AGREEMENT AND PLAN OF MERGER
EXHIBIT
2.1
AGREEMENT
AND PLAN OF MERGER
This
Agreement and Plan of Merger ("Agreement"),
is
made and entered into this 17th
day of
July, 2006, by and among MALERS,
INC.,
a
Delaware corporation ("MALERS");
MALERS
ACQUISITION CORP.,
a
Washington corporation (“MERGERCO”);
and
DOT
VN, INC.,
a
California corporation ("DOT
VN").
MALERS,
MERGERCO and
DOT VN
are
hereinafter sometimes collectively referred to as the “Parties.”
RECITALS:
X. XXXXXX
desires
to acquire all of the issued and outstanding capital stock of DOT
VN,
through
the merger of MERGERCO
with and
into DOT
VN (the
“Merger”),
with
DOT
VN
as the
surviving corporation of the Merger.
B. It
is the
intention of the parties hereto that: (i) the Merger shall qualify as a tax
free
reorganization under Section 368(a)(1)(A) of the Internal Revenue Code of 1986,
as amended, and related sections thereunder; and the parties intend this
Agreement to qualify as a “plan of reorganization” within the meaning of
Treasury Regulation Sections 1.368-2(g) and 1.368-3(a), and (ii) the Merger
shall qualify as a transaction in securities exempt from registration or
qualification under the Securities Act of 1933, as amended, and under the
applicable securities laws of each state or jurisdiction where the DOT VN
Security Holders reside.
C. The
board
of directors of each of MALERS,
MERGERCO
and
DOT
VN
and the
DOT VN Security Holders each
deem
it to be in the best interests of MALERS and
DOT
VN and
their
respective shareholders to consummate the Merger, as a result of which
MALERS
shall
acquire all of the issued and outstanding capital stock of DOT
VN.
NOW,
THEREFORE,
in
consideration of the mutual covenants, agreements, representations and
warranties contained in this Agreement, the parties hereto agree as
follows:
DEFINITIONS
As
used
in this Agreement, the following terms shall have the meanings set forth below:
“Applicable
Law”
means
any domestic or foreign law, statute, regulation, rule, policy, guideline or
ordinance applicable to the businesses of the Parties, the Merger and/or the
Parties.
“Articles
of Merger”
shall
mean the certificate of merger of MERGERCO with and into DOT VN pursuant to
the
WBCA and the CBC, as hereafter defined, and in the form of Exhibit
A
annexed
hereto and made a part hereof.
“Business
Day”
shall
mean any day, excluding Saturday or Sunday or any other day on which national
banks located in New York, New York shall be closed for business.
“CBC”
means
the California Corporations Code.
“DCC”
means
the Corporate Code of the State of Delaware.
“Dollar”
and
“$”
means
lawful money of the United States of America.
“DOT
VN Common Stock”
means
the 10,343,500 issued and outstanding shares of restricted common stock, $0.0001
par value per share, of DOT VN.
“DOT
VN Fully-Diluted Common Stock”
means
the maximum number shares of DOT VN Common Stock that are issued and outstanding
at the Effective Time of the Merger, plus all additional shares of DOT VN Common
Stock that would be issuable at the Effective Time of the Merger upon the
exercise of all outstanding options, warrants or other rights to purchase shares
of DOT VN capital stock.
“DOT
VN Principal Executive Officer”
shall
mean the
Chairmen or any
one
of the
Board of Directors, the President and Chief Executive Officer, respectively,
of
DOT VN.
“DOT
VN Securities”
means,
as at the date in question, all of the issued and outstanding equity securities
of DOT VN, consisting of the DOT VN Common Stock and (if applicable) any DOT
VN
Preferred Stock.
“DOT
VN Security Holders”
means
the collective reference to all of the record holders of the DOT VN Securities
at the Effective Time of the Merger, including the DOT VN Principal Executive
Officers.
“Effective
Time”
shall
mean the date upon which the Merger of MERGERCO into DOT VN shall be consummated
pursuant to the filing of the Articles of Merger with the Secretaries of State
of the States of Washington and California.
“Exchange
Act”
means
the Securities Exchange Act of 1934, as amended.
“GAAP”
means
generally accepted accounting principles in the United States of America as
promulgated by the American Institute of Certified Public Accountants and the
Financial Accounting Standards Board or any successor Institutes concerning
the
treatment of any accounting matter.
“Investor
Questionnaire”
means
those certain documents, a form of which is attached hereto as Exhibit
B,
provided
to MALERS by the DOT VN Security Holders establishing accredited investor status
as defined in Rule 501 of Regulation D.
“Knowledge”
means
the knowledge after reasonable inquiry.
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“Lien”
means,
with respect to any property or asset, any mortgage, lien, pledge, charge,
security interest, encumbrance or other adverse claim of any kind in respect
of
such property or asset.
“MALERS
Common Stock”
shall
mean the shares of common stock of MALERS, $0.000001 par value per
share.
“MALERS
Fully-Diluted Common Stock”
means,
as at the time in question, the maximum number shares of MALERS Common Stock
that are issued and outstanding, after
giving effect to:
(a) the
issuance of all of the Merger Shares; and (b) the issuance of any other shares
of MALERS Common Stock that are issuable upon conversion of any MALERS notes
or
shares of MALERS Preferred Stock, or upon the exercise of options, warrants
or
other rights to purchase shares of MALERS capital stock, but only to the extent
that such securities are (i) outstanding as at the Effective Time of the Merger,
or (ii) issued subsequent to the Effective Time of the Merger.
“MALERS
Preferred Stock”
means
the shares of preferred stock of MALERS, $0.000001 par value per
share.
“Material
Adverse Effect”
with
respect to any entity or group of entities means any event, change or effect
that has or would have a materially adverse effect on the financial condition,
business or results of operations of such entity or group of entities, taken
as
a consolidated whole.
“Merger
Shares”
shall
mean that number of shares of MALERS Common Stock to be issued to the DOT VN
Security Holders on the Closing Date and as at the Effective Time of the Merger
as shall represent approximately 10,343,500 of the MALERS Fully-Diluted Common
Stock, as contemplated by this Agreement; it being the intention of the Parties
that an aggregate of 10,343,500 Merger Shares shall be issued to the DOT VN
Security Holders.
“Person”
means
any individual, corporation, partnership, trust or unincorporated organization
or a government or any agency or political subdivision thereof.
“Stock
Subscription Agreement”
means
that certain agreement, a form of which is attached hereto as Exhibit
C,
by and
between MALERS and the DOT VN Security Holders providing for the acquisition
by
the DOT VN Security Holders of the MALERS Common Stock.
“Surviving
Entity”
shall
mean DOT VN as
the
surviving entity in the Merger as provided in Section 1.1.
“Tax”
(and,
with correlative meaning, “Taxes”
and
“Taxable”)
means:
(i)
any
income, alternative or add-on minimum tax, gross receipts tax, sales tax, use
tax, ad valorem tax, transfer tax, franchise tax, profits tax, license tax,
withholding tax, payroll tax, employment tax, excise tax, severance tax, stamp
tax, occupation tax, property tax, environmental or windfall profit tax, custom,
duty or other tax, impost, levy, governmental fee or other like assessment
or
charge of any kind whatsoever together with any interest or any penalty,
addition to tax or additional amount imposed with respect thereto by any
governmental or Tax authority responsible for the imposition of any such tax
(domestic or foreign), and
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(ii)
any
liability for the payment of any amounts of the type described in clause (i)
above as a result of being a member of an affiliated, consolidated, combined
or
unitary group for any Taxable period, and
(iii)
any
liability for the payment of any amounts of the type described in clauses (i)
or
(ii) above as a result of any express or implied obligation to indemnify any
other person.
“Tax
Return”
means
any return, declaration, form, claim for refund or information return or
statement relating to Taxes, including any schedule or attachment thereto,
and
including any amendment thereof.
“WBCA”
means
the Business Corporation Act of the State of Washington.
THE
MERGER
SECTION
1.
THE MERGER; EFFECTIVE TIME.
1.1 The
Merger. At
the
Effective Time and subject to and upon the terms and conditions of this
Agreement, MERGERCO shall, and MALERS shall cause MERGERCO to, merge with and
into DOT VN in accordance with the provisions of the WBCA, the separate
corporate existence of MERGERCO shall cease and DOT VN shall continue as the
Surviving Entity. The Effective Time of the Merger shall occur upon the filing
of the Articles of Merger executed in accordance with the applicable provisions
of the WBCA and the CBC with the Secretaries of State of the States of
Washington and California, or at such later time as may be agreed to by MALERS
and DOT VN and specified in the Certificate of Merger subject to the
satisfaction or waiver of each of the conditions set forth in Section 4. The
date on which the Effective Time occurs is referred to as the “Effective
Date.”
Provided that this Agreement has not been terminated, the Parties will cause
the
Articles of Merger to be filed at Closing, as hereafter defined in Section
1.3.
(a) Upon
the
terms and subject to the conditions set forth in this Agreement and in
accordance with the WBCA, CBC and DCC, at the Effective Time, all DOT VN
Securities shall be converted into the right to receive the Merger Shares.
(b) Exchange
Agent.
The
Xxxx Law Group, PLLC shall act as the exchange agent (the “Exchange
Agent”)
for
the purpose of exchanging DOT VN Securities for the Merger Shares. At or within
thirty (30) days after the Effective Date, MALERS shall deliver to the Exchange
Agent certificates evidencing the Merger Shares. The Merger Shares issued at
the
Effective Time of the Merger shall be registered in the names of the DOT VN
Security Holders in such amounts and proportions as are set forth on
Schedule
1.1
annexed
hereto and made a part hereof.
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1.2 Conversion
of Securities.
(a) Conversion
of DOT VN Securities.
At the
Effective Time, by virtue of the Merger and without any action on the part
of
MALERS, MERGERCO, DOT VN or the holders of any of their respective
securities:
(i) Each
of
the 10,343,500 shares of DOT VN Common Stock issued and outstanding immediately
prior to the Effective Time shall be converted into, and represent the right
to
receive, one (1) Merger Share (the “Conversion
Rate”).
(ii) All
warrants to purchase shares of DOT VN Common Stock and all options entitling
the
holder to purchase shares of DOT VN Common Stock are “out of the money” and
without value as at the date of this Agreement and as at the Effective Date,
shall be cancelled and retired and cease to exist as at the Effective Date
of
the Merger and shall be exchanged for warrants and options to acquire shares
in
Malers on the same terms.
(iii) All
DOT
VN Securities shall no longer be outstanding and shall automatically be canceled
and retired and shall cease to exist, and each holder of a certificate
representing any such DOT VN Securities shall cease to have any rights with
respect thereto, except the right to receive the Merger Shares to be issued
pursuant to this Section 1.2(a) (fractional shares may be issued rounded to
the
hundredth decimal point) upon the surrender of such certificate in accordance
with Section 1.8, without interest.
(iv) Each
DOT
VN Share that immediately prior to the Effective Time is held by DOT VN as
a
treasury share shall be cancelled and retired without payment of any
consideration therefor and without any conversion thereof into a right to
receive the Merger Shares.
(b) Conversion
of MERGERCO Stock.
At the
Effective Time, by virtue of the Merger and without any action on the part
of
MALERS, MERGERCO, DOT VN or the holders of any of their respective securities,
each share of capital stock of MERGERCO outstanding immediately prior to the
Effective Time shall be converted into one (1) share of the common stock of
the
Surviving Entity and the share of common stock of the Surviving Entity so issued
in such conversion shall constitute the only outstanding share of capital stock
of the Surviving Entity and the Surviving Entity shall be a wholly owned
subsidiary of MALERS.
(c) Exemption
from Registration.
The
Parties intend that the Merger Shares to be issued by MALERS to the DOT VN
Security Holders shall be exempt from the registration requirements of the
Securities Act pursuant to Rule 506 of Regulation D to DOT VN Security Holders
and the rules and regulations promulgated thereunder.
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1.3 Closing.
The
closing of the Merger (the “Closing”)
will
take place at the offices of The Xxxx Law Group, PLLC, counsel to DOT VN, at
their office in Seattle, Washington, within one (1) Business Day following
the
satisfaction or waiver of the conditions precedent set forth in Section 4 or
at
such other date as MALERS and DOT VN shall agree (the “Closing
Date”),
but
in no event shall the Closing Date occur later than July 20, 2006.
1.4 Effect
Of The Merger.
The
Merger shall have the effect set forth in Section 23B.11.060 of the WBCA and
Section 1107 of the CBC. Without limiting the generality of the foregoing,
and
subject thereto, at the Effective Time, all the properties, rights, privileges,
powers and franchises of DOT VN and MERGERCO shall vest in the Surviving Entity,
and all debts, liabilities and duties of DOT VN and MERGERCO shall become the
debts, liabilities and duties of the Surviving Entity.
1.5 Certificate
Of Incorporation and Bylaws; Directors And Officers.
Prior
to
the Effective Time of the Merger:
(a) The
Certificate of Incorporation of MALERS, as amended and restated in accordance
with Exhibit
D
annexed
hereto and made a part hereof shall be the Certificate of Incorporation of
MALERS following the Merger. The Bylaws of MALERS, as amended and restated
in
accordance with Exhibit
E
annexed
hereto and made a part hereof shall be the Bylaws of MALERS following the
Merger.
(b) The
initial board of directors of MALERS and its DOT VN subsidiary subsequent to
the
Merger shall consist of the following two (2) directors: (i) Xxx Xxxxxxx; and
(ii) Xxxxxx Xxxxxxx. Such initial members of the board of directors shall serve
until the earlier of their death, resignation or removal or until the next
annual meeting of the stockholders of MALERS, when their respective successors
are duly appointed and qualified. The officers of MALERS subsequent to the
Merger shall be the current officers of DOT VN. Subject
to the observance of their fiduciary duties, two (2) of the current members
of
the DOT VN Board of Directors shall continue to serve as members of the Board
of
Directors of DOT VN and MALERS for not less than one hundred and eighty (180)
days following the Effective Date of the Merger.
1.6 Further
Actions.
(a) If,
at
any time after the Effective Time, the Surviving Entity considers or is advised
that any deeds, bills of sale, assignments, assurances or any other actions
or
things are necessary or desirable to vest, perfect or confirm (of record or
otherwise) in the Surviving Entity its right, title or interest in, to or under
any of the rights, properties, or assets of either DOT VN or MERGERCO, or
otherwise to carry out the intent and purposes of this Agreement, the officers
and directors of the Surviving Entity will be authorized to execute and deliver,
in the name and on behalf of each of DOT VN and MERGERCO, all such deeds, bills
of sale, assignments and assurances and to take and do, in the name and on
behalf of each of DOT VN and MERGERCO, all such other actions and things as
the
Board of Directors of the Surviving Entity may determine to be necessary or
desirable to vest, perfect or confirm any and all right, title and interest
in,
to and under such rights, properties or assets in the Surviving Entity or
otherwise to carry out the intent and purposes of this Agreement.
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(b) On
the
Effective Date of the Merger, MALERS shall file an amendment to its certificate
of incorporation changing its name to “DOT VN, INC.,” or such other name as
shall be acceptable to DOT VN.
(c) Termination
of Merger.
In the
event that the number of shareholders demanding dissenter’s rights results in
the Company repurchasing shares of DOT VN Common Stock in excess of One Hundred
Thousand Dollars ($100,000.00), the Merger will be terminated, unless such
term
is waived by the Parties.
1.7 Restrictions
On Resale
(a) The
Merger Shares.
The
Merger Shares will not be registered under the Securities Act, or the securities
laws of any state, and cannot be transferred, hypothecated, sold or otherwise
disposed of until: (i) a registration statement with respect to such securities
is declared effective under the Securities Act, or (ii) MALERS receives an
opinion of counsel for the stockholder, reasonably satisfactory to counsel
for
MALERS, that an exemption from the registration requirements of the Securities
Act is available.
The
certificates representing the Merger Shares to be issued on the Effective Date
pursuant to this Agreement shall contain a legend substantially as
follows:
“THE
SECURITIES WHICH ARE REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, TRANSFERRED,
HYPOTHECATED OR OTHERWISE DISPOSED OF UNTIL A REGISTRATION STATEMENT WITH
RESPECT THERETO IS DECLARED EFFECTIVE UNDER SUCH ACT, OR DOT VN, INC. RECEIVES
AN OPINION OF COUNSEL FOR THE HOLDER REASONABLY SATISFACTORY TO COUNSEL FOR
DOT
VN, INC. THAT AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS
AVAILABLE.”
1.8
Exchange
of Certificates.
(a) After
the
Effective Time and pursuant to a customary letter of transmittal or other
instructional form provided by the Exchange Agent to the DOT VN Security
Holders, the DOT VN Security Holders shall be required to surrender all their
DOT VN Securities to the Exchange Agent, and the DOT VN Security Holders shall
be entitled upon such surrender to receive in exchange therefor certificates
representing the proportionate number of Merger Shares into which the DOT VN
Securities theretofore represented by the stock transfer forms so surrendered
shall have been exchanged pursuant to this Agreement. Until so surrendered,
each
outstanding certificate, which, prior to the Effective Time, represented DOT
VN
Securities, shall be deemed for all corporate purpose, subject to the further
provisions of this Article I, to evidence the ownership of the number of whole
Merger Shares for which such DOT VN Securities have been so exchanged. No
dividend payable to holders of Merger Shares of record as of any date subsequent
to the Effective Time shall be paid to the owner of any certificate which,
prior
to the Effective Time, represented DOT VN Securities, until such certificate
or
certificates representing all the relevant DOT VN Securities, together with
a
stock transfer form, are surrendered as provided in this Article I or pursuant
to letters of transmittal or other instructions with respect to lost
certificates provided by the Exchange Agent.
7
(b) All
Merger Shares for which the DOT VN Securities shall have been exchanged pursuant
to this Article I shall be deemed to have been issued in full satisfaction
of
all rights pertaining to the DOT VN Securities.
(c) On
the
Effective Date, the stock transfer book of DOT VN shall be deemed to be closed
and no transfer of DOT VN Securities shall thereafter be recorded thereon.
SECTION
2. REPRESENTATIONS AND WARRANTIES OF DOT
VN
DOT
VN
hereby
represents and warrants as follows:
2.1 Organization
and Good Standing: Ownership of Shares. DOT
VN
is a
corporation duly organized and validly existing under the laws of the State
of
California. There are no outstanding subscriptions, rights, options, warrants
or
other agreements obligating DOT
VN
to
issue, sell or transfer any stock or other securities of DOT
VN
except
the warrants listed on Schedule
2.1
attached
hereto and made a part hereof.
2.2 Corporate
Authority. DOT
VN
has the
corporate power to enter into this Agreement and to perform its respective
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transaction contemplated hereby have been duly authorized
by
the Board of Directors of DOT
VN.
The
execution and performance of this Agreement will not constitute a material
breach of any agreement, indenture, mortgage, license or other instrument or
document to which DOT
VN
is a
party and will not violate any judgment, decree, order, writ, rule, statute,
or
regulation applicable to DOT
VN
or its
properties. The execution and performance of this Agreement will not violate
or
conflict with any provision of the respective Articles of Incorporation or
bylaws of DOT
VN.
2.3 Ownership
of Shares.
The DOT
VN Security Holders set forth on Schedule
2.3
are the
owners of record and beneficially of all of the issued and outstanding
restricted shares of DOT VN Common Stock, options and warrants to purchase
shares of DOT VN Common Stock,
which
DOT VN Securities, to the best of DOT VN’s knowledge, are owned free and clear
of
all
rights, claims, liens and encumbrances, and have not been sold, pledged,
assigned or otherwise transferred except pursuant to this Agreement.
8
2.4 Financial
Statements, Books and Records. Schedule
2.4
consists
of the unaudited financial statements (balance sheet, income statement, notes)
of DOT
VN
as of
December 31, 2005 (the “Unaudited
2005 Financial Statements”)
and
December 31, 2004 (the “Unaudited
2004 Financial Statements”)
and
for the two (2) fiscal years then ended (referred to collectively herein as
the
"Financial
Statements").
The
Financial Statements fairly represent the financial position of DOT
VN
as at
such dates and the results of their operations for the periods then ended.
The
Financial Statements were and will be prepared in accordance with generally
accepted accounting principles applied on a consistent basis with prior periods
except as otherwise stated therein except that the Unaudited 2005 Financial
Statements may not include all footnotes normally included under such generally
accepted accounting principles. The books of account and other financial records
of DOT
VN
are in
all respects complete and correct in all material respects and are maintained
in
accordance with good business and accounting practices. The Unaudited 2005
Financial Statements are capable of being audited.
2.5 Access
to Records.
The
corporate financial records, minute books and other documents and records of
DOT
VN
have
been made available to MALERS
prior to
the Closing hereof.
2.6 No
Material Adverse Changes.
Except
as otherwise described on Schedule
2.6
hereto,
since July 1, 2006 there has not been:
(a) any
material adverse change in the financial position of DOT
VN
except
changes arising in the ordinary course of business, which changes will in no
event materially and adversely affect the financial position of DOT
VN;
(b) any
damage, destruction or loss materially affecting the assets, prospective
business, operations or condition (financial or otherwise) of DOT
VN
whether
or not covered by insurance;
(c) any
declaration, setting aside or payment of any dividend or distribution with
respect to any redemption or repurchase of DOT
VN
capital
stock;
(d) any
sale
of an asset (other than in the ordinary course of business) or any mortgage
or
pledge by DOT
VN
of any
properties or assets, other than as set forth in Sections 2.13 or 2.14 below;
or
(e) adoption
of any pension, profit sharing, retirement, stock bonus, stock option or similar
plan or arrangement.
2.7 Taxes. DOT
VN
as of
the Closing Date, has filed all material tax, governmental and/or related forms
and reports (or extensions thereof) due or required to be filed and has (or
will
have) paid or made adequate provisions for all taxes or assessments which had
become due as of or prior to July 1, 2006, and there are no deficiency notices
outstanding.
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2.8 Compliance
with Laws.
Except
as set forth on Schedule
2.8,
DOT
VN
has
complied with all federal, state, county and local laws, ordinances,
regulations, inspections, orders, judgments, injunctions, awards or decrees
applicable to it or its business which, if not complied with, would materially
and adversely affect the business of DOT
VN.
2.9 No
Breach.
The
execution, delivery and performance of this Agreement and the consummation
of
the transactions contemplated hereby will not:
(a)
violate any provision of the Articles of Incorporation or Bylaws of DOT
VN;
(b)
violate, conflict with or result in the breach of any of the terms of, result
in
a material modification of, otherwise give any other contracting party the
right
to terminate, or constitute (or with notice or lapse of time, or both
constitute) a default under any contract or other agreement to which
DOT
VN
is a
party or by or to which it or any of its assets or properties may be bound
or
subject;
(c)
violate any order, judgment, injunction, award or decree of any court,
arbitrator or governmental or regulatory body against, or binding upon,
DOT
VN
or upon
the properties or business of DOT
VN;
or
(d) violate
any statute, law or regulation of any jurisdiction applicable to the
transactions contemplated herein which could have a materially adverse effect
on
the business or operations of DOT
VN.
2.10 Actions
and Proceedings. DOT
VN
is not a
party to any material pending litigation or, to its knowledge, any governmental
investigation or proceeding not reflected in the DOT
VN
Financial Statements, and to its best knowledge, no material litigation, claims,
assessments or non-governmental proceedings are threatened against DOT
VN
except
as set forth on Schedule
2.10
attached
hereto and made a part hereof.
2.11 Agreements. Schedule
2.11
sets
forth any material contract or arrangement to which DOT
VN
is a
party or by or to which it or its assets, properties or business are bound
or
subject, whether written or oral.
2.12 Brokers
or Finders.
No
broker's or finder's fee will be payable by DOT
VN
in
connection with the transactions contemplated by this Agreement, nor will any
such fee be incurred as a result of any actions by DOT
VN
or any
of its Shareholders.
2.13 Real
Estate.
Except
as set forth on Schedule
2.13,
DOT
VN
owns no
real property nor is a party to any leasehold agreement.
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2.14 Tangible
Assets.
Except
as set forth on Schedule
2.14
hereto,
DOT
VN
has full
title and interest in all machinery, equipment, furniture, leasehold
improvements, fixtures, projects, owned or leased by DOT
VN,
any
related capitalized items or other tangible property material to the business
of
DOT
VN
(the
"Tangible
Assets").
DOT
VN
holds
all rights, title and interest in all the Tangible Assets owned by it on the
Balance Sheet or acquired by it after the date on the Balance Sheet free and
clear of all liens, pledges, mortgages, security interests, conditional sales
contracts or any other encumbrances. All of the Tangible Assets are in good
operating condition and repair and are usable in the ordinary course of business
of DOT
VN
and
conform to all applicable laws, ordinances and government orders, rules and
regulations relating to their construction and operation, except as set forth
on
Schedule
2.14
hereto.
2.15 Liabilities. DOT
VN
did not
have any direct or indirect indebtedness, liability, claim, loss, damage,
deficiency, obligation or responsibility, known or unknown, fixed or unfixed,
liquidated or unliquidated, secured or unsecured, accrued or absolute,
contingent or otherwise, including, without limitation, any liability on account
of taxes, any governmental charge or lawsuit (all of the foregoing collectively
defined to as "Liabilities"),
which
are not fully, fairly and adequately reflected on the Financial Statement except
for a specific Liabilities set forth in the Unaudited Financial Statements
or on
Schedule
2.15
attached
hereto and made a part hereof. As of the date of Closing, DOT
VN
will not
have any Liabilities, other than Liabilities fully and adequately reflected
on
the Financial Statements except for Liabilities incurred in the ordinary course
of business and as set forth in Schedule
2.15.
There
is no circumstance, condition, event or arrangement which may hereafter give
rise to any Liabilities not in the ordinary course of business.
2.16 Operations
of DOT
VN.
From
December 31, 2005 through the Closing Date, DOT
VN
has not
and will not have:
(a) incurred
any indebtedness or borrowed money;
(b) declared
or paid any dividend or declared or made any distribution of any kind to any
shareholder, or made any direct or indirect redemption, retirement, purchase
or
other acquisition of any shares in its capital stock;
(c) made
any
loan or advance to any shareholder, officer, director, employee, consultant,
agent or other representative or made any other loan or advance otherwise than
in the ordinary course of business;
(d) except
in
the ordinary course of business, incurred or assumed any indebtedness or
liability (whether or not currently due and payable);
(e) disposed
of any assets of DOT
VN
except
in the ordinary course of business, except as described in Schedule
2.16;
(f) materially
increased the annual level of compensation of any executive employee of
DOT
VN;
11
(g) increased,
terminated, amended or otherwise modified any plan for the benefit of employees
of DOT
VN;
(h) issued
any equity securities or rights to acquire such equity securities;
or
(i) except
in
the ordinary course of business, entered into or modified any contract,
agreement or transaction.
2.17 Capitalization.
The
authorized capital stock of DOT
VN
consists
of 90,000,000 shares of DOT VN Common Stock, $.0001 per share par value, and
10,000,000 shares of DOT VN Preferred Stock, $.0001 per share par value, of
which (a) 10,343,500
shares
of
DOT VN Common Stock and (b) no shares of DOT VN Preferred Stock are presently
issued and outstanding. DOT
VN
has not
granted, issued or agreed to grant, issue or make any warrants, options,
subscription rights or any other commitments of any character relating to the
issued or unissued shares of capital stock of DOT
VN
except
as set forth on Schedule
2.3
attached
hereto and made a part hereof.
2.18 Full
Disclosure.
No
representation or warranty by DOT
VN
in this
Agreement or in any document or schedule to be delivered by them pursuant
hereto, and no written statement, certificate or instrument furnished or to
be
furnished by DOT
VN
pursuant
hereto or in connection with the negotiation, execution or performance of this
Agreement contains or will contain any untrue statement of a material fact
or
omits or will omit to state any fact necessary to make any statement herein
or
therein not materially misleading or necessary to a complete and correct
presentation of all material aspects of the business of DOT
VN.
SECTION
3. REPRESENTATIONS AND WARRANTIES OF MALERS
AND MERGERCO
MALERS
hereby
represents and warrants as to itself and MERGERCO as follows:
3.1 Organization
and Good Standing. MALERS
is a
corporation duly organized, validly existing and in good standing under the
laws
of the State of Delaware. MERGERCO is a corporation duly organized and validly
existing under the laws of the State of Washington. Each has the corporate
power
to own its own property and to carry on its business as now being conducted
and
is duly qualified to do business in any jurisdiction where so required except
where the failure to so qualify would have no material negative
impact.
3.2 Corporate
Authority.
Each has
the corporate power to enter into this Agreement and to perform their respective
obligations hereunder. The execution and delivery of this Agreement and the
consummation of the transactions contemplated hereby have been duly authorized
by the Board of Directors of MALERS
as
required by Delaware law and the directors and shareholders of MERGERCO as
required by Washington law. The execution and performance of this Agreement
will
not constitute a material breach of any agreement, indenture, mortgage, license
or other instrument or document to which MALERS
is a
party and will not violate any judgment, decree, order, writ, rule, statute,
or
regulation applicable to MALERS
or its
properties. The execution and performance of this Agreement will not violate
or
conflict with any provision of the respective Articles of Incorporation or
Bylaws of MALERS
or
MERGERCO.
12
3.3 Capitalization;
Purchase of MALERS Shares by DOT VN Security Holders; MALERS Initial Financing
and Merger Shares.
(a) As
of the
date of this Agreement, MALERS is authorized to issue 90,000,000,000 shares
of
MALERS Common Stock, $0.000001 par value per share, and 10,000,000,000 shares
of
MALERS Preferred Stock, $0.000001 par value per share, of which (i) 278,687,224
shares of MALERS Common Stock and (ii) no shares of MALERS Preferred Stock
are
issued and outstanding. As at the date of this Agreement: (i) there are
approximately 165 shareholders of record, and approximately 7,000,000 shares
of
MALERS Common Stock are reserved for issuance pursuant to any convertible
securities, options or warrants. Prior to the Effective Time of the Merger,
MALERS shall effect a 2000-for-1 reverse stock split of its 278,687,224
outstanding shares of MALERS Common Stock so that the existing holders of MALERS
Common Stock, including the holders of publicly traded shares shall own an
aggregate of 139,344 shares of MALERS Common Stock.
(b) Immediately
after the Effective Time of the Merger, MALERS will amend its certificate of
incorporation in accordance with Exhibit
D
hereto,
to authorize for issuance an aggregate of 250,000,000 shares of MALERS Common
Stock, $0.001 par value per share, and 50,000,000 shares of MALERS Preferred
Stock, $0.001 par value per share, of which an aggregate of (i)
10,539,344 shares
of
MALERS Common Stock and (ii) no shares of Preferred Stock shall be issued and
outstanding immediately prior to the Effective Time of the Merger.
(c) Immediately
prior to the Effective Time of the Merger, DOT VN shall provide to MALERS
completed and executed copies of the Investor Questionnaire and the Stock
Subscription Agreement, for each of the DOT VN Security Holders named in
Schedule
2.3.
(d) There
are
no outstanding warrants, issued stock options, stock rights or other commitments
of any character relating to the issued or unissued shares of either Common
Stock or Preferred Stock of MALERS,
other
than those which are set forth in Section 3.3(e) below.
(e) At
the
Closing, the Merger Shares to be issued and delivered to the DOT
VN
Security
Holders hereunder will when so issued and delivered, constitute valid and
legally issued shares of MALERS
Common
Stock, fully paid and nonassessable. The Merger Shares issuable to such DOT
VN
Security Holders shall represent approximately 98% of the MALERS Fully-Diluted
Common Stock as at the Effective Time of the Merger.
3.4 MALERS
2005 Balance Sheet and Liabilities.
(a) Schedule
3.4
consists
of a statement of the assets and liabilities of MALERS as at December 31, 2005
(the “MALERS
2005 Balance Sheet”).
Except as set forth on the MALERS 2005 Balance Sheet or otherwise disclosed
on
Schedule
3.4,
since
July 1, 2006, MALERS has no other assets and has incurred no other liabilities,
debts or obligations, whether fixed, contingent or otherwise required to be
set
forth on a balance sheet prepared in accordance with GAAP. The books of account
and other financial records of MALERS
are in
all respects complete and correct in all material respects and are maintained
in
accordance with good business and accounting practices.
13
3.5 No
Material Adverse Changes.
Except
as set forth on Schedule
3.5
hereto,
since
June
15, 2006 there has not been:
(a) any
material adverse changes in the financial position of MALERS
except
changes arising in the ordinary course of business, which changes will in no
event materially and adversely affect the financial position of MALERS,
and
will be consistent with the representations made by MALERS
to
DOT
VN.
(b) any
damage, destruction or loss materially affecting the assets, prospective
business, operations or condition (financial or otherwise) of MALERS
whether
or not covered by insurance;
(c) any
declaration setting aside or payment of any dividend or distribution with
respect to any redemption or repurchase of MALERS
capital
stock;
(d) any
sale
of an asset (other than in the ordinary course of business) or any mortgage
pledge by MALERS
of any
properties or assets; or
(e) adoption
or modification of any pension, profit sharing, retirement, stock bonus, stock
option or similar plan or arrangement.
(f) except
in
the ordinary course of business, incurred or assumed any indebtedness or
liability, whether or not currently due and payable;
(g) any
loan
or advance to any shareholder, officer, director, employee, consultant, agent
or
other representative or made any other loan or advance otherwise than in the
ordinary course of business;
(h) any
material increase in the annual level of compensation of any executive employee
of MALERS;
(i) except
in
the ordinary course of business, entered into or modified any contract,
agreement or transaction, except as described in Schedule
3.5;
(x) issued
any equity securities or rights to acquire equity securities other than as
set
forth in Schedule
3.5.
3.6 Taxes. MALERS
has
timely filed all material tax, governmental and/or related forms and reports
(or
extensions thereof) due or required to be filed and has paid or made adequate
provisions for all taxes or assessments which have become due as of the Closing
Date, and there are no deficiencies outstanding.
14
3.7 Compliance
with Laws. MALERS
has
complied with all federal, state, county and local laws, ordinances,
regulations, inspections, orders, judgments, injunctions, awards or decrees
applicable to it or its business, which, if not complied with, would materially
and adversely affect the business of MALERS
or the
trading market for the MALERS
Shares
and specifically, and MALERS
has
complied with provisions for registration under the Securities Act of 1933
and
all applicable blue sky laws in connection with its public stock offering and
there are no outstanding, pending or threatened stop orders or other actions
or
investigations relating thereto.
3.8 Actions
and Proceedings. MALERS
is not a
party to any material pending litigation or, to its knowledge, any governmental
proceedings are threatened against MALERS,
except
as set forth on Schedule
3.8
attached
hereto and made a part hereof.
3.9 Access
to Records.
The
corporate financial records, minute books, and other documents and records
of
MALERS
have
been made available to DOT
VN
prior to
the Closing hereof.
3.10 No
Breach.
The
execution, delivery and performance of this Agreement and the consummation
of
the transactions contemplated hereby will not:
(a) violate
any provision of the Articles of Incorporation or Bylaws of MALERS;
(b) violate,
conflict with or result in the breach of any of the terms of, result in a
material modification of, otherwise give any other contracting party the right
to terminate, or constitute (or with notice or lapse of time or both constitute)
a default under, any contract or other agreement to which MALERS
is a
party or by or to which it or any of its assets or properties may be bound
or
subject;
(c) violate
any order, judgment, injunction, award or decree of any court, arbitrator or
governmental or regulatory body against, or binding upon, MALERS
or upon
the securities, properties or business to MALERS;
or
(d) violate
any statute, law or regulation of any jurisdiction applicable to the
transactions contemplated herein.
3.11 Brokers
or Finders.
No
broker's or finder's fee will be payable by MALERS
in
connection with the transactions contemplated by this Agreement, nor will any
such fee be incurred as a result of any actions of MALERS.
3.12 Authority
to Execute and Perform Agreements. MALERS
has the
full legal right and power and all authority and approval required to enter
into, execute and deliver this Agreement and to perform fully its obligations
hereunder. This Agreement has been duly executed and delivered and is the valid
and binding obligation of MALERS
enforceable in accordance with its terms, except as may be limited by
bankruptcy, moratorium, insolvency or other similar laws generally affecting
the
enforcement of creditors' rights. The execution and delivery of this Agreement
and the consummation of the transactions contemplated hereby and the performance
by MALERS
of this
Agreement, in accordance with its respective terms and conditions will
not:
(a) require
the approval or consent of any governmental or regulatory body or the approval
or consent of any other person;
15
(b) conflict
with or result in any breach or violation of any of the terms and conditions
of,
or constitute (or with any notice or lapse of time or both would constitute)
a
default under, any order, judgment or decree applicable to MALERS,
or any
instrument, contract or other agreement to which MALERS
is a
party or by or to which MALERS
is bound
or subject; or
(c) result
in
the creation of any lien or other encumbrance on the assets or properties of
MALERS.
3.13 Full
Disclosure.
No
representation or warranty by MALERS
in this
Agreement or in any document or schedule to be delivered by them pursuant
hereto, and no written statement, certificate or instrument furnished or to
be
furnished by MALERS
pursuant
hereto or in connection with the negotiation, execution or performance of this
Agreement contains or will contain any untrue statement of a material fact
or
omits or will omit to state any fact necessary to make any statement herein
or
therein not materially misleading or necessary to complete and correct
presentation of all material aspects of the business of MALERS.
SECTION
4. CONDITIONS PRECEDENT
4.1 Conditions
Precedent to the Obligation of DOT
VN.
All
obligations of DOT
VN
and the
DOT VN Security Holders under this Agreement are subject to the fulfillment,
prior to or as of the Closing Date, as indicated below, of each of the following
conditions (any one of which may be waived at Closing by DOT VN):
(a) The
representations and warranties by or on behalf of MALERS
contained in this Agreement or in any certificate or document delivered pursuant
to the provisions hereof shall be true in all material respects at and as of
Closing Date as though such representations and warranties were made at and
as
of such time.
(b) MALERS
shall
have performed and complied in all material respects, with all covenants,
agreements, and conditions set forth in, and shall have executed and delivered
all documents required by this Agreement to be performed or complied with or
executed and delivered by them prior to or at the Closing.
(c) On
the
Closing Date, an executive officer of MALERS shall have delivered to DOT VN
a
certificate, duly executed by such Person and certifying, that to the best
of
such Person’s knowledge and belief, the representations and warranties of MALERS
set forth in this Agreement are true and correct in all material
respects.
16
(d) On
or
before the Closing, the Board of Directors and the shareholders of MALERS
shall
have approved, in accordance with Delaware law, the execution, delivery and
performance of this Agreement and the consummation of the transaction
contemplated herein and authorized all of the necessary and proper action to
enable MALERS
to
comply with the terms of the Agreement.
(e) The
Merger shall be permitted by Washington, California and Delaware law and
MALERS
shall
have sufficient shares of MALERS
Common
Stock authorized to complete the Merger.
(f) At
the
Closing, all instruments and documents delivered to DOT
VN
and the
Shareholders pursuant to provisions hereof shall be reasonably satisfactory
to
legal counsel for DOT
VN.
(g) The
Merger Shares to be issued to the Shareholders of DOT
VN
at
Closing will be validly issued, nonassessable and fully paid under the DCC
and
will be issued in a non-public offering and exempt merger transaction in
compliance with all federal and state securities laws, bearing a restrictive
legend, as is more fully set forth herein.
4.2 Conditions
Precedent to the Obligations of MALERS.
All
obligations of MALERS
under
this Agreement are subject to the fulfillment, prior to or at Closing, of each
of the following conditions (any one of which may be waived at Closing by
MALERS):
(a) The
representations and warranties by DOT
VN
contained in this Agreement or in any certificate or document delivered pursuant
to the provisions hereof shall be true in all material respects at and as of
the
Closing as though such representations and warranties were made at and as of
such time;
(b) DOT
VN
and the
DOT VN Security Holders shall have performed and complied with, in all material
respects, with all covenants, agreements, and conditions set forth in, and
shall
have executed and delivered all documents required by this Agreement to be
performed or complied or executed and delivered by them prior to or at the
Closing;
(c) On
the
Closing Date, one of the DOT VN Principal Executive Officers shall have
delivered to MALERS a certificate, duly executed by such Person and certifying,
that to the best of such Person’s knowledge and belief, the representations and
warranties of DOT VN set forth in this Agreement are true and correct in all
material respects.
(d) The
holders of a majority of the issued and outstanding shares of DOT VN Common
Stock shall have approved, ratified and confirmed this Agreement, the Merger
and
all of the transactions contemplated hereby, all in accordance with applicable
Washington, California and Delaware law.
17
SECTION
5. COVENANTS
5.1 Corporate
Examinations and Investigations.
Prior to
the Closing Date, the parties acknowledge that they have been entitled, through
their employees and representatives, to make such investigation of the assets,
properties, business and operations, books, records and financial condition
of
the other as they each may reasonably require. No investigations, by a party
hereto shall, however, diminish or waive any of the representations, warranties,
covenants or agreements of the party under this Agreement.
5.2 Further
Assurances.
The
parties shall execute such documents and other papers and take such further
actions as may be reasonably required or desirable to carry out the provisions
hereof and the transactions contemplated hereby. Each such party shall use
its
best efforts to fulfill or obtain the fulfillment of the conditions to the
Closing, including, without limitation, the execution and delivery of any
documents or other papers, the execution and delivery of which are necessary
or
appropriate to the Closing.
5.3 Confidentiality.
In the
event the transactions contemplated by this Agreement are not consummated,
MALERS,
DOT
VN and
the
DOT VN Principal Executive Officers agree to keep confidential any information
disclosed to each other in connection therewith for a period of three (3) years
from the date hereof; provided, however, such obligation shall not apply to
information which:
(i)
|
at
the time of the disclosure was public
knowledge;
|
(ii)
|
is
required to be disclosed publicly pursuant to any applicable Federal
or
state securities laws;
|
(iii)
|
after
the time of disclosure becomes public knowledge (except due to the
action
of the receiving party);
|
(iv)
|
the
receiving party had within its possession at the time of disclosure;
or
|
(v) is
ordered disclosed by a Court of proper jurisdiction.
5.4 Stock
Certificates.
Within
thirty (30) days of the Closing, the DOT VN Security Holders shall have
delivered the certificates representing the DOT VN Securities duly endorsed
(or
with executed stock powers) so as to make MALERS
the sole
owner thereof. Further, within thirty (30) days of such Closing, MALERS
shall
issue to the DOT VN Security Holders the Merger Shares.
5.6 Filing
of Certificate of Merger.
The
Articles of Merger shall have been filed in the office of the Secretaries of
State for the States of Washington and California.
18
5.7 Board
of Directors. The
initial board of directors of MALERS and its DOT VN subsidiary subsequent to
the
Merger shall consist of the following two (2) directors: (i) Xxx Xxxxxxx; and
(ii) Xxxxxx Xxxxxxx. Such initial members of the board of directors shall serve
until the earlier of their death, resignation or removal or until the next
annual meeting of the stockholders of MALERS, when their respective successors
are duly appointed and qualified. The officers of MALERS subsequent to the
Merger shall be the current officers of DOT VN. Subject
to the observance of their fiduciary duties, two (2) of the current members
of
the DOT VN Board of Directors shall continue to serve as members of the Board
of
Directors of DOT VN and MALERS for not less than one hundred and eighty (180)
days following the Effective Date of the Merger. On
or
prior to the date on which MALERS’ Common Stock shall be traded on the NASD
OTC-Bulletin Board or another national securities exchange, two (2) additional
persons acceptable to DOT VN shall be added as independent directors (as defined
in the Sarbanes Oxley Act of 2002 or rules of the stock exchange on which MALERS
trades, including a financial expert).
5.8 Indemnification
of Officers and Directors. It
is the
intention of the Parties that MALERS and DOT VN shall indemnify its officers
and
directors to the fullest extent permitted by Delaware, California and Washington
law, as applicable. In such connection, the Parties agree not to amend the
Certificates of Incorporation or Bylaws of either MALERS or DOT VN if such
amendment shall have the effect of reducing, terminating or otherwise adversely
affecting the indemnification rights and privileges applicable to officers
and
directors of each of MALERS and DOT VN, as the same are in effect immediately
prior to the Effective Time of the Merger.
SECTION
6. SURVIVAL OF REPRESENTATIONS AND WARRANTIES
Notwithstanding
any right of either party to investigate the affairs of the other party and
its
Shareholders, each party has the right to rely fully upon representations,
warranties, covenants and agreements of the other party and its Shareholders
contained in this Agreement or in any document delivered to one by the other
or
any of their representatives, in connection with the transactions contemplated
by this Agreement. All such representations, warranties, covenants and
agreements shall survive the execution and delivery hereof and the closing
hereunder for three (3) years following the Closing.
SECTION
7. DOCUMENTS AT CLOSING AND THE CLOSING
7.1 Documents
at Closing
At the
Closing, the following transactions shall occur, all of such transactions being
deemed to occur simultaneously:
(a) DOT
VN
will
deliver, or will cause to be delivered, to MALERS
the
following:
(i) a
certificate executed by the President and Secretary of DOT
VN
to the
effect that all representations and warranties made by DOT
VN
under
this Agreement are true and correct as of the Closing, the same as though
originally given to MALERS
on said
date;
19
(ii) a
certificate from the State of California dated at or about the Closing to the
effect that DOT
VN is
validly existing under the laws of said State;
(iii) stock
certificates representing those shares of DOT
VN to
be
cancelled and exchanged for the Merger Shares.
(iv) all
other
items, the delivery of which is a condition precedent to the obligations of
MALERS,
as set
forth in Section 4.
(b) MALERS
will
deliver or cause to be delivered to DOT
VN and
the
DOT
VN
Security
Holders:
(i) a
certificate from MALERS executed
by the President or Secretary of MALERS,
to the
effect that all representations and warranties of MALERS made
under this Agreement are true and correct as of the Closing, the same as though
originally given to DOT
VN on
said
date;
(ii) certified
copies of resolutions by MALERS
Board of
Directors authorizing this transaction;
(iii) certificates
from the Delaware Secretary of State dated at or about the Closing Date that
MALERS is
in
good standing under the laws of said State; and
(iv) all
other
items, the delivery of which is a condition precedent to the obligations of
DOT
VN, as
set
forth in Section 4 hereof.
SECTION
8. MISCELLANEOUS
8.1 Waivers.
The
waiver of a breach of this Agreement or the failure of any party hereto to
exercise any right under this Agreement shall in no way constitute waiver as
to
future breach whether similar or dissimilar in nature or as to the exercise
of
any further right under this Agreement.
8.2 Amendment.
This
Agreement may be amended or modified only by an instrument of equal formality
signed by the parties or the duly authorized representatives of the respective
parties.
8.3 Assignment.
This
Agreement is not assignable except by operation of law.
8.4 Notice.
Until
otherwise specified in writing, the mailing addresses and fax numbers of the
parties of this Agreement shall be as follows:
20
To:
MALERS
and MERGERCO:
MALERS,
Inc.
000X
Xxxxx Xxxxxx, #000
Xxx
Xxxxxx, XX 00000
Attn:
Xxx
Xxx,
President and Director
To:
DOT
VN and the DOT VN Principal Executive Officers:
0000
Xxxxxx Xxxxxx, Xxxxx 000
Xxx
Xxxxx, XX 00000
Attn:
Xxx
Xxxxxxx, President and Director
cc:
Xxxxx
X.
Xxxx, Esq.
The
Xxxx
Law Group, PLLC
000
Xxxxx
Xxxxxx, Xxxxx 0000
Xxxxxxx,
XX 00000
Any
notice or statement given under this Agreement shall be deemed to have been
given if sent by registered mail addressed to the other party at the address
indicated above or at such other address which shall have been furnished in
writing to the addressor.
8.5 Governing
Law.
This
Agreement shall be construed, and the legal relations between the parties
determined, in accordance with the laws of the State of California, thereby
precluding any choice of law rules which may direct the application of the
laws
of any other jurisdiction.
8.6 Arbitration.
The
parties hereby agree that any dispute or cause of action arising under this
Agreement shall be settled by arbitration conducted by one arbitrator. The
arbitrator shall be acceptable to both DOT VN and MALERS. If an arbitrator
cannot be agreed upon as provided in the preceding sentence, an arbitrator
will
be appointed by Judicial Dispute Resolution, LLC, in Seattle, Washington.
The arbitrator shall set a limited time period and establish procedures designed
to reduce the cost and time for discovery while allowing the parties an
opportunity, adequate in the sole judgment of the arbitrator, to discover
relevant information from the opposing parties about the subject matter of
the
dispute. The arbitrator shall rule upon motions to compel or limit
discovery and shall have the authority to impose sanctions, including attorneys’
fees and costs, to the same extent as a court of competent law or equity, should
the arbitrator determine that discovery was sought without substantial
justification or that discovery was refused or objected to without substantial
justification. The decision of the arbitrator shall be written, shall be
in accordance with applicable law and with this Agreement, and shall be
supported by written findings of fact and conclusion of law which shall set
forth the basis for the decision of the arbitrator. Any such arbitration
shall be held exclusively in King County, Washington.
21
8.7 Publicity.
No
publicity release or announcement concerning this Agreement or the transactions
contemplated hereby shall be issued by either party hereto at any time from
the
signing hereof without advance approval in writing of the form and substance
by
the other party.
8.8 Entire
Agreement.
This
Agreement (including the Exhibits and Schedules to be attached hereto) and
the
collateral agreements executed in connection with the consummation of the
transactions contemplated herein contain the entire agreement among the parties
with respect to the transactions contemplated hereby, and supersedes all prior
agreements, written or oral, with respect hereof.
8.9 Headings.
The
headings in this Agreement are for reference purposes only and shall not in
any
way affect the meaning or interpretation of this Agreement.
8.10 Severability
of Provisions.
The
invalidity or unenforceability of any term, phrase, clause, paragraph,
restriction, covenant, agreement or provision of this Agreement shall in no
way
affect the validity or enforcement of any other provision or any part
thereof.
8.11 Counterparts.
This
Agreement may be executed in any number of counterparts, each of which when
so
executed, shall constitute an original copy hereof, but all of which together
shall consider but one and the same document.
8.12 Binding
Effect.
This
Agreement shall be binding upon the parties hereto and inure to the benefit
of
the parties, their respective heirs, administrators, executors,
successors
and assigns.
8.13 Press
Releases.
The
parties will mutually agree as to the wording and timing of any informational
releases concerning this transaction prior to and through Closing.
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IN
WITNESS WHEREOF, the
parties have executed this Agreement on the date first above
written.
MALERS,
INC.
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||
a
Delaware corporation
|
||
|
|
|
By: | /s/ Xxx Xxx | |
Xxx Xxx, President |
MALERS
ACQUISITION CORP
a
Washington corporation
|
||
|
|
|
By: | /s/ Xxx Xxx | |
Xxx Xxx, President |
a
California corporation
|
||
|
|
|
By: | /s/ Xxx Xxxxxxx | |
Xxx Xxxxxxx, President |
23
EXHIBITS
A |
Certificate
of Merger
|
B |
Investor
Questionnaire
|
C |
Subscription
Agreement
|
D |
Restated
MALERS Certificate of Incorporation
|
E |
Restated
MALERS Bylaws
|
SCHEDULES
1.1 |
Merger
Exchange Shares List
|
DOT
VN
Schedules
2.1
|
DOT
VN
Warrants and Options currently in
existence
|
2.3
|
DOT
VN Security Holders
|
2.4
|
DOT
VN
Financial Statements
|
2.6
|
DOT
VN Material Adverse Changes
|
2.8 |
DOT
VN Legal Compliance
|
2.10
|
DOT
VN
Claims, Litigation, Government actions
pending
|
2.11
|
DOT
VN
Significant Contracts
|
2.13
|
DOT
VN
List of Real Estate Owned and List of Leases.
|
2.14
|
DOT
VN
List of exceptions to the Tangible Assets on balance
sheets.
|
2.15
|
DOT
VN
List of undisclosed Liabilities
|
2.16
|
DOT
VN Disposed Assets
|
MALERS
Schedules
3.4 |
MALERS
Financial Statements
|
3.5
|
List
of transactions of MALERS
for contracts and in which stock has been issued or
committed
|
3.8 |
MALERS
List of Pending Actions not disclosed in financial
statements
|
24