AGREEMENT AND PLAN OF REORGANIZATION

AGREEMENT AND PLAN OF REORGANIZATION

THIS AGREEMENT AND PLAN OF REORGANIZATION, made and entered into this 1st day of July, 2003, by and between iVideoNow, Inc., a Delaware corporation (“VNOW”), and 99 Cent Stuff, LLC., a Florida limited liability company, (“NNCS”).

Recitals

This Agreement provides for the reorganization of NNCS with and into VNOW, with the surviving entity adopting the name 99 Cent Stuff, Inc., and in connection therewith, the exchange of the outstanding membership interests of NNCS for shares of common voting stock of VNOW, all for the purpose of effecting a tax-free reorganization pursuant to sections 351, 354 and 368(a) of the Internal Revenue Code.

The board of directors of VNOW and the members of NNCS have determined, subject to the terms and conditions set forth in this Agreement, that the exchange contemplated hereby, as a result of which NNCS and VNOW will become one entity, is desirable and in the best interests of their stockholders. This Agreement is being entered into for the purpose of setting forth the terms and conditions of the proposed exchange.

Agreement

NOW, THEREFORE, on the stated premises and for and in consideration of the mutual covenants and agreements hereinafter set forth and the mutual benefits to the parties to be derived herefrom, it is hereby agreed as follows:

ARTICLE I

REPRESENTATIONS, COVENANTS AND WARRANTIES OF NNCS

As an inducement to and to obtain the reliance of VNOW, NNCS represents and warrants as follows:

Section 1.1

Organization. NNCS is a limited liability company duly organized, validly existing, and in good standing under the laws of the State of Florida and has the power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it is now being conducted, including qualification to do business as a foreign entity in the jurisdiction in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. Attached as Schedule 1.1 is a complete and correct copy of the articles of organization of NNCS as in effect on the date hereof. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this Agreement in accordance with the terms hereof will not violate any provision of NNCS’s articles of organization. NNCS has full power, authority and legal right and has taken all action required by law, its articles of organization or otherwise to authorize the execution and delivery of this Agreement.

Section 1.2

Capitalization. As of the Closing Date hereof, all of the outstanding interests of NNCS will be owned by the persons listed on Schedule 1.2. All issued and outstanding interests are legally issued, fully paid and nonassessable and are not issued in violation of the preemptive or other rights of any person. NNCS has no other securities, warrants or options authorized or issued. Prior to the Closing Date, Xxxxxxx Xxxxxxxxx shall have converted $14,591,553 of advances to NNCS interests.

Section 1.3

Subsidiaries. Except as otherwise set forth in the NNCS Schedules, NNCS does not have any other subsidiaries and does not own, beneficially or of record, any shares of any other entity other than the single-member LLCs owning each store.

Section 1.4

Financial Statements. Included in the NNCS Schedules is NNCS’s audited financial statements (including any predecessor companies) including a balance sheet, statement of operations, member equity and cash flows and notes thereto, dated as of December 31, 2002. Relevant thereto:

(a)

the NNCS balance sheet presents fairly as of its date the financial condition of NNCS; NNCS does not have, as of the date of such balance sheet, except as noted and to the extent reflected or reserved against therein, any liabilities or obligations (absolute or contingent) which should be reflected in a balance sheet or the notes thereto and all material assets reflected therein are properly reported and present fairly the value of the assets of NNCS, in accordance with generally accepted accounting principles;

(b)

NNCS has no material liabilities with respect to the payment of any federal, state, county, local or other taxes (including any deficiencies, interest or penalties), except for taxes accrued but not yet due and payable;

(c)

NNCS has filed all, state, federal and local income tax returns required to be filed by it from inception to the date hereof, if any; and

(d)

the books and records, financial and others, of NNCS are in all material respects complete and correct and have been maintained in accordance with good business accounting practices.

Section 1.5

Absence of Certain Changes or Events. Except as set forth in this Agreement (including the Schedules), or as otherwise disclosed to VNOW, since December 31, 2002:

(a)

there has not been: (i) any material adverse change in the business, operations, properties, assets or condition of NNCS; or (ii) any damage, destruction or loss to NNCS (whether or not covered by insurance) materially and adversely affecting the business, operations, properties, assets or condition of NNCS;

(b)

NNCS has not: (i) amended its articles of organization; (ii) declared or made, or agreed to declare or make, any payment of dividends or distributions of any assets of any kind whatsoever to members or purchased or redeemed or agreed to purchase or redeem any of its interests; (iii) waived any rights of value which in the aggregate are

extraordinary or material considering the business of NNCS; (iv) made any material change in its method of operation or accounting; (v) entered into any other material transaction; or (vi) made any material accrual or arrangement for or payment of bonuses or special compensation of any kind or any severance or termination pay to any present or former officer or employee in excess of one year.

(c)

NNCS has not: (i) borrowed or agreed to borrow any funds or incurred or become subject to, any material obligation or liability (absolute or contingent) except liabilities incurred in the ordinary course of business; (ii) paid any material obligation or liability (absolute or contingent) other than current liabilities reflected in or shown on the most recent NNCS balance sheet and current liabilities incurred since that date in the ordinary course of business; (iii) sold or transferred, or agreed to sell or transfer, any of its assets, properties or rights (except assets, properties or rights not used or useful in its business which, in the aggregate have a value of less than $25,000); (iv) made or permitted any amendment or termination of any contract, agreement or license to which it is a party if such amendment or termination is material, considering the business of NNCS; or (v) issued, delivered or agreed to issue or deliver any stock, bonds or other corporate securities, including debentures (whether authorized and unissued or held as treasury stock); and

(d)

to the best knowledge of NNCS, it has not become subject to any law or regulation which materially and adversely affects, or in the future may adversely affect, the business, operations, properties, assets or condition of NNCS.

Section 1.6

Title and Related Matters. NNCS has good and marketable title to and is the sole and exclusive owner of all of its properties, interests in properties and assets, real and personal (collectively, the “Assets”) which are reflected in the NNCS audited balance sheet or acquired after that date (except properties and assets sold or otherwise disposed of since such date in the ordinary course of business), free and clear of all liens, pledges, charges or encumbrances except: (a) statutory liens or claims not yet delinquent; (b) such imperfections of title and easements as do not and will not, materially detract from or interfere with the present or proposed use of the properties subject thereto or affected thereby or otherwise materially impair present business operations on such properties; and (c) as described in the NNCS Schedules. Except as set forth in the NNCS Schedules, no third party has any right to, and NNCS has not received any notice of infringement of or conflict with asserted rights of others with respect to any product, technology, data, trade secrets, know-how, proprietary techniques, trademarks, service marks, trade names or copyrights which, singly or in the aggregate, if the subject of an unfavorable decision, ruling or finding, would have a materially adverse effect on the business, operations, financial conditions or income of NNCS or any material portion of its properties, assets or rights.

Section 1.7

Litigation and Proceedings. To the best of NNCS’s knowledge and belief, except as disclosed in the financial statements, there are no actions, suits, proceedings or investigations pending or threatened by or against NNCS or affecting NNCS or its properties, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign or before any arbitrator of any kind that if determined adversely would have a material

adverse effect on the business, operations, financial condition or income of NNCS. NNCS does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality or of any circumstances which, after reasonable investigation, would result in the discovery of such a default.

Section 1.8

Contracts.

(a)

Except as included or described in the NNCS Schedules, there are no material contracts, agreements or other commitments to which NNCS is a party or by which it or any of its assets, products, technology or properties are bound; and

(b)

except as included or described in the NNCS Schedules or reflected in the most recent NNCS balance sheet, NNCS is not a party to any: (i) employment agreement for any officer or employee which is not terminable on thirty (30) days or less notice; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) consulting or other similar contracts with an unexpired term of more than one year or providing for payments in excess of $100,000 in the aggregate; (v) collective bargaining agreements; (vi) agreement with any present or former officer or director of NNCS; or (vii) contract, agreement or other commitment involving payments by it of more than $100,000 in the aggregate.

Section 1.9

Material Contract Defaults. Except as set forth in the NNCS Schedules, to the best of NNCS’s knowledge and belief, NNCS is not in default in any material respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of NNCS.

Section 1.10

No Conflict With Other Instruments. The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any material indenture, mortgage, deed of trust or other material contract, agreement or instrument to which NNCS is a party or to which any of its properties or operations are subject.

Section 1.11

Governmental Authorizations. To the best of NNCS’s knowledge, NNCS has all licenses, franchises, permits or other governmental authorizations legally required to enable NNCS to conduct its business in all material respects as conducted on the date hereof except for compliance with federal and state securities and Florida limited liability company laws, as hereinafter provided, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by NNCS of this Agreement and the consummation by NNCS of the transactions contemplated hereby.

Section 1.12

Compliance With Laws and Regulations. To the best of NNCS’s knowledge, except as disclosed in the NNCS Schedules, NNCS has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of NNCS or would not result in NNCS’s incurring any material liability.

Section 1.13

Insurance. All of the insurable properties owned either directly or indirectly by NNCS are insured for NNCS’s benefit under valid and enforceable policies issued by insurers of recognized responsibility. Such policy or policies containing substantially equivalent coverage will be outstanding and in full force at the Closing Date.

Section 1.14

Approval of Agreement The members of NNCS have authorized the execution and delivery of this Agreement by NNCS and have approved the transactions contemplated hereby.

Section 1.15

Material Transactions or Affiliations. Except as disclosed herein and in the NNCS Schedules, there exists no material contract, agreement or arrangement between NNCS and any predecessor and any person who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known by NNCS to own beneficially, ten percent (10%) or more of the issued and outstanding NNCS Common Shares and which is to be performed in whole or in part after the date hereof.

Section 1.16

Labor Relations. NNCS has never had a work stoppage resulting from labor problems. To the best knowledge of NNCS, no union or other collective bargaining organization is organizing or attempting to organize any employee of NNCS.

Section 1.17

Principals of NNCS. During the past five year period, except as disclosed on Schedule 1.17, no officer or director of NNCS has been the subject of

(a)

a petition under the Federal bankruptcy laws or any other insolvency law nor has a receiver, fiscal agent or similar officer been appointed by a court for the business or property of such person, or any partnership in which he was a general partner at or within two years before the time of such filing, or any corporation or business association of which he was an executive officer at or within two years before the time of such filing;

(b)

a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations which do not relate to driving while intoxicated);

(c)

any order, judgment or decree, not subsequently reversed, suspended or vacated, of any court of competent jurisdiction, permanently or temporarily enjoining him from, or otherwise limiting, the following activities:

(i)

Acting as a futures commission merchant, introducing broker, commodity trading advisor, commodity pool operator, floor broker, leverage transaction merchant, any other person regulated by the United States Commodity Futures Trading Commission or an associated person of any of the foregoing, or as an investment adviser, underwriter, broker or dealer in securities, or as an affiliated person, director or employee of any investment company, bank, savings and loan association or insurance company, or engaging in or continuing any conduct or practice in connection with such activity;

(ii)

Engaging in any type of business practice; or

(iii)

Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal, state or other securities laws or commodities laws.

(d)

any order, judgment or decree, not subsequently reversed, suspended or vacated, of any Federal, state or local authority barring, suspending or otherwise limiting for more than 60 days the right of such person to engage in any activity described in the preceding sub-paragraph, or to be associated with persons engaged in any such activity;

(e)

a finding by a court of competent jurisdiction in a civil action or by the Commission to have violated any securities law, regulation or decree and the judgment in such civil action or finding by the Commission has not been subsequently reversed, suspended or vacated; or

(f)

a finding by a court of competent jurisdiction in a civil action or by the Commodity Futures Trading Commission to have violated any federal commodities law, and the judgment in such civil action or finding by the Commodity Futures Trading Commission has not been subsequently reversed suspended or vacated.

ARTICLE II

REPRESENTATIONS, COVENANTS AND WARRANTIES OF VNOW

As an inducement to, and to obtain the reliance of NNCS, VNOW represents and warrants as follows:

Section 2.1

Organization. VNOW is a corporation duly organized, validly existing and in good standing under the laws of the State of Delaware and has the corporate power and is duly authorized, qualified, franchised and licensed under all applicable laws, regulations, ordinances and orders of public authorities to own all of its properties and assets and to carry on its business in all material respects as it are now being conducted, including qualification to do business as a foreign corporation in the states in which the character and location of the assets owned by it or the nature of the business transacted by it requires qualification. Included in the VNOW Schedules (as hereinafter defined) are complete and correct copies of the articles of incorporation and bylaws of VNOW as in effect on the date hereof. The execution and delivery of this Agreement does not and the consummation of the transactions contemplated by this

Agreement in accordance with the terms hereof will not, violate any provision of VNOW’ s articles of incorporation or bylaws. VNOW has taken all action required by law, its articles of incorporation, its bylaws or otherwise to authorize the execution and delivery of this Agreement. VNOW has full power, authority and legal right and has taken all action required by law, its articles of incorporation, bylaws or otherwise to consummate the transactions herein contemplated.

Section 2.2

Capitalization. The authorized capitalization of VNOW consists of 20,000,000 shares of Preferred Stock, par value $0.01 per share and 80,000,000 shares of Common Stock, par value $0.001 per share. As of the date hereof there are no shares of Preferred Stock and 30,000,000 Common Shares of VNOW issued and outstanding. As of the Closing Date (as defined herein), there will be no more than 1,000,000 shares of VNOW’s common stock issued or outstanding.

Section 2.3

Subsidiaries. VNOW has no subsidiary companies.

Section 2.4

Financial Statements.

(a)

Included in the VNOW Schedules are the audited balance sheet of VNOW for the fiscal years ended December 31, 2002 and 2001, and the related statements of operations, stockholders’ equity and cash flows for the years then ended, and the unaudited balance sheet and related statement of operations, stockholders’ equity and cash flow for the three month period ended March 31, 2003, which are included in the schedules identified in Section 2.20(b).

(b)

All such financial statements have been prepared in accordance with generally accepted accounting principles consistently applied throughout the periods involved. The VNOW balance sheets present fairly as of their respective dates the financial condition of VNOW. VNOW did not have as of the date of any of such VNOW balance sheets, any liabilities or obligations (absolute or contingent) which should be reflected in a balance sheet or the notes thereto prepared in accordance with generally accepted accounting principles, and all assets reflected therein are properly reported and present fairly the value of the assets of VNOW, in accordance with generally accepted accounting principles. The statements of operations, stockholders’ equity and changes in financial position reflect fairly the information required to be set forth therein by generally accepted accounting principles.

(c)

The books and records, financial and others, of VNOW are in all material respects complete and correct and have been maintained in accordance with good business accounting practices.

(d)

VNOW has no liabilities with respect to the payment of any federal, state, county, local or other taxes (including any deficiencies, interest or penalties).

(e)

As of the Closing Date, as defined herein, the VNOW balance sheets and the notes thereto, shall reflect that VNOW has: (i) no receivables; (ii) no accounts payable; and (iii) no contingent liabilities, direct or indirect, matured or unmatured.

Section 2.5

Information. The information concerning VNOW as set forth in this Agreement and in the VNOW Schedules is complete and accurate in all material respects and does not contain any untrue statement of a material fact or omit to state a material fact required to make the statements made, in light of the circumstances under which they were made, not misleading.

Section 2.6

Options and Warrants. Except as set forth in the VNOW Annual Report on Form 10-KSB for the year ended December 31, 2002, there are no existing options, warrants, calls or commitments of any character to which VNOW is a party and by which it is bound.

Section 2.7

Absence of Certain Changes or Events. Except as described herein or in the VNOW Schedules, since December 31, 2002:

(a)

VNOW has not: (i) amended its articles of incorporation or bylaws; (ii) waived any rights of value which in the aggregate are extraordinary or material considering the business of VNOW; (iii) made any material change in its method of management, operation or accounting; or (iv) made any accrual or arrangement for or payment of bonuses or special compensation of any kind or any severance or termination pay to any present or former officer or employee;

(b)

VNOW has not: (i) granted or agreed to grant any options, warrants or other rights for its stocks, bonds or other corporate securities calling for the issuance thereof, which option, warrant or other right has not been cancelled as of the Closing Date; or (ii) borrowed or agreed to borrow any funds or incurred or become subject to, any material obligation or liability (absolute or contingent) except liabilities incurred in the ordinary course of business; and

(c)

to the best knowledge of VNOW, it has not become subject to any law or regulation which materially and adversely affects, or in the future may adversely affect, the business, operations, properties, assets or condition of VNOW.

Section 2.8

Title and Related Matters. As of the Closing Date, VNOW will own no real, personal or intangible property.

Section 2.9

Litigation and Proceedings. There are no actions, suits or proceedings pending or, to the best of VNOW’s knowledge and belief, threatened by or against or affecting VNOW, at law or in equity, before any court or other governmental agency or instrumentality, domestic or foreign, or before any arbitrator of any kind. VNOW does not have any knowledge of any default on its part with respect to any judgment, order, writ, injunction, decree, award, rule or regulation of any court, arbitrator or governmental agency or instrumentality.

Section 2.10

Contracts. On the Closing Date:

(a)

there are no contracts, agreements, franchises, license agreements, or other commitments to which VNOW is a party or by which it or any of its properties are bound.

(b)

VNOW is not a party to any contract, agreement, commitment or instrument or subject to any charter or other corporate restriction or any judgment, order, writ, injunction, decree or award which adversely affects, or in the future may (as far as VNOW can now foresee) adversely affect, the business, operations, properties, assets or conditions of VNOW; and

(c)

VNOW is not a party to any oral or written: (i) contract for the employment of any officer or employee; (ii) profit sharing, bonus, deferred compensation, stock option, severance pay, pension, benefit or retirement plan, agreement or arrangement covered by Title IV of the Employee Retirement Income Security Act, as amended; (iii) agreement, contract or indenture relating to the borrowing of money; (iv) guaranty of any obligation for the borrowing of money or otherwise, excluding endorsements made for collection and other guaranties of obligations, which, in the aggregate exceeds $1,000; (v) consulting or other similar contract; (vi) collective bargaining agreement; (vii) agreement with any present or former officer or director of VNOW; or (viii) contract, agreement, or other commitment involving payments by it of more than $1,000 in the aggregate.

Section 2.11

No Conflict With Other Instruments. The execution of this Agreement and the consummation of the transactions contemplated by this Agreement will not result in the breach of any term or provision of, or constitute an event of default under, any indenture, mortgage, deed of trust or other contract, agreement or instrument to which VNOW is a party or to which any of its properties or operations are subject.

Section 2.12

Contract Defaults. To the best of VNOW’s knowledge and belief, VNOW is not in default in any respect under the terms of any outstanding contract, agreement, lease or other commitment which is material to the business, operations, properties, assets or condition of VNOW, and there is no event of default in any respect under any such contract, agreement, lease or other commitment in respect of which VNOW has not taken adequate steps to prevent such a default from occurring.

Section 2.13

Governmental Authorizations. To the best of VNOW’s knowledge, VNOW has all licenses, franchises, permits and other governmental authorizations that are legally required to enable it to conduct its business operations in all material respects as conducted on the date hereof. Except for compliance with federal and state securities or corporation laws, no authorization, approval, consent or order of, or registration, declaration or filing with, any court or other governmental body is required in connection with the execution and delivery by VNOW of the transactions contemplated hereby.

Section 2.14

Compliance With Laws and Regulations. To the best of VNOW’s knowledge and belief, VNOW has complied with all applicable statutes and regulations of any federal, state or other governmental entity or agency thereof, including compliance with all tax laws, except to the extent that noncompliance would not materially and adversely affect the business, operations, properties, assets or condition of VNOW or would not result in VNOW’s incurring any material liability. Further, VNOW is, as of the date of this Agreement, a “reporting company” under Section 12 of the Securities Exchange Act of 1934 (the “Exchange

Act”), and is current in filing all reports required to be filed pursuant to said Act. VNOW has filed all tax returns required to be filed by it and does not have any tax liability to any governmental authority.

Section 2.15

Insurance. VNOW has no insurable properties and no insurance policies will be in effect at the Closing Date, as hereinafter defined.

Section 2.16

Approval of Agreement The board of directors of VNOW have authorized the execution and delivery of this Agreement by VNOW and have approved the transactions contemplated hereby and the stockholders of VNOW will approve the transactions contemplated hereby prior to the Closing.

Section 2.17

Material Transactions or Affiliations. As of the Closing Date, there will exist no contract, agreement or arrangement between VNOW and any person who was at the time of such contract, agreement or arrangement an officer, director or person owning of record, or known by VNOW to own beneficially, ten percent (10%) or more of the issued and outstanding common stock of VNOW and which is to be performed in whole or in part after the date hereof. VNOW has no commitment, whether written or oral, to lend any funds to, borrow any money from or enter into any other material transactions with, any such affiliated person.

Section 2.18

Labor Relations. VNOW has never had a work stoppage resulting from labor problems. VNOW has no employees other than its officers and directors.

Section 2.19

Previous Sales of Securities. Since inception, VNOW has sold VNOW Common Shares to investors in reliance upon applicable exemptions from the registration requirements under the laws of the United States and any applicable states and all such sales were made in accordance with the laws of said jurisdictions.

Section 2.20

Principals of VNOW. During the past five year period, no officer or director of VNOW has been the subject of

(a)

(b)

a conviction in a criminal proceeding or a named subject of a pending criminal proceeding (excluding traffic violations which do not relate to driving while intoxicated);

(c)

(i)

(ii)

Engaging in any type of business practice; or

(iii)

Engaging in any activity in connection with the purchase or sale of any security or commodity or in connection with any violation of Federal, state or other securities laws or commodities laws.

(d)

(e)

(f)

Section 2.21

SEC Filings. None of VNOW’s SEC filings contained any untrue statement of a material fact or omitted to state any material fact required to be stated therein or necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading at the time of such filings.

ARTICLE III

EXCHANGE PROCEDURE

Section 3.1

Issuance of VNOW Common Shares in Share Exchange. In exchange for all of the NNCS interests, VNOW shall issue an aggregate of 19,000,000 “restricted” VNOW Common Shares to the NNCS members pro rata to their existing ownership in NNCS. all previously issued and outstanding interests of NNCS shall be held by VNOW In addition, VNOW shall issue to NNCS members 20,000,000 warrants with an exercise price of $.001 per share that shall be exercisable only if Xxxxxxx Investments does not arrange for $3 million of equity financing on terms reasonably acceptable to NNCS by December 31, 2003.

Section 3.2

Events Prior to Closing.

(a) Upon execution hereof or as soon thereafter as practical, management of VNOW and NNCS shall execute, acknowledge and deliver (or shall cause to be executed, acknowledged and delivered) any and all certificates, opinions, financial statements, schedules, agreements, resolutions, rulings or other instruments required by this Agreement to be so delivered, together with such other items as may be reasonably requested by the parties hereto and their respective legal counsel in order to effectuate or evidence the transactions contemplated hereby, subject only to the conditions to Closing referenced hereinbelow.

(b) As soon as practical VNOW shall take such corporate action as required to effect a reverse split of its common stock such that no more than 1,000,000 shares shall be outstanding at the Closing and to change its name to 99 Cent Stuff, Inc.

Section 3.3

Closing. The closing of the transaction contemplated by this Agreement shall be as of the date in which (i) all required corporate proceedings have occurred; and (ii) all conditions to Closing referenced hereinabove, as well as in Articles V and VI below, have been satisfied or waived by the appropriate party and all documentation referenced herein is delivered to the respective party herein, unless a different date is mutually agreed to in writing by the parties hereto (the “Closing Date”).

Section 3.4

Termination.

(a)

This Agreement may be terminated by the board of directors of either VNOW or NNCS at any time prior to the Closing Date if:

(i)

there shall be any action or proceeding before any court or any governmental body which shall seek to restrain, prohibit or invalidate the transactions contemplated by this Agreement and which, in the judgment of such board of directors, made in good faith and based on the advice of its legal counsel, makes it inadvisable to proceed with the exchange contemplated by this Agreement; or

(ii)

any of the transactions contemplated hereby are disapproved by any regulatory authority whose approval is required to consummate such transactions; or

(iii)

the conditions described in Articles V or VI, below, as applicable, have not been satisfied in full; or

(iv)

VNOW stockholder approval shall not have been received by August 15, 2003.

In the event of termination pursuant to this subparagraph (a) of this Section 3.5, no obligation, right, or liability shall arise hereunder and each party shall bear all of the expenses incurred by it in connection with the negotiation, drafting and execution of this Agreement and the transactions herein contemplated.

(b)

This Agreement may be terminated at any time prior to the Closing Date by action of the board of directors of VNOW if NNCS shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of NNCS contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days’ written notice thereof is given to NNCS. If this Agreement is terminated pursuant to this subparagraph (b) of this Section 3.4, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

(c)

This Agreement may be terminated at any time prior to the Closing Date by action of the members of NNCS if VNOW shall fail to comply in any material respect with any of its covenants or agreements contained in this Agreement or if any of the representations or warranties of VNOW contained herein shall be inaccurate in any material respect, which noncompliance or inaccuracy is not cured after 20 days’ written notice thereof is given to VNOW. If this Agreement is terminated pursuant to this subparagraph (c) of Section 3.4, this Agreement shall be of no further force or effect and no obligation, right or liability shall arise hereunder.

Section 3.5

Directors of VNOW. Upon the Closing, the present members of VNOW’ s Board of Directors other than Xxxxx Xxxxxxx shall tender their resignations and the following persons shall be appointed directors of VNOW in accordance with procedures set forth in the VNOW bylaws: Xxxxxxx Xxxxxxxxx, Xxxxxxx Xxxxxxxx and Xxxxxx X. Light. Each director shall hold office until his successor shall have been duly elected and shall have qualified or until his or her earlier death, resignation or removal.

Section 3.6

Officers of VNOW. Upon the Closing, the present officers of VNOW shall tender their resignations and simultaneous therewith, the following persons shall be elected as officers of VNOW in accordance with procedures set forth in the VNOW bylaws:

NAME

OFFICE

Xxxxxxx Xxxxxxxxx

President

Xxxxx Xxxxxx

Secretary and Treasurer

ARTICLE IV

SPECIAL COVENANTS

Section 4.1

Stockholder Matters. As soon as practicable after the date hereof, but in no event after July 31, 2003, VNOW shall obtain the written consent of a majority of its stockholders and prepare and mail an information statement to stockholders or cause a special meeting of its stockholders to be held to consider and vote upon the transactions contemplated by

this agreement, including but not limited to the Merger, the change of VNOW’s name to 99 Cent Stuff, Inc., changing the jurisdiction of incorporation to Florida and adoption of a stock option plan (collectively, the Stockholder Matters"). VNOW shall promptly take such actions as may be necessary to effect the foregoing.

Section 4.2

Access to Properties and Records. VNOW and NNCS will each afford to the officers and authorized representatives of the other full access to the properties, books and records of VNOW and NNCS, as the case may be, in order that each may have full opportunity to make such reasonable investigation as it shall desire to make of the affairs of the other and each will furnish the other with such additional financial and operating data and other information as to the business and properties of VNOW and NNCS, as the case may be, as the other shall from time to time reasonably request.

Section 4.3

Information for VNOW Public Reports. NNCS will furnish VNOW with all information concerning NNCS and the NNCS members, including all financial statements, required for inclusion in any registration statement or public report intended to be filed by VNOW pursuant to the Securities Act of 1933, the Exchange Act, or any other applicable federal or state law. NNCS covenants that all information so furnished, including the financial statements described in Section 1.4, shall be true and correct in all material respects without omission of any material fact required to make the information stated not misleading.

Section 4.4

Third Party Consents. VNOW and NNCS agree to cooperate with each other in order to obtain any required third party consents to this Agreement and the transactions herein contemplated.

Section 4.5

Actions Prior to Closing.

(a)

From and after the date of this Agreement until the Closing Date and except as set forth in the VNOW or NNCS Schedules or as permitted or contemplated by this Agreement, the parties hereto will each use its best efforts to:

(i)

carry on its business in substantially the same manner as it has heretofore;

(ii)

maintain and keep its properties in states of good repair and condition as at present, except for depreciation due to ordinary wear and tear and damage due to casualty;

(iii)

maintain in full force and effect insurance comparable in amount and in scope of coverage to that now maintained by it;

(iv)

perform in all material respects all of its obligations under material contracts, leases and instruments relating to or affecting its assets, properties and business;

(v)

maintain and preserve its business organization intact, retain its key employees and maintain its relationship with its material suppliers and customers; and

(vi)

fully comply with and perform in all material respects all obligations and duties imposed on it by all federal and state laws and all rules, regulations and orders imposed by federal or state governmental authorities.

(b)

From and after the date of this Agreement until the Closing Date, neither VNOW nor NNCS will, without the prior consent of the other party:

(i)

except as otherwise specifically set forth herein, make any change in their respective charter documents;

(ii)

declare or pay any dividend on its outstanding shares of capital stock, except as may otherwise be required by law, or effect any stock split or otherwise change its capitalization, except as provided herein;

(iii)

enter into or amend any employment, severance or similar agreements or arrangements with any directors or officers;

(iv)

grant, confer or award any options, warrants, conversion rights or other rights not existing on the date hereof to acquire any shares of its capital stock; or

(v)

purchase or redeem any shares of its capital stock, except as disclosed herein.

Section 4.6

Indemnification.

(a)

NNCS hereby agrees to indemnify VNOW and each of the officers, agents and directors of VNOW as of the date of execution of this Agreement against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject arising out of or based on any inaccuracy by NNCS appearing in or misrepresentation made in this Agreement. The indemnification provided for in this paragraph shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement for a period of 12 months.

(b)

VNOW and its officers and directors hereby agree to indemnify NNCS and each of the officers, agents, current members of NNCS as of the Closing Date against any loss, liability, claim, damage or expense (including, but not limited to, any and all expense whatsoever reasonably incurred in investigating, preparing or defending against any litigation, commenced or threatened or any claim whatsoever), to which it or they may become subject arising out of or based on any inaccuracy appearing in or misrepresentation made in this Agreement and particularly the representation regarding no liabilities referred to in Section 2.4(b). The indemnification provided for in this Section shall survive the Closing and consummation of the transactions contemplated hereby and termination of this Agreement for a period of 12 months.

ARTICLE V

CONDITIONS PRECEDENT TO OBLIGATIONS OF VNOW

The obligations of VNOW under this Agreement are subject to the satisfaction, at or before the Closing Date, of the following conditions:

Section 5.1

Accuracy of Representations. The representations and warranties made by NNCS in this Agreement were true when made and shall be true at the Closing Date with the same force and effect as if such representations and warranties were made at the Closing Date (except for changes therein permitted by this Agreement), and NNCS shall have performed or complied with all covenants and conditions required by this Agreement to be performed or complied with by NNCS prior to or at the Closing. VNOW shall be furnished with a certificate, signed by a duly authorized officer of NNCS and dated the Closing Date, to the foregoing effect.

Section 5.2

Member Approval The members of NNCS shall have approved this Agreement and the transactions contemplated thereby.

Section 5.3

Officer’s Certificate. VNOW shall have been furnished with a certificate dated the Closing Date and signed by a duly authorized officer of NNCS to the effect that: (a) the representations and warranties of NNCS set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Closing Date; (b) NNCS has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of this Agreement to be performed, satisfied or complied with by it as of the Closing Date; (c) since the date of NNCS’ s audited Balance Sheet of December 31, 2002, there has not been any materially adverse change in the business, prospects, properties or financial condition of NNCS; (d) since such date and other than as previously disclosed to VNOW, NNCS has not entered into any material transaction other than transactions which are usual and in the ordinary course of its business; and (e) no litigation, proceeding, investigation or inquiry is pending or, to the best knowledge of NNCS, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the NNCS Schedules, by or against NNCS which might result in any material adverse change in any of the assets, properties, business or operations of NNCS.

Section 5.4

No Material Adverse Change. Prior to the Closing Date, there shall not have occurred any material adverse change in the financial condition, business or operations of nor shall any event have occurred which, with the lapse of time or the giving of notice, may cause or create any material adverse change in the financial condition, business or operations of NNCS.

Section 5.5

Other Items. VNOW shall have received such further documents, certificates or instruments relating to the transactions contemplated hereby as VNOW may reasonably request.

ARTICLE VI

CONDITIONS PRECEDENT TO OBLIGATIONS OF NNCS

The obligations of NNCS under this Agreement are subject to the satisfaction, at or before the Closing Date (unless otherwise indicated herein), of the following conditions:

Section 6.1

Accuracy of Representations. The representations and warranties made by VNOW in this Agreement were true when made and shall be true as of the Closing Date (except for changes therein permitted by this Agreement) with the same force and effect as if such representations and warranties were made at and as of the Closing Date, and VNOW shall have performed and complied with all covenants and conditions required by this Agreement to be performed or complied with by VNOW prior to or at the Closing. NNCS shall have been furnished with a certificate, signed by a duly authorized executive officer of VNOW and dated the Closing Date, to the foregoing effect.

Section 6.2

Officer’s Certificate. NNCS shall be furnished with a certificate dated the Closing Date and signed by a duly authorized officer of VNOW to the effect that: (a) the representations and warranties of VNOW set forth in the Agreement and in all Exhibits, Schedules and other documents furnished in connection herewith are in all material respects true and correct as if made on the Closing Date; (b) VNOW has performed all covenants, satisfied all conditions, and complied with all other terms and provisions of the Agreement to be performed, satisfied or complied with by it as of the Closing Date; (c) since the date of VNOW’ s audited Balance Sheet of December 31, 2002, there has not been any materially adverse change in the business, prospects, properties or financial condition of VNOW; (d) since such date, VNOW has not entered into any material transaction other than transactions which are usual and in the ordinary course of its business; and (e) no litigation, proceeding, investigation or inquiry is pending or, to the best knowledge of VNOW, threatened, which might result in an action to enjoin or prevent the consummation of the transactions contemplated by this Agreement or, to the extent not disclosed in the VNOW Schedules, by or against VNOW which might result in any material adverse change in any of the assets, properties, business or operations of VNOW.

Section 6.3

Section 6.4

Stockholder Actions. VNOW shall have completed all of the Stockholder Matters in accordance with the Exchange Act and the Delaware General Corporation Law.

Section 6.5

Compliance with Reporting Requirements. As of the Closing Date, VNOW shall be current in and in compliance with all requirements of all filings required to be tendered to the Securities and Exchange Commission pursuant to the Exchange Act.

Section 6.6

Other Items. NNCS shall have received such further documents, certificates, or instruments relating to the transactions contemplated hereby as NNCS may reasonably request.

ARTICLE VII

MISCELLANEOUS

Section 7.1

Brokers and Finders. Except for Xxxxxxx Investments, Inc. and VFinance Investments, Inc., each party hereto hereby represents and warrants that it is under no obligation, express or implied, to pay certain finders in connection with the bringing of the parties together in the negotiation, execution, or consummation of this Agreement. The parties each agree to indemnify the other against any claim by any third person not listed above for any commission, brokerage or finder’s fee or other payment with respect to this Agreement or the transactions contemplated hereby based on any alleged agreement or understanding between the indemnifying party and such third person, whether express or implied from the actions of the indemnifying party.

Section 7.2

Law, Forum and Jurisdiction. This Agreement shall be construed and interpreted in accordance with the laws of the State of Florida.

Section 7.3

Notices. Any notices or other communications required or permitted hereunder shall be sufficiently given if personally delivered to it or sent by registered mail or certified mail, postage prepaid, or by prepaid telegram addressed as follows:

	If to VNOW:	Xxxxx Xxxxxxx 000 Xxxxxxxxx Xxxxxxx Xxxxx 000 Xxxxxxxxx, Xxxxxxxx 00000
	With a copy to:	Xxxxxxx X. Xxxxxxx, Esq. 00000 Xxxxxxx Xxxxxxxxx Xxxxx 000 Xxxxxxx Xxxx, XX 00000 Fax: (818)
	If to NNCS:	Xxxxxxx Xxxxxxxxx Xxxxx Xxxxxx 99 Cent Stuff, LLC 0000 Xxxxx Xxxxx Xxxx Xxxx Xxxxx, XX 00000 Fax: (000) 000-0000
	With a copy to:	Xxxxxxx X. Xxxxxx, Esq. Xxxxx Sax Xxxxx 000 Xxxxxx Xxxx Xxxxx 0000 Xxxx Xxxxx, Xxxxxxx 00000 Fax: (000) 000-0000

or such other addresses as shall be furnished in writing by any party in the manner for giving notices hereunder, and any such notice or communication shall be deemed to have been given as of the date so delivered, mailed, or telegraphed.

Section 7.4

Attorneys’ Fees. In the event that any party institutes any action or suit to enforce this Agreement or to secure relief from any default hereunder or breach hereof, the breaching party or parties shall reimburse the non-breaching party or parties for all costs, including reasonable attorneys’ fees, incurred in connection therewith and in enforcing or collecting any judgment rendered therein.

Section 7.5

Confidentiality. Each party hereto agrees with the other parties that, unless and until the reorganization contemplated by this Agreement has been consummated, they and their representatives will hold in strict confidence all data and information obtained with respect to another party or any subsidiary thereof from any representative, officer, director or employee, or from any books or records or from personal inspection, of such other party, and shall not use such data or information or disclose the same to others, except: (i) to the extent such data is a matter of public knowledge or is required by law to be published; and (ii) to the extent that such data or information must be used or disclosed in order to consummate the transactions contemplated by this Agreement.

Section 7.6

Entire Agreement This Agreement represents the entire agreement between the parties relating to the subject matter hereof. This Agreement alone fully and completely expresses the agreement of the parties relating to the subject matter hereof. There are no other courses of dealing, understandings, agreements, representations or warranties, written or oral, except as set forth herein. This Agreement may not be amended or modified, except by a written agreement signed by all parties hereto.

Section 7.7

Survival; Termination. Except as otherwise provided herein, the representations, warranties and covenants of the respective parties shall survive the Closing Date and the consummation of the transactions herein contemplated.

Section 7.8

Counterparts Facsimile Execution. For purposes of this Agreement, a document (or signature page thereto) signed and transmitted by fax machine is to be treated as an original document. The signature of any party thereon, for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature on an original document. At the request of any party, a fax or telecopy document is to be re-executed in original form by the parties who executed the facsimile or telecopy document.

Section 7.9

Amendment or Waiver. Every right and remedy provided herein shall be cumulative with every other right and remedy, whether conferred herein, at law, or in equity, and may be enforced concurrently herewith, and no waiver by any party of the performance of any obligation by the other shall be construed as a waiver of the same or any other default then, theretofore, or thereafter occurring or existing. At any time prior to the Closing Date, this Agreement may be amended by a writing signed by all parties hereto, with respect to any of the

terms contained herein, and any term or condition of this Agreement may be waived or the time for performance hereof may be extended by a writing signed by the party or parties for whose benefit the provision is intended.

Section 7.10

Incorporation of Recitals. All of the recitals hereof are incorporated by this reference and are made a part hereof as though set forth at length herein.

Section 7.11

Expenses. Each party herein shall bear all of their respective costs and expenses incurred in connection with the negotiation of this Agreement and in the consummation of the transactions provided for herein and the preparation therefor.

Section 7.12

Headings; Context. The headings of the sections and paragraphs contained in this Agreement are for convenience of reference only and do not form a part hereof and in no way modify, interpret or construe the meaning of this Agreement.

Section 7.13

Benefit. This Agreement shall be binding upon and shall inure only to the benefit of the parties hereto, and their permitted assigns hereunder. This Agreement shall not be assigned by any party without the prior written consent of the other party.

Section 7.14

Public Announcements. Except as may be required by law, neither party shall make any public announcement or filing with respect to the transactions provided for herein without the prior consent of the other party hereto.

Section 7.15

Severability. In the event that any particular provision or provisions of this Agreement or the other agreements contained herein shall for any reason hereafter be determined to be unenforceable, or in violation of any law, governmental order or regulation, such unenforceability or violation shall not affect the remaining provisions of such agreements, which shall continue in full force and effect and be binding upon the respective parties hereto.

Section 7.16

Failure of Conditions; Termination. In the event any of the conditions specified in this Agreement shall not be fulfilled on or before the Closing Date, either of the parties have the right either to proceed or, upon prompt written notice to the other, to terminate and rescind this Agreement without liability to any other party. The election to proceed shall not affect the right of such electing party reasonably to require the other party to continue to use its efforts to fulfill the unmet conditions.

Section 7.17

Execution Knowing and Voluntary. In executing this Agreement, the parties severally acknowledge and represent that each: (a) has fully and carefully read and considered this Agreement; (b) has been or has had the opportunity to be fully apprised by its attorneys of the legal effect and meaning of this document and all terms and conditions hereof; and (c) is executing this Agreement voluntarily, free from any influence, coercion or duress of any kind.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers, hereunto duly authorized, and entered into as of the date first above written.

IVIDEONOW, INC.

By: __/s/ Xxxxx Xxxxxxx

Xxxxx Xxxxxxx

Its: Chief Executive Officer

99 CENT STUFF, LLC.

By: __/s/ Xxxxxxx Xxxxxxxxx

Xxxxxxx Xxxxxxxxx,

Its: Managing Member

Document Metadata

Table of Contents

AGREEMENT AND PLAN OF REORGANIZATION

Document Metadata