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AGREEMENT AND PLAN OF
MERGER
by and among
Advanced Green Materials,
Inc.
AGM Acquisition
Corp.
and
Ubrandit.com
Dated February 8,
2007
AGREEMENT AND PLAN OF
MERGER
Agreement and Plan of Merger dated as
of February 8, 2007 (the " Agreement ") by and among
Ubrandit.com, a corporation formed under the laws of the State of
Nevada (" Ubrandit "), AGM Acquisition Corp., a corporation
newly formed under the laws of the State of Nevada and a wholly
owned subsidiary of Ubrandit (the " Merger Sub "),
Advanced Green Materials, Inc., a corporation formed under
the laws of the State of Nevada ("A GM "), and the Ming
Liu , the majority shareholder of Ubrandit (" Principal
Shareholder "). Each of Ubrandit, the Merger Sub, AGM and
the Principal Shareholder is referred to herein individually as a "
Party " and all are referred collectively as the "
Parties ."
PREAMBLE
WHEREAS , Ubrandit and AGM have
determined that a business combination between them is advisable
and in the best interests of their respective companies and
stockholders, and presents an opportunity for their respective
companies to achieve long-term strategic and financial
benefits;
WHEREAS , Ubrandit has proposed to
acquire AGM pursuant to a merger transaction whereby, pursuant to
the terms and subject to the conditions of this Agreement, AGM
shall become a wholly owned subsidiary of Ubrandit through the
merger of AGM with and into the Merger Sub (the " Merger ");
and
WHEREAS , in the Merger all issued and
outstanding shares of capital stock of AGM held by the stockholders
of AGM (the " AGM Stockholders ") shall be cancelled and
converted into the right to receive 272,250 shares of Series A
Convertible Preferred Stock of Ubrandit, $0.001 par value per
share, which Shares shall represent 98% of the voting power of the
issued and outstanding capital stock of Ubrandit after the merger
(the " Merger Shares ").
NOW, THEREFORE , in consideration of
the premises and the mutual covenants, representations and
warranties contained herein, the Parties, intending to be legally
bound, hereby agree as follows:
CERTAIN
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,
the Parties and/or their respective subsidiaries.
"Knowledge" means, in the case of a
corporation, a particular fact or other matter of which its
President is actually aware or which a prudent individual could be
expected to discover or otherwise become aware of in the course of
conducting a reasonable review or investigation of the corporation
and its business and affairs.
" Lien " means, with respect to any
property or asset, any mortgage, lien, pledge, charge, security
interest, claim, encumbrance, royalty interest, any other adverse
claim of any kind in respect of such property or asset, or any
other restrictions or limitations of any nature
whatsoever.
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" 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 whole.
"NRS" means the Nevada Revised
Statutes.
" Person " means any individual,
corporation, partnership, trust or unincorporated organization or a
government or any agency or political subdivision
thereof.
" Surviving Entity " shall mean AGM as the
surviving entity in the Merger as provided in Section
1.03.
" 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
(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.
ARTICLE I
THE MERGER
SECTION 1.01
THE MERGER.
Upon the terms and subject to the conditions set
forth in this Agreement and in accordance with the NRS, at
the Effective Time (as hereinafter defined), all AGM Shares (as
hereinafter defined) shall be cancelled and converted into the
right to receive the Merger Shares. In connection therewith,
the following terms shall apply:
(a)
Filing of COD. Prior to the Closing, Ubrandit shall
file with the Secretary of State of Nevada a Certificate of
Designation of Series A Convertible Preferred Stock ( the
"Series A Convertible Shares") in the form annexed hereto as
Appendix A .
(b)
Exchange Agent . Robert Brantl, counsel for
Ubrandit, shall act as the exchange agent (the " Exchange
Agent ") for the purpose of exchanging AGM Shares for the
Merger Shares. At or prior to the Closing, Ubrandit
shall deliver to the Exchange Agent the Merger Shares.
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(c)
Conversion of Securities .
(i)
Conversion of AGM Securities . At the Effective
Time, by virtue of the Merger and without any action on the part of
Ubrandit, AGM or the Merger Sub, or the holders of any of their
respective securities:
(A)
Each of the issued and outstanding shares of common stock of AGM
(the " AGM Shares ") immediately prior to the Effective Time
shall be converted into and represent the right to receive, and
shall be exchangeable for, one (1) Series A Preferred Share of
Ubrandit.
(B)
All AGM Shares 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 shares shall
cease to have any rights with respect thereto, except the right to
receive the Merger Shares to be issued pursuant to this Section
1.01(c)(i) upon the surrender of such certificate in accordance
with Section 1.07, without interest.
(C)
The Merger Shares shall represent 98% of the voting power of the
outstanding capital stock of Ubrandit, at the Effective Time after
giving effect to the Merger.
(ii)
Conversion of Merger Sub Stock . At the Effective
Time, by virtue of the Merger and without any action on the part of
AGM, Ubrandit, the Merger Sub, or the holders of any of their
respective securities, each share of capital stock of Merger Sub
outstanding immediately prior to the Effective Time shall be
converted into one share of the common stock of the Surviving
Entity and the shares of common stock of the Surviving Entity so
issued in such conversion shall constitute the only outstanding
shares of capital stock of the Surviving Entity and the Surviving
Entity shall be a wholly owned subsidiary of Ubrandit.
(d)
Exemption from Registration . The Parties intend
that the issuance of the Merger Shares to the AGM Stockholders
shall be exempt from the registration requirements of the
Securities Act pursuant to Section 4(2) of the Securities Act and
the rules and regulations promulgated thereunder.
SECTION 1.02
CLOSING.
The closing of the Merger (the " Closing
") will take place at the offices of Sino-American Capital Group,
LLC, 41-40 Union Street, Suite 6J, Flushing, NY within one
(1) business day following the satisfaction or waiver of the
conditions precedent set forth in Article V or at such other date
as Ubrandit and AGM shall agree (the " Closing Date "), but
in any event no later than February 12, 2007 unless extended by a
written agreement of Ubrandit and AGM.
SECTION 1.03
MERGER; EFFECTIVE TIME.
At the Effective Time and subject to and upon the
terms and conditions of this Agreement, Merger Sub shall, and
Ubrandit shall cause Merger Sub to, merge with and into AGM in
accordance with the provisions of the NRS, the separate corporate
existence of Merger Sub shall cease and AGM shall continue as the
Surviving Entity. The Effective Time shall occur upon the
filing with the Secretary of State of the State of Nevada of a
Certificate of Merger (the " Certificate of Merger ")
executed in accordance with the applicable provisions of the NRS
(the " Effective Time "). The date on which the
Effective Time occurs is referred to as the " Effective Date
." Provided that this Agreement has not been terminated
pursuant to Article VI, the Parties will cause the Certificate of
Merger to be filed as soon as practicable after the
Closing.
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SECTION 1.04
EFFECT OF THE MERGER.
The Merger shall have the effect set forth in
Section 92A.250 of the NRS. Without limiting the generality
of the foregoing, and subject thereto, at the Effective Time, all
the properties, rights, privileges, powers and franchises of AGM
and Merger Sub shall vest in the Surviving Entity, and all debts,
liabilities and duties of AGM and Merger Sub shall become the
debts, liabilities and duties of the Surviving Entity.
SECTION 1.05
CERTIFICATE OF INCORPORATION AND BYLAWS; DIRECTORS AND
OFFICERS.
Pursuant to the Merger:
(a)
The Articles of Incorporation and Bylaws of AGM as in effect
immediately prior to the Effective Time shall be the Articles of
Incorporation and Bylaws of the Surviving Entity immediately
following the Merger.
(b)
The directors and officers of AGM immediately prior to the
Merger shall be the directors and officers of the Surviving Entity
subsequent to the Merger.
SECTION 1.06
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) Ubrandit receives an opinion of counsel for the
stockholders, reasonably satisfactory to counsel for Ubrandit, that
an exemption from the registration requirements of the Securities
Act is available.
The certificates representing the Merger Shares
which are being issued to the AGM Stockholders 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
UBRANDIT.COM RECEIVES AN OPINION OF COUNSEL FOR THE HOLDER
REASONABLY SATISFACTORY TO COUNSEL FOR UBRANDIT.COM THAT AN
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF SUCH ACT IS
AVAILABLE."
SECTION 1.07
EXCHANGE OF CERTIFICATES.
(a)
Exchange of Certificates . After the Effective
Time, the AGM Stockholders shall be required to surrender all their
AGM Shares to the Exchange Agent, and the AGM Stockholders shall be
entitled upon such surrender to receive in exchange therefor
certificates representing the proportionate number of Merger Shares
into which the AGM Shares theretofore represented by the
certificates so surrendered shall have been exchanged pursuant to
this Agreement. Until so surrendered, each outstanding
certificate that, prior to the Effective Time, represented AGM
Shares shall be deemed for all corporate purposes, subject to the
further provisions of this Article I, to evidence the ownership of
the number of Merger Shares for which such AGM Shares have been so
exchanged. No dividend payable to
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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 AGM
Shares, until such certificate or certificates representing all the
relevant AGM Shares, 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.
(b)
Full Satisfaction of Rights . All Merger Shares for
which the AGM Shares 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 AGM Shares.
(c)
Exchange of Certificates . All certificates
representing AGM Shares converted into the right to receive Merger
Shares pursuant to this Article I shall be furnished to Ubrandit
subsequent to delivery thereof to the Exchange Agent pursuant to
this Agreement.
(d)
Closing of Transfer Books . On the Effective Date,
the stock transfer book of AGM shall be deemed to be closed and no
transfer of AGM Shares shall thereafter be recorded thereon.
ARTICLE II
REPRESENTATIONS AND WARRANTIES OF UBRANDIT
AND THE PRINCIPAL SHAREHOLDER
Ubrandit and the Principal Shareholder, and,
where applicable, the Merger Sub, hereby jointly and severally
represent and warrant to AGM, as of the date of this Agreement and
as of the Effective Time, as follows:
SECTION 2.01
ORGANIZATION, STANDING AND POWER.
Ubrandit is a company duly incorporated, validly
existing and in good standing under the laws of the State of Nevada
and has corporate power and authority to conduct its business as
presently conducted by it and to enter into and perform this
Agreement and to carry out the transactions contemplated by this
Agreement. Merger Sub is a company duly incorporated, validly
existing and in good standing under the laws of the State of Nevada
and has corporate power and authority to enter into and perform
this Agreement and to carry out the transactions contemplated by
this Agreement. Ubrandit has not engaged in any business
activities since January, 2002 other than negotiation of potential
acquisitions, and has no property or assets. Other than its
ownership of the Merger Sub, Ubrandit does not have an ownership
interest in any Person. Merger Sub is a recently formed
corporation and prior to the date hereof and through the Effective
Date, Merger Sub has not and shall not conduct any operating
business, become a party to any agreements, or incur any
liabilities or obligations.
SECTION 2.02
CAPITALIZATION.
(a)
There are 120,000,000 shares of capital stock of Ubrandit
authorized, consisting of 100,000,000 shares of common stock,
$0.001 par value per share (the " Ubrandit Common Shares ")
and 20,000,000 shares of preferred stock, $0.001 per share ("
Ubrandit Preferred Shares") . As of the date of
this Agreement, there are 69,092,790 Ubrandit Common Shares issued
and outstanding.
(b)
The Principal Shareholder owns of record and beneficially
50,000,000 Ubrandit Common Shares. No Ubrandit Common Shares
or Ubrandit Preferred Shares have been reserved for issuance to any
Person, and there are no other outstanding rights, warrants,
options or agreements for the purchase or exchange of Ubrandit
Common or Preferred Shares except as provided in this
Agreement.
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(c)
All outstanding Ubrandit Common Shares are validly issued, fully
paid, non-assessable, not subject to pre-emptive rights and have
been issued in compliance with all state and federal securities
laws or other Applicable Law. The Merger Shares issuable to
the AGM Stockholders will, when issued pursuant to this Agreement,
be duly and validly authorized and issued, fully paid and
non-assessable.
SECTION 2.03
AUTHORITY FOR AGREEMENT.
The execution, delivery, and performance of this
Agreement by each of Ubrandit and Merger Sub has been duly
authorized by all necessary corporate and shareholder action, and
this Agreement, upon its execution by the Parties, will constitute
the valid and binding obligation of each of Ubrandit and Merger Sub
enforceable against each of them in accordance with and subject to
its terms, except as enforceability may be affected by bankruptcy,
insolvency or other laws of general application affecting the
enforcement of creditors' rights. The execution and
consummation of the transactions contemplated by this Agreement and
compliance with its provisions by Ubrandit and Merger Sub will not
violate any provision of Applicable Law and will not conflict with
or result in any breach of any of the terms, conditions, or
provisions of, or constitute a default under, Ubrandit's Articles
of Incorporation, Merger Sub’s Articles of Incorporation, or
either of their Bylaws, in each case as amended, or, in any
material respect, any indenture, lease, loan agreement or other
agreement or instrument to which Ubrandit is a party or by which it
or any of its properties are bound, or any decree, judgment, order,
statute, rule or regulation applicable to Ubrandit or Merger Sub.
SECTION 2.04
ABSENCE OF CERTAIN CHANGES OR EVENTS .
Since the filing of Ubrandit’s most recent
annual report on September 30, 2006:
(a)
there has not been any Material Adverse Change in the business,
operations, properties, assets, or condition of Ubrandit;
(b)
Ubrandit has not (i) amended its Articles of Incorporation;
(ii) declared or made, or agreed to declare or make, any
payment of dividends or distributions of any assets of any kind
whatsoever to stockholders or purchased or redeemed, or agreed to
purchase or redeem, any outstanding capital stock; (iii) made any
material change in its management or method of operation or
accounting, other than the change in control described in the
Current Report filed with the Securities and Exchange Commission ("
SEC ") on November 7, 2006; (iv) entered into any material
transaction; or (v) made any accrual or arrangement for payment of
bonuses or special compensation of any kind or any severance or
termination pay to any present or former officer or employee.
SECTION 2.05
GOVERNMENTAL AND THIRD PARTY CONSENTS
No consent, waiver, approval, order or
authorization of, or registration, declaration or filing with, any
court, administrative agency or commission or other federal, state,
county, local or other foreign governmental authority,
instrumentality, agency or commission or any third party, including
a party to any agreement with Ubrandit or Merger Sub, is required
by or with respect to Ubrandit or Merger Sub in connection with the
execution and delivery of this Agreement or the consummation of the
transactions contemplated hereby, except for such consents,
waivers, approvals, orders, authorizations, registrations,
declarations and filings as may be required under (i) applicable
securities laws, or (ii) the NRS.
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SECTION 2.06
LITIGATION
There is no action, suit, investigation, audit or
proceeding pending against, or to the Knowledge of Ubrandit or the
Principal Shareholder, threatened against or affecting, Ubrandit or
any of its assets or properties before any court or arbitrator or
any governmental body, agency or official.
SECTION 2.07
INTERESTED PARTY TRANSACTIONS
Ubrandit is not indebted to any officer or
director of Ubrandit, and no such person is indebted to
Ubrandit.
SECTION 2.08
COMPLIANCE WITH APPLICABLE LAWS.
To the Knowledge of Ubrandit and the Principal
Shareholder, the business of each of Ubrandit and Merger Sub has
not been, and is not being, conducted in violation of any
Applicable Law.
SECTION 2.09
TAX RETURNS AND PAYMENT
Ubrandit has duly and timely filed all material
Tax Returns required to be filed by it and has duly and timely paid
all Taxes shown thereon to be due. Except as disclosed in the
reports filed from time to time with the SEC, there is no material
claim for Taxes that is a Lien against the property of Ubrandit
other than Liens for Taxes not yet due and payable, none of which
is material. Ubrandit has not received written notification
of any audit of any Tax Return of Ubrandit being conducted or
pending by a Tax authority where an adverse determination could
have a Material Adverse Effect on Ubrandit, no extension or waiver
of the statute of limitations on the assessment of any Taxes has
been granted by Ubrandit which is currently in effect, and Ubrandit
is not a party to any agreement, contract or arrangement with any
Tax authority or otherwise, which may result in the payment of any
material amount.
SECTION 2.10
UBRANDIT PUBLIC FILINGS
Ubrandit is a fully compliant reporting company
under the Securities Exchange Act of 1934, as amended (the "
Exchange Act "), and all Ubrandit public filings required
under the Exchange Act have been made. All public filings by
Ubrandit under the Exchange Act are true, correct and complete in
all material respects, are not misleading and do not omit to state
any material fact which is necessary to make the statements
contained in such public filings not misleading in any material
respect. To the Knowledge of Ubrandit and the Principal
Shareholder, Ubrandit has not been threatened or is not subject to
removal of its common stock from the OTC Bulletin Board.
SECTION 2.11
UBRANDIT AGREEMENTS
Ubrandit is not a party to any
material
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