001 per share, of
which 20,771,750 shares will be outstanding at Closing, and 20,000,000
shares of preferred stock, none of which is outstanding. All
outstanding shares are duly authorized, validly issued, fully paid and
non-assessable.
3.03. Subsidiaries
and Investments. The Company does not own any capital stock or
have any interest in any corporation, partnership, or other form of business
organization.
3.04. Authority. The
Company has full power and authority to enter into this Agreement and to
carry out the transactions contemplated herein. The execution
and delivery of this Agreement, the consummation of the transactions
contemplated hereby, and the issuance of the Company Shares in accordance with
the terms hereof, have been duly authorized and approved by the Board of
Directors of the Company and no other corporate proceedings on the part of
Company are necessary to authorize this Agreement, the transactions contemplated
hereby and the issuance of the Company Shares in accordance with the terms
hereof.
3.05. No
Undisclosed Liabilities. Other than as described in Exhibit
3.05 attached hereto, the Company is not subject to any material liability or
obligation of any nature, whether absolute, accrued, contingent, or otherwise
and whether due or to become due.
3.06. Litigation. There
is no litigation, proceeding or investigation pending or to the knowledge of the
Company, threatened against the Company affecting any of its properties or
assets, or, to the knowledge of the Company, against any officer, director,
or stockholder of the Company that might result, either in any case or in the
aggregate, in any material adverse change in the business, operations,
affairs or condition of the Company or any of its properties or assets, or that
might call into question the validity of this Agreement, or any action taken or
to be taken pursuant hereto.
3.07. Title To
Assets. The Company has good and marketable title to all of
its assets and properties now carried on its books including those
reflected in the balance sheet contained in the Company's financial statements,
free and clear of all liens, claims, charges, security interests or other
encumbrances, except as described in the balance sheet included in the
Company's financial statements or on any Exhibits attached
hereto.
3.08. Contracts
and Undertakings. Exhibit 3.08 attached hereto contains a list
of all contracts, agreements, leases, licenses, arrangements, commitments
and other undertakings to which the Company is a party or by which it or its
property is bound. Each of said contracts, agreements, leases,
licenses, arrangements, commitments and undertakings is valid, binding and
in full force and effect. The Company is not in material default, or
alleged to be in material default, under any contract, agreement, lease,
license, commitment, instrument or obligation and, to the knowledge of the
Company, no other party to any contract, agreement, lease, license,
commitment, instrument or obligation to which the Company is a party
is in default thereunder nor, to the knowledge of the Company, does there
exist any condition or event which, after notice or lapse of time or both, would
constitute a default by any party to any such contract,
agreement, lease, license, commitment, instrument or
obligation.
3.09. Underlying
Documents. Copies of all documents described in any Exhibit
attached hereto (or a summary of any such contract, agreement or
commitment, if oral) have been made available to Team Nation and are complete
and correct and include all amendments, supplements or modifications
thereto.
3.10. Transactions
with Affiliates, Directors and
Shareholders. Except as set forth in Exhibit 3.10
hereto, there are and have been no contracts, agreements, arrangements
or other transactions between the Company, and any officer, director,
or 5% stockholder of the Company, or any corporation or other
entity controlled by any such officer, director or 5% stockholder, a member
of any such officer, director or 5% stockholder's family, or any affiliate
of any such officer, director or 5% stockholder.
3.11. No
Conflict. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby will not
conflict with or result in a breach of any term or provision of, or
constitute a default under, the Certificate of Incorporation or Bylaws of the
Company, or any agreement, contract or instrument to which the Company is a
party or by which it or any of its assets are bound.
3.12. Disclosure. To
the actual knowledge of the Company, neither this Agreement nor any other
agreement, document, certificate or written or oral statement furnished to
Team Nation and the Shareholders by or on behalf of the Company in
connection with the transactions contemplated hereby,
contains any untrue statement of a material fact or when taken as a whole omits
to state a material fact necessary in order to make the
statements contained herein or therein not misleading.
3.13. Financial
Statements. The financial statements of the Company set forth
in its Form 10K-SB for the year ended June 30, 2007 present fairly the financial
position and results of operations of the Company, on a consistent
basis.
3.14. Absence
of Material Changes. Since December 31, 2007, except as
described in any Exhibit hereto or as required or permitted under this
Agreement, there has not been:
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3.14(a). any
material change in the condition (financial or otherwise) of the
properties, assets, liabilities or business of Company, except changes in
the ordinary course of business which, individually and in the aggregate,
have not been materially adverse.
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3.14(b). any
redemption, purchase or other acquisition of any shares of the capital
stock of the Company, or any issuance of any shares of capital stock or
the granting, issuance or exercise of any rights, warrants, options or
commitments by Team Nation relating to their authorized or issued capital
stock.
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3.14(c). any
amendment to the Articles of Incorporation of the
Company.
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3.15 Securities
Law Compliance
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3.15(a) The
Company is required to file reports under Section 15(d) of the Exchange
Act. The Company has filed all reports and other material
required to be filed by it with the SEC pursuant to Section
15(d). Such filed reports and materials do not contain any
misstatements of material facts, nor do they omit any material information
required to be stated therein or necessary to prevent the statements
therein from becoming
misleading.
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3.15(b)
The currently outstanding common stock of the Company was issued pursuant
to the Registration Statement no. 333-144597 or valid exemptions from
registration under the Securities Act of 1933 pursuant to Regulation D
promulgated thereunder.
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3.15(c)
To the Company’s best knowledge, its common stock is not subject to any
pending proceeding to delist the common stock from the Electronic Bulletin
Board and there are and have been no investigations or proceedings by the
SEC or FINRA of the Company. The common stock is eligible for
DTC.
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IV.
SURVIVAL
OF REPRESENTATIONS, WARRANTIES AND COVENANTS
All representations, warranties and
covenants of the Company and Team Nation contained herein shall survive the
consummation of the transactions contemplated herein and remain in
full force and effect.
V. CONDITIONS TO
CLOSING
5.01. Conditions
to Obligation of Team Nation. The obligations of Team Nation
under this Agreement shall be subject to each of the following
conditions:
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5.01(a). The
representations and warranties of the Company herein contained shall
be true in all material respects at the Closing with the same effect as
though made at such time. The Company shall have performed
in all material respects all obligations and complied in all
material respects, to its actual knowledge, with all covenants and
conditions required by this Agreement to be performed or
complied with by it at or prior to the
Closing.
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5.01(b). No
injunction or restraining order shall be in effect, and no action or
proceeding shall have been instituted and, at what would otherwise
have been the Closing, remain pending before a court to restrain or
prohibit the transactions contemplated by this
Agreement.
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5.01(c). All
statutory requirements for the valid consummation by the Company of the
transactions contemplated by this Agreement shall have been
fulfilled. All authorizations, consents and approvals of
all governments and other persons required to be obtained in order to
permit consummation by the Company of the transactions contemplated
by this Agreement shall have been
obtained.
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5.01(d).
The fulfillment of the obligations of the Company set forth in
Section 6.01.
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5.02. Conditions
to Obligations of the Company. The obligation of the Company
under this Agreement shall be subject to the following
conditions:
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5.02(a). The
representations and warranties of Team Nation herein contained shall
be true in all material respects as of the Closing, and shall have the
same effect as though made at the Closing; Team Nation shall have
performed in all material respects all obligations and complied in
all material respects, to its actual knowledge, with all covenants
and conditions required by this Agreement to be performed or
complied with by it prior to the
Closing.
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5.02(b). No
injunction or restraining order shall be in effect prohibiting this
Agreement, and no action or proceeding shall have been instituted
and, at what would otherwise have been the Closing, remain pending
before the court to restrain or prohibit the transactions contemplated by
this Agreement.
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5.02(c). All
statutory requirements for the valid consummation by Team Nation
of the transactions contemplated by this Agreement shall have been
fulfilled. All authorizations, consents and approvals of all
governments and other persons required to be obtained in order to
permit consummation by Team Nation of the transactions contemplated
by this Agreement shall have been
obtained.
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VI.
CERTAIN
AGREEMENTS
6.01. Forward
Stock Split; Other Matters. The Company currently has
11,823,250 shares outstanding and is effecting a 19 for one forward stock split.
Notice of the stock split has been given to FINRA. The outstanding 10,000,000
shares held by control persons will become 25 million shares after giving effect
to the cancellation to treasury of sufficient shares so that the forward split
shall result in 25 million shares held by control persons. These 25,000,000
shares will be cancelled immediately prior to Closing. Team Nation
shall complete an audit with a PCAOB approved auditor of the two years ended
December 31, 2007 and reviews of its interim financial statements by such
auditor as a condition to Closing. An additional condition to Closing is the
preparation of a “super 8-K” acceptable to the Company prior to
Closing. The Company shall sell its current business as of the day
following the Closing to an unaffiliated third party for consideration of $10,
the payment of all liabilities existing as of the Closing, and an indemnity
agreement against liabilities of that business.
6.02. Reporting
Requirements. Following the Closing, the Company shall file
all reports required by Section 15(d) of the Securities Act of 1933 and shall
maintain its books and records in accordance with Sections 12 and 13 of the
Securities Exchange Act of 1934. The parties agree that the failure
of the Company to make such filings with the Securities and Exchange Commission
shall constitute a material breach of this Agreement.
VII. MISCELLANEOUS
7.01. Finder's
Fees, Investment Banking Fees. Neither Team Nation nor the
Company have retained or used the services of any person, firm or
corporation in such manner as to require the payment of any
compensation as a finder or a broker in connection with the
transactions contemplated herein.
7.02. Tax
Treatment. The transactions contemplated hereby are intended
to qualify as a so-called “tax-free” reorganization under the provisions of
Section 368 of the Code. The Company and Team Nation
acknowledge, however, that they each have been represented by their
own tax advisors in connection with this transaction; that neither has
made any representation or warranty to the other with respect to
the treatment of such transaction or the effect thereof under
applicable tax laws, regulations, or interpretations; and that no
attorney's opinion or private revenue ruling has been obtained with
respect to the effects thereof under the Internal Revenue Code of 1986, as
amended.
7.03. Further
Assurances. From time to time, at the other party's request
and without further consideration, each of the parties will execute and deliver
to the others such documents and take such action as the other party may
reasonably request in order to consummate more effectively the transactions
contemplated hereby.
7.04. Parties
in Interest. Except as otherwise expressly provided herein,
all the terms and provisions of this Agreement shall be binding upon, shall
inure to the benefit of and shall be enforceable by the respective heirs,
beneficiaries, personal and legal representatives, successors and assigns
of the parties hereto.
7.05. Entire
Agreement; Amendments. This Agreement, including the
Schedules, Exhibits and other documents and writings referred to herein or
delivered pursuant hereto, which form a part hereof, contains the entire
understanding of the parties with respect to its subject
matter. There are no restrictions, agreements, promises,
warranties, covenants or undertakings other than those expressly set
forth herein or therein. This Agreement supersedes all prior
agreements and understandings between the parties with respect to its subject
matter. This Agreement may be amended only by a written instrument
duly executed by the parties or their respective successors or
assigns.
7.06. Headings,
Etc. The section and paragraph headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretations of this Agreement.
7.07. Pronouns. All
pronouns and any variations thereof shall be deemed to refer to the masculine,
feminine or neuter, singular or plural, as the identity of the person, persons,
entity or entities may require.
7.08. Counterparts. This
Agreement may be executed in several counterparts, each of which shall be deemed
an original but all of which together shall constitute one and the same
instrument.
7.09. Governing
Law. This Agreement shall be governed by the laws of the State
of California (excluding conflicts of laws principles) applicable to contracts
to be performed in the State of California.
IN WITNESS WHEREOF, this Agreement has
been duly executed and delivered by the parties hereto as the date first
above written.
SUNCROSSS
EXPLORATION
CORPORATION TEAM
NATION HOLDING
CORPORATION
By:
By:
Name:
Name:Xxxxxx X. Xxxxx
Title:
Title: President
SCHEDULE
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NUMBER
OF SHARES
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NUMBER
OF
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||||||
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OF
TEAM NATION
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SHARES
OF
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||||||
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COMMON
STOCK
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COMPANY
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||||||
NAMES
OF
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OWNED
AND
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COMMON
STOCK
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||||||
SHAREHOLDERS
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TO BE DELIVERED
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TO BE RECEIVED
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||||||
Xxxxxxxxx
X. Xxxxx
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25,000 | 6,250,000 | ||||||
Xxxxxxx
X. Xxxxx
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25,000 | 6,250,000 | ||||||
Vision
Management Solutions, LLC
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25,000 | 6,250,000 | ||||||
JDO
Management and Consulting Corp.
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25,000 | 6,250,000 |
Totals
Team
Nation Exhibit 2.02(a)
Capitalization
Class Authorized Outstanding
Common
Team
Nation Exhibit 2.02(b)
Options
and Warrants
NONE
Team
Nation Exhibit 2.03
None
Team
Nation Exhibit 2.05
Undisclosed
Liabilities
None
Team
Nation Exhibit 2.07
Litigation
None
Team
Nation Exhibit 2.08
Title
to Assets
None
Team
Nation Exhibit 2.09
Interested
Transactions
To be
completed prior to close
Company
Exhibit 3.05
Undisclosed
Liabilities
None
Company
Exhibit 3.08
Contracts
The
company has a contract with ___________________ as transfer
agent. The transfer agent is entitled to charge for additional
services, such as mailings, copies of shareholder lists, etc.
Company
Exhibit 3.10
Interested
Transactions
None
except as stated in the 10-KSB.